New study guide for national mortgage broker exam

Pat  O'Connor has just published the second edition of "The SAFE Mortgage Loan Originator National Exam Study Guide". It's available in both Kindle and paperback formats and contains over 400 questions and answers. It's available for sale on Amazon at http://amazon.com/author/patriciaoconnor

Coral Springs Real Estate Classes

The Veritas Real Estate Group is offering the pre-licensing sales associate class in Coral Springs on two different schedules.

All day Sunday classes run from 9 am - 7 pm for six weeks or M/W/F evening classes from 5:30 - 10:30 for 4 weeks.

Sunday class starts January 5, 2014.
T/Th class starts January 7, 2014

This is the mandatory class the students need to obtain a real estate license.

Courses cost $400 and include the textbook. A free study manual is given students when they pass the class exam.

Please register for classes at http;//veritasrealestategroup.com  On-line classes are also available.

Wish Book: Fort Lauderdale family takes in seven siblings after parents abandon them - Wish Book - MiamiHerald.com

Wish Book: Fort Lauderdale family takes in seven siblings after parents abandon them - Wish Book - MiamiHerald.com

Broward existing home sales drop, prices rise

Broward existing home sales drop, prices rise - Business - MiamiHerald.com

FORT LAUDERDALE, Fla., Oct. 24, 2013: Fort Lauderdale's il Lugano Hotel Ranked in Condé Nast Traveler's Readers' Choice List - Travel - MiamiHerald.com

FORT LAUDERDALE, Fla., Oct. 24, 2013: Fort Lauderdale's il Lugano Hotel Ranked in Condé Nast Traveler's Readers' Choice List - Travel - MiamiHerald.com

14 housing markets flooded with foreclosures | 2013-10-14 | HousingWire

14 housing markets flooded with foreclosures | 2013-10-14 | HousingWire

Stop paying Congressman

Stop paying Congressman. Why should we pay these elected officials when most of the other government employees are not being paid? What can the public do to change the rules for the rule makers? This isn't right. If they aren't being paid, maybe they'll grow up.

Can the public force redistricting so that it's not gerry-rigged to allow these redneck, stupid and irresponsible people to stay in office no matter what they do? This isn't democracy; it's a bastardization of the system.

FL homeowners flock to principal reduction program | 2013-09-30 | HousingWire

FL homeowners flock to principal reduction program | 2013-09-30 | HousingWire

Chase has the highest mortgage application rejection rate in 2012

If you're in the market for a loan, you might want to have a few backup banks on your list.  According to the Federal Financial Institutions Examination Council, Chase had the highest rejection rate of the big banks at 34% in and SunTrust had the lowest rejection rate at 11%.

Follow the link to see how the lenders stack up.  http://www.marketwatch.com/story/the-bank-that-rejects-the-most-mortgages-2013-09-25

Broward County Real Estate Classes

The Veritas Real Estate Group is offering the pre-licensing sales associate class in Coral Springs on two different schedules.

All day Sunday classes run from 9 am - 7 pm for six weeks or M/W/F evening classes from 5:30 - 10:30 for 4 weeks.

Sunday class starts September 29, 2013.
M/W/F class starts October 14, 2013

This is the mandatory class the students need to obtain a real estate license.

Courses cost $400 and include the textbook. A free study manual is given students when they pass the class exam.

Please register for classes at http;//veritasrealestategroup.com

How a 1031 Exchange Increases an Investor's Rate of Return

Learn the basics of a 1031 Like-Kind Exchange and indefinitely defer paying capital gains tax. The different types of exchanges and the use of a qualified intermediary are also discussed.

Using Retirement Funds to Purchase Real Estate

Clear explanation of how a contributor can use IRA and 401(k) funds to purchase real estate or assist with closing costs. Differences between traditional and Roth accounts are presented. The video also discusses first-time homeowner programs and 401(k) loans. Learn how a self-directed plan allows you to invest in real estate rather than stocks and bonds




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Broward Real Estate Classes

A new session of Broward County real estate classes start on September 8, 2013 in Coral Springs. This Sales Associate Pre-Licensing course is held on six consecutive Sundays from 9 AM - 7 PM. The fee is $400 which includes the cost of the text book. Students are given a free copy of the state exam study manual when they pass the class exam.  On-line licensing classes are also available at deeply discounted prices.

Interested parties can register online at http://www.veritasrealestategroup.com/RealEstateClasses

100 Practical Tips for Buying and Selling Real Estate

Pat O'Connor, the owner of The Veritas Real Estate Group, has just published her latest book "100 Practical Tips for Buying and Selling Real Estate."

Whether you’re interested in residential or commercial property, 100 Practical Tips for Buying and Selling Real Estate can help you negotiate the best deal, avoid paying unnecessary fees and maximize your profits. Learn about the possible pitfalls of foreclosure auctions, and ways to obtain creative financing for your purchases. Read about tax deductions and tax shelters. The author generously shares what she’s learned from years of working with the public and other real estate licensees. Pay attention to her advice and warnings and then proceed more confidently in your real estate transactions.

In addition to providing helpful advice to the public, the author shines a light on some questionable practices that are common in the industry. In her opinion, the majority of these occurrences arise from greed, laziness or criminal intent. Her opinions are likely to cause a backlash from licensees who actively engage in these behaviors, but that’s OK. Discussion is a good thing, and her motives are pure. Once consumers are aware of the policies, they are in a better position to decide if they wish to tolerate the status quo. Knowledge is power, and the public is in the driver’s seat.

Click here to see all of Ms. O'Connor's publications.

ExpressCopy Adds Bogus Fee

ExpressCopy prints beautiful postcards, but it has recently begun charging customers an additional 10 percent of their postage costs to load the truck and deliver the material to the post office. This is absurd and an insult to their loyal customers. I can only imagine that the management team expects the charge to go unnoticed. Let them hear your objections! Send them an email at support@expresscopy.com and let your opinion be known!

Getting Started In Commercial Real Estate

Getting Started In Commercial Real Estate: Ten Step Program to Success is a newly published book that clearly explains what is needed to transition from residential real estate sales to commercial real estate. Ideal book for real estate agents who are looking to broaden their income and earn higher commissions! Both Kindle and paperback versions are available for sale here on Amazon.

Pat O'Connor of The Veritas Real Estate Group, Inc. is one of the authors.

Coral Springs Real Estate Licensing Classes

The next scheduled class for the Florida Sales Associate Pre-Licensing course starts Tuesday, August 27, 2013. This session is held on Tuesday and Thursday evenings from 5:30 pm - 10:30 pm for 6 weeks.

The next  all-day Sunday class starts on September 8, 2013 and runs from 9 am - 7 pm for 6 weeks.

Online real estate classes are also available for all Florida real estate licensing needs.

Visit http://www.veritasrealestategroup.com/RealEstateClasses for more information and to register online for a class.

Renters say homeownership a top priority

WASHINGTON – July 26, 2013 – Americans overwhelmingly believe homeownership is a good financial decision, and a majority of renters say homeownership is one of their highest priorities for the future, according to the National Association of Realtors® (NAR)’s 2013 National Housing Pulse Survey.

The survey found that renters are thinking more about purchasing a home now than they have in past years, and the number of people who say they prefer renting has declined.

“Due to high housing affordability and today’s interest rates it makes sense for people to consider homeownership over renting,” says NAR President Gary Thomas. “In fact, in many parts of the country it’s cheaper to own a home than to rent one.”

The survey, which measures consumers’ attitudes and concerns about housing opportunities, found eight in 10 Americans believe buying a home is a good financial decision and more than two-thirds (68 percent) said now is a good time to buy a home.

Since the last survey in 2011, more renters are now thinking about purchasing a home, up from 25 percent to 36 percent, while those who say they prefer to rent dropped from 31 percent to 25 percent. Half of renters say that eventually owning a home is one of their highest personal priorities, up from 42 percent to 51 percent.

Attitudes toward the housing market have also improved over the years. Nearly four in 10 Americans (38 percent) identified an increase in activity within their local housing market in the past year, compared to just 22 percent who reported a slowdown in activity. In 2011, some 51 percent reported a slowdown in activity. There was also less concern than in the past about the drop in home values; a majority said housing prices in their area are more expensive than a year ago.

In addition to improved attitudes about the housing market, respondents also showed an improved outlook about the national economy. Just under half (48 percent) said job layoffs and unemployment are a big problem, down from 61 percent in 2011. The concern over foreclosures showed a steep decline from 2011 when 47 percent characterized distressed properties as “very” or a “fairly big problem”; today only 29 percent say it’s a problem.

For many Americans, the perceived obstacles to homeownership have remained unchanged over the years: low wages, student loan debt, and little savings for a down payment and closing costs. Respondents across the board – young and old, college graduates and non-graduates – consider student loan debt to be a large obstacle.

“Buyers with student loan debt may find it difficult to access mortgage credit, as well as save for a down payment,” says Thomas. “Pending mortgage finance regulations requiring higher down payments could also contribute to the already tight lending environment. Realtors are working with regulators to address this issue.”

When asked why homeownership is important, respondents’ top reasons underscored basic American values and freedoms: building equity, a stable and safe environment, and the freedom to choose where to live.

Those reasons have remained virtually unchanged since 2011, though they vary slightly according to demographics. The top scoring reason for African-Americans and Hispanics was that homeownership provides stability and a safe environment; women also placed more emphasis on environmental factors than men. Non-college graduates placed stronger emphasis on public schools, owning a home before retirement, and living in a safe and stable environment.

American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program conduct the 2013 National Housing Pulse Survey. The telephone survey polled 2,000 adults nationwide and has a margin of error of plus or minus 2.2 percentage points.


© 2013 Florida Realtors®

Home prices to stabilize or fall in 6 Fla. cities

IRVINE, Calif. – Aug. 1, 2013 – CoreLogic released an analysis of home price trends during the first quarter of 2013 in more than 380 U.S. markets based on the CoreLogic Case-Shiller Indexes and data from the Federal Housing Finance Agency (FHFA).

In the report, home prices increased 10.2 percent in the first quarter of 2013 compared to the first quarter of 2012. It’s the first double-digit gain since the peak of the housing bubble seven years ago.

However, the analysis also predicts that prices will stop rising as quickly in 2014 as an increase in mortgage interest rates make demand and supply more balanced. As more homeowners consider selling to lock in capital gains, upward price pressure will subside.

In four of six Florida cities included in the analysis, price increases in the first quarter of 2013 beat the national average. The year-to-year increase in Orlando was 14.6 percent; in Miami it was 14.2 percent; Tampa was 11.9 percent and West Palm Beach was 11.4 percent.

The remaining two Florida cities in the study still had year-over-year price increases in the first quarter, however. Jacksonville recorded a 9.9 percent increase, while Fort Lauderdale logged 9.5 percent.

The report goes on to predict what will happen to home prices by the first quarter of 2014. Nationwide, CoreLogic foresees an increase of 6.5 percent.

However, all six Florida cities would fall short of that forecasted price rise by 2014’s first quarter, according to CoreLogic. Tampa tops the list with a 2.6 percent price growth predicted, but only two other cities are expected to see price increases: Jacksonville at 1.4 percent and West Palm Beach with 0.6 percent.

The report predicts the three remaining cities’ home prices will drop slightly in value by the first quarter of next year: Miami by 2.7 percent, Fort Lauderdale by 2.6 percent and Orlando by 1.6 percent.

“Although double-digit gains usually indicate unsustainable appreciation and, possibly, bubbles in some metro areas, there is less need for concern now since home prices remain 26 percent below their peak nationally and are even lower in many metro markets,” says Dr. David Stiff, chief economist for CoreLogic Case-Shiller.


© 2013 Florida Realtors®

Realtors see increase in fair housing complaints

ORLANDO, Fla. – July 12, 2013 – The Florida Realtors Legal Hotline has received an increase in calls relating to lawsuits alleging fair housing discrimination. Florida Realtors’ Vice President and General Counsel Margy Grant says that Realtors must remain vigilant to ensure they’re complying with U.S. fair housing laws.

Thanks to Internet listings, it’s easy to read real estate ads anywhere in the world. That has led to a larger pool of fair housing “testers” to scan all U.S. media for real estate ads that violate the Fair Housing Act.

While most real estate agents understand that ads cannot discriminate against the seven classes protected by The Fair Housing Act – race, color, sex, national origin, religion, handicap and familial status – the “testers” have made it even more important to consider how an ad is worded. A broker owner and a listing agent can be considered at fault for discrimination, even if it’s inadvertent.

“Most of the plaintiffs are fair housing organizations designed to help enforce the law,” says Grant. “To combat violations, they file lawsuits against all offending parties.”

Once a lawsuit has been filed, a broker’s errors and omissions insurance (E&O) usually gets involved. At that point, many insurers prefer to settle the case rather than pursue it, usually because the Realtor has violated the fair housing laws.

“A common violation is an ad that says ‘no kids,’” says Grant. “We have seen cases where a agent has been discriminating for years and just never got caught.”

While the “testers” tactics may seem odd, a case decided by the U.S. Supreme Court – Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) – rejected arguments by the real estate community and affirmed that the “testers” have a right to file a complaint as an “aggrieved person.”

Realtors have some protection under the Communications Decency Act for ads that appear on their website authored by someone else, such as a home listing uploaded through an Internet Data Exchange (IDX) program. However, that protection does not apply to any ad written by an agent or advertised by a broker.

“Overall, the real estate industry is very good at understanding and following the nation’s fair housing laws, but that’s part of the problem,” says Grant. “We sometimes don’t focus on it as much as we should. Overt discrimination is extremely rare, but agents and brokers should make sure that their ads don’t subtly steer a protected class away from a rental or listing.”

For more information on fair housing issues related to IDX and potential liability, National Association of Realtors® (NAR) General Counsel Laurie Janik has posted a podcast on NAR’s website (password required).

© 2013 Florida Realtors®

.NAR survey: Younger buyers more optimistic

NAR survey: Younger buyers more optimistic

WASHINGTON – July 9, 2013 – Millennials are more confident than any other age group that their recent home purchase was a good financial investment, according to the inaugural 2013 National Association of Realtors® Home Buyer and Seller Generational Trends.

NAR evaluated the generational differences of recent home buyers and sellers. It found that eight out of 10 recent buyers considered their home purchase a good financial investment, but the number was even higher, 85 percent, for buyers under the age of 32.

“The oldest of the millennial generation are now entering the years in which people typically buy a first home, and despite the recent downturn, homeownership still matters to them,” says Paul Bishop, NAR vice president of research. “The sheer size of the Millennial generation, the largest in history after baby boomers, is expected to give a powerful boost to long-run housing demand.”

Bishop says that Millennials do face some hurdles, however – short-term mortgage accessibility and student debt repayments.”

The study found that the largest group of recent buyers (31 percent) was Generation X, those born between 1965 and 1979. Millennials, sometimes called Generation Y and born between 1980 and 2000, came in second at 28 percent.

Younger Boomers, those born between 1955 and 1964, made up only 18 percent of buyers; 14 percent were Older Boomers, Americans born between 1946 and 1954; and 10 percent were from the Silent Generation, those born between 1925 and 1945.

Survey results

Home buyers
• The median age of Millennial home buyers was 28, their median income was $66,200 and they typically bought a 1,700-square foot home costing $165,000. The typical Gen X buyer was 39 years old, had a median income of $93,100, and purchased a 2,100-square foot home costing $235,000.

• The previous living arrangement of recent buyers varied greatly across the generations; among Millennials, 65 percent rented an apartment or house and 22 percent lived with their parents, relatives or friends. More than half of all Baby Boomer and Silent Generation buyers owned their previous residence.

• The study found that older generations of home buyers prefer more recently built homes. Millennials typically bought homes built around 1986, nearly a decade older than the homes typically bought by the Silent Generation.

• Younger buyers had a tendency to stay closer to their previous residence, often within 10 miles, whereas older buyers moved longer distances, typically more than 20 miles from their previous home.

• Younger buyers were more likely to buy in an urban or central city area than older buyers; 21 percent of Millennials bought a home in an urban location compared to only 13 percent of Older Boomer and Silent Generation buyers.

• The reason for buying a home also varies across the generations. Younger buyers most often cited a desire to own a home of their own, while older buyers wanted to be closer to family and friends.

• When it comes to factors neighborhood choice, younger generations cited convenience to jobs, affordability of homes and quality of the school district. Older generations placed higher importance on convenience to family, friends and healthcare.

• In looking at green features, younger buyers placed a higher importance on commuting costs than older generations. But older generations placed a higher importance on a home’s energy efficient features and an environmentally friendly community.

• Millennials tended to make more compromises with their home purchase than any other generation. They conceded more often on the price and size of the home, lot size, distance from job and style of home. At the opposite end of the spectrum, Boomer and Silent Generation buyers made no compromises on their recent home purchase.

• As the age of recent buyers increases, so does the rate of owning more than one home. Among Millennials, 8 percent own more than one home, which could include either a vacation home or investment property, compared to 21 percent of Gen X-ers, 28 percent of Younger Boomers, 27 percent of Older Boomers and 26 percent of the Silent Generation.

• Home buyers of all ages often begin the home buying process by looking online for properties for sales, but the frequency of Internet use decreases for older buyers. Ninety percent of Millennials frequently used the Internet to search for homes compared to less than half of Silent Generation buyers. Younger generations of buyers were also more likely to find the home they purchased through the Internet; older buyers most often learned about the home they purchased from their real estate agent.

• Younger buyers are more likely to want a real estate agent’s help understanding the home buying process, presumably because many are buying a home for the first time. A friend, neighbor or relative most often referred younger buyers to their agent, whereas older buyers were increasingly likely to work with the same agent they previously used to buy or sell a home.

•  In choosing an agent, reputation was important to buyers of all ages; however, younger buyers more often cited an agent’s honesty and trustworthiness as the most important factor compared to older buyers who most often cited the agent’s knowledge of the neighborhood – perhaps because older buyers tend to move further distances and may have less familiarity with area.

• The median downpayment for Millennials was 5 percent – considerably less than older generations of buyers whose downpayment ranged from 8 percent for Gen X buyers to 22 percent for Silent Generation buyers. Younger buyers who financed their home purchase most often relied on savings for their downpayment, whereas older buyers were more likely use proceeds from the sale of a primary residence.

“An interesting finding is that Older Boomers and Silent Generation buyers found the mortgage application and approval process more difficult than expected compared to younger buyers,” said Bishop. “This underscores the ongoing challenges that many creditworthy home buyers face with today’s tight credit standards.”

Home sellers
• The largest group of recent home sellers was from Generation X, comprising 30 percent of recent sales, followed by Younger Boomers (21 percent), Older Boomers (21 percent) and the Silent Generation (19 percent). As the age of sellers increased, the share of married and unmarried couples declined, and the percentage of single female home buyers increased, from 4 percent among Millennials to more than 17 percent among Boomer and Silent Generation sellers, perhaps due to death or divorce.

• Like buyers, older sellers tend to move greater distances and are more likely than younger generations to move out of the state or region. While younger buyers typically moved to larger, higher-priced homes, Older Boomer and Silent Generations tended to downsize.

• Typically, the older the seller, the longer their tenure in the home. Millennials lived in their previous home a median of five years, Gen X-ers stayed 8 years, Younger Boomers 11 years, Older Boomers 13 years, and the Silent Generation 15 years.

• The reasons for selling a home also varied among the generations. Younger buyers were more likely to move for job relocation or upgrade to a larger home. In comparison, older buyers often looked for a smaller home due to retirement, because upkeep was difficult, or to be closer to family or friends.

• When it comes to negotiating, older sellers are often more willing to reduce their home’s asking price, but are less likely to offer buyer incentives such as home warranty policies or assistance with closing costs.

• Of sellers working with real estate agents, the study found that older generations of buyers are more likely to use full-service brokerages. While more than two-thirds of Millennials used full-service brokerages, they were more likely than other generations to choose limited service, which includes discount brokerage, or minimal service, such as simply listing the home on a multiple listing service.

• Sellers of all ages typically found a real estate agent through a referral or friend; however, younger sellers were more likely to also use the same real estate broker or agent for their home purchase; 59 percent of Millennials used the same agent compared to 42 percent of Older Boomer sellers. Younger sellers typically want their selling agents help with selling the home within a specific timeframe and pricing the home competitively, whereas older buyers are looking for their agent’s help with marketing the home and finding a buyer.

The report is free and can be downloaded through NAR’s website. (Link underlined to: http://www.realtor.org/reports/home-buyer-and-seller-generational-trends)

© 2013 Florida Realtors®

Short sale listings must have five days in MLS

WASHINGTON – July 9, 2013 – Fannie Mae recently announced requirements for Fannie Mae short sales listed in a multiple listing service (MLS). Starting August 1st, each new short sale listing must maintain an “active” status for a minimum of five days; and that timeframe must include at least one weekend. Freddie Mac announced similar guidance for Freddie Mac short sales.

“Along with our regulator, the Federal Housing Finance Authority (FHFA), we decided to take this step in response to Realtors’ concerns,” says Jane Severn, director of marketing at Fannie Mae. “We’ve had cases where a short sale property is listed in the MLS as ‘active’ and, in less than an hour, it goes into ‘pending’ status.”

Florida Realtors’ Vice President and General Counsel Margy Grant says the requirement will change the way some members list a home in their MLS.

“Realtors should identify any short-sale listings that would require approval by Fannie Mae or Freddie Mac,” Grant says. “If the new rules apply to a listing added to the MLS after Aug. 1, we recommend that agents put a disclaimer in MLS comments telling cooperating brokers that the seller must keep the listing active for five days, including a weekend. This disclaimer would allow cooperating agents to structure their offers accordingly.”

Grant says it’s important to remember two things: that the new rule only affects Fannie Mae and Freddie Mac short sales; and, though it directly affects sellers, it also indirectly impacts buyers’ offers.

“The rule doesn’t regulate the timing of an offer,” she says. “An offer can be submitted at any time – but a seller following these rules cannot accept any offer until the required five-day marketing period ends. A buyer’s agent could, for example, submit an offer on the first day a home is listed. However, they may want to include contract wording that gives the seller five days to accept the offer if the property must follow Fannie Mae or Freddie Mac’s rules.”

Severn says Fannie Mae wants their “short sale listings to be marketed in a manner that allows the market to see the listing.” She notes that their current policy for properties Fannie Mae owns (REO listings) reflects the same philosophy since Fannie Mae won’t evaluate offers until the listing has been in the MLS and “active” for at least three days.

Under Fannie Mae and Freddie Mac’s rules, the short sale property must be listed in an MLS that covers its geographic area, and a printed copy of the property’s MLS listing must be kept on file. If a property is located in an area not covered by an MLS, it must be advertised in a manner customary for the same period of time – at least five consecutive calendar days that includes one weekend.

Fannie Mae announced the change in a Servicing Guide announcement in June, applicable to “Multiple Listing Service Requirements for Standard Short Sale/HAFA II.” The Servicing Guide is published on Fannie Mae’s website.

© 2013 Florida Realtors®

10 tips for buying real estate with IRAs

NEW YORK – July 8, 2013 – Want to invest in real estate through a retirement account? It’s possible, but it’s also far more difficult than simply buying and selling investment property.

“Given the combination of bottomed-out home prices and a still-tight lending environment, utilizing funds from a retirement account to purchase investment homes with cash, or at least with a large downpayment, can give individual buyers a better chance of competing in this tight housing market,” says Daren Blomquist, vice president at RealtyTrac.

Blomquist says investing with retirement money “gives consumers a path to more quickly build their nest egg since all proceeds from the real estate investment – whether that be from rental cash flow or from selling the property – go directly back into the retirement account.”

However, he also says retirement investors should conduct thorough research first.

Look before you leap
Retirement funds can be a good fit for some investors but it’s not for everyone. “It depends on the person’s age and the type of property,” says Sheldon Detrick, CEO of Prudential Alliance Realty in Oklahoma City, Okla. “Rental property, especially on the lower end, can be a good investment at any age. It’s usually profitable and easy to sell. On the other hand, buying land in outlying areas in anticipation of population growth is something only those under 50 should consider.”
 
Know the ground rules
Lorraine and Richard Walls, a couple in Midlothian, Va., decided to use their retirement accounts to buy investment properties in Southwest Florida. But before making the plunge, the Walls spent a full year researching how self-directed real estate IRAs work, learning the basic ground rules every investor should know before they get started. Those ground rules include:

• Title: Any property purchased by an IRA is owned by the IRA – not an individual.
• Purchase money: any money used to purchase a property with an IRA has to come directly from your IRA, not you individually, and you can’t be reimbursed by your IRA. This includes earnest money and closing.
• Rehab and carrying costs: similar to purchase money, any costs associated with rehabbing or carrying the property must be paid directly by the IRA. An IRA custodian can help with this.
• Income: any income generated from the property has to flow back into the IRA.
• Prohibited transactions: purchases made with an IRA need to be for investment, not personal use. Also an IRA cannot do business with family members of “lineal descent,” which includes you, a spouse, parents, children, grandparents, grandchildren and great-grandchildren. In addition, you cannot borrow money from a self-directed IRA or use it as security for a loan.
 
Use a Roth IRA to “pay taxes on the seed, not the crop”
According to Jeff Desich, chief executive of Equity Trust Company, choosing a Roth IRA over a traditional IRA is a “no brainer” for most real estate investors because although a traditional IRA allows for tax-free contributions, the earnings are taxed when pulled out for retirement down the road. “My dad would always say would you rather pay tax on the seed or on the crop,” Desich says.

Buy in your comfort zone
“We stuck to Lehigh (Acres, Fla.), which everyone said don’t do it,” says Lorraine Walls, adding that the couple now owns a total of nine properties in Lehigh Acres, one of the nation’s hardest-hit real estate markets. “I went with what I was comfortable with. We don’t need to make millions straight away.”
 
Plan your exit strategy but be flexible
Although she purchased the Lehigh Acres homes primarily for the long-term cash flow, Walls said steady gains in home price appreciation have her rethinking that strategy. “Actually, I’m thinking about selling because the prices have almost doubled in the last two years,” she said, noting that her real estate agent is urging her to list one home in particular. “I paid $58,000 for this property, and he wants to list it for about $105,000.”
 
Consider creative investing strategies
Early in his career, veteran real estate investor Stan Brady said he focused mostly on fix-and-flip properties that he sold to owner-occupant buyers. But his strategies have evolved over time to focus on optioning investment deals that he finds and negotiates for other investors who don’t have the time to find and negotiate those deals.

“A typical transaction for me would be taking an option contract … and then turn around and resell the property to a group of investors,” says the Atlanta-based investor. “Now they have a portfolio rental and I get back the profit in my IRA.”
 
Set up a 401(k) under real estate investing business
While a normal employer 401(k) plan won’t allow you to invest in real estate, everyone who invests in real estate is in business for themselves, Desich says, which gives him or her the right to have a retirement plan for that business. If someone is investing in real estate and finding success, then that person can set up a 401(k) that permits real estate investments and allows contributions up to $50,000 per year plus $50,000 for a spouse.
 
Make it a family affair and multiply your purchasing power
Investors have the option of partnering their IRA with others, according to Desich. For example, a husband and wife might each have a Roth IRA, and both may have a 401(k). Add in two kids who each might have a Roth IRA and the family can use all six accounts to purchase a deal and share the percentage.
 
Pay all cash or make a large downpayment to compete with institutional buyers
Besides the tax breaks that allow investors to build their retirement nest egg, self-directed IRAs give buyers the option of paying all cash or making a sizable downpayment – helping to compete in a market where multiple bids are the norm.

“Offer a high deposit and close within two weeks,” Walls says is her rule of thumb. “Offer them 50 percent, and bingo you’ll get it.”
 
Build a strong team around you
“You want to choose your partners wisely,” says Desich. “Biggest point outside the IRA, we help to connect the dots. Whoever you use, you need to have an attorney or accountant you work with who can help you; or find a custodian who can help you answer questions. We’re not all created the same.”

© 2013 Florida Realtors®

All Fla. public notices will now appear online

TALLAHASSEE, Fla. – July 2, 2013 – Effective yesterday, Florida newspapers that carry public notices must post those notices on their individual websites. That rule is in addition to postings on Florida Public Notices, an independent website operated by the Florida Press Association (FPA), where posting of public notices began last summer.

The change is part of legislation passed by the 2012 Florida Legislature in cooperation with the FPA. Public notices impact the real estate industry in a number of ways. They include updates about government hearings and meetings; zoning, annexation and land use changes; election notices; municipal budgets, taxes and special assessment information; requests for bids on government construction and service contracts; permit and licensing applications, land and water use regulations; judicial and executive sales, disposal of foreclosed and abandoned property and more.

“The posting to the newspapers’ websites, as well as the FPA website, are free and accessible to the public 24 hours a day, 365 days a year,” says Dean Ridings, FPA President & CEO.

The Florida Public Notices website is a statewide database of public notices for people who want information that has been published statewide. It’s operated by FPA and its members upload the information.

Florida Public Notices visitors can search public notices by keyword, date and newspaper. Once registered with the website, they can also request email notifications.

New rules boost homeowner association regulations

TALLAHASSEE, Fla. – July 2, 2013 – The recent housing downturn created some unexpected problems within Florida’s planned communities thanks to drops in home sales, developer bankruptcies and other problems. As a result, a bill (HB 7119) – which was passed by the Florida Legislature and signed into law by Gov. Rick Scott – went into effect on Monday, giving the state more oversight of planned communities.

Major provisions

• All Florida Homeowners Associations (HOAs) must register with the state Department of Business and Professional Regulation (DBPR) by Nov. 22, 2013. When registering, they must include their a) name, b) federal ID number, c) mailing and location addresses, d) total number of parcels, and e) total revenue and expenses in annual budget.

• HOA directors must disclose any affiliation they have with a vendor, and approval of those contracts requires a two-thirds vote of the directors. It also gives HOA members the right to disaffirm one of these contracts at a future members’ meeting with a simple majority vote.

• HOA directors cannot personally receive goods or services from any providers working with the association.

• Once a developer sells 50 percent of the parcels, the association must add one non-developer HOA member to its Board of Directors.

• Prohibits a community’s developer from making a unilateral amendment to the declaration governing an association if that amendment is arbitrary, capricious or in bad faith; or if it destroys the general plan of development, prejudices the rights of members to use common property, or materially shifts economic burdens from the developer to members.

In addition to major provisions, the new law also creates rules for troubled associations, such as oversight into the way a development is turned over to members if the developer faces bankruptcy or abandons the project.

The complete bill is posted online by the Florida Legislature.

© 2013 Florida Realtors®

New law allows longer homestead rentals in Florida

TALLAHASSEE, Fla. – July 1, 2013 – For many property owners, big weeklong sporting events – the Tournament Players Championship at Sawgrass and the Daytona 500, just to name two – are an opportunity to rent their homes to fans, media outlets and the professional athletes and their staff. By renting their homes, however, are owners jeopardizing their homestead exemption, which offers a property tax discount and some protection from higher taxes when tax appraisal values rise quickly?

Until now, the answer depended on whom you asked. SB 342 is one of at least a half dozen real estate-related bills effective today. Sponsored by Sen. John Thrasher (R-St. Augustine) and supported by Florida Realtors, the measure helps to define how long and how often a property may be rented to preserve the homestead exemption.

“St. Johns County hosts the annual Tournament Players Championship at Sawgrass. Volusia County annually hosts a number of motorsport events, and some homeowners want to offer their homes for rent during these annual events but run the risk of losing their homestead exemption by doing so,” says Sen. Thrasher. “This new law will allow homeowners to accommodate visitors and guests annually on a limited, less than 30-day timeframe, without jeopardizing their exemption. This change is good for the homeowner and good for the communities that benefit from the increased revenues brought in by these annual events.”

A law enacted in 1996 stated that a homeowner’s rental of “all or substantially all” of his homesteaded property constituted “abandonment,” thereby removing the homestead exemption. One exception to the abandonment: An owner could rent his homestead after Jan. 1 and not lose his exemption for that calendar year, so long as the property was not rented the previous calendar year.

In the past, property appraisers applied this law in different ways. Some took the position that any rental for two consecutive years constitutes a loss of the exemption in the second year. Others have allowed short-term rentals in consecutive years.

Court decisions also added to the confusion by saying abandonment of a homestead should be decided on a case-by-case basis.

Starting today, however, property owners may rent their homesteads for up to 30 days every year without jeopardizing their homestead exemption. However, they lose the protection of this safe harbor if they rent their property more than 30 days per year for two consecutive years. The law is still unclear regarding how many days beyond the 30-day safe harbor period one can rent in a single year without triggering abandonment of homestead.

“Florida Realtors was happy to work with Sen. Thrasher on this bill,” says Trey Price, public policy representative for Florida Realtors. “This bill simply allows the ‘safe harbor’ of 30 days every year with no danger of losing the homestead exemption.”

For specific questions regarding loss of homestead exemption status for rentals longer than 30 days, property owners should contact their local county property appraiser.

© 2013 Florida Realtors®

Some Florida laws become effective July 1

TALLAHASSEE, Fla. – June 28, 2013 – A few new Florida laws – ones passed by the Florida Legislature and signed by Gov. Rick Scott – have an effective date of July 1 and go into effect on Monday.

Laws effective July 1, 2013

• Tax loophole closes. Language was included in different bills to close a tax loophole used by for-profit affordable housing builders that form non-profit subsidiaries primarily to pay lower property taxes. (HB 437).

• Squatters find it more difficult to claim ownership of an abandoned house. Lawmakers strengthened Florida’s adverse possession laws. Starting Monday, a claim of adverse possession requires 1) payment of all outstanding taxes and liens levied by the state, county or municipality within one year; and 2) submission of information to the county property appraiser: contact info, date the adverse possession claim began, legal description of the property, and dates when outstanding taxes and liens were paid. Filing this return, however, does not give an adverse possessor an enforceable interest in the property. Squatters who don’t file a return may be charged with trespassing. If an adverse possessor leases the property to a third party, he can be charged with theft. (HB 903)

• Citizens Property Insurance Corp. gets new rules. Some rules in a massive law impacting the state-owned insurer become effective at different times. However, a few kick in on Monday: 1) A rule requiring all new applicants to go through a clearinghouse to establish if they’re eligible for Citizen’s coverage; and 2) the addition of a consumer advocate in the Citizens Board of Governors. (SB 1770)

• Rules eased for renting with a homestead exemption. Under current law, a homeowner who rents his home for any length of time in two consecutive years can lose his homestead exemption. Starting Monday, a “safe harbor” allows people to rent their homestead up to 30 days a year without losing the exemption. However, rentals that exceed 30 days for two consecutive years jeopardize the homestead exemption in year two. Note: The law doesn’t address how many days beyond the 30-day threshold triggers abandonment of homestead. A Department of Revenue opinion allows rentals up to six months every other year if proof of substantial residency and other conditions are met. (SB 342)

• Residential landlord tenant changes. Some changes were made to Florida’s Residential Landlord and Tenant Act, including a change to the disclosure language landlords who rent five or more dwelling units are required to give. While the law becomes effective July 1, use of the revised disclosure is not mandatory until Jan. 1, 2014. In addition, the new law contains provisions about screens, recurring tenant violations of a lease, evictions after acceptance of partial rent, non-renewal notice requirements, writs of possession and the transfer of security deposits from a previous owner to a new landlord. (HB 77)

• Green energy tax incentives. A new law creates rules to implement the tax break for solar energy devices installed on or after Jan. 1, 2013. The bill does not, however, shield windstorm mitigation upgrades from property taxes. (HB 277)

• Online pre-licensing courses for appraisers. Before Monday’s effective date, appraisers could only take post-licensing classes via the Internet. (SB 1398)

© 2013 Florida Realtors®

U.S. vets have easier license requirements in Fla.

TALLAHASSEE, Fla. – June 18, 2013 – As a way to thank U.S. military veterans for their service and entice them to live in the Sunshine State once their service ends, Florida government generally – and the Department of Business and Professional Regulations (DBPR) specifically – have eased some licensing rules for veterans. Gov. Rick Scott has pushed state agencies to develop veteran-friendly programs.

At DBPR, Secretary Ken Lawson says in an email that means “helping (veterans) obtain professional licenses, and encouraging them to remain in Florida to build a career or business once their military obligation has been completed.”

Lawson outlines three major initiatives to help Florida’s military veterans:

• DBPR waives the initial licensing fee, initial application fee and unlicensed activity fee for any honorable discharged veteran who applies for a state professional license within three years of leaving the Armed Forces. Find more information here.

• Any active military personnel with a Florida professional license can apply for Military Exemption Status. If they’re outside the state on active duty and not practicing their profession in the private sector for profit, they’re exempt from all license renewal requirements. The exemption lasts for the duration of active duty outside Florida and for six months following honorable discharge. Find more information here.

• Military spouses also benefit. Through DBPR, the spouse of an active duty service member stationed in Florida may request a temporary license. The temporary license is based on the professional license they held in their home state and is valid for six months. Find more information here.

© 2013 Florida Realtors®

Fannie Mae and Freddie Mac extend loan programs

WASHINGTON – May 30, 2013 – The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to extend two programs that help troubled borrowers stay in their homes: the Home Affordable Modification Program (HAMP) and the streamlined modification initiative. Both will now remain effective through 2015.

Earlier today, the U.S. Treasury and the Department of Housing and Urban Development announced that they’re also extending HAMP for non- Fannie Mae and Freddie Mac loans.

“One of FHFA’s priorities is to provide assistance to struggling borrowers who are at risk of losing their homes,” says FHFA Acting Director Edward J. DeMarco. “These extensions keep two valuable foreclosure prevention programs available to those who need them. The extensions also align the end date for three key assistance programs developed in response to the housing crisis.”

HAMP helps homeowners struggling to keep their loans current by lowering their monthly payments. The streamlined modification initiative, announced by FHFA on March 27, gives borrowers at least 90 days late another path to avoid foreclosure and lower their monthly payments without requiring financial or hardship documentation.

Since the first full quarter of 2008, Fannie Mae and Freddie Mac have completed more than 2.7 million foreclosure prevention actions. About half are permanent loan modifications, including more than 435,000 permanent HAMP modifications.

© 2013 Florida Realtors®

BOCA RATON, Fla.: Paradise Bank Named Top SBA Lender in South Florida - Banking - MiamiHerald.com

BOCA RATON, Fla.: Paradise Bank Named Top SBA Lender in South Florida - Banking - MiamiHerald.com

Coral Springs Real Estate Classes

The next Florida Sales Associate pre-licensing course starts Sunday, June 9, 2013 at 9 a.m. The classes run for six consecutive Sundays from 9 am - 7 pm. A class exam is given on the last day. If the student fails this exam, they must wait 30 days to take a different version or repeat the class.

The cost of the class is $400 that includes the textbook. A separate state exam study book is given to  students when they pass the class exam. Students can register online at http://www.veritasrealestategroup.com/reschedule 

Classes are held at 1287 University Drive, Coral Springs. We accept all major credit cards. Online licensing and continuing education courses are also available at discounted prices.

Fort Lauderdale’s all-day beach bash is Saturday - Broward - South - MiamiHerald.com

Fort Lauderdale’s all-day beach bash is Saturday - Broward - South - MiamiHerald.com

Existing home prices up double digits in Miami-Dade and Broward from year ago - Business - MiamiHerald.com

Existing home prices up double digits in Miami-Dade and Broward from year ago - Business - MiamiHerald.com

Credit score confusion: What you don’t know could hurt you

Credit score confusion: What you don’t know could hurt you

Building permits up - Business - MiamiHerald.com

Building permits up - Business - MiamiHerald.com

Calling All Florida Real Estate Investors

Powerful software available at a discounted price for Florida real estate investors. Search public records for leads and use the software management system to track your deals!  Enter promo code 3657 at reifax.com to receive discounted pricing.

Fort Lauderdale condos for sale

The Fort Lauderdale area beaches are some of the most beautiful in the world. Click on the link to see a sample of some condo units with beautiful ocean views that are currently for sale.

http://www.veritasrealestategroup.com/OceanFrontCondos

Broward County Real Estate Classes

Our classes are held at 1287 University Drive in Coral Springs. You can register for the $400 class on our website. Online classes are also available.

63-hour Sales Associate Pre-Licensing

Coral Springs Real Estate Classes

Sales Associate Pre-Licensing classes are held on Sundays from 9-7 for 6 weeks or on Tuesday and Thursday evenings from 5:30 - 10:30 for 6 weeks.

May Tuesday/Thursday class starts May 28 - no class 7/4

June Sunday class starts June 9

July Tuesday/Thursday class starts July 16
        Sunday class starts July 21

August Tuesday/Thursday class starts August 27

September Sunday class starts September 8

Broward County March Housing Statistics

Statistics for single familiy homes

Statistics for condos and townhouses

 

 

 

Foreclosure compensation checks arrive, but anger some homeowners

Foreclosure compensation checks arrive, but anger some homeowners

Little discipline for foreclosure lawyers

Little discipline for foreclosure lawyers

Study Reveals the Home Scents That Help You Sell

Study Reveals the Home Scents That Help You Sell

Tortuga Festival sponsors say they’ll be back in Fort Lauderdale next year

Tortuga Festival sponsors say they’ll be back in Fort Lauderdale next year - Broward - Central - MiamiHerald.com

Florida Homestead Law

Please watch the video for a description of the Florida Homestead Law and its effect on real estate property owners in the state.

Here come the floods. Are you covered for possible damage?

Valuable flood protection information if you live near creeks, rivers or the ocean. Summer is the time many parts of the country experience severe thunderstorms. Premiums tend to be low for this government subsidized program, so check today if your property is at risk.


Here come the floods. Are you covered for possible damage?

New app allows users to search homes by school district

If you have a child, living in a good school district may be very important to you. A  new mobile app for Apple and android searches lets the user pick the school district. Please remember that districting may change before the deal closes, so stay on top of the latest city news if you are selecting a home based on the zoning.

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=290438&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+floridarealtors+%28Florida+Realtors%29&utm_content=FaceBook


Like us on Facebook and stay informed!

TALLAHASSEE: Voting rights groups lambaste Florida GOP’s election law rewrite - Florida - MiamiHerald.com

One more way the Florida GOP is trying to limit minority voting. Can you people please wise up and vote these yahoos out of office? Can the feds step in and keep this kind of discrimination away from our voting booths?

TALLAHASSEE: Voting rights groups lambaste Florida GOP’s election law rewrite - Florida - MiamiHerald.com

Broward home prices rose again in March

Here is a summary of the current real estate market in this part of South Florida.

 Broward home prices rose again in March - Business - MiamiHerald.com

Shunning federal money, Florida House adopts plan that covers...

Can our Florida legislature get any stupider. Is it even possible? First we stand in line 4 hours to vote and now the poor will just get poorer. Way to go Republicans!


Shunning federal money, Florida House adopts plan that covers...

Hardest Hit program update

This is an interesting article on a federal relief program for homeowners facing foreclosure.

http://www.usatoday.com/story/money/business/2013/03/15/federal-mortgage-help/1990473/


Like us on facebook to keep up with all the latest housing news.

http://facebook.com/browardcountyproperty

South Florida Distressed Homeowners

The title reflects the name of the new Google+ community I just created to address concerns and provide information to owners of South Florida property who may be facing the prospect of a foreclosure, Click on the link to join the discussion and gain the latest information.

https://plus.google.com/communities/?hl=en&gpsrc=selm6#communities/107926469639455778705

Government Homeowner Relief Programs

Learn the latest news about loan modifications, refinancing and short sales.




Like us on facebook.com/browardcountyproperty for the latest news

HARP mortgage refinancing program extended by 2 years

Great news for homeowners who are current on their conventional mortgage loans.

HARP mortgage refinancing program extended by 2 years

Refinance Help For Underwater Property Owners

Participating lenders refinance both primary residences and investment properties for borrowers who are current on their mortgage payments. The HARP program is not available for FHA, VA or USDA loans, although these types of loans have their own refinancing programs.

Home Affordable Refinance Program (HARP)


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http://facebook.com/browardcountyproperty

Home Affordable Modification Program (HAMP) Provides Mortgage Relief

Participating lenders provide loan modifications to qualified, employed owners of primary residences and investment properties. The owner must have a financial hardship and sufficient income to pay the lower mortgage amount.

Home Affordable Modification Program

Like us on Facebook and stay abreast of all the latest real estate news.
http://facebook.com/browardcountyproperty

Avoid Foreclosure Even If You Are Unemployed

More than 100 lenders participate in this government program that allows qualified unemployed owners of primary residences who are eligible for unemployment insurance to have mortgage payments reduced or suspended for 12 months. Act quickly because new applications are scheduled to end December 31, 2013.


Home Affordable Unemployment Program (UP)

Like us on facebook to stay in touch with the latest housing news.
http://facebook.com/browardcountyproperty

Home Affordable Foreclosure Alternatives (HAFA) Program

This program gives homeowners $3,000 in relocation assistance when a short sale closes.

Home Affordable Foreclosure Alternatives (HAFA) Program


Like us on Facebook to stay in touch with all the latest real estate news. http://facebook.com/browardcountyproperty.

Broward County February 2013 Housing Statistics

The South Florida housing market appears to be improving.

Iguanas are back!

The iguanas are back in South Florida. I saw my first one in years today in my backyard. These cold-blooded reptiles are not native to the U.S. and a South Florida cold snap killed them all a few years ago. They're a pest for gardeners because they eat the blooms off the flowering plants, but they are prehistoric-looking as they bask in the sun on a golf course.

Whatever your point of view, it looks like they have returned. We have been having nights in the 40s lately so if it freezes, which is unlikely, the new population won't survive.

What do you think? Are you glad to see them back?


Follow us on facebook and be part of the conversation.

Florida class-action case takes aim at Citizens’ reinspection program - Florida - MiamiHerald.com

Many people who own property in Florida have heard about or experienced problems with Citizen's. Here's the latest news.


Florida class-action case takes aim at Citizens’ reinspection program - Florida - MiamiHerald.com

LIKE us on Facebook to keep up with Florida real estate news.

Florida Online Real Estate Classes

The Veritas Real Estate Group offers online Florida real estate classes at affordable prices. The courses include pre-and post-licensing classes for sales associates and brokers. A 14-hour continuing education course is only $19.95! Check out these low, low, prices. Visit our website and register for classes at http://veritasrealestategroup.com/onlinereclasses. We are a licensed Florida real estate school.

Sales Associates Prelicensing

Sales Associates Prelicense Course $145.00

Florida Real Estate Principles, Practices & Law Text Book $44.04

Sales Associates Postlicensing

Sales Associates Postlicense Course $95.00

Post-Licensing Education for Florida Real Estate Sales Associates Text Book $42.70

Broker Prelicensing

Broker Prelicense Course $275

Florida Real Estate Broker’s Guide Text Book $82.82

Broker Postlicensing

Broker Postlicense Course $250

Real Estate Brokerage: A Management Guide and Workbook 30-hour Text Book $68.05

Essentials of Real Estate Investment 30-hour Text Book $50.24

Continuing Education

14 Hours Continuing Education Online Course $19.95

 

Please LIKE us on Facebook to ask any questions and to stay current with the latest Florida real estate news.

 

Short Sale Now While Tax Forgiveness Still In Effect

The Mortgage Forgiveness Debt Relief Act of 2007 has been extended until the end of 2013, but it's fate in future years is unknown. This law that applies to primary residences is a tremendous asset for homeowners who complete a short sale, which is a transaction that can occur when your mortgage balance is higher than the market value of your home.  The lender can agree to accept the market value as payoff for the loan. However, this difference between the lender's sale proceeds and the loan balance was taxed as income prior to 2007 and may be taxed again starting in 2014. Vacation homes and investment properties that are sold as a short sales are currently subject to federal income tax on the forgiven loan amount.

Check with a tax professional for additional information. Join us on Facebook for more discussions and to keep up with the latest news.

Don't Pay Real Estate Processing Fees

As the value of homes decreased, the number of real estate agents charging buyers and sellers extra fees increased. In most cases, this is a total ripoff by greedy agents and brokers. Unless they are going above and beyond what is normally expected to earn a commission, don't pay them a dime extra. It is a disgraceful practice.

Mortgage companies legitimately charge a processing fee because there are usually reams of paperwork and hours of follow-up involved in obtaining a mortgage loan approval. In addition, it's the processor who may be speaking with the loan underwriter and even the applicant to resolve open issues.

This is not the case in real estate transactions. Some companies hire closing coordinators to make sure the process is a smooth one. However, there are usually very few benchmarks to track in a residential transaction. Deadlines to watch include home inspection, property appraisal, loan application and loan approval. Is that worth hundreds of dollars out of your pocket? Isn't that the job of the listing agent or her assistant? Why are you paying extra?

The one exception that comes to my mind is a short sale. The seller typically has no closing costs, so in those cases when the lender doesn't agree to pay for the seller's attorney or other fees, the buyer is asked to pay for it.

What do you think? If you are looking for a straight-shooting agent, send me an email at poconnor@veritasrealestategroup.com with the subject line "Help Me Find an Agent" and I will do my best to find you someone in your area who doesn't charge this nuisance fee.

If you're a real estate agent who doesn't charge a processing fee, send me an email at poconnor@veritasrealestategroup.com with the subject line "Available Agent", let me know the area you serve, and I will add you to my database of referral agents.

Visit us on our Facebook page to continue the discussion.

Florida 55+Communities

Here is a link   http://fchr.state.fl.us/housing_directory/search
to the state-approved 55 and older communities in Florida. The rules and regulations vary among the associations, but most require at least one person on the deed to be 55 years of age or older, minors may not be allowed to stay overnight and leasing may or may not be allowed. If allowed, tenants may need to follow the age restrictions.
A community that wants to register with the state as 55+ is requesting permission to be exempt from the Fair Housing Act familial status protected class restrictions. In other words, if part of your intended rules is to prohibit minor children from living in the home, the association needs to register with the Florida Commission on Human Relations. Click on this link to read the FAQs.

http://fchr.state.fl.us/resources/55_housing/55_housing_faq_s

Visit our Facebook page for more Florida real estate news. Be sure to Like the page if you want to share the information with your friends.

Investors Profit Through HOA Auctions

Homeowner Associations (HOA) throughout the United States are allowed to record a lien on a homeowner's property if the association fees aren't paid in a timely manner. If the owner still doesn't pay what is owed, the property may be sold at an HOA foreclosure auction to the highest bidder. The association fees are paid, but any mortgage liens remain on the property since it was pledged as collateral for the loan.

So the investor now owns a property that he may have bought for an amount equal to or slightly higher than the unpaid association fees. If HOA rules allow leasing, that investor is free to rent the property until the bank forecloses. In judicial states, like Florida, where foreclosures have to proceed through the courts, this may take years. The investor can collect rent during this entire time. In some cases, the lender allows the investor to satisfy the mortgage lien by paying it off at a deeply discounted amount equal to what it would sell for at a foreclosure auction. Unfortunately, in other circumstabces, the investors aren't maintaining the property or paying their HOA fees, and the property is sold again at another HOA auction.

If you're interested in pursuing this, search the Internet for county name HOA auction. Remember that you will still be responsible for the mortgage lien although you are probably not required to disclose to prospective tenants that the bank may claim the property.

Join us on Facebook if you have any real estate questions for us.

Short Sales Fundamentals

A short sale occurs when the homeowner's mortgage balance is greater than the value of the home, and lender agrees to accept a property's market value as payoff for the mortgage loan. The lender requires the homeowner to have a documented hardship and to disclose financial information. There's a lot of paperwork and documents that need to be collected, but a short sale has minimal impact on a credit score and allows the homeowner to move on with their life. The lenders benefit because the process is quicker than a foreclosure in states that require foreclosure proceedings to occur in the courts. Florida is one of these states, and a foreclosure here can easily take three or more years to complete. Buyers who are interested in purchasing a short sale property need to be aware that the approval process can be 60 days or longer, and they may be required to pay an additional fee at closing. This happens when the lender refuses to pay for the seller's attorney and, since the seller pays no closing costs, the extra fee needs to be paid by the buyer. This should be disclosed in the MLS if it's the case. However, the fee shouldn't be exorbitant, and short sale listings typically sell at a 10 percent discount. Watch the video and don't hesitate to contact us on Facebook if you have any related questions.

Tired of the Blizzards?

Fort Lauderdale, Florida is 85 degrees and sunny today. That's a little warmer than normal February weather, but it feels wonderful. Maybe now is the time you want to decide about a vacation home. The area is serviced by three international airports located in Miami, Fort Lauderdale and Palm Beach.
Ask any real estate or relocation questions at Facebook.com/BrowardCountyProperty and we will quickly reply to your queries.