New Florida Rental Scam on Craigslist

The local Realtor Boards have been advised of a clever new scam on Craigslist. The fraudster copies a legitimate real estate rental ad from Craigslist or from other online sources, and then re-posts the ad on Craigslist with their contact information.

They usually post the rental rate far below what normal market price would be so they attract a lot of interest. They may likely have difficulty actually showing you the property you are interested in, but in some cases, they've actually been able to get access to the house or condo to show it. Once it comes time to rent, they claim to be headed out of town, or need the money right away so they don't rent to someone else and ask that the rental money be sent via FedEx (in cash), Western Union or some other wire service.

Once the funds are sent, the fraudster has free use of the money with little ability for the potential renter (victim) to get it back. Of course, these people do not own the property or represent the owners, they're simply committing fraud, and taking the money and running. Sometimes the funds are sent to the Caribbean, Africa, or Europe... but most folks will not ask you to mail cash or use a wire service for your rent money.

Obviously, a bit of common sense is in order, but apparently, these are professional con-artists and seem pretty convincing.

If the person you're dealing with claims to be a Realtor - ask to see their license and their ID. You can check on the status of ALL Florida Realtors here: http://MyFloridaLicense.com

If you're dealing with someone claiming to be the owner, pull up the tax record for the property and check their ID against the tax record:

Broward:
http://www.bcpa.net/search.asp

Miami-Dade:
http://www.miamidade.gov/pa/property_search.asp

Palm Beach:
http://www.pbcgov.com/papa/aspx/GeneralSearch/GeneralSearch.aspx

If the person you're dealing with claims to be representing the owner, they should have some formal document acknowledging this, like a Power of Attorney... but these are a bit more difficult to verify.

Again, let common sense prevail, and don't fall for the scam just because it sounds like a once-in-a-lifetime deal.

All the best,

--Dr. Branon A. Edwards, ePRO
Licensed Florida Real Estate Broker and Mortgage Broker
Direct Phone: 786-417-4910
Private Fax: 786-524-5747
mailto:Branon@InvestFloridaRealty.com

VISIT OUR WEBSITE:
http://www.InvestFloridaRealty.com

VISIT OUR BLOG:
http://www.InvestFloridaRealty.BlogSpot.com

Real Estate Office:
Aqualand Realty, Inc
8359 Stringfellow Road
Saint James City, FL 33956

Mortgage Office:
Mainland Mortgage Corp
351 S. Cypress Rd. Ste. 303A
Pompano Beach, FL 33060

CAN A MORTGAGE PREAPPROVAL FALL THROUGH??

CUSTOMER QUESTION: Can a Mortgage PreApproval Actually Fall Through?

ANSWER: Yes, of course it can fall through. Generally speaking, what you get when you first apply for a mortgage is a PreQualification, not a PreApproval. The mortgage broker checks your credit, enters all your income data into the computer system, and then puts in basic information about you and the property you want to buy.

Based on this information, the mortgage broker generally issues a PreQualification Letter, which basically says that given the information you've provided thus far, you seem qualified for the mortgage you're requesting.

A PreApproval actually comes from ALL of your information not only being in the system, but also verified by the underwriter. In other words, they've seen your tax returns, spoken to your employer, and know that if the property appraises, they'll give you the loan. Most companies do not go this far until they're actually in the process of trying to actually close your loan. Frankly put, the underwriters want EVERYTHING before they commit.

Regarding either of these documents falling through - they can fall through for a variety of reasons including information not being verified, the property not appraising for the proper amount, the buyer not having the proper amount of funds in reserve to provide the lender with a proper comfort level, etc. In addition, most mortgage companies pull a copy of the buyer's credit report again just before closing to make sure there haven't been any major changes.

The changes that most frequently sabotage a prequalification or approval are change in credit score due to recently reported new information (like an old collection just popping up finally), or the buyer actually changing their credit patterns. If you normally make your regular monthly payments and you suddenly pay your balances in full, this actually causes a temporary drop in your credit score - basically, the scoring system assumes you paid it off using a balance transfer from another account, so it deducts points for a cycle or two to double-check. Other credit-changing items include additional credit reports being pulled by other creditors - including other mortgage brokers, if you're shopping around. A lot of people make the mistake of financing the furniture for their new house before they close, which can show up at just the wrong moment. Still others make lots of major changes all at once - like buying a car as well.

By the way, shopping around for a good mortgage rate is not a bad idea. The scoring systems generally count any inquiries that happen within a 14-day period as one inquiry - but only after the end of the cycle. In other words, if I pull your credit today, another broker pulls it tomorrow, and another one in 8 days, all 3 will lower your score as you go, but at the end of the cycle, they'll be re-counted as one inquiry since they all fell within a 2-week period. The same holds true for inquiries when car shopping.

The best idea, however, is to have your credit pulled initially by the company you think has the best chance of earning your business - since they'll actually show the best score. Then, you ask the broker for your actual credit scores - rather than allowing the other companies to pull your credit - just give them the scores, they should be able to do their jobs without needing to actually pull the report. Of course, if you opt to go with one of the other companies, they'll eventually need to pull the actual report.

That's just a general overview... hope it answers your question. If you have additional questions, please just ask.

Thanks for the opportunity to earn your business.

All the best,

--Dr. Branon A. Edwards, ePRO
Licensed Florida Real Estate Broker and Mortgage Broker
Direct Phone: 786-417-4910
Private Fax: 786-524-5747
mailto:Branon@InvestFloridaRealty.com

VISIT OUR WEBSITE:
http://www.InvestFloridaRealty.com

VISIT OUR BLOG:
http://www.InvestFloridaRealty.BlogSpot.com

Real Estate Office:
Aqualand Realty, Inc
8359 Stringfellow Road
Saint James City, FL 33956

Mortgage Office:
Mainland Mortgage Corp
351 S. Cypress Rd. Ste. 303A
Pompano Beach, FL 33060

Thank you for the opportunity to
EARN your business.

30-Year Fixed Rate Falls to At Least a 37-Year Low

30-YEAR FIXED RATE FALLS TO AT
LEAST A 37-YEAR LOW

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.19 percent with an average 0.7 point for the week ending December 18, 2008, down from last week when it averaged 5.47 percent. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year FRM this week averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.60 percent this week, with an average 0.6 point, down from last week when it averaged 5.82 percent. A year ago, the 5-year ARM averaged 5.90 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, down from last week when it averaged 5.09 percent. At this time last year, the 1-year ARM averaged 5.51 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971," said Frank Nothaft, Freddie Mac vice president and chief economist. "The decline was supported by the Federal Reserve announcement on December 16th, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Courtesy of Freddie Mac. © 2008 Freddie Mac
http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputWk.jsp?week=51&ending=20081218

New Condominium Laws: A Lot to Digest

New Condominium Laws: A Lot to Digest
BY ROBERT L. KAYE (SPECIAL TO THE MIAMI HERALD)

If you have lived in Florida for any time, there is a high probability that you have had some form of contact with a condominium. There are more than 5,000 condominiums occupied or under construction in Miami-Dade, Broward and Palm Beach Counties, accounting for more than 20,000 individual units. For those who currently live in or will move to a condominium as a permanent or seasonal residence in Florida, the newest changes to condominium laws are important to understand.

The good news is that the Condominium Act (Chapter 718 F.S.) has been significantly amended with several changes benefiting current and future condominium residents.

There also are significant provisions, however, that are poorly written, ambiguous, vague and open to interpretation.

The scope of the statute is diverse but there are three critical areas for residents: insurance, board qualifications and collection of delinquent assessments. The laws affecting insurance and assessment collection were effective as of July 1, and those involving board qualifications went into effect on Oct. 1.

INSURANCE

One of the hottest topics for all involved with condominiums is insurance. The statute provides that for hazard (casualty) policies which begin Jan. 1, 2009, covering such events as storms, hurricanes or even relatively minor water leaks, the association is required to provide primary coverage for all areas of the condominium property as originally installed and any replacements of the same kind or quality.

The associations are also required to cover alterations properly made by the association through the years and places the onus on the association for reconstruction payments after a casualty loss, such as extensive damage from a hurricane.

Condominium unit owners' insurance policies issued after Jan. 1, 2009 for portions of the property that they are to cover will also be required to include extra coverage that includes loss-assessment insurance for no less than $2,000 per occurrence. Additionally, if the association requests proof of a unit owner hazard and liability insurance coverage and the unit owner fails to provide that proof within 30 days, the association has the authority to purchase coverage for the unit owner and assess that unit for the cost.

Other revisions further clarify what falls under the association's responsibility as a common expense. This includes hazard insurance deductibles, uninsured losses and other damages in excess of coverage. All reconstruction and/or repair responsibility following a casualty loss falls to the association to complete, although some of the costs may be apportioned between the association and the affected unit owners.

BOARD QUALIFICATIONS

Generally speaking, to be an effective leader, one should be knowledgeable in all areas under his or her jurisdiction. The new legislation recognizes this and the statute has been revised to address the qualifications necessary to become a board member, requiring that candidates who wish to be board members submit a certificate as proof of their knowledge of their governing documents, as well as the provisions of the Condominium Act.

The goal is to assure condominium residents that new board members will be knowledgeable in the condominium statutes and documents that apply to their condominium, and be better able to effectively manage their community. Also, any director who is delinquent for more than 90 days in assessments is automatically deemed to have abandoned his or her office.

ASSESSMENTS

Another revision to the statute places a larger burden on a condominium association when it is pursuing delinquent unit owners by adding a new step to the process. The association is now required to provide owners 30 days written notice via certified and regular mail before they can place a lien on the property.

Robert L. Kaye, Esq., is the founder and managing shareholder of Robert Kaye & Associates, a commercial law firm based in Fort Lauderdale.

Courtesy: Miami Herald: http://www.miamiherald.com/business/story/793086.html

Home Sales in Broward County Up 46% from a Year Ago

Bargains drive up home sales in Broward County
With foreclosure glut, more price drops likely

By Paul Owers | South Florida Sun-Sentinel
November 25, 2008

Find Broward County Homes: http://www.InvestFloridaRealty.com/search.htm

Even as job losses mount and mortgage lending remains tight, South Floridians still are buying homes.

Bargain hunters continue to respond to plunging prices, with October sales of existing homes in Broward County rising 46 percent, to 625 from 428 a year ago, the Florida Association of Realtors said Monday. The median price plummeted 29 percent, to $252,500 from $354,000 last October.

Sales have shot up since July, but that doesn't mean the region's nearly 3-year-old housing slump is ending, analysts say.

The October figures reflect home sales contracts signed during the summer, before the financial free-fall on Wall Street. Prices are expected to keep dropping as long as the foreclosure problem persists.

"We would be lucky if the market bottoms out in South Florida in 2009," Miami-based housing consultant Lewis Goodkin said.

Broward's condominium sector followed a similar trend last month. Condo sales increased 30 percent while the median price fell 28 percent, to $115,200.

Distressed properties are popular targets among people trying to buy now.

Roger Palermo, a building maintenance supervisor for the city of Pompano Beach, said he looked at almost 50 houses. Many needed new roofs and other major repairs. And most were foreclosures or short sales, in which lenders take less than what's owed on the mortgages and forgive the remaining debt.

Overwhelmed with properties, some banks said they wouldn't consider Palermo's offers for three months or longer. One lender came back with a counteroffer higher than the asking price.

Earlier this month, Palermo and his fiancee finally bought a two-bedroom house in Boca Raton after the previous owner's death. They paid $225,000, $34,000 less than the asking price.

"At least 75 percent of the homes for sale are either foreclosures or short sales and need a lot of work," said Palermo, 48. "But it's hard because you can't even get answers from the banks."

In Palm Beach County, October sales increased 37 percent, and the median price dropped 24 percent to $264,600.

Statewide, sales increased 15 percent last month, while the median price fell 24 percent, to $169,700, the Realtors' group said.

Nationally, sales fell 3.1 percent in October to a seasonally adjusted annual rate of 4.98 million units. The median sales price fell 11.3 percent from a year ago to $183,000. That was the largest year-over-year drop on records since 1968 and the lowest median sales price since March 2004. The median is the level at which half sold for more, half for less.

In South Florida, the recent sales momentum is helping reduce the number of properties on the market.

Broward County had a little more than 28,000 homes and condos for sale at the end of October, down 5 percent from a year ago, according to the Miami-based Keyes Co.

But demand still is lagging. It takes longer to sell a house in South Florida, an average of 172 days, than anywhere else in the nation, according to an October housing report from California real estate firms Altos Research and Real IQ.

"The inventory news is starting to get a little better, but the question is, how much more pressure are we going to get from new foreclosures that come on the market?" said Mike Larson, a housing analyst with Weiss Research in Jupiter.

Regardless, real estate agents here are enjoying the renewed interest among buyers, many of whom are coming from the Northeast.

"We're hoping for a really cold winter up north," joked Pamela Orr, an agent with Balistreri Realty in Lighthouse Point. "If it's priced right, people are buying."

Find Broward County Homes: http://www.InvestFloridaRealty.com/search.htm

Courtesy: Fort Lauderdale Sun-Sentinel http://www.sun-sentinel.com/business/realestate/sfl-flzhousingbr1125sbnov25,0,6508022.story

Palm Beach County sales up 37% from a year ago

Home Prices Fall, Triggering Sales

By JEFF OSTROWSKI, Palm Beach Post Staff Writer
Monday, November 24, 2008

Find Palm Beach Homes: http://www.InvestFloridaRealty.com/search.htm

The region's housing picture remained gloomy in October, a month when prices continued to plunge even as sales volumes recovered.

The median price for a Palm Beach County home fell to $264,600, the Florida Association of Realtors said Monday.

That's down 24 percent from a year ago, off 9 percent from September and the first time since February 2004 that Palm Beach County's median home price slipped below $270,000.

Bargain hunters took the bait. Realtors sold 618 houses in October, up 37 percent from a year ago and up 18 percent from September.

"There's buyers out there who are buying, but the mind-set is they want a deal," said Bob Graeve, an agent at Illustrated Properties Real Estate in Palm Beach Gardens. Graeve, for instance, recently advertised a foreclosed home and got three dozen calls.

Even so, the number of October home sales didn't exactly soar - they simply returned to October 2006 levels.

Nationally, of the homes that did find buyers in October, nearly half were the result of a sale after a foreclosure.

That trend helped send home values down at the fastest annual rate since the Realtors association began keeping records in 1968. The nationwide median price of a home was $183,300 last month, down 11.3 percent from October 2007.

The Treasure Coast showed similarly plummeting prices, but with a rebound in sales volume.

The median price of an existing single-family home in Martin and St. Lucie counties was $134,600, down 33 percent from a year ago, while sales jumped to 383 in October, up 76 percent from a year ago.

Housing analyst Brad Hunter of Metrostudy expects Palm Beach County prices to fall another 10 percent to 15 percent, and he sees the housing market weakening, in spite of the sales volume bounce.

"It's good news if you're a Realtor," Hunter says of the uptick in sales. "More transactions fuels that business. But it's bad news for the home builders, because what it means is that there's more pressure on them in terms of how much price discounting they have to do to sell homes."

It can be bad, too, for sellers who are facing intense price competition among banks selling foreclosed properties and by short sales, in which the bank agrees to accept a price that is less than the balance owed on the property and forgive the difference.

Frank Ortiz first placed his 2,600-square-foot, fully remodeled home on the Miami market in September 2007, then took it off the market seven months later because of a lack of buyer interest.

He listed it for sale again this summer for $389,000, and despite lowering the price $10,000 and holding several open houses over the past few months, he's yet to get a nibble.

"I haven't even gotten a call with interest in the house," Ortiz said. "It's not like a dilapidated house or anything. It's a remodeled house."

His agent, Pam Mayers of Esslinger-Wooten-Maxwell Realtors in Miami, says, "It's easy pickings for anybody buying a house right now. For sellers it's horrible. People are like vultures, flying around and picking whatever's left."

Eric Sain, president of the Realtors Association of the Palm Beaches, is urging his clients not to sell now.

"I'm telling my clients that if you can rent it and hold on, that's great," Sain said. "Most economists I've heard are looking for another 10 to 15 percent decline in prices before we hit bottom."

The housing market's meltdown has sent the entire economy into a tailspin.

On Monday, the Florida Home Builders Association said that as banks tighten their lending practices, they're pushing even solvent builders to "the brink of financial disaster."

"Not only are banks making additional capital calls, they are calling in loans not in default, eliminating lines of credit, and in many cases, altogether doing away with construction financing," Florida Home Builders Association President Jay Carlson said. "The current method banks are using to recapitalize is exacerbating Florida's economic problems."

Meanwhile, the National Association of Realtors is calling on Congress to approve $100 billion in incentives for home buyers as the housing market continues to crater.

Nationally, existing-home sales fell 3.1 percent to a seasonally adjusted annual rate of 4.98 million units in October, 1.6 percent below the 5.06 million-unit pace in October 2007, NAR said.

Find Palm Beach Homes: http://www.InvestFloridaRealty.com/search.htm

Courtesy: Palm Beach Post http://www.palmbeachpost.com/business/content/business/epaper/2008/11/24/1124homesales.html

Lee County's Ft. Myers; Existing Home Sales Pace Up 44%

Lee County's existing home sales pace looks promising
BY DICK HOGAN • NOVEMBER 25, 2008

Find Lee County Homes: http://www.AqualandRealty.com

Lee County's existing-home market experienced a slight dip in sales and prices in October - and that may be good news.

That's because the pace of homes being sold continues to be quick while prices slowly fall.

The price of an existing single-family home in the county sold with the help of a Realtor dropped 2 percent to $139,500 in October while the number of homes sold fell 3 percent to 720, according to statistics released Monday by the Florida Association of Realtors.

Experts aren't saying the real estate market is healthy, but compared to the wild gyrations of the stock market, real estate now seems relatively stable.

Compared to a year ago, sales are strong, said Brett Ellis, a real estate agent with RE/MAX Realty Group in Fort Myers. There were 405 houses sold in October 2007, 44 percent fewer than October 2008.

High sales are good because once the 15,000 houses listed for sale and the 30,000 foreclosure properties backed up in the court system are sold, the laws of supply and demand kick in, he said.

Although October's sales were slightly off September's pace, Ellis said, that could be because those sales were based on deals that went on through August and September - two of the slowest months of the year.

In a separate report issued Monday by the National Association of Realtors, sales nationally of existing homes fell 3.1 percent to a seasonally adjusted annual rate of 4.98 million homes in October, from a downwardly revised pace of 5.14 million in September. Sales had been expected to fall to a rate of 5.05 million, according to economists surveyed by Thomson Reuters.

The national median sales price plunged 11.3 percent from a year ago to $183,000. That was the largest year-over-year drop on record going back to 1968, and the lowest median sales price since March 2004.

Lee County's median price is the lowest since February 2003, when it was $135,900.

That's more good news for the market, Ellis said.

Sales are staying strong because "our prices are where they ought to be" after a long slide following the collapse of the market, he said. The median price reached its all-time high of $322,300 in December 2005.

Still, for people trying to sell a house, competition is heavy from foreclosures and short sales.

"I don't know, man, everybody wants to buy houses," said contractor Mike Kelly, who's trying to sell his house on Devonwood Court in south Lee County for $270,000. "I'm going to cut the price a little bit and then wait. I'm hoping that January through March, in season, maybe they'll get more buyers."

But, he said, it's a tough environment to be selling a house. "Business is really slow, and I don't want to have to eat into my savings."

Kelly's company, Southwest Florida Custom Electronics, installs burglar alarm, camera and sound systems, but demand is soft, he said.

Around the nation, sales were down in October compared to September. But sales were up 40.5 percent in the West compared with October last year, without adjusting for seasonal factors. Buyers in places such as Las Vegas and Orange County, Calif., snapped up distressed properties at bargain prices.

Nationwide, the Realtors group estimates that sales of distressed properties made up 45 percent of all property sales in October.

Having money in the stock market has been a wilder ride than real estate in recent weeks: The Dow Jones Industrial Average sank from 9,625 on Nov. 4 to 7,552 on Nov. 20.

- The Associated Press also contributed to this report.
Courtesy Fort Myers News-Press: http://www.news-press.com/article/20081125/RE/811250378/1014/business