IRS investigates home tax credit claims
WASHINGTON (AP) – Oct. 21, 2009 – Key congressional leaders want to extend the tax credit for first-time homebuyers beyond its scheduled end-of-November expiration despite complaints of fraud and Obama administration concerns about the costs.
Housing and Urban Development Secretary Shaun Donovan says the administration is not sold on the idea. For the past several weeks, Obama administration officials have been talking about possibly extending the credit to help spur the economy and create jobs. But at a congressional hearing Tuesday, Donovan said the administration needs better cost estimates.
“To truly understand the costs, we will not know that until Americans have filed their tax returns,” Donovan told the Senate Banking Committee. “We believe it’s critical to have the information necessary to make a fully informed decision about the costs.”
Tax filing season doesn’t start until next year. But Donovan said he expects to get cost data in the next few weeks. “We understand the urgency of this situation,” Donovan said.
The Internal Revenue Service has opened 107,000 examinations of questionable claims and identified 167 criminal schemes involving the tax credit since it was expanded as part of the economic stimulus package enacted in February.
But lawmakers understand the program is popular and has helped the struggling housing industry recover.
Lawmakers said they might add protections to help prevent fraud. But there is a growing consensus among congressional leaders that the housing market is still fragile enough to justify extending the program.
House Majority Leader Steny Hoyer, D-Md., said he favors extending the existing credit through the end of the year as lawmakers work to “find out about how ethically and how honestly this policy is being pursued.”
Senate Banking Committee Chairman Chris Dodd said, “We still need to use every tool at our disposal” to help the housing market. Dodd, D-Conn., has joined Sen. Johnny Isakson, R-Ga., in sponsoring a bill that would extend the credit until June 30 and expand it to people who already own homes.
It would cost about $1 billion a month to extend the existing credit, according to congressional estimates. The bill sponsored by Dodd and Isakson is estimated to cost $16.7 billion.
The existing credit allows qualified first-time homebuyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. Homes purchased after Jan. 1 are eligible. The full credit is limited to single filers making less than $75,000 a year and joint filers making less than $150,000.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
“The housing market would not have moved without this tax credit,” said Lucien Salvant, spokesman for the National Association of Realtors. “It’s a fragile recovery, which is why we think it should be extended.”
The IRS began special screening procedures for tax returns claiming the credit after it was enacted, said IRS spokesman Frank Keith. For example, taxpayers who previously claimed the mortgage interest deduction would warrant a second look if they claimed the first-time homebuyers credit, he said.
Processing claims presented special challenges for the IRS during the spring tax filing season because homebuyers were eligible for different credits, depending on when they purchased their homes.
First-time homebuyers who purchased homes in 2008 were eligible for only $7,500 in tax credits, and the credits had to be repaid over the following 15 years. Those who bought homes in 2009 were eligible for up to $8,000, and there was no requirement to repay the money. Also, people who bought homes in 2009 were allowed to claim the credit on their 2008 tax returns.
An audit by the agency’s inspector general found that 93 percent of the returns claiming credits for homes bought in 2009 were coded incorrectly, meaning those taxpayers could be incorrectly identified as liable for repaying the credit. The audit was released in September by the Treasury Inspector General for Tax Administration. It reviewed 47,276 electronically filed returns.
The IRS, in a response to the audit, said it plans to track the returns and confirm that taxpayers are liable to repay the credit before pursuing them.
Copyright 2009 The Associated Press, Stephen Ohlemacher, Associated Press writer.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=225590
Wednesday, October 21, 2009
Tuesday, October 20, 2009
Even Celebrities Aren't Immune to Foreclosure
Foreclosures of Rich and Famous People
Published on Tuesday, September 22, 2009, 8:16 PM Last Update: 18 hour(s) ago by Kimbrough Gray
Category: All Articles » Economy and Politics
Although the rich and famous are rich and famous, it doesn't mean that they are impervious to the popping of the real estate bubble. Many have succumbed to real estate woes as of late.
Ed McMahon had tabloids a talking when his real estate troubles became front page news last year. The now deceased celebrity attributed his dollar difficulties to alimony paid out to ex-wives and the economic downturn.
Aretha Franklin set the record straight about her exclusive Detroit suburban home. It went into foreclosure due to non-payment of property tax. She could have lost her $400,000 home to foreclosure due to $445 in back property taxes that accumulated into $20,000, since 2005. She said it was an oversight by her attorney. Once alerted of the situation, the Queen of Soul satisfied the debt.
Amber Frey, infamous ex-mistress of convicted murderer Scott Peterson lost her home northern California home to foreclosure. At auction, the asking price was over $200,000 less than the original purchase price. No one snatched up the deal at a low $305,000. She ended up surrendering the property to the bank.
Fantasia of American Idol fame came close to losing her home in Charlotte, North Carolina. The R&B singer settled with her Florida lender just days before the auction was scheduled to sell her pond-front home.
Extreme Makeover scandal hit the Harper family home in Atlanta, Georga when it went into foreclosure and would have been sold had it not been for ... even more ... generous donations. The most expansive Extreme Makeover ever seen was completed with much dedication, sweat and effort by volunteers, along with a deluge of donated dollars. Taking out a $400,000+ loan for a construction business that went belly up put the Harper's home in harm's way.
Laura Richardson, California Congresswoman, fell behind on property tax and mortgage payments in 2008. To the disdain of Sharon Helmar who sold it to her, the Long Beach home went into foreclosure and was sold. Neighbors noted that she did not keep up the lawn or take out her garbage.
Sports figures are not unfamiliar with foreclosure, either. Latrell "Spree" Sprewell, former NBA guard known for choking his then Coach P. J. Carlesimo, lost his 70-foot yacht and his Milwaukee home to foreclosure. Assessed at a mere $668,000, the home's value was nowhere near what most other sports professionals in his pay range own.
Jose Conseco experienced women woes, which caused him to lose his expansive 7,300 square foot Encino, California mansion. At least, that's his story. He said he lost $7 to $8 million on his two divorces that left him hard up for cash and was unable to pay his mortgage.
Not to anyone's surprise, Michael Vick's home was in foreclosure, since he was in prison and no longer could come up with the cash. Once NFL's highest paid player, the dog-fight diva was convicted and was to serve 23 months in prison. He was released earlier this year to serve out the rest of his sentence in home confinement.
Evander Holyfield, famous for his fight with Mike "I'll Bite Your Ear Off" Tyson, had his Fairburn, Georgia home in foreclosure. He was also behind on child support payments to a mother of one of his eleven children, and being sued for not paying $550,000 he loaned he owed to a consulting company.
Michael Jackson (King of Pop), MC Hammer (Hammertime fame), Veronica Hearst (Randolph Hearst widow), Scott Storch (previous hip-hop producer), Damon Dash (hip-hop mogul), Doug E. Fresh (rap icon), Vin Baker (former NBA star), Wyclef Jean (Fugees' frontman) and other famous actors, performers and sports professionals have all experienced foreclosure.
Ki graduated from UT with a CS degree. Now he works with Austin real estate. He has a website allowing buyers to search Austin MLS listings. He also keeps an updated blog on Austin Texas real estate.
http://www.brokeragentsocial.com/article/530/foreclosures-of-rich-and-famous-people
Published on Tuesday, September 22, 2009, 8:16 PM Last Update: 18 hour(s) ago by Kimbrough Gray
Category: All Articles » Economy and Politics
Although the rich and famous are rich and famous, it doesn't mean that they are impervious to the popping of the real estate bubble. Many have succumbed to real estate woes as of late.
Ed McMahon had tabloids a talking when his real estate troubles became front page news last year. The now deceased celebrity attributed his dollar difficulties to alimony paid out to ex-wives and the economic downturn.
Aretha Franklin set the record straight about her exclusive Detroit suburban home. It went into foreclosure due to non-payment of property tax. She could have lost her $400,000 home to foreclosure due to $445 in back property taxes that accumulated into $20,000, since 2005. She said it was an oversight by her attorney. Once alerted of the situation, the Queen of Soul satisfied the debt.
Amber Frey, infamous ex-mistress of convicted murderer Scott Peterson lost her home northern California home to foreclosure. At auction, the asking price was over $200,000 less than the original purchase price. No one snatched up the deal at a low $305,000. She ended up surrendering the property to the bank.
Fantasia of American Idol fame came close to losing her home in Charlotte, North Carolina. The R&B singer settled with her Florida lender just days before the auction was scheduled to sell her pond-front home.
Extreme Makeover scandal hit the Harper family home in Atlanta, Georga when it went into foreclosure and would have been sold had it not been for ... even more ... generous donations. The most expansive Extreme Makeover ever seen was completed with much dedication, sweat and effort by volunteers, along with a deluge of donated dollars. Taking out a $400,000+ loan for a construction business that went belly up put the Harper's home in harm's way.
Laura Richardson, California Congresswoman, fell behind on property tax and mortgage payments in 2008. To the disdain of Sharon Helmar who sold it to her, the Long Beach home went into foreclosure and was sold. Neighbors noted that she did not keep up the lawn or take out her garbage.
Sports figures are not unfamiliar with foreclosure, either. Latrell "Spree" Sprewell, former NBA guard known for choking his then Coach P. J. Carlesimo, lost his 70-foot yacht and his Milwaukee home to foreclosure. Assessed at a mere $668,000, the home's value was nowhere near what most other sports professionals in his pay range own.
Jose Conseco experienced women woes, which caused him to lose his expansive 7,300 square foot Encino, California mansion. At least, that's his story. He said he lost $7 to $8 million on his two divorces that left him hard up for cash and was unable to pay his mortgage.
Not to anyone's surprise, Michael Vick's home was in foreclosure, since he was in prison and no longer could come up with the cash. Once NFL's highest paid player, the dog-fight diva was convicted and was to serve 23 months in prison. He was released earlier this year to serve out the rest of his sentence in home confinement.
Evander Holyfield, famous for his fight with Mike "I'll Bite Your Ear Off" Tyson, had his Fairburn, Georgia home in foreclosure. He was also behind on child support payments to a mother of one of his eleven children, and being sued for not paying $550,000 he loaned he owed to a consulting company.
Michael Jackson (King of Pop), MC Hammer (Hammertime fame), Veronica Hearst (Randolph Hearst widow), Scott Storch (previous hip-hop producer), Damon Dash (hip-hop mogul), Doug E. Fresh (rap icon), Vin Baker (former NBA star), Wyclef Jean (Fugees' frontman) and other famous actors, performers and sports professionals have all experienced foreclosure.
Ki graduated from UT with a CS degree. Now he works with Austin real estate. He has a website allowing buyers to search Austin MLS listings. He also keeps an updated blog on Austin Texas real estate.
http://www.brokeragentsocial.com/article/530/foreclosures-of-rich-and-famous-people
Tuesday, October 13, 2009
FHA Lenders Offer Cash for Keys (Deed in Lieu of Foreclosure)
FHA lenders offer cash for keys
WASHINGTON – Oct. 13, 2009 – The Federal Housing Administration (FHA) is giving struggling borrowers an opportunity to deed their property over to the lender in exchange for up to $2,000.
Under the Cash for Keys program, borrowers with FHA-backed loans who agree to a deed-in-lieu-of-foreclosure do not have to repay the mortgage.
To qualify, owners must face long-term financial hardship, put the house on the market at a fair price for at least 90 days, face no additional claims or liens other than the first mortgage on the house, and leave the property clean and in good condition.
Source: Sarasota Herald-Tribune (FL) (10/12/09) P. D12; Bayles, Tom
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=225149
© Copyright 2009 INFORMATION, INC. Bethesda, MD
WASHINGTON – Oct. 13, 2009 – The Federal Housing Administration (FHA) is giving struggling borrowers an opportunity to deed their property over to the lender in exchange for up to $2,000.
Under the Cash for Keys program, borrowers with FHA-backed loans who agree to a deed-in-lieu-of-foreclosure do not have to repay the mortgage.
To qualify, owners must face long-term financial hardship, put the house on the market at a fair price for at least 90 days, face no additional claims or liens other than the first mortgage on the house, and leave the property clean and in good condition.
Source: Sarasota Herald-Tribune (FL) (10/12/09) P. D12; Bayles, Tom
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=225149
© Copyright 2009 INFORMATION, INC. Bethesda, MD
Thursday, July 23, 2009
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
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
Sunday, July 19, 2009
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.
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.
Friday, December 19, 2008
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
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
Monday, December 1, 2008
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
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
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