Homes at Half Price for Firefighters, Police, Teachers

Good Neighbor Next Door program (GNND) offers homes at half price

TUESDAY, 28 SEPTEMBER 2010 By Elizabeth Martinez

Miami, FL- With the current market situation, and since the bursting of the mortgage bubble, foreclosure sales are attracting many buyers. Special deals like the one offered by the Good Neighbor Next Door program (GNND) is one that has received much attention.

Under the Federal Housing Administration (FHA) Good Neighbor Next Door program (GNND), homes are being sold at half price. This program is exclusively for buyers who are teachers, law enforcement officers, firefighters and emergency medical technicians, or EMTs. The homes being sold were insured by the FHA and foreclosed on. Now, the Department of Housing and Urban Development is selling them at half price.

However, there is more to take into consideration when you apply for this program. Buyers who meet the professional requirements must be willing to live in the neighborhoods where this program is being offered. For example, if a buyer is a firefighters or EMT, he or she must serve in the jurisdiction where the house is located in order to qualify. Similarly, teachers must teach at a school in the neighborhood boundary of where the house is located.

Once the buyer has met all of those requirements, the buyer then pays half the appraised value as determined by HUD. The other half which is the discounted half is taken as a "silent second" mortgage, with no principal or interest payments. If the house becomes the buyer’s primary residence for at least three years, then the buyer is forgiven from paying the silent second mortgage at the end of that time period. The owner may then keep the house or sell it and keep any profit. Payment of the first half can be made in cash, or the buyer can even borrow some or all of one-half of the purchase price.

The neighborhoods covered by this program are what the FHA calls "revitalization areas." These neighborhoods offer a combination of low household incomes, low homeownership rate and high number of foreclosures of FHA-insured properties. Therefore, these areas are not necessarily ideal, and they need fixing up.

According to the Department of Housing and Urban Development, the goal of this program is "to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live in the community."

Reprinted courtesy of Mortage Lending News: http://www.mortgagelendingnews.com/top-news/11774-good-neighbor-next-door-program-gnnd-offers-homes-at-half-price

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Broward Law Firm Faked Foreclosure Documents?

Lawsuit claims that Florida's largest foreclosure firm faked documents

By Kimberly Miller, Palm Beach Post Staff Writer

Florida's purported largest foreclosure law firm filed thousands of documents to take people's homes that contained deceptive and intentionally ambiguous information, according to a proposed class action lawsuit.

The suit, filed last month in U.S. District Court, Southern District of Florida, says David J. Stern and his Plantation-based legal team violated the Racketeer Influenced and Corrupt Organizations Act by generating fraudulent mortgage assignments when pursuing foreclosures.

An assignment is held by the entity that has the right to receive mortgage payments.

Stern's practice, which the lawsuit claims filed up to 7,000 new foreclosure cases in Florida every month last year, also is alleged to have pursued foreclosures for lenders that didn't own the debt on the homes.

"There really is no proper plaintiff to sue and foreclose and that's what this charade is designed to cover," said Fort Lauderdale attorney Kenneth Eric Trent, who is seeking class action status and filed the suit on behalf of Oakland Park resident Ignacio Damian Figueroa. "There is no real holder of the note and the mortgage anymore because they broke it up and sold it to 10, 12, 20 people."

During the real estate boom, loans traded hands often, sometimes being bundled or split up and sold to investors.

Tracking the true owner of the debt sometimes can be a challenge. When pressed for proof of debt ownership, Trent said Stern's office would create an assignment signed by a Stern employee instead of a representative of the lender attempting to foreclose.

"The assignments were meaningless shells designed to pull the wool over the eyes of the judiciary and ease the burden upon the unknown real parties of interest," the lawsuit states.

Miami attorney Jeffrey Tew, of Tew Cardenas law firm, is representing Stern. He said Stern and his company have done nothing wrong, and that it is accepted practice for a firm employee to be given power to approve assignments.

"This foreclosure crisis was not created by David Stern, but it is so huge and a lot of people are in very bad shape, so some of the finger-pointing goes to him," Tew said.

Trent also named the Mortgage Electronic Registration Service Corp. as a defendant. The private entity, known as MERS, was created by banks in 1995 to track mortgage ownership electronically and reduce paper documents.

Trent says MERS helps hide the identity of loan ownership and that it conspired with Stern to "confuse everyone as to who owned what."

Tew called that claim "fantastical." He did acknowledge, however, that errors can happen.

West Palm Beach foreclosure defense attorney Thomas Ice found 21 examples last year of assignments from Stern's office that had been executed with a date before the notary's commission was issued.

In a deposition, a Stern employee agreed with Ice that "sloppiness" was to blame for the irregularity.

Palm Beach County Circuit Judge Meenu Sasser, who handles the county's foreclosures, said she's dismissed cases when she found problems with assignments. She wasn't speaking directly about cases filed by Stern, and said it's only happened a few times.

"I haven't seen any widespread problem," Sasser said.

Reprinted courtesy of The Palm Beach Post, original article appears here: http://www.palmbeachpost.com/money/lawsuit-claims-that-floridas-largest-foreclosure-firm-faked-839393.html

Florida Real Estate Market Has Hit Bottom - Univ of Florida

UF: Florida real estate market has hit bottom

GAINESVILLE, Fla. – April 29, 2010 – Florida real estate markets show the first tentative signs of recovering from the most painful recession in the state's history, according to the latest University of Florida (UF) report.

"Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," says Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies.

But while most of the survey respondents report the market probably won't get any worse, few say it has actually begun to improve yet, Becker says. "One of our respondents summed it up by stating that 'if anything, we will get less bad.'"

On the positive side, private capital – both foreign and domestic – is continuing to enter the state in search of quality investment deals. As banks start to deal with their problem assets, more deals will come to market.

Another good sign: Life insurance companies have started to re-invest in commercial properties after backing off for the last year and a half, Becker says. Because these companies use premiums from life insurance policies to make investments, they are not deterred by the lack of available bank financing.

"(Life insurance companies) see the fundamentals of the economy stabilizing and they see the opportunity to get quality assets at a good price," Becker says. "So if they think things aren't going to get worse and they may actually get better, it follows that they're going to want to start investing again."

On the negative side, unemployment continues to be one of the state's biggest problems, edging up to 12.3 percent in March, its highest level since the state began keeping count in the 1970s. Florida has lost more than 880,000 jobs since 2007.

Although there is a potential for job growth later in the year, even under the most optimistic assumptions it will take three to four years to return to 2006 levels, Becker says.

Also of concern is the continued reluctance of commercial banks to lend money because of pressure from regulators to manage risks along with depressed values that make it difficult to refinance mortgages.

The retail and office markets are the worst off, Becker says. "Until there is an increase in job growth, there is no need for more office space, and people aren't spending as much money as they used to."

Apartments continue to be the best market in the state due to high demand from people moving out of foreclosed homes. "More people are going to be living in temporary spaces than trying to buy homes just because it's gotten a lot more difficult to buy homes from a financing perspective," Becker says.

Statewide, Florida's new housing market will continue to be slow, a result of more foreclosed homes becoming available. "That competition makes it very difficult for new homes to get built and purchased because buyers can often get an equal or nicer home for a much cheaper price on the foreclosure market," Becker says.

One of the strongest areas of the state is South Florida, especially Miami-Dade and Broward counties, with their diverse economies, steady migration and influx of foreign capital. "The glut of condos in South Florida is actually starting to change hands – they're beginning to rent them – and I think there is more life in downtown Miami than there has been in a long time," Becker says.

Orlando, Tampa and Jacksonville also are picking up. "Florida's big cities – those four areas – are less bad off than the rest of the state, and they're going to recover quicker than other places," Becker says.

Jacksonville, in particular, is in a good position because its housing market never got as hot as other markets; and, as a result, it doesn't have as many foreclosures. "I think Jacksonville is primed to really take off, and with the expansion of the port is going to have a lot of jobs coming into the marketplace," Becker says.

A positive note overall is that survey respondents' confidence in their own business has risen for the fifth consecutive quarter. In previous breakdowns by profession, developers and lenders had extremely low expectations for their own businesses, and that has grown substantially in the last few surveys.

"It's always a good sign for us that the lenders think their business is going to get better," Becker says. "Maybe it means there is some light at the end of the tunnel, even though we're still not at a great spot."

© 2010 Florida Realtors® Courtesy: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=238713

Fannie Mae Sweetens Offer to Avoid Foreclosure

Fannie sweetens offer to avoid foreclosure
WASHINGTON – April 26, 2010 – Struggling borrowers who give up their homes through a "deed in lieu of foreclosure" or a short sale will be able to obtain a new Fannie Mae loan in two years. Currently, these owners must wait at least four years.

The new policy, which takes effect in July, is designed to make foreclosure alternatives more attractive. The policy applies only to Fannie Mae's willingness to approve a mortgage, however. Homeowners' credit scores will still take a hit following a short sale or deed in lieu of foreclosure.

To qualify for a mortgage after the two year wait, Fannie Mae says borrowers must make a 20 percent downpayment; but those who lost a job or have other extenuating circumstances will be able to make a 10 percent downpayment.

Freddie Mac – which, with Fannie Mae, insures over half the mortgages in the U.S. – currently makes homeowners wait four years after a short sale or deed in lieu of foreclosure before it will back a new mortgage. Owners who go through a foreclosure wait five years. For both Fannie Mae and Freddie Mac, the waits can be shorter in some cases if borrowers show extenuating circumstances.

Source: Wall Street Journal (04/26/10) P. A2; Timiraos, Nick © Copyright 2010 INFORMATION, INC. Bethesda, MD

State gives out more appliance rebates than expected

Federal energy efficiency program brings $62 million in sales for Florida merchants

By Diane C. Lade, Sun Sentinel, April 19, 2010

State officials and retailers on Monday declared Florida's cash for clunker appliances program a success, with Floridians reserving about 72,700 rebates — almost 4,700 more than originally anticipated — before the $17.5 million in state funding ran out Saturday night.

Brenda Buchan, the chief analyst for the Governor's Energy Office who's managing the federally-financed program, said the state was able to hand out more 20 percent rebates on energy-efficient appliances because the average cost was less than expected. "There were some really good deals out there," she said.

The money also lasted almost a day longer than projected.

South Florida merchants were delighted with the response, with state officials saying the program generated at least $62 million in sales and $4 million in sales tax. Bobby Johnson, senior vice president for South Florida-based BrandsMart USA, said customers continued to buy appliances on Sunday even though the rebate funds were gone.

Now consumers' anxiety is shifting from snagging a priority number online, which helped guarantee them a rebate, to getting their appliances delivered in time to qualify. Rebate applications must be mailed by May 10, and customers need the serial numbers off their new products before they can complete them.

"I'm hoping the government gets enough complaints that they extend it," said Virgina Stewart, of Dania Beach. She bought a $1,700 refrigerator Friday at Sears store in Fort Lauderdale and wrangled a priority number, only to discover she might not be able to get her appliance until May 11.

Sears spokesman Larry Costello said he hadn't heard of similar complaints. "We've been preparing for almost a year … It's to our benefit to make sure customers get their products in time," he said.

When sending an application, include the original sales receipt and proof of recycling your old model from your installer for an additional $75, and make sure your priority number is on the application. Make photocopies of everything for your records.

Applications will continue to be accepted without a priority number but placed on a waiting list. For information, go to: http://www.rebates.com/florida.

Diane Lade can be reached at dlade@SunSentinel.com.

Copyright © 2010, South Florida Sun-Sentinel

Florida's Appliance Rebate Program Starts Today

Florida’s appliance rebate Web site down, but should be up by 11 a.m.

Posted: April 16, 2010 - 1:34am

WILL DICKEY/The Times-Union

-Customer Dustin Goldbrown (left) looks at washers and dryers with the help of sales associate Will Phillips at hhgregg at The Avenues early Friday morning, April 16.

By David Bauerlein

The Web site for Florida's long-awaited appliance rebate program was down this morning, but state officials said it should be up and running by 11 a.m. when consumer can start reserving their rebate funds.

The state's Web site is www.rebates.com/florida.

An alternative site consumers can check out is www.myfloridaclimate.com. The myfloridaclimate.com site contains information about the program and how it works. However, consumers cannot place reservations for rebates at that site. State officials strongly urge the reservations because it is a first-come, first-serve program until the money runs out.

The 20 percent rebate for appliances kicked off today amid the kind of retail buzz that usually accompanies high-tech gadgets rather than clothes washers.

Sears and Best Buy opened stores at 6 a.m. for early-bird shoppers. Lowe’s and Home Depot also promoted the rebates to their shoppers.

The $17.5 million rebate program, funded by federal stimulus money, will provide the rebates to Florida residents purchasing select Energy Star-rated appliances. Those are refrigerators, freezers, clothes washers, dishwashers, tankless gas water heaters, and room air conditioners.

Shoppers have been asking about the program for the past month, said Tom Crosby IV, owner of Crosby & Son Appliances on the Westside.

“We’re a third-generation business but I’ve never seen anything like this,” he said Thursday.

His store opened an hour early at 7 a.m.

State officials expect the rebates will be enough for 68,000 appliances and all the rebate funding could be sucked up by purchases made the first day. Appliances must be purchased at Florida stores. Online purchases won’t qualify.

After buying the appliance, the next step will be to go to the state’s Web site, www.rebates.com/florida, and reserve rebate money for your purchase. The Web site will start taking reservations at 11 a.m. The site will keep a running tally of how much rebate money is left.

Consumers will then mail in rebate forms that can be downloaded from the state’s site. The state doesn’t have a phone number for the program.

david.bauerlein@jacksonville.com Courtesy of http://jacksonville.com