Home Sales Rise in April!

Home sales continue to rise in Brevard County, FL. Read the article in Florida Today: http://tinyurl.com/homesalesrise. This is definitely an indicator that prices are bottoming out and that the Real Estate Market is on the mend. In two or three years there are going to be a lot of people saying, "I should have bought in 2009 when the prices were rock bottom!"

Check out the complete inventory of homes and condos for sale in Brevard County at: http://sthomson.servingbrevard.com.

New Flights Added to Melbourne International Airport in Florida

Jet America has added two new flights from Melbourne, FL to Michigan and Ohio. Great news for snowbirds and vacationers. Read the article in Florida Today...http://tinyurl.com/newflightsadded.

Brevard County,Florida...One of the Top Ten Counties to Retire!

Forbes.com recently posted an article about the top ten counties in the United States to retire. We are very pleased that Brevard County, FL placed in the top ten!

Affordability and great weather were among the criteria that Forbes used.

Of course, we all know that Brevard is a great place to live and real estate prices are lower than they have been since at least 2002! Search for some of these great buys at http://sthomson.servingbrevard.com.

Buy A Second Home Now, Use For Your Retirement Later!

Imagine sitting on the beach every day, soaking up the rays and listening to the crashing waves. Or maybe enjoy a round of golf in perfect weather year round?

Whether you prefer sunning, golfing, boating or fishing (not to mention shuffleboard and tennis), now is the time to buy that vacation home in Brevard County.

As I mentioned in an earlier blog, this year prices are actually artificially low due to widespread foreclosures and short sales. Take advantage of this opportunity even if you are not retiring for a few more years!

And Brevard County remains one of the most affordable waterfront counties in all of Florida! We have oceanfront and riverfront properties as well as many fine golf course communities. There are many marinas and public boat launches throughout the county.

Use your second home as a vacation destination or rent it to offset your expenses. Many folks also qualify for reverse mortgages as an alternative to traditional financing.

Brevard County is less than an hour to the Orlando attractions and Daytona Beach and just a 45 minute ride to Orlando International Airport.

To check out all the great deals go to: http://sthomson.servingbrevard.com/.

Or call The Thomson Team at 321-360-8051 for more information!

Know When to Hold 'Em, Know When to Fold 'Em!

Whether you agree with me that we are at the bottom of the real estate market or not, most will agree that this is not a Seller's Market. If you do not need to sell your property now, don't put it on the market.

There are a lot of home owner's struggling to pay their monthly mortgage payments every month. In a normal market, these home owners would consider selling the home and moving on to a more affordable home or rental. But with plunging real estate values, selling is just not an option this year.

There are many alternatives to selling that every home owner should investigate if they are having trouble paying their mortgage or even if they are behind a couple of months.

The Federal Government has created many financial incentives for lenders and loan servicers to work with home owners to modify mortgage terms or offer other solutions to avoid foreclosure.

Some of the work out options include:

• Reduced Interest Rates
• Reduced Mortgage Principal
• Convert Interest Only Mortgage to Fixed Mortgage
• Extend 30 year Mortgage to 40 year Mortgage
• Forebearance ( reduced mortgage payments for 3 months)

To find out if you might qualify for a mortgage work out check out the government website:

http://makinghomeaffordable.gov/

If you do not qualify, you may be advised to short sale your home to avoid foreclosure and help to reduce the impact on your credit.

The Bottom of the Real Estate Market in Brevard County

Well, for all you folks who have been waiting for the bottom of our real estate market, it has come and gone.

There are many indicators that prove this is true:

• Multiple offers on Bank Owned Properties and Short Sales
• Bidding Wars are common place
• Single Family Home and Condo Inventory dramatically decreased this year
• 3rd Consecutive Quarter Home Sales have increased over same quarter previous year

I have been of the opinion that home and condo prices are actually artificially low this year, due to the large volume of short sales and foreclosures. So even though you may have missed the bottom, prices will remain extremely attractive this year. As short sales and foreclosures begin to ease, prices will start climbing again (probably sometime in 2010).

Read the Florida Association of Realtors report on first quarter sales: http://www.floridarealtors.org/NewsAndEvents/n1-051209.cfm

The latest stats in Brevard County show just over 4900 homes currently available with an average of 450 homes sold each month this year. That is less than a one year inventory compared with 2007 and 2008 when we had close to 10,000 homes on the market which represented a 2 1/2 year turnaround time.

If you are considering the purchase of a home, please take advantage of the once in a lifetime deals this market offers! Record low interest rates, federal and state incentives for buyers, and artificially low real estate prices will probably not be seen again!

Check out the homes for sale at: http://sthomson.servingbrevard.com

The Winds of Change

Real Estate is an ever evolving entity and this year is no different. Although 2009 is probably the best year ever to purchase real estate, obtaining financing has been an obstacle for many buyers.

It is no surprise that lenders are as skittish about lending as buyers are skittish about buying, so when you do decide to take the plunge, make sure you are deligent about "dotting your i's and crossing your t's".

Your first step is to get pre-approved with a reliable lender. Your real estate agent can provide you a list of proven local lenders. Once you find the home you wish to buy then contact your lender to complete the application process.

Stay organized and keep copies of all documents requested by the mortgage originator. You may have to provide this documentation again if the underwriter or processor needs to review. Today, underwriters and processors are scrutinizing every detail, since lenders do not want any more bad loans.

Don't make any large purchases like a new car or new furniture (even though there are some great deals out there!) until after you close. Likewise, don't change jobs or make any lifestyle changes that will put up a red flag to the underwriter.

As soon as your offer is accepted, schedule your inspections immediately and start shopping for homeowners insurance (also known as hazard insurance) since your underwriter will require the insurance binder prior to closing.

In past years, we saw most closing take place within 30 days of executed contract, but since most loans are now FHA or VA, plan on a 45 day close.

Need Help With Down Payment? Will $10,000 Help?

Florida residents who are looking to buy a home and need help with down payment and closing costs now have the opportunity for up to $10,000 in closing costs ($5,000 for higher incomes).



To see if you qualify check out this First Time Home Buyer Wizard: http://apps.floridahousing.org/StandAlone/FTHBWizard/FTHBWizardForm2.aspx

I hope all buyers will truly discover that this year may be the best year in a lifetime to purchase the home of their dreams. With down payment assistance, tax credits, low interest rates, and rock bottom real estate prices, there will never be an opportunity like this again.

To search for the great real estate deals in Brevard County, FL (The Space Coast) go to:
http://sthomson.servingbrevard.com/

Buy A Home and Get an $8,000.00 Tax Credit!

If you haven't owned a home for the past three years, chances are you qualify to purchase a home this year and recieve an $8,000.00 tax credit! And if you stay in the home at least three years, you don't even have to pay it back!

Here is a link to a great chart to help you determine if you qualify:

http://tinyurl.com/amomlp

It is very important to remember this credit is only offered on homes that close by DECEMBER 1, 2009 !



Please take into consideration it may take up to 120 days to close a short sale, 60-75 days to close a Bank Owned property and 45-60 days to close a re-sale home. So don't delay, the best deals are going under contract quickly!



To search for your new home in Brevard County, Florida please go to:

http://sthomson.servingbrevard.com/



The Thomson Team is standing ready to help you fulfill your goal of home ownership! http://www.sherylthomson.com/

It's Spring and It's Time to Sell Your Home!

Warm sunshine, blossoming flowers and twittering birds (yes, I guess you can say birds are the original twitterers!) make Spring the best time to sell your home!
But really folks, you need to help Mother Nature out here. There are many inexpensive things you can do to help sell your home quickly and for the highest dollar. Check out this informative article on Money.com http://tinyurl.com/cfzkz4
Not sure whether you should make improvements to your home prior to selling? Send me your questions and I will be happy to make recommendations! sherylthomson@hotmail.com

Tax Liability on the Short Sale of Your Home

Please, if you are considering a short sale of your home, talk to a real estate attorney or a cpa to determine any tax liabilities or ramifications of the short sale.

In 2007, Congress passed a bill that granted tax relief for home owners who sold their home as a short sale. Homeowners will be exempt from capital gains tax on the amount of debt forgiven by the lender. Read more at http://www.irs.gov/individuals/article/0,,id=179414,00.html

As always, this tax law is complicated and should be intrepreted for you by an accountant or attorney.

The exemption does not apply to investors and/or folks who own second homes.

Pricing Your Home For A Short Sale

There seems to be much confusion on how to price a home for short sale.

It really is quite simple. A qualified real estate agent should prepare a comparative market analysis (CMA) of your home to determine it's value in today's market. It doesn't matter what the house was purchased for, or how much is owed on the mortgage. The lender is looking to get fair market value, whether it is a short sale or foreclosure.

There should be a disclosure that the price advertised is a short sale and subject to third party or lender approval. There will never be a guarantee that a lender will accept the price that is advertised in the MLS (multiple listing service).

If you are a buyer interested in buying a short sale, you must do some homework (or insist that your real estate agent do the research), since short sale listings are priced all over the board. Simply research recent sales of comparable properties in the neighborhood and base your offer on those sales. That is what the lender will be looking at to determine whether or not they will accept your short sale offer.

A Successful Short Sale!

The key to negotiating a successful short sale is to price the property correctly to obtain an offer the lender is willing to accept. This means the offer must be more finanacially feasible for the lender to accept a short sale rather than foreclosing and selling the property themselves.

Once you get a reasonable offer submit that to the lender with the following information:

1. Purchase and Sales Contract
2. Prelim HUD-1
3. Buyers Pre-Approval Letter or Proof of Funds
4. Listing Agreement
5. Authorization Form
6. Sellers Financial Statement
7. Sellers Last Two Pay Stubs
8. Sellers Last Two Bank Statements
9. Sellers Last Two Years Tax returns

It is important to send a complete package to the lender as opposed to "piece-mealing" it one document at a time.

Also, put the account number on each page. Send the entire package to the second mortgage company if applicable.

Each lender will have certain methods to process the short sale once it is recieved, but the general procedure for short sale approval is the package is reviewed to determine whether the price may be acceptable and completeness of all documentation. It is then sent to another "handler" to order an appraisal or BPO (broker price opinion). Many lenders are requesting 2 BPO's to verify fair market value. If offer falls within acceptable range of fair market value, it is then sent to the "investor" for final approval or counter offer.

Once you recieve an approval, the lender will require closing in 30 days. Most lenders will grant one extension if necessary, but don't count on it.

As I mentioned in my last blog, this process will take approximately 90 days.

My Favorite Topic, Short Sales!

First of all, what is a short sale?



A short sale is when the owner of a property owes more than what the property is worth. Typically, the owner is in some financial difficulty and is unable to make his/her mortgage payments and unable to sell for enough money to payoff the mortgage(s).



The owner contacts their mortgage companies and asks permission to sell the property for fair market value and have the mortgage company forgive the balance of the loan.



Seems simple enough, doesn't it?



Well, the basic premise is simple, but throw in a couple of realtors, a seller, a buyer, a mortgage company or two, a servicing company, investors and mortgage insurance and a simple solution becomes a very stressful real estate transaction.

Is there anything we can do to streamline a short sale transaction?

Yes and no! The reality that approval of the short sale will probably take a full 90 days in most cases. Once the selling agent, buying agent, seller and buyer understand the time frame, there is much less stress on all parties involved. Constant communication goes a long way here.

In my next post I will talk about the various steps necessary to completing a successful short sale.