What is a Short Sale & Some Things You Should Know

Posted by Duke Rountree on

What is a Short Sale & Some Things You Should Know

What is a Short Sale?

A short sale is a transaction where the net proceeds from the sale of a property are not enough to cover the sellers mortgage obligation and closing costs, such as property taxes, transfer taxes, and real estate commissions.

ONLY Real Hardships Get the HELP!

Purchasing or refinancing your house during the housing boom is not a legitimate hardship. Banks actually review and analyze short sale sellers hardships and most center of the economy. In short the banks are going to verify the short sale is in their best interest, not the sellers. What are acceptable hardships? medical issues, divorce, disability, significant loss of income, death, unemployment, and relocation.

Laws Are Local(State)

Foreclosure laws vary from state to state and it is important to remember there are currently no short sale laws on the books. Federal guidelines are in place, however the bank does not have to do anything they do not want too. If you decide to move forward in selling your home as a short sale there are a few things to keep in mind.

1) If the bank approves the short sale will there be a deficiency amount owed for the difference between your mortgage amount and sales price, minus fees?

2) Will the bank accept a “Deed in Lieu of Foreclosure”? With a deed in lieu of foreclosure, the property owner gives the property to the lender voluntarily in exchange for the lender canceling the loan. The lender may or may not agree to forgive any deficiency balance that results from the sale of the property.

3) Potential Tax liabilities- Under federal law, a creditor is required to file a 1099C whenever it forgives a loan balance greater than $600.00 which could create a tax liability  for you. However the Mortgage Forgiveness Debt Relief Act of 2007 provides tax relief for some loans forgiven in 2007 through 2012.

Lastly, please seek the advice and consult with an attorney, and possibly accountant, experienced in bankruptcy law to understand all of your options.

“Until Next Time”

Ocala Events for October 10-16 2011

Posted by Duke Rountree on

WEEKDAY EVENTS…

Corn Maze

Today, Monday, Oct 10 3:00p to 10:00p
at Brown Farm, Oxford, FL

10 acre corn maze from 3 to 10 p.m. Monday-Thursdays, 10 a.m. to 11 p.m. Fridays and Saturdays and 9 a.m. to 10 p.m. Sundays Oct. 7 through Nov. 20, Brown Farm, 13992 Highway 301, Oxford. Kids games, monster truck rides, hay rides and more. $12 for adults, $10 for kids and seniors, under 3 are free.

http://www.americanmaizefestivals.com/

Free Diabetes Screening

Tuesday, Oct 11 11:00a to 4:00p
at Publix, The Villages, FL

Free Diabetes Screenings offered from 11:00 am – 4:00 pm October 11 To October 12 at Publix, 1120 Bichara Blvd., The Villages, FL., For more information call Cholestcheck: 800-713-3301 (No appointment necessary)

Earn Your GED on the GED Bus

Tuesday, Oct 11 2:00p
at Forest Public Library, Ocklawaha, FL

It’s never too late to get your high school diploma. Schedule follows the Marion County School Board calendar.

Ballroom Dance Party

Wednesday, Oct 12 7:00p to 9:00p
at Dancin’ Around Studio, Ocala, FL

Practice social dancing in a safe environment. We provide social dance parties at Dancin’ Around Studio on a regular basis so you can practice what you’re learning in your dance classes in a comfortable social atmosphere. You don’t need to be a Dancin’ Around Studio student to attend our social dance parties!

http://www.danceocala.com/

The Guys

Wednesday, Oct 12 8:00p
at Ocala Civic Theatre, Ocala, FL
http://www.ocalacivictheatre.com/season.html

FRIDAY OCTOBER 14th…..

 

Coupon Exchange with The Clippin Chix

Friday, Oct 14 10:00a to 11:00a
at The Cherished Bride Manor, Ocala, FL

Join us on FREEBIE FRIDAYS for a fun and informative Coupon Club in Ocala.. Bring coupons to exchange & 4 month or newer for our Donation program to the Troops.. Free Coffee & light refreshments, & make new friends. New to couponing? Then pick up tips for success or how to organize!

http://www.thecherishedbride.com/

The Pickin’ Patch – U Pick Pumpkin Patch

Friday, Oct 14 3:00p
at The Pickin’ Patch, Dunnellon, FL

Come pick the perfect pumpkin right off the vine!! Join us Friday, Saturday and Sundays at The Pickin’ Patch in Dunnellon FL. Come enjoy family fun down on the farm with hayrides, hayforts, kiddie corn maze and of course picking your own pumpkins, sunflowers and corn right out of the field! Admission is $2, children 3 and under are free.

http://www.dunnellonpumpkinpatch.com/

Fall Fun Nights

Friday, Oct 14 7:30p to 9:30p
at Uncle Donald’s Farm, Lady Lake, FL

Fall Fun Nights from 7:30 to 9:30 p.m. Fridays and Saturdays Oct. 14 through Oct. 29 at Uncle Donald’s Farm, 2713 Griffin Ave., Lady Lake. $9. (753-2882 or visit www.uncleddonaldsfarm.com)

Halloween Howler

Friday, Oct 14 8:00p to Saturday, Oct 15 1:45a

Fear Fest, Ocala’s newest and finest Haunted House at the Ocala Entertainment Complex. We are bringing your childhood fears to life. Haunt opens at 8pm every Friday and Saturday night in October to 18 and over patrons, open to all ages on Thursday Oct. 13th, Thursday October 20th and Halloween night. read more

http://ocalafearfest.blogspot.com/

Fright Nights

Friday, Oct 14 8:00p to 11:00p

Creature Features, Haunted Mansion, Psycho Panther Prowl, Terror Island and “Gator Man” River Cruise at Ft King Waterway are just a few of the frightly features. More details are added.

Viernes Caliente

Friday, Oct 14 9:00p to Saturday, Oct 15 2:00a

Cloud 9 & Good Fellaz ent. invite you EVERY Friday for the HOTTEST Latin Night in Ocala.
We’re featuring top DJ’s spinning Salsa, Merengue, Bachata, reggeton & current Latin hits to keep you dancing all night long
-Doors open @ 9
-Ladies in free till 11pm
-Check out Drink specials on tequilla, bacardi, margaritas, Corona & Dos XX.

SATURDAY OCTOBER 15th….

 

United Hay Sales Animal Swap

Saturday, Oct 15 8:00a to 1:00p
at United Hay Sales Inc., Ocala, FL

Bring your sheep,puppies,chickens,goats or any other critter that you want to trade, swap or sell. Pet vaccines from 10:00am to 11:00am.

Come hungry Yum Yum Kitchen will be open.

United Hay Sales is located on the corner of 326 and Hwy 27

http://www.unitedhaysales.com/

Jazz Up Dunnellon!

Saturday, Oct 15 10:00a
at E & W Pennsylvania Avenue, Dunnellon, FL

All types of Jazz styles spaced along out tree-lined main street, and Cajun/creole street. Food vendors add to excitement.
5,000 attendees expected.

Lady Lake Art in the Park & Music Festival

Saturday, Oct 15 10:00a
at Log Cabin Park, Lady Lake, FL
This event is held on the streets and park of the.This event draws large crowds with good buyers.10,000 attendees expected. Log Cabin Park along Hwy. 27/441 2miles south of The Villages in central Florida

Log Cabin Park

106 S. U.S. 441, Lady Lake, FL, 32159 

Coffee with the Birds

Sunday, Oct 16 8:00a
at Silver River State Park, Ocala, FL

Join an experienced birder on a gentle hike through beautiful Central Florida woodlands identifying birds by sight and sound. Bring a coffee cup and your field guide; insect repellant also suggested. Event is weather permitting. No pets, please.

Please confirm all dates and times prior to attending. This event calendar in part or full was provided by www.ocala.com, click entertainment, click events.
“Until Next Time”

Events in Ocala / Marion County FL for the weekend of September 29th & 30th, 2011

Posted by Duke Rountree on

Whats happening in Ocala this weekend? WOW, there is a lot going on!

FRIDAY:

FRIDAY NIGHT PAINTING PARTY

HERSHBERGER & HUFF STUDIOS offers workshops and classes!! Don’t miss the fun! Create an original 12×12″ studio wrapped canvas with textures in acrylic. They provide everything, you just show up.

When & Where: Friday September 30th 7PM-10PM @ 1735 NE Jacksonville Road, Ocala FL 34470 DIRECTIONS & MAP

Ocala Civic Theater: Presents “CHICAGO The Musical”

A Tony Award-winning musical that ran 14 years on Broadway is still going strong. Set in the roaring 20’s in Chicago, a band of merry murderesses, each one on death row for murdering a former lover – sing and dance their way to fame and fortune.

When: Friday September 30, 2011 click here for more details or call 352-236-2274.

SCARING OCALA BACK TO LIFE – 18 & UP HAUNTED HOUSE – Ocala Entertainment Complex

Bringing your childhood fears to life. The FEAR FEST HAUNT is 18 & up for intensity and graphic scenes. There will be toned down version for persons under 18 scheduled throughout the month.

Where & When: Friday September 30 8:00PM to Saturday October 1 – 2:00 AM Ocala Entertainment Complex  1227 SW 17th Ave. Ocala, FL 34471 DIRECTIONS & MAP

SATURDAY:

PRESCHOOL CLUB – Ocala Public Library

3-5 year olds and their caregivers to join in this new adventure. Includes activities, dramatic play, and games designed to boost your childs reading skills

When & Where: Saturday October 1  – 2:00 PM @ Ocala Public Library DIRECTION & MAP

YMCA “GET MOVING MARION COUNTY”

It’s time to get moving Marion County, and the Y is here to help you get started. Local Marion County YMCA is providing FREE facility access for 21 days. Mention to the front desk staff the online event at www.Ocala.com  and their professional staff will help you get moving.

When & Where: Saturday, September 30 5:00 AM-9:00PM @ 3200 SE 17th Street Ocala, FL 34471 DIRECTIONS & MAP

JOHN LAWLER: Acoustic Guitarist – Brick City Center for the Arts

When & Where: Saturday October 1  –  8:00 PM –   23 W. Broadway St. Ocala, FL 34474 DIRECTIONS & MAP

OCALA GHOST WALKS & HISTORICAL TOURS – Doc of Rock Downtown Square

Start at 8:00 PM on Friday and Saturday nights. Also offers year round tours, reservation are required for all tours!!! Ocala Ghost Walks introduce the realm of possibility to both the greatest enthusiasts and the most daring skeptics of the paranormal. Catherine Wendell / Owner has lived in Historic District for 13 years and seen her share of spirits.

When & Where: Every Friday & Saturday night 8:00 PM – Phone 352-690-7933 @ DIRECTIONS & MAP

JASON HUNTER – Ocala Entertainment Complex

Comic performs at Bonkerz Comedy Club /  $12

Where & When: Saturday October 1 – OEC 1227 SW 17TH Ocala, FL 34475 –DIRECTIONS & MAP

 

 

 

 

 

 

August- Existing Home Sales Surge

Posted by Duke Rountree on
Existing home sales increased in August despite tightened credit and issues with low appraisals problems.Total existing-home sales rose 7.7% to seasonally adjusted average of 5.03 million, which is up from July’s 4.67 million and 18.6% higher than August of 2010.

Lawrence Yun, NAR chief economist, says the uptick can be attributed to favorable affordability conditions, rising rents and “Investors were more active in absorbing foreclosed properties.

Investors accounted for 22% of purchase activity and FIrst-time homebuyers purchased 32% of home in August. All cash sales accounted for 29% which was unchanged from July.

Why is the market taking so long to get back on track?

The biggest factors keeping home sales from a healthy recover are mortgages being denied to creditworthy buyers, and lower appraised valuations. This leads to “contract failures, or cancellations because of declined mortgage applications. 18% of NAR members reported contract cancellations which is up from 16% in July and 9% in August 2010.

Median existing single-family homes price was 168,400 in August, which is 5.4% below a year ago. In the South, existing-home sales increased 5.4%, which is 16.9% higher than a year ago and the median sales price ONLY went down .8% below August 2010.

It is a great sign to see the year to year median price slowly narrowing the gap from the years past sales. In my opinion, depending on shadow inventories and the economy, we should start seeing a smaller gap in existing median homes sales prices over the next year or two. This would be great news for existing home owners too see their largest investment stop losing value month after month and yearly drop in values since 2007.

“Until Next Time”

Source: http://realtormag.realtor.org/daily-news/2011/09/21/august-existing-home-sales-leap-despite-headwinds

Delays in Foreclosures Reach New Records!

Posted by Duke Rountree on

Delays in Foreclosures Reach New Records! Home owners are living in their homes, mortgage & rent free, on average for 20 months or 599 days which is a new record according to data collected by Lender Processing Services, LLP.

There are approximately 1.9 million homes loans that are 90 or more days late, but not yet in foreclosure and 42% of those home owners have not made a payment in more than one year, with average delinquency of 397 days.

Why so long? Well there are judicial states and non-judicial states and the time frame to complete the foreclosure process varies greatly. Florida is non-judicial state and could possible clear inventories within 32 months, compared to a judicial state, like Las Vegas, that would require up to 111months. OUCH!! Yes that is correct, 111 MONTHS to work through inventories that are more than 90 days late.

In my opinion we will be working through these issue for many years to come, maybe upwards of 5-10 years and who really knows. I do know if we do not start creating jobs and help small business owners, it will take even longer because there are not enough qualified people to purchase new or existing homes.

“Until Next Time”

Florida Still Highest Among Foreclosures

Posted by Duke Rountree on

Florida Still Highest Among Foreclosures

Almost 1 in 4 mortgages are either past due or already in foreclosure during the second quarter, according to Mortgage Bankers Association. We also have the highest inventory of homes in foreclosure currently at 14.4%. The national average delinquency rate was 8.44% in the second quarter and up slightly from the first quarter.

Foreclosures continue to be found in just a few states, with ONLY five states accounting for 52 percent of the foreclosure inventory in second quarter.

1. Florida (14.4%)

2. Nevada (8.2%)

3. New Jersey (8%)

4. Illinois (7%)

5. Maine and New York (5.5%)

 

Source: Realtor Magazine August 23, 2011 http://realtormag.realtor.org/daily-news/2011/08/23/which-state-has-highest-foreclosure-inventory

USDA Still has NO Downpayment Loans

Posted by Duke Rountree on

USDA still has No Down Payment loans.

U.S. department of agriculture has 11.2 Billion, yes billion, earmarked for mortgage loans thanks to funding from federal programs. Called a Section 502 loan, the loan is one of the few zero down products available in the mortgage market.

In years past money would run out during the summer and buyers would have to wait for more money to be available. Most low to middle income Florida residents can qualify for the USDA Loan if they live in rural, small town cities.

The program will change slightly after Oct. 1, when buyers will be required to pay a 0.3 percent premium for mortgage insurance monthly; however, the cost of upfront mortgage insurance will be reduced to 2 percent from its current 3.5 percent.

For more information, visit the USDA’s website or Call/Text me to find a local lender to answer all of your questions.

“Until Next Time”

John Wayne “DUKE” Rountree

 

 

 

What Happens After Foreclosure? How Long Before You Can Qualify For Mortgage?

Posted by Duke Rountree on

Can You Say Tricky Question?

With so many people struggling to find work and therefore, keeping their mortgages current. Foreclosure and Short Sales are at an all time high for our country. The question posed above is not really tricky, but has many variables. The New York Times notes that a past foreclosure will result in the longest wait before you can buy again. Fannie Mae and Freddie Mac properties have a 3 year waiting period after filing foreclosure and 2 year waiting period following a short sale, deed in lieu of foreclosure & discharge or dismissal of bankruptcy. However, there may be certain circumstances, job loss or transfer from job, that may reduce the wait period to qualify for mortgage.

FHA loans also have 3 year waiting period for foreclosure / short sale and 2 years for bankruptcy as well, but note there are plenty of exceptions. Based on New York Time article and example would be, if a borrower was current on payments for year prior to short sale there may be not waiting period and might even qualify for FHA loan immediately.

In conclusion, none of these rules are steadfast or set in stone. With such a large number of people struggling and facing loss of their homes(at the time of this post there are over approximately 1,000,000 properties foreclosed or in the process), poor credit ratings and lack of jobs, lenders will need to take into account circumstances that may have lead to default. I firmly believe these standards will change in years to come. Fannie Mae spokesman says, ” The key is to avoid foreclosure”  and “That is what will help you be eligible for the shorter period.”

“Until Next Time”

 

 

Source: “The Post-Foreclosure Wait,” The New York Times (June 23, 2011)

Ocala, Marion Market Report 1st Quarter 2011

Posted by Duke Rountree on

Ocala homes for sale and they always will be! How is that for a bold prediction.

Now for the meat of this blog post. What is our local housing market doing and which direction are we going?

Well, we are taking a beating in Ocala with the median home price at $75,400, compared to U.S. at $157,933. However this does mean Ocala is probably one of the most affordable cities to live in(BRIGHT SPOT!) 1 year Appreciation is at -18.8% and 3 years sits at -48.2% or a negative housing equity gain of -$70,100. If you’ve owned own your home for  7 years the Housing Equity Gain(?) is -$20,800. IN SHORT, the recent correction in local home prices wiped out most of the 7 years of gained equity.

Why the drastic drops?

Unemployment has lead to tremendous number of foreclosures on the market not just locally but throughout the state. The State of Florida foreclosure rate is around 14% with the National Average around 5%. Marion Counties current unemployment rate hovers around 12.5% compared to 8.8 nationally, both numbers are down slightly from one year ago which is a good sign.

What to expect?

Well I am surely no professional analyst soon to be hired by Fox or one of the alphabet channels, but I do study and know what’s happening locally. My lovely wife, the appraiser, says the market is still being adjusted at approx. -2% per month and our month to month comparisons from 2010 to 2011 reflect the same trend. Many experts think the end of 2011 will be the stabalizing point for the housing market. The best part about real estate is there is always a good market, for someone, whether its buyers or sellers. Do you know, or have you heard about shadow inventories?

For The Full Report: http://www.realtor.org/files/research/localmarket/fl_ocala.pdf

UNTIL NEXT TIME.

What is REO? What Effect Will REO Have on Housing Recovery?

Posted by Duke Rountree on

Real estate owned or REO…is a class of property owned by a lender typically a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction[1]. When a lender/ beneficiary finishes the foreclosure process the property can then be listed as an REO property.That is the technical definition, however most people know them as foreclosures. Most of the larger banks and government institutions have REO/Asset Management companies who handle departments that field bids and offers, oversee upkeep, and handle sales. Most REO properties are listed with local MLS(Multiple Listing Services by REALTORS for marketing properties.) Bank properties are typically in need of repair and/or maintenance and the cost of these items is the responsibility of the mortgage servicer(bank or government agency.)

What Effect Will REO Have on Housing Recovery?…The nation’s largest banks and mortgage holders currently own over 872,000 homes which were repossessed through foreclosure or other means. That is nearly 2x the amount foreclosed on in 2007, when the financial crisis began. Unfortunately, that may not be the worst news because the same lenders are ready to repossess over 1,000,000 more homes according to RealtyTrac reports. The huge number of currently banked owned foreclosures and the large pending amount are causing economist to fear a double dip in the real estate market. According to Treep, a leading real estate research firm, will force the lender-owned homes to sell for deep discounts over the next 2 years and at a cost of almost $40 billion in losses. The opinion of REALTORS is that lenders are overwhelmed with the huge inventory which many times the homes are outdated, often overpriced by 10% or more and lenders take to long to accept or reject the offer. The largest problem is it takes over 400 days to foreclose and on average 176 days to sell.

My personal opinion is we are a long way from a housing recovery being done and it will continue to be a buyers market for some time to come. Marion County has some of the best prices in the state. Many can buy a home for less than the cost to rent in the area. Want to learn more or have questions, please call, text, chat or email me.

“Until Next Time”


[1] William Roark (2006), Concise Encyclopedia of Real Estate Business Terms ISBN 0-7890-2341-5

Source; “As Lenders Hold Homes in Foreclosure, Sales Are Hurt, New York Times May 23,2011