Guide to Purchasing Real Estate Part II

by | Buying Real Estate

Guide to Purchasing Real Estate Part II

House Inspection Port St LucieGuide to Purchasing Homes Part II

In previous two articles, we examined different stages of the home buying process from the start to having finances, finding a Realtor and creating a comprehensive list of the criteria that the new home must possess.  Now that you have an idea who is going to assist you in obtaining a loan and who is going to find the home for you, it is the time to look for your dream home.  After your Realtor receives the list of the amenities and the preferred location for the new home he or she will conduct many searches in order to come up with a list of the candidate listings that match your list.  Next, he or she will make the necessary appointments and accompany you in previewing them.

Guide to Identifying Problems with a Home

This section will assist you in what to do and identify possible problems with a home during the preview of the homes for sale:

  • Try to look, observe and make notes on details of each listing.  Your notes also should contain points that describe the layout of the house, pros and cons and other remarks that could help you in recalling of those details.  The experience has shown that after previewing 4-5 listings the homebuyers could not recall the exact layouts and become confused on the exact location of the different rooms in the house.  To avoid this type of confusions I have always advised my buyers to make a note of what room they see first, second and so on when they enter the house as well as to grade each home on a scale of 1-10 for their desirability.  Take some time to evaluate each listing after previewing a number of homes.  Eliminate the homes that are far from being an ideal home and grade the rest as being keepers or not.

Now, it is much easier to comb through the few homes that scored the highest as keepers.  If you still not completely satisfied with what you’ve seen ask your Realtor to show you some more listings and let him know which homes scored highest and for what reasons you have decided against them.  This will allow your Realtor to have a better picture of your priorities and narrow down the listings that would be as close to your taste as possible.  Don’t rush but learn to compromise when possible as well.

  • When previewing any home, especially the ones that had caught your interest, look around and above.  Look around for any imperfections including cracked tiles, cracked driveway or foundation as this could signal structural problems.  Look above all over the ceilings and the walls for the signs of any leaks as well as any imperfection in the plaster; the latter could be the result of the previous repairs due to leaks.
  • When you finally locate the home that you wish to put an offer, ask your realtor to show you the transaction history in the MLS system, which would show you the transfer of ownerships in the past and how much the previous owner has paid and when.  Although this could become helpful when deciding on the offer price but don’t get stuck on how much the previous owner has paid and concentrate more on the current fair market value.  Your Realtor is equipped with many tools to assist you in calculating that value.  Sometimes we have used the MLS history to evaluate the previous listings along with the description and photos to determine how much of an upgrade and remodeling the house has gone through when compared with the older listings.

In the following article, Guide to Purchasing Real Estate Part IV, we will examine the process of placing and offer, escrow agencies, appraisal and inspection processes.

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Guide to Purchasing Real Estate

by | Buying Real Estate

Guide to Purchasing Real Estate

Guide to Purchasing a HomeGuide to Purchasing Home Part I

In this article, our goal is to assist homebuyers in their journey through the process of purchasing real estate.  We hope to make buying homes simpler and explain many advantages and pitfalls of buying real estate regardless if you are a first time home buyers, investor or have purchased homes before.  This article is compiled from over 15 years of experience is sales and rental of many single family homes, condominiums, businesses and commercial properties.  We believe if we could assist only one family in reducing their stress in purchasing their home is worth the time to research and write these series of articles on the process of purchasing real estate.

Mortgage Qualification

This should be the very first step, which home buyers should take before even searching for a home or contacting a Realtor®.  Contacting lenders first and asking to become pre-approved for a loan offers the following benefits:

  • The Price Range
    • Based on each buyer’s financial standing the lender will calculate their creditworthiness and how much mortgage loan they can afford.  The Expense/Income Ratio plays a significant role in most lenders decision on how much of a loan to offer each person.  This means a buyer making a substantial income does not necessarily will qualify for a loan if the monthly fixed expenses such as student loans, car loans or credit card payments are too high.
  • Placing an Offer
    • When it’s time to place an offer on a home you like, the sellers and their Realtors® will ask for a letter of Pre-Approval from a reputable lender and most probably would not waste time on unqualified buyers, especially in sellers’ market when they have other offers to entertain.
  • Credit Problem
    • To issue a Pre-Approval letter, the lenders will run a detailed credit report on buyers.  At times, the home buyers are not aware of issues on their credit report till lenders notify them.  Some of the credit issues such as errors ad paid out accounts could easily be resolved by contacting the 3 credit bureaus, which will help the buyers credit scores.  A higher credit score will generally result in better rates and terms for loans.

First Time Home Buyers Guide to Purchasing Homes

For first time home buyers, our first advice is to learn how to overcome the anxiety of buying their first home that could result in rushing into unfortunate situations.  Being anxious to own the first place to call one’s home is the tempting factor that could prevent the first-time home buyers from patiently conducting their due diligence on the properties or perhaps failing to evaluate their real financial ability to purchase a home in a certain price range.  In the following segments, we will walk you through different stages of the home purchasing process and assist you in employing the right real estate professional to walk you through every step of the home buying process.   While assistances from different professionals such a licensed Realtor or mortgage broker is a must but beginning step for the first time home buyers is to assess their financial standing on their own.  This includes the financial assessment of the homebuyer’s ability to pay the down payment and closing costs as well as the purchase and payoff of the mortgage on a home in a timely manner.

1-     Financial Assessment by the First Time Home Buyers

The joy of owning a home could often alter the judgment of the first time home buyers on evaluating their true financial ability in paying the monthly mortgage payment.  To avoid such mishaps, the homebuyers must familiarize themselves with different charges that together will become the monthly mortgage payment.  To get to this number homebuyers must always factor in the costs of the homeowners’ association fees (if applicable), insurance and taxes along with an allowance for incidental expenditures for repairs and other unexpected expenses.  Not having enough saving as a cushion for such items will eventually put the new homeowners in financial hardships that may result in severe financial hardship and even the loss of their long awaited dreams of homeownership.  Home buyers should also evaluate the stability if there are any changes to their jobs and income stream.  Having savings that could cover total housing expenses for at least 6 months will offer the security when disaster strikes.

The first time home buyers could also ask their mortgage broker for an approximate cost of closing on the amount of the loan they are pre-approved for.  These costs are to cover the down payment, pro-rated taxes, pro-rated insurance, appraisal fee along with all charges associated with mortgage origination and underwriting.   It is important for the homebuyers to do their homework to find out about the down payment assistance programs that are sanctioned by the federal government and local municipalities.  The amount of the down payment assistance could be substantial and it is offered in a form of a low interest to no interest loans and grants to first-time home buyers.  Currently, the average down payment assistance in different US counties amounts to $11,565.  For more information about the availability of such down-payment assistance programs in your area please visit:  Florida Housing Finance Corporation

2-     Finding the Right Real Estate Professional

Engaging in any real estate transaction in the State of Florida requires a Real Estate Salesperson License or a Real Estate Broker License.  There are distinct differences between a licensed real estate professionals and Realtors.  Any person who obtains a real estate license could engage in selling, buying and renting of properties in the State but cannot be called a Realtor® unless he or she joins the local, state and the National Board of Realtors or Associations.  All Realtors® are required to take an oath to conduct themselves in a professional manner and most importantly preserve the public interest during any real estate transaction.  There are also many classes and workshops available to all Realtors to assist them in polishing their trades and specializing in specific fields.  Some of these workshops are conducted as educational courses that result in obtaining different designations by the attending Realtors.  Some of the better-known designations are Graduate Realtor Institute (GRI), Transnational Referral Certification (TRC), Certified residential Specialist (CRS), Accredited Buyer’s Representative (ABR) and Seller representative Specialist (SRS).

Look for additional information on HomeBuyers Guide to Purchasing Real Estate Part II

 

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Home Buyers Mortgage Problems

by | Buying Real Estate

Home Buyers Mortgage Problems

Home Loans Port St LucieMortgage Problems for Home Buyers

In the aftermath of the economic meltdown of the last decade, a new underwriting standard was introduced by the federal government to combat the risk of mass failure by the banks and reduce the mortgage problems for home buyers.  The process for obtaining a mortgage tightened up with the addition of the new regulatory measures on one side and the banks reluctance in approving mortgages, which would have been approved previously, on the other hand.  According to NAR, National Association of Realtors, while NAR supports the strong underwriting policies, but they feel that many homeowners have lost the opportunity to purchases a home due to “unnecessary regulatory burdens”.

For more about this article please visit: http://bit.ly/1HMczFy

#newhomes #newhomebuyers #NAR

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Port St Lucie Communities

by | Buying Real Estate

Port St Lucie Communities

Relocating-to-Port-St-LucieBuying Home in Port St Lucie, FL

Port St Lucie has many beautiful communities offering different amenities and social activities.  There are golf clubs, senior 55+ lifestyle communities, affordable communities, lock and go communities for our seasonal residents.  Whatever your lifestyle you will be able to find a place you can call home. 

About Port St Lucie?

Port St Lucie has one of the lowest crime rates stated by the Florida Department of Law Enforcement.  With a population of near 170,000 the crime rate is 47% lower than it was in 2002.  The City prides itself on “Keep Port St Lucie Clean” and offers a small town feel to each of the neighborhoods.  There are many parks and recreational activities for Children and Adults alike.  Wildlife has natural habitat areas where you can take walks to enjoy the outdoors. 
 

Port St Lucie Developments and Communities

Country Club Pointe
Fairway Isles
Midport Place                                                              
Midport Place II
Norsemens Harbor
Osprey Ridge
Parks Edge (Villas of Windmill Point)
Portofino Isles  (same as Newport Isles)
Presidential Cove 
River Park
River Place
River Point
River Vista
Rivergreen Villas
Sanctuary
Sanctuary Apartments
Seagrass Condominiums
Sorrento Court
South River Shores
Southbend Lake Estates
Southern Grove
Spanish Lakes Golf Villas
Tarpon Bay
Tarpon Bay Moorings
Tarpon Bay Villas
Tarpon Bay Yacht Club
The Club at St Lucie West
The Cove
The Estates at Tradition 
The Meadows
Treasure Coast Airpark
Tropical East
Veranda Plat 1
Vikings Landing
Vikings Lookout
Villas of Rosewood
Villas of Sandpiper Bay
Villas of Sandpiper Bay Unit 1
Villas of Sandpiper Bay Unit 2
Villas of Torino
Villas of Village Green
Vineyards
Walden Woods
Walton Court
Walton Hills
Walton Lakes Apartments
Westbrook Isles
 

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Tips on Buying a House

by | Buying Real Estate

Tips on Buying a House

Important Tips for First Time HomebuyersImportant Tips for First Time Home Buyers

Purchasing a home is by far the largest single investment for majority of the families in US and the following important tip for home buyers is a must read for first time home buyers.  In Florida, most standard real estate sales and purchase contracts are drafted by real estate agents and typically lean more toward protecting the buyers than the sellers.   Regardless of who is writing the real estate purchase contract there are many points in contracts for buyers to be aware of that will save money and headaches when something goes wrong.  

The first area to pay attention is wherever the term “contingencies” is used in the contract.  Contingencies are  provisions in the contract that could work for or against any buyer if certain conditions are not met.  Based on some of these contingencies the buyer could void the contract and have all of the deposit and down payments returned to him without any further penalties.  There could be many contingencies in any contract, but the 3 most prominent contingencies in all real estate purchase contract are:

  • Appraisal Contingency- if the property is appraised for less than the contract price then the buyer has the right to cancel the contract.
  • Mortgage Contingency- if the buyer is unable to secure a loan from financial institutions the contract is cancelled
  • Inspection Contingency- if an inspection by a professional inspection company reveals problems with the house normally there are few remedies that precedes the cancellation.  If the repairs are minimal  the seller might offer to fix them or compensate the buyer by offering cash at closing accordingly.   

There are more contingencies in the purchase contracts that could vary depending on the type of the property and the state that the property is located in.  The examples are the Mold Contingency that calls for a Mold Inspection or HOA Contingency that puts the approval by the homeowner or condo association as a condition for the contract to succeed.   

Working with an experienced real estate professional is not only finding the right home but to enjoy the legal rights that are set to protect the buyer and sellers when deemed necessary.

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Residential Income Producing Properties

by | Buying Real Estate

Residential Income Producing Properties

Income Producing PropertiesBuying Residential Income Producing Properties

When it comes to buying residential income producing properties, real estate market offers many opportunities that will suit different investors with different needs.  While the demand for such properties is good as long as they have an acceptable rate of Return on Investment (ROI), there is also more demands for these properties with the new wave of renters entering the rental market.  The new renters are generally comprised of the millions of homeowners that had the misfortune of losing their homes through short sales and  foreclosure.  These renters have lost their good credit and do not have the cash to buy  another home.  While many smart developers also survived the economic turmoils of past few yeas by converting their developments to the rental community, the supplies still could not meet the demands.
A licensed Realtor is your best source to find that perfect income producing property that would match your requirements.  To reach that goal, a real estate professional would compile a comprehensive market analysis pertaining  to the location and other specifications of each property that you are interested in.

Real Estate Investment Trust REIT

Many REITs, Real Estate Investment Trust, have also joined the bandwagon and enjoyed levels of returns that have been better than the stock market’s performance in 2010.  Taking advantage of the residential income producing opportunities could be simply through an acquisition of stocks in the REIT specialized on this sector or direct purchase of an income producing property.  In either case, to reduce the risks associated with such investments, the guidance of a professional is strongly recommended.  To succeed with REIT, one should seek assistance only from licensed and reputable firms who are specialized in identifying  the sound REITs.  On the other hand, if you would like to be hands on and acquire your own portfolio, employing an experienced real estate professional is your best bet.  Please note that while a residential Realtor could be a great help if you are purchasing from 1 to 4 units, a commercial Realtor is more knowledgeable in contracts, due diligence and market analysis of 5+ rental units, businesses or other commercial properties.

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1031 Exchange and Pre Construction Investments

by | Buying Real Estate

1031 Exchange and Pre Construction Investments

1031 ExchangePre-construction Investments

This year is the start of a new chapter in pre-construction investments as well as the home-ownership through preconstruction home purchases.  The rules that have been set in favor of the real estate investor are still applicable for the post-recession era of real estate transactions.  One of these rules in 1031 Exchange, which through that any taxable capital gain on one property could be deferred to another property pending that all the IRS requirements are met.

To simplify this code, any capital gain is taxable unless the capital gain is used to acquire another “like-kind” property.  Please note that this is not a forgiveness of the tax amount, but the payment of tax is postponed to a future date.  To qualify for 1031 Exchange, there are many guidelines set by IRS which are detrimental in a successful Exchange.

The deferred tax allows investors to have more funds for new investments.  This method can help a pre-construction investor to acquire more properties and create a smart real estate portfolio.  The following example will demonstrate the mechanism of the 1031 exchange in relation to preconstruction investments as well as a brief summary of some of the rules and timeline.   

1031 Exchange Example 

There is an investor who purchased a pre-construction unit for $100,000 and currently is in the market to sell the same unit for $120,000.  The first step prior to the sale of this unit is to hire the services of a 1031 Exchange Company or as it called a “Qualified Intermediary” or (QI).  Since according to regulations the seller could not have possession of the proceeds of the sale at any time, this is crucial to a correctly implementing the exchange.

Upon closing of the sales, the exchange company will hold the proceeds and the seller has no access to that.  The Seller has 45 days to identify the exchange property or properties and 180 days to complete the transaction.  The number and value of the future purchase are set through what is known as three rules that are:

1)- Seller/taxpayer could identify as many properties as he wishes but has to purchase a minimum of 95% of the aggregate value of the identified properties.

2) Seller/taxpayer will identify as many properties but could not exceed 200% or twice the value of the relinquished property.

3) Seller/taxpayer will identify up to 3 properties regardless of the value

During the Qualified Intermediary Company will have the possession of the proceeds and will disburse them only upon closing on the exchange property.

1031 Exchange and Preconstruction Purchases

In case of using 1031 Exchange in pre-construction properties, the seller will sell the unit that he had bought in the pre-construction phase through the Qualified Intermediary Company. To take advantage of the deferred tax, he will identify one or number of other properties and close on them in a timely manner.  If played by the rules the investor in our example could search for other preconstruction investments that are in the later phases of the construction that he could close within 180 days of the exchange period.  In this case, the investor had benefited from the gain on the first pre-construction purchase, without paying the capital gain tax on capital gain and used the gain plus the deferred taxes to buy one or more pre-construction units with a chance of another gain during the future sales.

The 1031 Exchange as other tax-related transactions shall only be handled by authorized firms and individuals.  The author is not a QI or a tax accountant and as a real estate broker shares the experience that he had gained through his involvement with the sales and purchase of exchange qualified properties.  For tax benefits and the latest updates on the 1031 exchange code, please contact professionals who are authorized to assist you to benefit from this great tax deferment strategy.  We also found the webshttps://www.1031.org/about1031/faq.htmite for 1031.org extremely helpful and the FAQ section of the website a perfect source to gather useful information.

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Port St Lucie Foreclosure Home of the Week

by | Buying Real Estate

Port St Lucie Foreclosure Home of the Week

 Port St Lucie Foreclosure Home of the Week

Port-St-Lucie-Foreclosure-HomesFor Port St Lucie Foreclosure Home of the week, we present you with this wonderful pool home for sale in Durango Street, Port St Lucie.  This lovely home offers 3 bedrooms, 2 baths and 2 car attached garage with over 1,500 square feet under air.  The covered porch overlooks a beautiful swimming pool in the fenced backyard.

 The property is conveniently located in East Port St Lucie near Treasure Coast Mall, Walmart, Sam’s Club, restaurants and hospitals.  This foreclosure house is freshly painted, has new carpet.  For more information regarding this property and other foreclosure properties in Port St Lucie please contact our REO, foreclosure homes experts at:

Email: info@portstlucie.city

Phone: (772) 323-6730

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Worst States to Retire in US

by | 55+ Active Adult Properties

Worst States to Retire in US

Worst States to Retire

Map of US

Worst States to Retire in the US

Florida did not make the list of worst states to retire. Our beautiful Sunshine State of Florida has been one of the top favorite destinations for many vacationers, as well as the second home buyers for many seniors buying into 55+ Communities. Wonder no more, here is a report by Kiplinger with a list of the 10 unfortunate states that all retirees should cover them up on their map of places to retire:

10. Tennessee 9. New Mexico 8. Hawaii 7. Connecticut 6. Massachusetts 5. Rhode Island 4. New Jersey 3. Oregon 2. New York 1. California

Read more at kiplinger.com

For more information about these states please click on the above link and for better information about one of the best places to live, work and retire, the beautiful Treasure Coast of Florida along with a current list of new and resale homes for sale as well as a list of foreclosure homes in Port St Lucie and surrounding cities, contact the area expert at:

Phone: (772) 323-6730 Email: info@portstlucie.city

Reference: kiplinger.com

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City of Port St Lucie Retirement

by | 55+ Active Adult Properties, Best Cities

City of Port St Lucie Retirement

Retirement in Port St Lucie

Port St Lucie Florida 55+ Communities

The City of Port St Lucie is a Retirees Destination
 Many retirees make their way to Florida in their Golden Years.  In previous years, our neighboring cities to the South, such as Miami, Miami Beach, and Fort Lauderdale area were the preferred destinations for this group, but in recent years, Port St Lucie and the Treasure Coast of Florida have been the newly found haven for retirees.  The statistics show the cost of living is much lower in Port St Lucie area in comparison to those cities to the south and even the cities that are much closer, such as Stuart and Jensen Beach.  The most important factor in a lower cost of living centers in housing expenses, which is the single largest expense for any household who have a mortgage payment.  The value of homes for sale in Port St Lucie is remarkably lower than all the above mention metropolitan areas.  This fact along with safety, proximity to beaches and unparalleled amenities collectively are the biggest contributors for considering the City of Port St Lucie as a preferred housing choice as reported by following sources:

  1. Forbes – Named Port St Lucie # 21 in the Best Places to Retire in 2014
  2. Wallet Hub – Analyzed 25 Key Metrics for 150 of the largest US Cities.  Port St Lucie ranked #7

The cost of living, health care, and recreational activities make the City of Port St Lucie a desirable place for retirees who like a very active lifestyle.   Many seniors reside in Port St Lucie from November to May and return up north during the spring and summer months.  There are plenty of senior communities, parks, activities, social and volunteer groups to keep busy year-round or seasonal, whichever is your preference.  There is also a great collection of the senior 55+ Active Adult Communities with great amenities and in remarkably lower prices when compared to neighboring counties.

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Foreclosure Fannie Mae Properties Buyer Beware

by | Foreclosure Properties

Foreclosure Fannie Mae Properties Buyer Beware

Fannie Mae Foreclosure
Fannie Mae Foreclosure Properties

Fannie Mae may have the following or similar verbiage in their agreements indicating once the property is closed the Real Estate Transaction is final.  Essentially if the real estate taxes increase after the closing due to the removal of Homestead, Fannie Mae, will not reimburse for the difference in proration after the closing.  Fannie Mae does not always file the real estate Deed right away with the St Lucie County Property Appraiser office.  Fannie Mae does not pay transfer taxes on deeds.  So the sale which shows Fannie Mae as an owner may not show up until they sell the property to the new Buyer.  At this time, when the deed is being recorded the homestead may be removed resulting in an increase in the property taxes.  Most often the new property tax statement is not  for the current year at the closing and for that reason the previous year tax statement will be used to prorate taxes between Seller and Buyer on the settlement statement.

 Although the tax office always indicates that Port St Lucie Homestead Exemption is not transferable, which is correct in a sense, but in some occasions the new home buyer will enjoy the previous owner’s exemption.  This is how it works; the Homestead exemption has a deadline to file and new owners have until the end of the year to comply with filing for a homestead.  Now, what happens if you buy a home that has Homestead Exemption during the month of January?  First of all, if the previous owner buys a new home he has to wait until the end of the year to apply for homestead, which means his homestead will stay with the home he sold till county change that in new tax cycle.  This means his homestead will stay on his prior house until around August when the county reassesses the taxes and since the homeowner with homestead doesn’t own the property anymore, they will remove his homestead at that time.  Meanwhile, the new homeowner will pay the taxes that were calculated to the previous owner, including the homestead benefit, till August.

In many occasions and especially when prices are on the rise, the county will assess the new home buyer’s taxes higher than before.  At this time, the original tax base increases when the homestead is removed.  This will have an increase in the new home buyer’s taxes till next tax cycle when their homestead has taken effect.

What does this mean to the buyer?  This means your property taxes can go up once the Homestead is removed for the year of purchase leaving you no alternative but, to pay the difference in real estate taxes.  This also means if your escrow was funded on last year’s tax rate your mortgage will go up to make up the difference in Escrow shortage.   
Please Note: The property taxes could become complicated at times like any other tax related issues.  The purpose of this article is for a general informational only, the author is not a tax expert.  All home buyers should consult a tax advisor or a closing attorney for information regarding property taxes during closing. 

Following is an example of an actual verbiage used in the Fannie Mae’s Addendums:

10. Closing Costs and Adjustments:

(a) The Purchaser and the Seller agree to prorate the following expenses as of the Settlement Date: real estate taxes and assessments, common area charges, condominium or planned unit development or similar community assessments, cooperative fees, maintenance fees and rents, if any. In determining prorations, the Settlement Date shall be allocated to the Purchaser. Payment of special assessment district bonds and assessments, and payment of homeowner’s association or special assessments shall be paid current and prorated between the Purchaser and the Seller as of Settlement Date with payments not yet due and owing to be assumed by the Purchaser without credit toward Purchase Price. The Property taxes shall be prorated based on an estimate or actual taxes from the previous year on the Property. All prorations shall be based upon a 30-day month and all such prorations shall be final. The Seller shall not be responsible for any amounts due, paid or to be paid after closing, including but not limited to, any taxes, penalties or interest assessed or due as a result of retroactive, postponed or additional taxes resulting from any change in use of, or construction on, or improvement to the Property, or an adjustment in the appraised value of the Property. In the event the Seller has paid any taxes, special assessments or other fees and there is a refund of any such taxes, assessments or fees after closing, and the Purchaser as current owner of the Property receives the payment, the Purchaser will immediately submit the refund to the Seller.

(b) Fannie Mae is a congressionally chartered corporation and is exempt from realty transfer taxes pursuant to 12 U.S.C. 1723a(c)(2) and will not pay realty transfer taxes regardless of local practice. Any realty transfer taxes due on the sale as a result of the conveyance of the Property will be the sole responsibility of the Purchaser.

(c) The Seller shall pay the real estate commission per the listing agreement between the Seller and the Seller’s listing broker.

(d) Purchaser shall release Seller from any and all claims arising from the adjustments or prorations or errors in calculating the adjustment or prorations that are or may be discovered after closing. THE PURCHASER AGREES TO EXECUTE AND DELIVER TO THE SELLER AT CLOSING FANNIE MAE’S Tax Proration Agreement 03/2011.  

10. Closing Costs and Adjustments: (a) The Purchaser and the Seller agree to prorate the following expenses as of the Settlement Date: real estate taxes and assessments, common area charges, condominium or planned unit development or similar community assessments, cooperative fees, maintenance fees and rents, if any. In determining prorations, the Settlement Date shall be allocated to the Purchaser. Payment of special assessment district bonds and assessments, and payment of homeowner’s association or special assessments shall be paid current and prorated between the Purchaser and the Seller as of Settlement Date with payments not yet due and owing to be assumed by the Purchaser without credit toward Purchase Price. The Property taxes shall be prorated based on an estimate or actual taxes from the previous year on the Property. All prorations shall be based upon a 30-day month and all such prorations shall be final. The Seller shall not be responsible for any amounts due, paid or to be paid after closing, including but not limited to, any taxes, penalties or interest assessed or due as a result of retroactive, postponed or additional taxes resulting from any change in use of, or construction on, or improvement to the Property, or an adjustment in the appraised value of the Property. In the event the Seller has paid any taxes, special assessments or other fees and there is a refund of any such taxes, assessments or fees after closing, and the Purchaser as current owner of the Property receives the payment, the Purchaser will immediately submit the refund to the Seller. (b) Fannie Mae is a congressionally chartered corporation and is exempt from realty transfer taxes pursuant to 12 U.S.C. 1723a(c)(2) and will not pay realty transfer taxes regardless of local practice. Any realty transfer taxes due on the sale as a result of the conveyance of the Property will be the sole responsibility of the Purchaser. (c) The Seller shall pay the real estate commission per the listing agreement between the Seller and the Seller’s listing broker. (d) Purchaser shall release Seller from any and all claims arising from the adjustments or prorations or errors in calculating the adjustment or prorations that are or may be discovered after closing. THE PURCHASER AGREES TO EXECUTE AND DELIVER TO THE SELLER AT CLOSING FANNIE MAE’S Tax Proration Agreement 03/2011.

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Foreclosure Rate in 2015

by | Foreclosure Properties

Foreclosure Rate in 2015

Port St Lucie Foreclosure Homes

Find Foreclosure Homes IN Port St Lucie

Foreclosure Forecast for 2015

The real estate market in this decade has been influenced by distressed properties more than any other factor.  The REO, Bank Owned, and Short Sale have become household terms.  Every year we wonder if there is any end for foreclosure properties and what is the forecast for the upcoming months and years.   With new foreclosure numbers surfacing, the light at the end of the foreclosure tunnel seems to be a train wreck uprooting families lives.  This is unfortunate that most hiccups in any financial sector seem to  have negative effects on the housing industry.  Today’s culprits affecting our housing market are the economic squeeze in China and the consequent effects on Wall Street and the stock market.  

The numbers give a glimpse into the foreclosure future in the country.  The Distressed Saturation, total REO + Short Sale, divided by all Residential Real Estate Sales, has jumped from 15.4 to 16.1 for the quarter.  The South suffered the most increase in Distressed Saturation by 1.5%, Midwest and West by 0.9% and the Northeast are the only territory with a drop of .3%.

The future of real estate remains uncertain due to many factors that stem from consumers’ confidence and also how the investors will treat the upcoming distressed assets in the real estate and foreclosure market.  While the pessimists reminding us of the doomsday of the last decade, I personally believe with the stock market uncertainty, the real estate investments will become a more in demand investment.  The most notable factor is the negative effects of adding more distressed properties to the current market, which eventually will fall on home builders and developers’ shoulders.  The consumers and investors will welcome the abundance of REO properties while the construction companies’ fear of competing with lower priced resale homes would prevent the jump in construction of such homes.

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