Category Archives: Short Sale Home Information

Buying Homes for Cash

MoneyHouse
When we talk to our customers and are preparing them to buy in todays market, we always try to explain that there is an unofficial hierarchy in purchase offers based on how they are paying for the property. Using the analogy of the childs’ game “Rock, Paper, Scissors” I offer “Cash, Conventional, FHA”. Home buyers who require financing for their home purchase can struggle to compete against buyers who have offers of all-cash. I go on to explain that in all price brackets South Florida Buyers are offering cash creating a highly competitive, multi bid situation where prices are bid higher then asking sometimes, even among cash buyers vying for the same property.
suitcase of money
Here in town over half the sales are cash! In the last 90 days in Coral Springs,FL 13 homes closed that sold with with VA loans, 50 sold with FHA loans, 64 sold with Conventional loans, and 99 sold for CASH.Having realtors who can creatively write your contract making your offer as strong as possible is a great boost to the buying power of customers using financing. Call Claudio and Robyn Petasne at 954-260-5570, Realtors experienced in buying homes for their clients. Making the most of your assets is both a science and an art that changes with the fluctuating South Florida Real Estate Market. !
Where are all-cash deals are the most prevalent? Cash deals represented 80 percent of home sales in June in Vermont; 58 percent in Nevada; 57 percent in Florida, and 51 percent in New York, according to RealtyTrac. Cash deals represent a very small percentage in Texas, Utah, and New Mexico.

The markets with the most all-cash transactions tend to have a high number of foreclosures and depressed home prices, which attracts investors and private equity firms, according to RealtyTrac. Here in Coral Springs and the surrounding area, 60% of the homes are distressed properties, combination of short sales and foreclosures.

The following 10 metros had 40 percent or more all-cash deals out of the total home sales in June, according to RealtyTrac:
1. Miami/Ft. Lauderdale: 64%
2. Las Vegas: 62%
3. Tampa, Fla.: 58%
4. Detroit: 56%
5. Orlando: 53%
6. New York: 49%
7. New Orleans: 43%
8. Memphis: 43%
9. Jacksonville, Fla.: 42%
10. Atlanta: 42%

So in review, when competing in the market to buy a home, you need realtors that know how to write a great offer, making the most of your financial assets. Claudio and Robyn Petasne are such realtors. Experienced and dedicated to helping you buy a home you will love and an investment that will prosper! If you have a suitcase of cash, that can always help too! Give us a call and see how we can help you. 954-770-6850
writing contract

Source: “Housing markets where cash is king,” CNNMoney (July 25, 2013)

Shop for Insurance Before you Buy your New Home

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State Farm requests insurance increase

TALLAHASSEE, Fla. – June 28, 2012 – State Farm has requested an average increase of 15 percent on its homeowners policies in Florida, its sixth rate hike request in less than three years.   According to an analysis of the request by the Sun Sentinel, the increase, if approved by the Florida Office of Insurance Regulation, would average 14 percent for single-family owners, 49 percent for renters and 27 percent for condo owners.   State Farm says the actual premium cost for a homeowner will vary, however, because it’s also bringing back a handful of discounts. The biggest one – a 10 percent cut in cost – would be granted owners who also use State Farm for their car insurance, for example. The company also says that a homeowner facing a 14 percent price hike could cut it down to 3 percent by opting for a higher deductible.   According to State Farm, it needs permission to raise prices because its “financial position has deteriorated significantly over the past several years.”   The Office of Insurance Regulation has final say over the increase, however. It has a meeting scheduled for July 25 to consider the request.

Citizens Insurance, one of the largest with holdings in Florida is also instituting major rate hikes and possiblly dropping many of their insured due to the high risk and costs of offering coverage in our Hurricane Prone state.

When you are considering purchasing a property the time to think about insurance is before you buy. Contact your insurance agent and discuss the type of property yuor looking for to get estimates on what the insurance will cost. You dont wany any surprises to keep you from moving into the home you desire.

Call me for some client recommended insurance agents. We only recommend agents that have been excellent in their knowledge, service, rates for our past clients. Reach Claudio and I at 954-770-6850

Tax Break for Short Sellers expires Soon!

Since 2007, homeowners whose banks have forgiven unpaid mortgage debt after a short sale, principal reduction or foreclosure have not had to count that money as income on their tax returns.   It’s meant savings of tens of thousands of dollars on the so-called “phantom income” depending on the amount of debt canceled and a person’s tax bracket.   But the Mortgage Forgiveness Debt Relief Act of 2007 will sunset Dec. 31 2012

Accountants and Realtors are urging homeowners considering a short sale to put their properties on the market now so they can sell before year’s end.   A short sale is where the lender agrees to sell a property for less than what the homeowner owes on the mortgage. Banks are getting better at processing short sales, finalizing a contract can still take months

For Example: Bob Homeowner listed his home for a short sale with a good Realtor  after researching the best exit strategy from his underwater mortgage. He quickly had a full price offer of $105,000 and is currently under contract.A successful sale will leave him with $118,000 in unpaid loan debt. If the bank forgives that balance, the money is taxable income. Considering Bob’s tax bracket, he would owe about $29,500 in taxes on that canceled debt. Under the debt relief act, he won’t owe anything.

People selling their homes through a short sale or who are in foreclosure may have the unpaid balance of their loan forgiven by the bank. If so, that debt would be considered taxable income. The Mortgage Forgiveness Debt Relief Act excludes that income from being taxed through Dec. 31, 2012.  If you are considering a short sale, you may want to put your home on the market now so a sale can close before the end of the year and qualify you to take advantage of the debt relief act before it expires.

What’s next?

A bill called the “Homeowners Tax Fairness Act” was filed in March that would extend the tax debt forgiveness program through 2015 if passed. It requires congressional approval.

If you want to find out more about Short Selling your house rather than facing foreclosure and the bankruptcy that often accompanies foreclosure contact us Claudio and Robyn Petasne at 954-260-5570.

As experienced Professional Realtors with Keller Williams Realty we have the knowledge and experience to help you through this financial struggle. Short Selling is a much better option than foreclosure for many reasons.

Please call to discuss how we can help you. You can also get more information at our Short Sale website www.AvoidForeclosureinWestBroward.com

Professional Realtors are your best resource for Avoiding Foreclosure!