DID YOU KNOW THAT FLORIDA HAS NO INDIVIDUAL INCOME TAX

Florida is one of the very few  states that does not tax its residents individually on their income and wages earned.  It is only one in seven states that does not.

This means that any resident in Florida will pay income tax to the IRS on income and wages earned, however, will not be doubly taxed as in most states.

Florida does, however, have other taxes common to most states including:

  • State Sales Tax
  • Tangible Tax
  • Intangible Tax

With the growing real estate trends in South Florida, this is certainly news anyone looking to invest or relocate into Florida can use.

Don’t go it alone.  Use the services of a qualified real estate attorney when buying or selling real estate.

Offices in Coral Gables.  305  | 669  | 5280

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HOMEOWNERS HAVE EQUITY AGAIN

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The Wall Street Journal has reported that the Rising Prices of Homes has drastically shrunk the ranks of Underwater Borrowers”.  Source:  The Wall Street Journal  February 25, 2013.  To read the full article click the following link:  http://blogs.wsj.com/developments/2013/02/21/rising-prices-shrink-ranks-of-underwater-borrowersHome floating on a life preserver.

In fact, according to the Article, and citing from reports by Zillow, “around 2 million homeowners moved back above water last year”.

So what does this mean for our South Florida market.  Well, what once was considered a short sale, may in fact now be a regular sale.  Sellers that were forced to sell their homes because of trouble making mortgage payments due to either having entered into subprime loans, adjustable interest rate mortgages and fast approaching balloon mortgages, may now have equity. This equity translates into the ability to refinance their home and take advantage of  low mortgage rates OR sell their home and make a profit.

“While the looming release of shadow inventory is expected to affect prices and perhaps “burst the bubble” once more, South Florida home owners can take advantage of the rise in prices to set their objectives in place”.  Jacqueline A. Salcines, Esq, real estate attorney.

Now is the time to consult a real estate expert to find out what your home is worth and decide whether to sell the home or refinance.  In reality, nobody knows how long this new bubble is going to last and one might as well take advantage of the life preserver.

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

 

 

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LOAN MODIFICATIONS MAKING A COMEBACK

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It is estimated that 40 percent of loan modifications fail and the borrowers default the first time around.  It is no surprise, as many are locked into a price that they can afford. However, due to the fact the Making Home Affordable HAMP Program obligates the borrowers to include escrows (taxes, insurance and PMI) in their loan modification payment, as soon as taxes or insurance rise, so does the payment. This results in the borrower once again defaulting. Loan Modification Green Road Sign with dramatic clouds and sky.

A recent report prepared by Barclays revealed that “75 percent of remods occur after 18 months of the previous modification, and about a quarter of those remods were given to borrowers who were current”.  Source: DS News February 18, 2013.

Moreover, as more bank have faced an avalanche of lawsuits, investigations, audits by the Department of Justice as well as penalties, when older loan modifications did not see principal reductions, nowadays the lenders are much more agreeable to reducing principal and interest rates.  “Our largest principal reduction to date was $302,000.00 off a primary loan”  Says Jacqueline A. Salcines, Esq., an attorney handling loan modification in Coral Gables, Florida.

“The best advice I can give to anyone out there looking to modify their existing loan is  do your homework.  Make sure your lender participates in HAMP. Make sure your numbers are right. Many borrowers submit RMA Loan Modification Packages thinking they have to show a deficit every month.  That is, more expenses than income.  This criteria will actually get you denied, FAST.  You must follow the ratios of the bank to make sure your numbers qualify you. And if they dont, there are avenues to pursue to get them there.  Lenders allows contributions to income from food stamps, family members, rental of rooms inside the home, cash tips, etc.  But if the borrower does not know this, provides their financials over the phone and gets disqualified, there are no second chances.” Jacqueline A. Salcines, Esq.

If you are having trouble making your mortgage payments, consult a Loan Modification professional that is familiar with the rules and regulations specific to each lender.  Make sure your numbers are run before you are charged.  “At my firm, my practice is to qualify the borrower first and foremost during the initial consult. Unless you qualify, I will not take your case”.  Jacqueline  A. Salcines, Esq., Jacqueline A. Salcines, PA

Call us anytime for a no fee consultation to see if you qualify. Even if you have modified in the past, you may still be eligible for a principal reduction and lower interest rates under the new regulations.

TRUST  |  COMMITMENT  | RESULTS

Jacqueline A. Salcines, PA

Telephone:  305  |  669  | 5280

 

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LANDSCAPING HEAVILY INFLUENCES SELLING PRICE OF A HOME

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Stone and brick home with arched doorway As we South Floridians in the Gables, Pinecrest, Key Biscayne and surrounding areas enjoy a Seller’s market once again, it is important to know that research shows that the average homebuyer has already  made their mind up about buying a particular home the second they see the house from the outside.  “And by outside, I am not just referring to the structure.  A beautiful, well architected landscaped home will most likely get your buyer in the door much quicker than one that is spared of landscaping, and heavily influence the market value of your home.”  Jacqueline A. Salcines, Esq.

Many university studies reveal that an investment in landscaping provides a return on investment of more than 100 percent.  100 PERCENT! That means, that if you invest $25,000.00 in landscaping, you are likely to see that return when you add the $25,000.00 to the selling price.  Studies also show that homes that have curb appeal sell up to six weeks faster than homes that do not.

While some areas sell by themselves, this is great news if you are trying to sell a distressed home in today’s market.

So where do you start.  Drive around.  Take a look at other well-manicured yards in highly sought after areas and ask the homeowners for their landscapers name.  If you are the “Do It Yourself” type, you can certainly find hundreds of books and magazines on the market these days that will teach you how to get that great yard in no time.  The trick is to remove dead plants or beds that have been taken over by weeds. Make sure the lawn is nicely manicured and GREEN and thriving.  Local stores like Home Depot, ACE and others, sell numerous fertilizers for every type of lawn.  And make sure you have plant beds and plenty of color to bring attention to areas of the property. Also make sure the green does not convert into a jungle.

“Addresss the landscaping with a buyers point of view.  Think about what a typical buyer  is looking for. They want a nicely manicured yard with enough greenery to frame complement your home, but not so much that it becomes the focus of the home. Trees have the biggest impact, so placing an attractive tree, or trees, in your yard to provide shade and frame your home or backyard may well be worth it. Furthermore, landscape experts add that the way your landscaping funds are invested has a great deal to do with the return you experience. Buying a ton of small homogeneous plants is far less desirable that a few well placed mature ornamentals that complement the rest of your yard. You should focus on the front yard first as this is what grabs a potential buyer’s attention. Make sure your beds are weed free and covered with a nice layer of mulch.”

While only one idea to bring value to your home, always consult an expert when buying or selling.  We are here to help.

Law Offices of Jacqueline A. Salcines, P.A.

 

 

 

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HOW TO CALCULATE WHAT YOUR HOME IS WORTH

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If you have not checked to see what your home is worth lately, you may be in for quite a surprise.   Nationally, and statewide, property values are skyrocketing and the median prices of homes are rising in double digits, specially the South Florida luxury real estate market. foreclosure process

The best way to determine the fair market value, is always to hire the services of a knowledgeable and skilled real estate professional to run a Comparative Market Analysis of your property to determine the price per square foot. A low, median and high price will be provided in order to assess true and accurate price per square foot.  Since this technique is based on comparables to the most recent sales, it is by far the most accurate manner to determine worth.  Whether prepared by an attorney or real estate agent, choose someone with knowledge and skill to determine the most accurate price.

Of course, there is always the formal APPRAISAL.  Although you will typically pay between $250.00 and $450.00 for an appraisal, this will also provide you with an accurate report of value based on recent sales. For buyers, sellers and investors, knowing and having this information is crucial.

There are also numerous websites and apps available to calculate value, including:

Zillow (www.zillow.com)

This will provide you with a  “Zestimate”  of fair market value.

For investors, Zillow also has a great little tool that estimates what the property would rent for.

And the Make Me Move feature, for those not quite ready to sell but curious about what they could get if they placed the property on the market. This tool allows you to name your price and see if anyone bites

Trulia (www.trulia.com)

Simply by entering your address,  Trulia  will do the rest.  You can also add any information that is missing from the property description such as new roof, or other facts, that will be re-estimated into price

Trulia is a great tool for house hunting, as you can search for homes by city, state or zip code.  It also allows for more refined searches, such as number of bedrooms or bathrooms, how many days on the market, and to see what new listing come on the market as they come up.

Trulia’s unique Heat Maps provide a graphic picture of an area’s sales, price trends and popularity. Adjust the Heat Map by neighborhood, city, county and state. You’ll also find school ratings, information about nearby businesses and comments from local residents.

Realtor.com (www.realtor.com)

This is the Official site of the National Association of Realtors.  You can have access to any homes that are listed and can refine searches by price, maximum, minimum, number of rooms, pool, zip code. This is by far the most comprehensive tool for buyers and sellers.

It is also packed with great resources such as a mortgage calculator, real estates trends and topics as well as home improvement advice.

And for all those tech savvy individuals, there are new apps each and every day such as Realtor.com app and apps created by realtors themselves, that will permit you to subscribe to their service and obtain up to the minute information about new listings, and follow their blogs.

Keep in mind that all the information on these sites are only starting points.  There is no substitute for a professional appraisal or Opinion of Value from a qualified Real Estate Attorney or Realtor

TRUST  |   COMMITMENT  |  RESULTS  

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

 

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HOW TO CALCULATE CLOSING COSTS ON A PURCHASE

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I OFTEN HAVE PEOPLE CALL ME WHEN THEY ARE GOING TO PURCHASE A PROPERTY, AND ASK ME  TO GIVE THEM AN ESTIMATE OF WHAT THEIR CLOSING COSTS ARE GOING TO BE.

I HAVE HEARD OF REALTORS THAT CALCULATE IT USING A PERCENTAGE OF THE SALES/PURCHASE PRICE, AS DO SOME BANKERS. foreclosure_defense

HOWEVER, THE EXACT AMOUNT IS OFTEN VERY EASY TO CALCULATE.  BELOW IS AN EXAMPLE THAT CAN BE USED FOR YOUR PURCHASE

A BUYER’S TYPICAL COSTS AND FEES CAN BE CALCULATED AS FOLLOWS:

  1. ATTORNEY FEE
  2. SETTLEMENT OR CLOSING FEE  – THE FEE TO PERFORM YOUR CLOSING BY THE ATTORNEY OR TITLE COMPANY (TYPICALLY $295.00 IN MIAMI DADE COUNTY)
  3. SURVEY – IF A SINGLE FAMILY RESIDENCE (USUALLY BETWEEN $295.00 AND $300.00)
  4. COURIER FEE (USUALLY BETWEEN $25.00 AND $30.00)
  5. WIRE FEE (USUALLY BETWEEN $15.00 TO $25.00)
  6. HOMEOWNERS INSURANCE PREMIUM
  7. HOMEOWNERS FLOOD INSURANCE PREMIUM
  8. TITLE INSURANCE PREMIUM (THIS IS BASED ON THE PURCHASE PRICE AND IS A STANDARD FEE REGULATED BY THE DEPARTMENT OF INSURANCE)
  9. LOAN FEES (CAN NOT EXCEED THE GOOD FAITH ESTIMATE PROVIDED BY YOUR BANKER BY MORE THAN 10% OR THE BANK MUST REFUND THE DIFFERENCE TO YOU)
  10. IF FINANCING, YOU MUST BE INTANGIBLE TAX ON THE  MORTGAGE LOAN AMOUNT AT .20 CENTS FOR EVERY $100.00 BORROWED
  11. IF FINANCING, YOU MUST ALSO PAY DOCUMENTARY STAMPS TAXES ON THE MORTGAGE AT .35 CENTS FOR EVERY $100.00 BORROWED
  12. IF FINANCING, YOU WILL ALSO PAY FOR THE RECORDING OF THE MORTGAGE AT $8.00 FOR THE FIRST PAGE AND $8.50 FOR EVERY PAGE THEREAFTER.

PROPERTY TAXES ARE PRORATED FROM JANUARY 1ST OF THE YEAR TO THE DATE OF CLOSING AND WILL APPEAR AS A REDUCTION IN THE AMOUNT THE BUYER IS REQUIRED TO BRING TO CLOSING.

ESCROWS WILL ALSO BE ADDED BY YOUR LENDER IS YOU HAVE ELECTED TO INCLUDE THE INSURANCE AND TAXES INSIDE YOUR MONTHLY  MORTGAGE PAYMENT. IF SO, THE BANK WILL REQUIRE THAT MONTHS BE COLLECTED AT CLOSING AND HELD IN RESERVE ON YOUR ACCOUNT UNTIL THE LENDER PAYS YOUR PROPERTY TAXES IN NOVEMBER AND YOUR INSURANCE ONE YEAR FROM NOW.

ASIDE FROM THESE COSTS, YOU NEED TO EXAMINE YOUR CONTRACT CLOSELY TO SEE IF YOU ARE LIABLE FOR ANY OTHER COSTS.

WHILE THIS IS THE TYPICAL REAL ESTATE TRANSACTION SCENARIO IN MIAMI DADE, BROWARD IS A BIT DIFFERENT.

  1. IN BROWARD, SELLER IS USUALLY THE ONE THAT PAYS THE TITLE INSURANCE PREMIUM
  2. IN BROWARD, THE DOCUMENTARY STAMP TAXES ON THE DEED PAID BY SELLER ARE $ .70 CENTS FOR EVERY $100.00.

WITH SO MANY FEES AND COSTS INVOLVED, A THOROUGH EXAMINATION OF THE CONTRACT SHOULD BE MADE BY AN EXPERIENCED REAL ESTATE ATTORNEY PRIOR TO SIGNING ANY CONTRACT.  YOU MAY NOT KNOW WHAT FEES AND COSTS ARE CUSTOMARY DEPENDING ON YOUR COUNTY, AND ONCE YOU SIGN, THERE IS NO FREEZING OFF PERIOD.  YOU ARE STUCK.

DONT GO IT ALONE. HIRE THE SERVICES OF AN EXPERIENCED REAL ESTATE ATTORNEY TO REPRESENT YOU IN YOUR PURCHASE OR SALE.

JACQUELINE A. SALCINES, ESQ.   305  |  669  |  5280

 

 

 

 

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IMPORTANCE OF HAVING NO BRIDGES TO BAY

20130201-182045.jpg The South Florida Luxury Real Estate Market  is in full swing again and for those purchasing waterfront homes, whether the prospective body of water has “bridges to bay” is of utmost importance.  While many fail to consider this distinction, it is an important role for your real estate attorney or real estate agent to investigate certain facts about bridges such as:

  • What are the height restrictions
  • What times the bridge(s) go(es) up and down
  • Is the bridge manned (i.e., will there be someone on duty at all times if you want to take your boat for a midnight stroll)
  • What other restrictions are in place

Having this information prior to placing an offer to purchase a property is vital, as it could seriously restrict the enjoyment of the water and your vessel.

An experienced real estate attorney and realtor can investigate such vital information and provide you with the most accurate details in order to make an informed decision before placing an offer to purchase.

At the Law Offices of Jacqueline A. Salcines, Esq., you have an experienced real estate attorney by your side, to take care of these and any other issues that arise when purchasing luxury real estate.

Don’t go it alone.

Office in Coral Gables.   305  |  669  |  5280

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HAFA SHORT SALE RULES LAX IN 2013

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THE TRADITIONAL SHORT SALE HAS BEEN REPLACED WITH THE SIMPLIFIED HAFA SHORT SALE, WHICH IS MAKING SELLERS AND BORROWERS’ CHANCE OF APPROVAL MUCH EASIER THESE DAYS.short_sale

The main differences under the HAFA short sale that affect borrowers is the following:

  • No Occupancy Requirements – The borrower need not prove that the residence is their “primary residence” as defined under the Making Home Affordable rules.  The only restriction is that the borroewer may not have purchased a primary residence in previous 12 months.
  • The 31% Ratio No longer Used –  Mortgage payments are now permitted to exceed the 31% of gross monthly income if the borrower is current on their mortgage
  • Second Mortgage Paid $8,500.00 – Secondary lienholders (depending on investor) must now be paid $8,500.00 from the first lien holder
  • Relocation Assistance –  Seller/Borrowers must receive relocation incentices up to $3,000.00 (depending on investor and type of loan, and if occupied by the Tenant may receive the incentive $3,000.00
  • Credit Bureau Reporting –  Short Sale lender will now report the paid off account as account status code “13” which is account paid or close/account zero balance or code “65” account paid in full.foreclosure stated” as applicable.

Rules are also more lenient regarding whether the Short Sale is a result of a divorce, downsizing, as well as requriements regarding income reporting.

Of equal importance, is how the short sale and capital gains are being forgiven in the eyes of the IRS when the 1099-C is reported.

For up to the minute Short Sale information and to have you qualified, call THE LAW OFFICES OF JACQUELINE SALCINES, ESQ.

TRUST     |    COMMITMENT    |    RESULTS            TELEPHONE:  305.669.5280

 

 

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JANUARY FORECLOSURE ACTIVITY MAKES FLORIDA NO. 1 IN NATION

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According to The Miami Herald, “Florida claimed first place in the nation in foreclosure activity in January – eclipsing much larger California, according to data in RealtyTrac.”  – The Miami Herald, Thursday, February 14, 2013. short_sales

The Realty Trac report shows:

The Florida foreclosure rate ranked highest among the states for the fifth  month in a row. One in every 300 Florida housing units had a foreclosure filing  in January — more than twice the national average. A  total of 29,800 Florida properties had a foreclosure filing during the month, up  12 percent from the previous month and up 20 percent from January  2012.

With one in every 344 housing units with a foreclosure filing in January,  Nevada posted the nation’s second highest foreclosure rate for the fourth consecutive month. Overall  Nevada foreclosure activity decreased 43 percent from a year ago, but  foreclosure starts (NODs) increased 19 percent from the previous month and were  up 87 percent from January 2012 to a 16-month high.

A 32 percent month-over-month jump in scheduled foreclosure auctions helped the Illinois foreclosure rate  rise to third highest among the states in January. One in every 375 Illinois  housing units had a foreclosure filing during the month.

Read more:  Great Foreclosure News, Except for Florida and California — RealtyTrac – 24/7 Wall St. http://247wallst.com/2013/02/14/great-foreclosure-news-except-for-florida-and-california-realtytrac/#ixzz2KtMJ2d8R

The burning question is… will this affect our incredible recovery here in South Florida? Will prices take a hit once the  thousands of expected foreclosures are filed in the coming months?  Only time will tell.  Obviously, by placing more distressed homes into the market, inventory of homes will go up, and values are destined to decline. But, short sales and distressed property sales rely on BPO’s , or market appraisals.  Market appraisals take into consideration what is selling, what has sold, distressed or not.  So, while this may be bad news for the investors looking to pick up some more distressed properties, it is good news for sellers of non-distressed properties.

“My prediction…values will take a small dive, but our upward climb will continue and we will once again be at 2004 and 2005 values, in a short time”.  – Jacqueline A. Salcines. Esq.

Don’t go it alone.  Rely on the services of a qualified Real Estate Lawyer to analyze your current situation and provide you with the best knowledge available to make an informed decision.

Call for a free consultation.     305  |  669  | 5280

 

 

 

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THE SOUTH FLORIDA LUXURY HOUSING MARKET IS BLAZING HOT!

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September 2012 saw the priciest home sale in Florida history, with the sale of 3 Indian Creek Drive at $45 Million.  Few can believe that the Florida housing market is experiencing such a quick recovery and how rapidly it has turned into a Seller’s market again.  But the proof is in the listings.  Take for example the following:

4 Tahiti Beach Island Road currently listed at $30,000,000.00 or 41 Arvida Parkway in Gables Estates listed at $27 Million and 9151 Arvida Lane in Gables Estates listed at $18 Million.

Are we safe to assume that South Florida is out of the woods and back to the 2005 home sales era?  Well that’s just whats happening is some of the nations most competitive and sought after housing markets such as Coral Gables, Pinecrest and Coconut Grove.  Sales of upper high-end properties are booming in the double digit figures, with tight supply driving prices of highly desirable prices skyrocketing and creating bidding wars (who ever thought we would use that word again so soon).

So what is driving the prices high and creating this Seller’s market?  Well, across the nation there are various explanations. But, in South Florida, a few come to mind.

1.   Turmoil in Europe and South America.  The luxury market is clearly being driven and often times kept afloat by the flurry of foreign investors seeking to place their capital in a safe environment.  Countries such as Brazil, Venezuela, Argentina, as well as now shaky Europe. These investors are coming in droves and pouring their money here, be it individual investors  or by pooling their capital through LLC’s and seeking EB-5 Visas for automatic residency.  Cities such as Coral Gables, Miami and Pinecrest are reaping the rewards of foreign global financial markets that have been thrown into chaos such as Europe.  Paul Bishop, Vice President of Research at the National Association of Realtors agrees.  “foreign buyers are very active for many of the same reasons domestic buyers are”.  “Assets in the U.S. including real estate, look pretty appealing as opposed to other parts of the world”.

2.  Financial Flexibility. Buyers that are considering large purchases, are generally borrowing at very low interest rates, or have the liquid cash on hand.  And what better place to invest then a recovering real estate market, that will offer a return on investment far exceeding any national institution.

3. Perception of Value. Even at the very top of the real estate market, buyers still want to ensure that their money is being invested correctly. This means that once savvy home buyers who were holding off in prior years, now are seeing the market recovering.  And the recovery is blazing.  While years previous have shown large declines, luxury home buyers seem to think, as do market professionals, that the luxury market has seen its worst and is now headed to the top once again.  Therefore, the time to buy is now before prices get any higher.

4.  Low Inventory.  Many seeking high end homes in either Gables Estates, Cocoplum, Old Cutler Bay, Star Island and other secluded sectors, have found inventory dwindling.  So when a house goes on the  market, the high end buyers are jumping on it.  “Take for example, the recent sale of Pat Riley, former Miami Heat Coach’s pad” says Jacqueline Salcines, Esq. with the Law Offices of Jacqueline A. Salcines, P.A. “This luxury home recently sold for $16.8 million and it is reported that the buyer intends to demolish the current structure and build anew”. This was unheard of in the recent South Florida real estate market but truly a sign that the market has taken a turn for the better and is recovering at record speed.”  What better proof than the boom in condominiums going up in the Downtown, Brickell and South Beach area.  “Being of Argentinian decent, I can definately attest to the fact that … the Argentinians are coming in swarms” says attorney Jacqueline A. Salcines, Esq.

All said, what is one to expect in the coming months?  “If my 15 years experience in the housing market and practicing real estate law serves as a guide, we will see a continued influx of foreign investors, Brazilians, Argentinians, Venezuelans, and perhaps a few new ones, Russians, Italians, all looking to reap the rewards of a stable and blazing hot real estate market.”  South Florida is the poster child of a quick recovery and I am honored and excited to be a part of it.” -Jacqueline Salcines, Esq.

Dont Go it Alone.  Seek the assistance of an experienced Real Estate Attorney to assess your investment, review title, and make sure that your investment is a sound one.

Call me today for a no fee consultation.

LAW OFFICES OF JACQUELINE A. SALCINES

305 |669 | 5280

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