NEW MORTGAGE RULES IN 2013 WILL AFFECT HOMEBUYERS AND MAKE OBTAINING A MORTGAGE MORE DIFFICULT

Loan Modifications, Miami Real Estate Deals, Real Estate, Real Estate Investments

foreclosure_defense NEW MORTGAGE RULES IN 2013 WILL IMPACT BORROWERS

Last week, the Consumer Financial Protection Bureau announced new rules, known as the Qualified Mortgage (or QM for short), for mortgage financing. This new regulation, while creating a safer harbor for the lenders, reducing their risks, drastically impacts homebuyers and their ability to obtain loans.

At the start of 2013, lenders will face stricter guidelines in getting their loans approved. This translates into additional safeguards, additional manpower, additional fees and costs to borrowers. The rules will require tighter qualify control requirements for lenders including full documentation of applicant’s income, assets, employment, credit history, etc.

Plus, the Dodd-Frank Law in effect, limits points for qualified mortgages at 3 percent of the loan. This could heavily impact large lenders and home builders who provide incentives for home owners and use affiliated companies for their services, such as appraisers, title and surveyors.
Also affected are jumbo mortgages, which could affect higher end home sales in Counties and Cities with higher sales figures such as Coral Gables, Miami-Dade and Palm Beach. Jumbo loan limits in Florida counties are classified as follows:

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Under the new regulations, to achieve safe harbor status, a loan must not have a debt-to-income ratio in excess of 43%. David Stevens, Chairman and President of the Mortgage Bankers Association estimates that “between 22 and 25 percent of all jumbo loans that exceed those limits, have DTI’s beyone that cap” thereby they will be affected.

To read more on this go to:

http://www.inman.com/buyers-sellers/columnists/kenharney/new-mortgage-rules-could-crimp-lending

So, a few tips to make financing your home easier and allowing you to escape this bureacacy:

● Preserve your credit and keep your credit scores high
● Put down at least a 20% down payment on your purchase
● Avoid PMI mortgage insurance
● Use a qualified mortgage banker or broker to find the best possible programs and loans
out there for you based on your particular situation.

And the best advice of all… don’t go it alone.

Hire a qualified attorney to handle your closing! By hiring an attorney and accountant, you pay no more than a title company would charge BUT get additional services from a qualified professional including

● Review of Good Faith Estimates provided by mortgage brokers to check fees and costs

● Review and examination of title on the home you are purchasing to make sure title is free and clear of all encumbrances
● Preparation of the Closing Statement HUD-1 to make sure all charges are accurate
● Attendance at closing and review of all lender documents including mortgage and note

Contact me for more information on our real estate closing services.

Jacqueline A. Salcines, Esq. 305|669|5280

Or email me directly at J.Salcines@salcineslaw.com

HAPPY BUYING!!

January 24, 2013/by jaspa1

KEY CHANGES TO FANNIE MAE AND FREDDIE MAC SHORT SALES TO IMPACT INVESTORS

Loan Modifications, Miami Real Estate Deals, Real Estate, Real Estate Investments, Short Sales

On Friday, January 18, 2013, Fannie Mae and Freddie Mac announced changes to their servicing requirements for short sales. These changes apply to all Fannie Mae and Freddie Mac short sales, with an offer and without an offer.

• Title Transfer requirement change:

o The buyer is prohibited from selling the property for any sales price for a period of 30 days from the date of the deed.

o After a 30 day period, and until 90 days from the date of the deed, the buyer is further prohibited from selling the property for a sales price greater than 120% of the short sale price.

This restriction runs with the land, meaning that it is not personal to the seller and will transfer to the new buyer.

Below is an example on how to calculate the 120%:

o Purchase Price is $100,000.00
o 120% of the purchase price would be $100,000.00 X 1.2 = $120,000.00

• Relocation Assistance:

o The borrower may be entitled to an incentive payment of $3,000 from Fannie Mae / Freddie Mac to assist with relocation expenses following successful completion of a short sale unless:

1. The borrower is required to contribute funds or execute a promissory note.

2. The borrower has Permanent Change of Station (PCS) orders and receives a Dislocation Allowance (DLA) or other government relocation assistance.

3. The servicer has knowledge that the borrower is receiving relocation assistance from another source other than the servicer.

Note: If the borrower receives relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer, the difference in the relocation assistance amount up to the $3,000 incentive maximum may be provided. If the borrower will receive relocation assistance from a source other than Fannie Mae / Freddie Mac or the Servicer and the amount is equal to or greater than $3,000, no relocation incentive will be provided.

With all these changes, now more than ever, it is crucial to have an attorney negotiate and close your short sale. THE LAW OFFICES OF JACQUELINE A. SALCINES, P.A. is dedicated to negotiating short sales, and providing both title work and title closing services for all closings. Call us for a free consultation. Tel: 305.669.5280. or visit us on the web WWW.SALCINESLAW.COM

January 19, 2013/by Jacqueline Salcines

MORTGAGE FORGIVENESS RELIEF ACT OF 2012 TO PROVIDE RELIEF FOR DISTRESSED HOMEOWNERS

Loan Modifications, Miami Real Estate Deals, Real Estate, Real Estate Investments, Short Sales, Uncategorized

MORTGAGE FORGIVENESS RELIEF ACT OF 2012 RELIEVES DISTRESSED
HOMEOWNERS IN SHORT SALES AND LOAN MODIFICATIONS FOR ONE MORE YEAR

Finally, Congress came to its senses, and extended the debt forgiveness benefits for qualified homeowners. Through the passage of the American Taxpayer Relief Act of 2012, qualified distressed homeowners who have any debt forgiven as a result of a short sale, foreclosure or loan modification principal reduction, will not have to pay taxes on any debt forgiven. This protection is now extended through December 31, 2013. Homeowners will still receive a 1099-C form that will need to be reported to the IRS, but will not be liable for any amounts owed to the IRS for such cancellation of debt.

Under the Federal Tax Code, all types of forgiven debt are treated as income, and is subject to taxes. Because of the recently passed Mortgage Forgiveness Debt Relief Act, homeowners who get their mortgage debt forgiven through either a short sale or loan modification, will not face a tax on the amount forgiven, up to $2 million dollars. “Forgiven Debt” refers to the difference between the amount the homeowner owes on his or her mortgage and the amount the mortgage company receives at closing.

The law had short sellers scrambling to close by December 31, 2012, because had it not been extended, any forgiven debt would be considered taxable income. But now, with this new law, distressed homeowners are free to continue their short sales without having to worry about paying Uncle Sam any amounts after the closing.

Attorney Jacqueline Salcines states “In the advent of the housing market recuperating and so many homes in South Florida being in foreclosure and short sale, there was a dire need for the extension of this protection to homeowners. Many clients were coming into the office, wanting to walk away and face judgments or bankruptcy because they truly had no means of paying any amounts to the IRS. Now, with the protection extended, we can once again freely negotiate these short sale to completion without the homeowner worrying whether they will incur additional costs.”

“It certainly should not have taken so long to have this law extended. And it should be extended beyond December 31, 2013 because with so many homes in South Florida in distress, there will be principal reductions and short sales requiring forgiveness for years to come. This is not going to be cleaned up in one year.” Aida Pacheco, Loss Mitigation Manager at Jacqueline A. Salcines, P.A.

For now, we will have until December 31, 2013 to close existing short sales and modify loans. With our rapid team of short sale processors, we, at the Law Offices of Jacqueline A. Salcines, PA can get the job done.

January 14, 2013/by jaspa1

Is South Florida Real Estate Fully Recovered From the Recession?

Miami Real Estate Deals, Real Estate Investments

You can’t talk South Florida Real Estate in a vacuum; the industry is too meshed up with the economy in general

Taking a bird’s eye view on where South Florida has been to where it is today, and what factors have contributed to it, helps frame the conversation more intelligently.

All and all South Florida Real Estate and local economy is pretty resilient. Tourism some would say is at the forefront of the recovery, slowly followed by Real Estate and Infrastructure (public works).

Progress is slow, and you could argue too negligible to make a positive mid or long term prognosis.

Tourism has been our bread and butter for some time now.

“According to Smith Travel Research, hotels in metropolitan Miami averaged $200.85 a night in Feb, up 9.2% from the same period a year earlier. By the way compared to New York City hotels avg $188.86 the same month. All Hotels in Broward and Palm Beach rose from a year earlier.” –daily business review

But why is Tourism such a play for us?

According to Mike Maxwell, director of the real estate development program at the Huizenga School of Business at Nova Southeastern, “we are still a deal”.

It’s true!

If you compare hotel rates in New York, San Francisco and Miami, We ARE a deal! –and at the end of the day you are still in sunny South Florida.

As far as South Florida Real Estate is concerned, according to the Miami Association of Realtors, the median sales price of a single-family home in May was $190,000. This is about a 6 percent increase from a year ago.

The available homes inventory however has shrunk to $11,403 from $16,943 in the same period. There are also still quite a few foreclosures occurring with lots of cash buyers making their moves.

The condo market is rebounding together with the luxury homes sector. Commercial properties in addition to apartment complexes are also going for premium pricing.

So can you find deals out there today?

I think so! –they are not as attractive as they were a year to a year and a half ago. But there are a lot of people still hurting with their bad real estate assets weighing them down. The challenge is the financing.

Banks are still shy, some are lending, but most are waiting for stronger signs of a recovery. According to the FDIC, in the 1^st Q of this year bank loan balances shrank by $56 billion.

On the flipside of that coin, there’s a lot of South American money coming into South Florida. For this group South Florida Real Estate and South Florida in general still provides them with a stable infrastructure where to park their cash and grow their real estate assets and business portfolios.

My personal view on our current South Florida Real Estate status and what it means for the average person is:

I’ve always believed South Florida can take the heat! As a community we’ve been through a lot, if we pull together we’ll always do better than if we don’t.

Regarding Real Estate opportunities:

Keep searching… the deals are out there!

I’m presented with opportunities in Real Estate on a weekly basis. It’s all about networking with the right Realtors, Attorneys and Homeowners and keeping a win-win viewpoint throughout the process!

Take care 🙂

July 23, 2012/by jaspa1

Real Estate Deals and News in Miami

Miami Real Estate Deals

Coconut Grove Proposes 6 Million Dollar Project to Enhance its Business District

The project plans to pretty much take the business district to the next level. Part of the revamp will be by widening sidewalks, installing to lighting, planting and replacing trees.

According to the Miami Herald report the project will take place in two phases:

“The first phase of construction will be on Florida Avenue, Virginia Street, Mary Street, Fuller Street and Commodore Plaza. The plans for Fuller are not yet complete.

The second phase, which is still in the conceptual phase, will include Bayshore Drive, Grand Avenue, MacFarlane Road and Main Highway.

The city expects work on Florida Avenue to begin in late June or early July. The city also expects to complete the first set of improvements in autumn 2013.”

ARTPLACE Grant Keeps Wynwood’s Local Renaissance Alive

Miami Real Estate Deals, Real Estate Investments

The Arts have always been a good catalyst for reviving local districts and neighborhoods, this is the case for Wynwood via the ARTPLACE Grant.

ArtPlace is the product of a pioneering initiative of 11 of America’s top foundations, including Knight Foundation in conjunction with the National Endowment for the Arts, NEA, and seven other federal agencies.

To date, ArtPlace has raised close to $50 million to work alongside federal and local governments to transform communities with strategic investments in the arts.

“The aim of ArtPlace is to drive community revitalization by putting arts at the center of economic development.”

Real Estate Deals and News in Miami

Miami Real Estate Deals

Church of Scientology Acquires Former Renzi Miami office for $7M from U.S. Century Bank

The nonprofit group, which is based in Hollywood and affiliated with the national religious movement founded by L. Ron Hubbard, acquired the former Renzi building at 2220 S. Dixie Highway from the Doral-based bank for $7 million.

The amount is more than the $5.9 million mortgage the bank used to foreclose on the property in 2011 – taking it away from developer Renzo Renzi.

The 113,035-square-foot office was built in 2000.

Property records show the Chuch of Scientology already owns an office building in Coral Gables.

Read full article here.

Brought to you by ‘Insights on Miami Real Estate Deals‘

May 21, 2012/by jaspa1