Fort Lauderdale, FL

Major news was released today regarding the banks, mortgages of the past, and the present homeowners who still have homes. U.S. states have reached a $25 billion deal with the nation’s biggest mortgage lenders over foreclosure abuses that occurred after the housing bubble burst.

Federal and state officials announced the deal Thursday. It is the biggest settlement involving a single industry since a 1998 multistate tobacco deal.

Under the agreement, five major banks – Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial – will reduce loans for nearly 1 million households. They will also send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal.

All but one of the 50 states agreed to the deal. Oklahoma, the lone holdout, will receive no money.

The settlement ends a painful chapter that emerged from the financial crisis, when home values sank and millions edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadn’t read or used fake signatures to speed foreclosures – an action known as robo-signing.

Under the deal, 49 states said they won’t pursue civil charges related to these types of abuses. Homeowners can still sue lenders in civil court on their own, and federal and state authorities can pursue criminal charges.

Bank of America will pay the most to borrowers as part of the deal – nearly $8.6 billion. Wells Fargo will pay about $4.3 billion, JPMorgan Chase will pay roughly $4.2 billion, Citigroup will pay about $1.8 billion and Ally Financial will pay $200 million. This does not include $5.5 billion in federal and state payments.

The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America acquired Countrywide in 2008.

In addition to the payments and mortgage reductions, the deal promises to reshape long-standing mortgage lending guidelines. It will make it easier for those at risk of foreclosure to make their payments and keep their homes.

Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement.

The settlement would apply only to privately held mortgages issued from 2008 through 2011. Banks own about half of all U.S. mortgages – roughly 30 million loans. Those owned by mortgage giants Fannie Mae and Freddie Mac are not covered by the deal.

Some critics say the proposed deal doesn’t go far enough. They have argued for a thorough investigation of potentially illegal foreclosure practices before a settlement is hammered out.

Under the deal:

• Roughly $1.5 billion for direct payouts, in the form of $2,000 checks, for about 750,000 Americans who were unfairly or improperly foreclosed upon; another $3.5 billion will go directly to states.

• At least $10 billion for reducing mortgage amounts.

• Up to $7 billion for other state homeowner programs.

• At least $3 billion for refinancing loans for homeowners who are current on their mortgage payments but who are underwater.

The Associated Press, Derek Kravitz, AP Real Estate Writer. Associated Press Writers Michael Virtanen in Albany, N.Y. and Pallavi Gogoi in New York contributed to this report.

Five mortgage insurers have granted Fannie Mae mortgage servicers the authority to complete a short sale or deeds in lieu of foreclosure without getting their separate approval.

Traditionally, mortgage insurance groups have had to give the OK before a short sale can be processed on a property with a guaranteed loan. Now, without that extra step, Fannie mortgage servicers may be able to speed up short sale approvals on Fannie-backed loans.

The PMI Group, which filed for bankruptcy in November, is the latest mortgage insurer to grant Fannie the authority to no longer wait for its approval on short sales. The other four mortgage insurers also giving Fannie the authority are: Genworth, MGIC, Republic Mortgage Insurance Co., and Radian Guaranty.

Regardless, Fannie has instructed its mortgage servicers to make sure a short sale does not conflict with any existing mortgage insurance coverage before approving it.

Source: HousingWire

The southwest Florida about how the Luxury Florida real estate market appeared to finally be ready to burst its bubble too. Well, it seems like many high end sellers also came to the realization they would have to give in on price in order to sell their properties.

Let’s take a look at how things have shaken out.

All Property Sales $1 Million – $2 Million

Luxury Home and Condominium Sales:

198 Closed Sales (133 in 2009)

• Average Sales Price – $1,389,617
• Median Sales Price – $1,350,000
• Average Days on Market – 231
• Average Sales Price/Square Foot – $448.81
• Average List to Sales Price – 87%

In comparison with 2009 sales data, we saw a 49% increase in the number of luxury property sales. The average price fell by 3% and the median price dropped 2%. Average days on market decreased 9% and the list to sales price ratio climbed 2.5%.

All Property Sales $2 Million Plus

Luxury Home and Condominium Sales:

• 110 Closed Sales (75 in 2009)
• Average Sales Price – $3,607,157
• Median Sales Price – $2,875,000
• Average Days on Market – 300
• Average Sales Price/Square Foot – $618.27
• Average List to Sales Price – 86%

In comparison with 2009 sales data, we saw a 47% increase in the number of luxury property sales. The average price fell by 5% and the median price dropped 8%. Average days on market decreased 3% and the list to sales price ratio climbed 2.3%.

While the numbers are encouraging, it’s still important to understand most luxury real estate in Florida is located on some of the most prized property available. You don’t just give away oceanfront estates, island getaways or high rise condominiums with views to die for just because the rest of the market has hit hard times. In addition, folks who are wealthy enough to afford such properties in the first place are also wealthy enough to carry them as they weather the market downturn.

So, if you’re thinking about purchasing a little piece of paradise, now may be the time to do it. The fact that we’re starting to see the high end move might just get you a really good buy on a really desirable property.

Selling a house may not be as easy as some people think, sometimes it is very difficult, challenging, and tiresome. At times you at least get less amount of money than the actual cost of the property. Before you make any progress of selling or buying a house it is advisable to consider some important points. Some of the questions that you need to ask yourself are like do I have the time? Do I have the energy? Do I have the sources of information I require to sell or buy a house? Do I have contacts to do the job myself? You also have to ask yourself if I do it all-by-myself', would the results be as good as if I had involved professional assistance such as Real Estate Agents? Would it have gone smoother? Would it have given you more personal time? Would you have purchased for less, or sold for more, if a real estate agent was involved?

Important points to remember when selling your house through Real Estate Agents

a) The value of your home is determined by a number of factors, including the sales price of other homes in your area, condition of your home, the period and the month in a year.

b) Involving Real Estate Agents make work easy and more convenient for you and also reduces the rates of selling the property at a low cost.

Benefits of involving Real Estate Agents when selling a home

· Real Estate Agents give advices to people who are selling houses and help them to make the correct decisions so that they can be successful.

· Real Estate Agents can give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

· Real Estate Agent can recommend repairs or cosmetic work that will significantly enhance the salability of the property. Marketing includes the exposure of your property to other real estate agents and the public.

· Real Estate Agent acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing of Ethics. Advertising is part of marketing.

· When the property is marketed with the agent help, it is safe as you do not have to allow strangers into your home since Real Estate Agents will generally pre-screen and accompany qualified prospects through your property.

· Real estate agents or brokers are generally paid through the sales commission paid by the seller when a transaction closes.

· Real Estate transactions involve one of the biggest financial investments most people experience in their lifetime.

· Real Estate Agents provide full service for buyers as well as sellers

· Real Estate Agents prepare a free comprehensive Comparative Market Analysis (CMA) using the same technique as appraisers.

I did get stoned yesterday and it was hardly my first time. Actually during the winter months I get the urge a lot, you see here in Florida it is not only our high tourist season but it is the beloved Stone Crab season as well. Yes folks this treasured delicacy from our shores is only available for catching and eating from Dec. 15 through may 15th each year.

Yesterday I attended the Fort Lauderdale Stone Crab Festival held on Las Olas Blvd. which is our "Rodeo Drive" so to speak. Being outdoors in 78 degree weather in January is great enough but there is something special about cracking open one of these meaty succulent claws out under a palm tree with a calypso band playing nearby.

I would like to know how many tons of these claws were consumed because @ up to $39 a pound in the grocery store these little guys do not hold the same allure to me as when I used to be able to catch them off of Key Biscayne myself with my bare hands as a kid:) Those days are long gone but the fun of cracking, pulling, dipping and savoring are still the same.

Here's to the Stone Crab and all the folks that set their traps to deliver them to us!