Bria J. Toulemonde, CDPE

On May 20, 2009 President Obama signed the Helping Families Save Their Homes Act of 2009, which addresses several issues affecting the housing industry. Title VII of the act, entitled Protecting Tenants at Foreclosure Act of 2009 addresses how tenancy will be handled during foreclosure. The Act will remain in effect until December 31, 2012.

Prior to this legislation being passed, tenants had little or no recourse during a foreclosure. Many tenants learned of their landlord's foreclosure when the local sheriff showed up on their doorstep with eviction notice in hand. While some lenders made provisions for tenants occupying foreclosures, no provisions were legally enforceable.

How the Protecting Tenants at Foreclosure Act of 2009 works:

If the tenant has a written lease, the Foreclosure Owner takes title subject to the lease, and the tenant must be allowed to stay in the property until the end of the lease term (in accordance with the lease terms).

However, if the Foreclosure Owner sells the property to a buyer who will “occupy the unit as a primary residence”, the Foreclosure Owner may terminate the lease effective on the date of sale (i.e., closing) provided the tenant is given 90 days notice to vacate. This 90 day notice to vacate can not be given until there is a fully executed contract with a buyer who will occupy the Property as a primary residence. If the contract is scheduled to close before the 90 day notice period expires, the contract may close but the buyer becomes the landlord and can not take possession until the 90 day period has expired.

If the tenant does not have a lease or the lease is terminable at will under State law (i.e., a tenancy at will), the tenant must be given 90 days notice to vacate (note that this may require the Foreclosure Owner to give more notice than would otherwise be required under other laws).

Notice to the tenant does not have to be in writing, nor does it need to be sent via Certified Mail. However, it is strongly suggested that notice be given in writing to satisfy the burden of proof that notice was given should there be a disagreement between the tenant and foreclosure owner.

The terms of the lease remain the same with the exeption of where rent monies are to be paid. In most cases, this will be the foreclosure owner. Official notices must also be sent to the new title holder.

For more detailed information on how the new legislation effects you, contact your local REALTOR.

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Looking to rent in Miami Beach? Call me! I'll help you find the perfect place to call home.

Bria Toulemonde, CDPE

South Beach Investments Realty

305.851.5910

Officials are predicting a "near normal" hurricane season this year. NOAA’s National Weather Service Climate Prediction Center calls for a 50% probability of a near-normal season, a 25% probability of an above-normal season and a 25% probability of a below-normal season. A near-normal season translates to a 70% chance of having nine to 14 named storms, of which four to seven could become hurricanes, including one to three major hurricanes (Category 3, 4 or 5).

ARE YOU PREPARED FOR HURRICANE SEASON?

Click here to download the City of Miami Beach hurricane preparation guide and review evacuation routes and procedures. If you have pets, you need to register them for admitance to local storm shelters BEFORE an actual storm hits. Click Here to view the Animal Services site for more information on pet evacuation guidelines.

Have a safe and fun summer!

Bria Toulemonde, CDPE

South Beach Investments Realty

305.851.5910 DIRECT

Are you or someone you love facing foreclosure? As a Certified Distressed Property Expert (CDPE) I can offer hope and help. Call me today. 305.851.5910

Hurricane season begins June 1st - are you prepared?

The City of Miami Beach is hosting a FREE Storm Prep Expo at the Miami Beach Convention Center on May 30 & 31 from 10 a.m. - 5 p.m.

Can't make the expo? Click Here to view the Public Safety Portal to learn more about hurricane preparedness.

As the number of Americans facing economic hardship and foreclosure increases, so does the number of short sales listed on the Real Estate market. Basically defined, a short sale occurs when a lender agrees to the sale of a property at a price that is lower than the amount outstanding on the mortgage. Under normal circumstances, the Seller would be responsible for bringing cash to closing to cover the balance due to the lender. In a short sale situation, the Seller “zeroes out” and brings nothing to closing. The deficiency, or difference between the sold price and outstanding balance on the mortgage, is either waived or pursued through a judgment against the borrower.

While the nature of a short sale may sound simple, the actual process is labor intensive and many conditions must be met before a lender will approve the transaction. As a Certified Distressed Property Expert (CDPE), I receive a lot of inquiries about how short sales work, who qualifies for a short sale and what ultimately determines whether or not a short sale will succeed.

Statistically, of all short sales listed, only 15-25% will actually close. So, why do so many short sales fail? In my opinion, there are a few key factors that can make or break a short sale:

SELLER QUALIFICATION - Not every homeowner qualifies for a short sale. In order to qualify for a short sale, the property owner must be able to demonstrate a significant hardship that makes it impossible for them to satisfy their obligations to the lender. Owing more than the property is currently worth is not considered a hardship. A few examples of legitimate hardship include: death, disease, divorce and job loss. The hardship must be documented and verifiable.

FAILURE TO DISCLOSE - The short sale process requires an audit of the homeowner’s finances. As part of a short sale package, the homeowner must provide tax returns, pay stubs, bank statements and disclose all assets. Some homeowners make the mistake of withholding some of this information in hope of strengthening their hardship case. This is a terrible tactic. Once the bank discovers that you have been hiding assets and information (and they will) your short sale will be denied and the bank will pursue foreclosure on your property with enthusiasm. Always be honest when dealing with the bank.

BUYER CANCELLATION - Don’t let the name fool you, short sales are anything but. In fact, the entire process can take weeks if not months. It is not uncommon for short sales to close 3-4 months or longer after the contract is executed. Many buyers don’t understand this when they submit their offer and end up terminating the contract so they can move on to another property. Short sales aren’t recommended for buyers who need to move by a specific date or have other time-sensitive needs.

REALTOR COMPETENCE - Hiring the right Realtor is critical when attempting a short sale. In fact, this may be the single most important factor for success. Short sales are time intensive, stressful, complicated transactions. At minimum, your Realtor should meet the following criteria:

-Hold current knowledge and experience working with short sales. They should have a history of at least a couple successful short sales OR work in tandem with a partner or team that does. Formal training with or without a designation is recommended.

-Maintain their Real Estate practice FULL TIME. Agents with short sale listings need to be available during business hours. They should also have a fully functional office with a computer, fax, scanner and copier.

-Be attentive and efficient. The agent you hire should answer their phone or return missed calls within 3 hours. The agent should be willing to take the time necessary to answer all of your questions and address all of your concerns.

-Have above average knowledge and experience in marketing Real Estate. The marketing program for a short sale should be 2-3 times more robust than plans used for conventional listings.

-Have above average knowledge of market analysis methods. To effectively negotiate with the bank, accurate and compelling market data will be required.

The listing agent is responsible for submitting the 100+ pages of documentation to the bank for consideration. Hire an agent with expertise, confidence and ambition.

There is never any guarantee that a lender will accept a short sale offer. Avoiding the most common mistakes will, however, give you a good head start towards success. While short sales are complicated, time consuming transactions, they can be an excellent alternative to foreclosure.

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Are you or someone you love facing foreclosure? Considering a short sale on your property? As a Certified Distressed Property Expert (CDPE), I can offer hope and help. Call me at 305.851.5910 for a confidential, no obligation consultation.

The overwhelming concensus remains: now is the time to buy. In fact, we are in a buyer's market unlike any other many of us will see in our lifetime.

South Florida has seen a steady increase in sales since Fall 2008. This upward trend is mostly attibuted to historically low interest rates, the Federal First-Time Home Buyer Tax Credit, seller incentives and affordability.

The following figures represent all of Miami-Dade county. Statistics for individual communities including Miami Beach are available upon request - please email bria.toulemonde@floridamoves.com

MIAMI DADE COUNTY APRIL 2009 PRICE ANALYSIS - SOLD INVENTORY

57% of condos sold for $149,999 or less

71% of condos sold in April were purchased for $199,999 or less

43% of single family homes sold for $149,999 or less

62% of single family homes sold for $199,999 or less

MIAMI DADE COUNTY APRIL 2009 PRICE ANALYSIS - ACTIVE INVENTORY

9,600 condominiums are listed under $205,600

6,446 condominiums are listed under $150,000

3,327 condominiums are listed under $100,000

3,684 single family homes are listed under $205,600

2,000 single family homes are listed under $150,000

1,000 single family homes are listed under $100,000

MIAMI DADE COUNTY - APRIL 2009 SALES ANALYSIS

1,380 Homes closed

2,830 Homes placed under contract

23.4 Supply of homes - months of inventory

108 Average days on market (sold homes)

89% Sold/List Price Ratio

Price Trend: Depreciating

Looking to buy, sell or rent in the Miami Beach area? For over 16 years I've had the honor of helping people prosper through real estate. I'd love to help you too! Call me at 305.851.5910.