Eric Slifkin, Broker Associate

Selecting a Mortgage Lender

In today's brave new world of South Florida real estate, getting a home loan is arguably the most stressful component of your transaction. On the one hand, the "big box" national lenders have frequently proven to be unreliable in just about every step of the funding process. With their thin staffs, poor communication and underwriting rules that seem to change on a daily basis, a Florida home buyer cannot rely on a successful closing. On the other hand, working with a mortgage broker may compound these problems since you are adding a middleman to the equation.

Going With a Stuart Area Direct Lender

For me, the best option for my clients is to work with a local direct lender. Our preferred direct lender is Group One Mortgage. With offices thoughout the Treasure Coast, Group One offers skilled, personalized service coupled with the same programs offered by the national lenders.

Why a Florida Based Direct Lender Can Ensure a Successful Closing

1. Full Service - a direct lender processes your loan, underwrites your loan and funds your loan right in their office. This includes FHA loans, VA loans, 100% USDA loans, conventional and Jumbo loans.
2. Easy Access to Decision Makers - having the loan underwriter in their office allows your loan officer to communicate directly with the person responsible for approving and clearing your loan to close.
3. Direct Government Lender - a direct lender can provide in-house FHA, VA and USDA underwriting. As a direct Government lender Group One Mortgage has a DE (delegated endorsement)underwriter in their office. All FHA, VA and USDA loans stay in house and are not being brokered through middle men companies.

Please contact me with all your real estate needs. Or call Wayne Katz at Group One Mortgage (561) 791-0000 to get pre-approved for a mortgage today!

Eric Slifkin, Broker Associate
Keller Williams Realty
819 South Federal Highway
Stuart, FL 34994
(888) 288-1765

As an out of town buyer, identifying suitable Stuart area property listings can be daunting when it comes to using the myriad of online search tools currently available. Evolving Web 2.0 technologies have made it it easier than ever to learn about, buy, sell, or rent properties. While your search preferences may range from Realtor.com, to Zillow or Trulia, each has its pluses and minuses when it comes to finding the right home for you.

I have found the clients I work with typically use several real estate search engines to "triangulate" on properties and areas of interest. My online home search pages offer a blend of some of the best search tools currently available to find homes in Stuart, Florida, including links to our Multiple Listing Service (MLS Search) and The Home Buyers Scouting Report.

Online home search tools will generate a number of properties for your consideration. But it is raw data and not always accurate or up to date. That's when it's time to involve a local REALTOR®, who can provide expert knowledge of Stuart area homes and neighborhoods and represent you in your transaction (my out of town clients typically forward hundreds of property listings to me every day in order to gain feedback and guidance in selecting the best properties to see when they arrive).

As a Web savvy REALTOR® serving South Florida's Treasure Coast, I can quickly filter your property selections through our MLS system, providing you with currently available listings. More important, as an agent with local expert knowledge, I will help you see past the "fluff" and recommend homes you will want to visit when it is time to schedule a tour.

The soft real estate market here on the Treasure Coast is attracting a wave of primary and second home buyers who have been sitting on the sidelines waiting for an opportunity to buy a first home, "snowbird" retreat or retirement home. Their patience is being rewarded with an abundance of readily available distresed properties at prices well below the $150,000 mark. These homes are typically short sales and foreclosures, which raises several questions about which type of sale to pursue and at what price.

Short Sale vs Foreclosure
Simply put, a short sale occurs when the seller's lender agrees to a sale for less than the mortgage balance. It is the lender's goal to minimize their loss on the sale. Unless they pre approve the listing price, it can take weeks or months to get an answer on your offer while they perform their due diligence. In the case of a foreclosure, the bank has taken possession of the property and lists it for sale on the MLS. The advantage here is that the bank has established a price; buyers can make offers just like any other home for sale and expect to close with no prolonged waiting period while they consider your offer. Whether a short sale or foreclosure, these homes are sold "as-is" and the bank is only interested in their bottom line.

Negotiating a Pre Aprroved Short Sales or Foreclosure
A pre approved short sale can be as good if not better than a foreclosure. Often the "pre approved" price was derived from a prior offer that fell apart, which may give the buyer a good idea of the bank's expectations.

There is no emotion in negotiating a pre approved short sale or foreclosure. The " pre approved" price is based on the bank's best estimate of value, and is typically determined with a BPO (broker price opinion). BPO's are provided by real estate agents the bank hires for just this purpose (note: a BPO is not an appraisal). That said, the bank does not care about inspections or cost of renovation, just getting the best price for the market. Whether a short sale or foreclosure you are buying the home as-is.

There are tremendous opportunities today in buying a distressed property as your primary, getaway or retirement home. While there is always risk in any investment, with the proper contingencies you can confidently make an offer knowing that if the house does not appraise or fails inspection you can cancel the deal and get your deposit back.

Buying a home is both a science and an art requiring not only accurate and current local market knowledge, but a definitive strategy customized to your particular situation. In the past this task fell to the REALTOR®, who would offer potential homes to a client based on the agent's research and recommendations. Today the Internet has made this a relatively straight forward process, providing a wealth of tools and information to help buyers do their own research on local homes and neighborhoods. As a result the need to have a REALTOR® represent you as a home buyer has been questioned, but there are compelling reasons why you should include a liscenced real estate professional who is Web savvy in your home hunting arsenal.

Working with an agent will keep you focused.
I frequently get calls and Emails from buyers about one of my on line listings only to find they have downloaded dozens of listings from various sites that were already under contract, in questionable areas, or totaly undesirable. My first step is to weed out the best ones and contribute listings that will best fit the buyer's wants and needs. Together we establish a base of neighborhoods to work with and focus on listings within those areas.

Leveraging an "Internet REALTOR®" to consolidate your on line search.
Zillow, Trulia and Google, are just several amongst dozens of real estate search engines available to home buyers. I provide my clients customized "one-stop" on line search tools, which provide accurate and timely listings without having to search all over the Web.

A real estate professional will walk you through the entire transaction.
You've found a home you love so what's next? Your agent will guide you through every step of the way. This includes everything from submitting an offer to inspections, mortgages and insurance. Your agent will be on top of every detail (and there are many), allowing you to go about your daily business.

As real estate technologies evolve, buyers are seeking out agents who can help make sense out of all the listing information the Web has to offer. So next time you Google "your city real estate" you may want to search for "your city realtors" as well.

I have been asked by a number of clients about the new tax credit that was included in the recently passed economic stimulus bill. The following overview will help to explain what the new credit is all about:

Qualifying For The Credit

1. To qualify for the credit the home purchase must take place between 1/1/2009 through 12/31/2009.

2. The 2009 tax credit is an $8000 refundable tax credit or 10% of the purchase price. This means that if the purchase price of a home is $80,000, then you will hit the maximum of $8,000.

3. Refundable means that if you owe a tax liability of less then $8,000 the IRS will send you a refund of the difference. If you do not have a tax liability that is larger then $8,000, you will get a cash refund.

Exceptions to The Credit

1. There is a phase out range for this tax credit. For Joint tax filers it is $170,000 and single tax payers it is $95,000. If the home is purchased from a close relative such as spouse, parents, child, grandparents or grandchild, you are not entitled to the credit.

2. The home is not a primary residence. A primary residence is one where you spend the majority of you time (over 50%). Condos, single family and town houses are acceptable. No second or vacation homes. For new construction, the purchase date must be prior to 12/31/2009.

3. The recipient of the tax credit sells their home before the end of a full three years of ownership. If the home is sold prior to the three years of ownership the tax credit must be repaid.

4. The tax credit can be claimed on your 2008 or 2009 Tax Returns.

5. Nonresident alien's are not eligible.

6. A first time homeowner means that they did not own another primary residence at any time during the three years prior to the new purchase. If they are joint tax filers they both must meet the above criteria to qualify. This credit does not have to be repaid, which is different then the one passed last year.

Income Limits

1. Single filers $95,000

2. Married filers $170,000

3. The phase out for the income limit of $95,000 starts at $75,000 and for married at $150,000. A phase out means that the credit is proportionately reduced between the $75,000 and the $95,000, and the $150,000 and the $170,000.

I hope that this helps to explain about the new credit. For more information about the tax credit, first time home buyer programs or home loans please contact Wayne Katz, Senior Mortgage Advisor at Group One Mortgage, 561-791-0000 or contact me with any questions you may have about buying a home on the treasure Coast.