I am privileged to represent Major Jason M. Trew, a pilot with the United States Air Force, as a real estate client. Major Trew is stationed at Eglin Air Force Base. I have Major Trew's home listed for sale in Freeport Florida because he is being required to relocate by the Air Force to a new base. Like many others in the military, his property value has declined to an amount lower than his mortgage balance. Major Trew is not a property flipper nor a speculator. He earnestly relocated to the Emerald Coast of Florida for the military, as directed by the United States government, and invested in a home for his family in March 2007. I am printing his letter to Congress, with his permission, of grave concern regarding the new American Recovery and Reinvestment Act of 2009, and its affect on our military by establishing an arbitrary cut-off date for aid to military members who purchased homes with values now below mortgage balances:
The Honorable Dave Obey
Chairman, Committee on Appropriations
Room H-218, The Capitol
Washington, D.C. 20515
Dear Mr. Chairman,
Section 1001 of the ‘‘American Recovery and Reinvestment Act of 2009'' includes a provision extending temporary homeowner assistance for members of the armed forces permanently reassigned during this mortgage crisis. However, I strongly disagree with the stipulation that the property must have been purchased before July 1, 2006.
When the Military Officers Association of America asked the Appropriations Committee staff for the rationale for that cutoff date, the committee indicated the sense that the home market decline was underway at that point, and the intent was to protect people who purchased homes before they had any warning to expect a decline.
Contrary to this assumption, the fact that home prices had decreased was an incentive to purchase a home. In fact, the National Association of Realtors launched a $40 million campaign in fall 2006 to encourage home purchases. Within the Florida real estate market, a survey released just after the July 1, 2006 cutoff date found that:
-Only 16% of homeowners listed a "fear of a price bubble"
-Only 5% said they were concerned about falling home values overall
-58% were optimistic that home values in their own community would continue to increase
In January 2007, a Florida Association of Realtors (FAR) report that indicated "the market correction has plateaued and the local real estate industry is likely on the rebound." That same month, the FAR president stated that, "now is the time to take advantage of homeownership opportunities."
After reading articles like these, we purchased a home in March 2007 because we assessed that the market's decline was near the end and we did not expect a further decrease. Obviously, we purchased at a bad time in the real estate market, just as those who purchased before July 1, 2006.
Starting last summer, we attempted to sell our home for a loss that we could personally absorb. In seven months, no one inquired about the house and a recent comparative market analysis estimated the value at $70,000 less than our mortgage balance and $120,000 less than the appraised value at the time of purchase. We are now pursuing a short sale and deed-in-lieu-of-foreclosure. Either option will significantly impact our credit for many years.
As an active duty member of the U.S. Armed Forces, the current wording of the ARRA provides us no relief as we prepare to move to our new assignment. Many other military families are in the same situation.
The 1 July 2006 date was a faulty decision that sacrificed effectiveness for the sake of simplicity and I request that you to introduce legislation that corrects this costly mistake.
Respectfully,
Jason M. Trew
4 Attachments:
1. New York Times article, "Realtors Say the Stars Are Aligned for Housing" (6 November 2006)
2. Orlando Sentinel article, "Poll: Homeowners fear storms, not lower values" (8 July 2006)
3. Bradenton Herald article, "Realtors predicting home sale uptick" (26 January 2007)
4. PR Newswire article, "Florida's Existing Housing Market: Median Price Up, Sales Down in 2006" (25 January 2007)
cc:
Senator Bill Nelson (D- FL)
Senator Mel Martinez (R- FL)
Representative Jeff Miller (R - 01)
____________________________________________________________________________________
Contact Wendy Rulnick, Broker
Destin Florida real estate and the Emerald Coast
877-487-9639
850-650-7883
Most of us have read the Treasury Department's new Homeowner Affordability and Stability Plan
After reading the plan, with details to be unveiled on March 4, I want to know- "How will the plan affect Short Sales? " Most of the plan is focused on aiding homeowners whose primary residence is at risk of foreclosure. Not everyone will be helped by this plan. Some of those who won't may include homeowners with loans not guaranteed by Fannie Mae or Freddie Mac. Many have lost jobs or have lost so much income they would not qualify. Other owners may have rental properties that cannot be sustained. In my area on the Emerald Coast of Florida, military families from Eglin Air Force Base or Hurlburt Field are required to relocate to change bases. These airmen often keep their past residence as a rental property. Now they are losing tenants. Why? Many unsold homes go on the rental market. Thus rental rates have declined significantly due to the oversupply of these properties. They can no longer cover their mortgage payments. There are also investors who were not "flippers". They might have saved their whole lives to buy a condo in Destin, to find that the resort-rental market has declined by 35%. There is no aid to them in the plan. Many areas in Florida and other parts of the country have economies that depend on tourism and the resort industry. Those who will not be assisted by the plan will have to resort to their best alternative, a short sale, or worse, foreclosure.
The Treasury Department states the Homeowner Affordability and Stability Plan will be effective because it will, among other things, limit "the Impact of Foreclosure When Modification Doesn't Work: Lenders will receive incentives to take alternatives to foreclosures, like short sales or taking of deeds in lieu of foreclosure. "
In my opinion, to receive incentives to approve short sale, banks must be required to:
Further, I believe all who have had short sales should have credit reports revamped to remove the negative impact of the event. If they don't, perhaps only 10% of borrowers might qualify for a loan at the best rates! If the government is "intervening" at all, then do it right. Thus far, the banks have done little to reduce the backlog of short sales and free up credit. If they are just given an "incentive" without definitive guidelines, then we might expect to see more of the same.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Search Destin Florida real estate
Short Sale Pre Foreclosure Help.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com
Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Crestview, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate, Wendy is in the top ½ percent resale agents on the Emerald Coast, and was featured in Kiplinger Personal Finance Magazine as a short sale specialist.
All Rights Reserved. *Homeowner Affordability and Stability Plan - How Will It Affect Short Sales?* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2009 by Wendy Rulnick.
This Destin Florida home was mortgaged for $415,000. It has an in-ground pool, two-car garage and 1400 square feet. In today's market it is worth $205,000. The short sale was just approved by Everhome Mortgage in 50 days. The negotiator was cooperative, and available by both phone and email. The short sale involved two mortgages, the second was Citi, who is to receive $3000 at the closing. The sellers have been saved from foreclosure and might be able to purchase another home in as little as two years.
When selling a short sale, it is best to use an experienced agent.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Short Sale Pre Foreclosure Help.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email itswendy@rulnickrealty.com
Wendy Rulnick sells real estate on the Emerald Coast of Florida, and is a short sale specialist. She sells Destin, Santa Rosa Beach, South Walton, Seagrove Beach, Rosemary Beach, Niceville, Fort Walton Beach, Crestview, Navarre, Mary Esther, Bluewater Bay and vicinity.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.
Welcome Jeff Corl
Rulnick Realty announces that Jeff Corl has joined the company. Jeff has been a Realtor® in the Destin Florida area since 2005 and has worked with properties from Navarre to Inlet Beach to North Walton County. Most recently he worked to acquire 160 acres in the North part of Florida's Panhandle for developers to create a Planned Use Development and will work with them to bring the homes and commercial property to market.
Prior to that Jeff was a corporate vice-president for a Fortune 500 telecommunications company. He currently is on the Board of Directors, serving as vice-president, of the Beach House Condominium and the Treasurer of St. Andrew's By-the-Sea Episcopal Church.
You may reach Jeff Corl at 850-650-7883 or toll free 1-877-487-9639.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Mel Martinez
United States Senator, Florida
Dear Senator Martinez,
I am a real estate broker in Destin Florida. I primarily represent sellers who are in the process of short sales. As you know, a significant amount of our population has lost jobs and income and are unable to keep up with their mortgage payments or keep their properties. Their best solution is to sell their property as a short sale. Unfortunately, the sellers' lenders processing these requests take three to six months and sometimes longer. During that time, buyers lose interest or must go on to buy other properties. These long delays are contributing to declines in market value over and above the economic cycle we are in. My suggestion is to REQUIRE those banks getting bailout funds, and all of them, to staff up their short sale departments, so that this inventory can be reduced and home purchase time can be normalized to a standard 30 day period. By speeding up short sale approvals to normal time frames, there will be one less contributing factor to price declines. Further, speeding up short sales will reduce the amount of foreclosures in our market. Foreclosed properties cause surrounding market declines. In many cases, these short sale lenders reject offers or lose buyers, end up foreclosing, and sell the properties for even LESS than they would have received in a short sale. If the banks are being granted funds from the citizens, then they have to STOP causing further losses and START helping the taxpayers and property owners. I would be happy to speak with you in more detail, as every day I get calls from homeowners trying to do the right thing, who are prevented from doing so by the very banks we are giving funds to.
Wendy Rulnick
Broker, Rulnick Realty, Inc.
Destin FL 32541
850-650-7883 ext 204
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Destin short sales, real estate, homes for sale, condos on the Emerald Coast of Florida- Destin, Sandestin, Fort Walton Beach, Santa Rosa Beach, Seagrove Beach Navarre, Niceville.
