Pros and Cons of Buying Fixer Uppers!

A fixer upper can be very a tempting choice when you are looking to buy a home. Whether you are a first-time homebuyer or real estate veteran, here are some pros and cons to consider before purchasing a property that needs major renovating. Pros: A less-than-perfect house often allows buyers to own in a neighborhood they otherwise couldn't afford. A fixer upper located in a desirable neighborhood may often sell for less than the surrounding homes. When redoing a home there is the opportunity to create a space all your own and make it exactly how you would like. There are a lot of variables specific to each property, but often, there is a possibility for profit in resale once the property is renovated. Cons: You may be overwhelmed with the amount of work, time and money it takes to renovate. (This is why it may be wise to bring professionals with you to walk through the property before you buy to avoid underestimating the work and cost.) Always have a back up plan to access funds or credit if any unforeseen hurdles are discovered during the renovation. There is always a possibility that you could lose money on your investment. It is common to go over budget on repairs and renovations. The housing market is another variable that can be unpredictable. Whether you're hiring with a contractor or doing the work yourself, the renovation process is often stressful. Consider the commitment before you buy, especially if you plan on living on the property while doing the renovation.

Check These Rates!

Average rate on 30-year loan up to 4.39%

Mortgage Rate Trend Index

Almost half (42%) the mortgage experts polled this week by Bankrate.com expect rates to decline over the short term. The rest are equally divided: 29% foresee a rate increase while 29% say rates won’t appreciably change.

WASHINGTON – Aug. 2, 2013 – Average rates on U.S. fixed mortgages ticked up this week but are still low by historical standards, a trend that has helped the housing market recover.

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan rose to 4.39 percent from 4.31 percent last week. Rates are a full percentage point higher than in early May.

The average on the 15-year fixed loan increased to 3.43 percent from 3.39 percent last week.

Rates spiked in June after the Federal Reserve indicated it could slow its bond purchases later this year, which have kept long-term interest rates low.

But on Wednesday the Fed hinted it might hold off because the economy remains sluggish. And it noted for the first time that mortgage rates, which have fueled home sales, “have risen somewhat” from record lows.

Mortgage rates tend to follow the yield on the 10-year Treasury note, which has also jumped on speculation that the Fed could slow its stimulus.

Despite the increases, mortgages are still a bargain for those who can qualify. And low rates are helping boost home sales in most markets and driving home prices up.

Home prices jumped 12.2 percent in May compared with a year earlier, according to the latest Standard & Poor’s/Case-Shiller 20-city index released Tuesday. That’s the biggest annual gain since March 2006.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was 0.7 point this week, down from 0.8 point last week. The fee for a 15-year loan also declined to 0.7 point from 0.8 point.

The average rate on a one-year adjustable-rate mortgage dipped to 2.64 percent from 2.65 percent. The fee was unchanged at 0.4 point.

The average rate on a five-year adjustable mortgage rose to 3.18 percent from 3.16 percent. The fee declined to 0.6 point from 0.7.
 Copyright © 2013 The Associated Press, Marcy Gordon, AP business writer. All rights reserved. This material may not be published, broadcast, rewritten or redis

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Foreclosures Guest Writer Sarah Parr!

Three Notable Foreclosure Proposals

By Sarah Parr

Consumer advocates, real estate professionals and lawmakers are currently debating ways to change Florida’s status as the state with the most foreclosures in the nation. Florida lawmakers recently drafted a handful of legislation that is currently making its round in the Florida House and Senate, creating debate among people from all sides of the issue. The proposed laws could noticeably change the way foreclosures are administered in Florida.

Measures to speed up foreclosure process

A representative from the Florida House of Representatives proposed House Bill 87 as a solution to Florida’s prolonged judicial-foreclosure process. Supporters of the bill say it sticks up for consumers by requiring banks and lenders to prove they own a mortgage in detail before they can file any kind of foreclosure action. Homeowners are given up to 20 days to provide a defense against foreclosure, which some Kissimmee foreclosure attorneys say isn’t enough time. 

Under House Bill 87, banks and lenders would only be given one year instead of five years to collect losses from a foreclosure after a final foreclosure judgment is decided. The bill would also allow other lien holders, such as condo or homeowner associations, to ask the court to move foreclosures through an advanced process rather than through a judicial procedure. 

Senate Bill 1666 would allow retired justices or judges to agree to temporary duty in order to help decrease the court backlog of foreclosure cases in Florida. Compared with the nationwide average of 13 months, foreclosures in Florida take 29 months to process on average, creating a backlog of cases. Court administrator Lisa Goodner stated Florida has a backlog of more than 360,000 cases in the courts as of the end of January. 

Homeowner bill of rights

Another bill aims to give consumers more power. House Bill 1777 proposes establishing a homeowner bill of rights in the event of late mortgage payments, modeled after a few laws created and passed by California’s legislature. The goal of California’s laws is to protect homeowners from predatory lenders and further regulate mortgage servicers. Processes known as “dual-tracking” and “robo-signing” are prohibited, and consumers have better ability to sue for fraudulent practices. California has seen a significant decrease in the amount of foreclosure starts since enacting the bill of rights legislation this year.

Measures for more consumer protection

The “Short Sale Debt Relief Act,” would make deficiency judgments unenforceable on a short sale if the original debt was 20 percent or greater than reasonable market value. Deficiency judgments occur when courts rule in favor of lenders if they can show that borrowers owe more on a mortgage than on the total price of a property. Senate Bills 1226 and 371 would require that lenders only file deficiency judgments up to a year after final foreclosure judgments, and have two years to collect any outstanding debt. Currently, debt collectors can chase after borrowers for up to 20 years. 

The foreclosure process in Florida will likely see some changes soon. Regardless of what happens to the foreclosure process, many people want the foreclosure crisis to finally come to an end. 

New Listing on 30-A in Santa Rosa Beach!

Sinfonia brings The Amernet String Quartet on Friday, February 15th and 16th in Rosemary Beach, Florida

Opening Soon! The Ultimate Movie Experience @The Grand Boulevard in @Miramar Beach in Sandestin. This will be the only one like this in the WHOLE STATE of FLORIDA! The popularity of the @BEACH has never been stronger. Come see the value of properties that are now offered. Inventory is getting low!