Orlando Real Estate Voice

Heated pools, ocean views and media rooms are not what most people would expect to find in a foreclosed property, but more high-end homes – priced at more than a million dollars – have been falling into the hands of banks this year.

Foreclosures of homes worth more than $1 million began increasing at the end of 2009, according to data provided to CNBC.com by foreclosure tracking website RealtyTrac.

Foreclosures reached a high in February 2010, the last month data were available, when 4,169 high-end homes were somewhere in the foreclosure process; having received a foreclosure notice, had an auction scheduled or had ownership taken over by the lender. That’s a 121 percent increase from a year ago.

The deterioration comes just as housing experts say that foreclosures in the low and middle ends of the housing market are showing signs of stabilization.

Owners of expensive homes “were able to stave off foreclosure longer,” says independent real estate analyst Jack McCabe, CEO of McCabe Research and Consulting in South Florida. “Lower-end homeowners were the first ones to see the escalating foreclosures, because they generally do not have the cash reserves or credit available that the luxury homeowners do. They had the ability to take their credit cards and pull out thousands of dollars, while the lower-end buyers were already tapped out.”

McCabe expects foreclosures in the high-end market will increase into 2011.

Though the RealtyTrac data on high-end homes are not available on a regional or metropolitan basis, anecdotal evidence indicates the problem is cropping up across the country. High-end and luxury categories vary widely from market to market. In some suburban areas, in the Northeast and California, for instance, million-dollar homes are fairly common; but nationwide, they represent 1.1 percent of overall housing stock.

“We have seen an increase, in the million-plus range, of the number of foreclosures and short sales in the greater Chicago area,” says Jim Kinney, vice president of luxury home sales at Baird & Warner.

He says that of the 295 million-dollar, single-family properties sold in the first quarter this year, 37 were either a foreclosure or short sale, when a bank and homeowner agree to sell the home for less than the loan is worth. During the same period a year ago, 10 of 231 fell into those categories.

In the Fort Myers, Fla., area, Mike McMurray of McMurray and Nette and the VIP Realty Group says he has seen a few foreclosed high-end homes on the market compared with none last year. He’s currently showing a 4,800-square-foot, $3.65 million home on Captiva Island, where foreclosures are usually rare. The bank-owned home has five bedrooms and access to 150 feet of Gulf Coast beachfront.

“There are more we see coming down the pipeline,” McMurray says.

Data show that may be the case around the country. The 90-day delinquency rate on home loans worth more than a million dollars hit a high in February at 13.3 percent, above the overall rate of 8.6 percent, according to real estate data firm First American CoreLogic. Foreclosure proceedings generally start after a homeowner has been at least 90 days late on a mortgage payment, experts say.

One difference in the high-end market is that lenders are willing to do more to head off foreclosure by renegotiating the loan or accepting a short-sale transaction, which is essentially a last-ditch effort.

Lenders are far more likely to go the short-sale route. There’s a lot more money at stake, and maintenance can be high if a foreclosure just sits there.

***************************************************************************************

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://OrlandoShortSaleExpert.com or www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange or Osceola County Florida and Orlando, Windermere, Winter Garden, Kissimmee, Winter Park, Altamonte Springs, Maitland, Lake Mary, Oviedo or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

Jerry Luxury homes, Orlando Fl. Neighborhoods, Orlando Fl. Real Estate, Orlando Homes For Sale Luxury Homes in Windermere Fl.

Hey, Hey…. The seasonal shift in the market is here. Yes, The buyers are here ready, willing and able to buy. However, They can’t because the banks are holding the houses hostage. Yes, They will not answer and return phone calls and sometimes take up to 6 months to respond to an offer. What? 6 months? Yes, 6 months. Why don’t they want to get these homes off their books? They appear to be just waiting for up to 6 months to get a better offer. Someone needs to tell them that that better offer is not coming.

In fact, they are shooting themselves in the foot and they don’t realize it. I now am seeing buyers and other agents asking to show my listings and the first question is: Is this a short sale? When I say NO, they are so relieved. Great, we’re so tired of waiting for the banks. We don’t want to put an offers on bank properties any more.

Therefore, homes are not being sold because of the banks. They are holding the Housing industry Hostage. If there was a quicker response from the banks there would be an uptick in the market and housing would certainly pick-up again. Why can’t we get CNN news or any of the major networks, Fox news, CBS, NBC, ABC or whomever to report of what’s happening and shake up the banks. Maybe we’d get an answer to submitted offers in a reasonable time. 3-6 months is not reasonable.

About the author:  Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs.  Please give me a call if you have questions about the Orlando and Central Florida real estate market.Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

Jerry Housing Central Florida Homes for sale, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Windermere Fl real estate, Winter Garden Fl. Real estate

 Economist suggests $5,000 home-buyer tax credit to spur homeownership. In the March Real Estate Insights, NAR (National Association of Realtors) chief economist Lawrence Yun, analyzes several federal plans proposed to curb foreclosures and stimulate the housing market. Yun proposes a homebuyer tax-credit of $5,000 tax credit (which currently exists in Washington, D.C.), which would cost the federal government $40 billion. Yun says: “A reversal in the weakness in the housing market, which has been subtracting about one percentage point off GDP growth, can add $40 billion to the U.S. Treasury, essentially offsetting the cost of the tax credit. If the initial $40 billion cost is hard to swallow, how about a more targeted tax credit for only first-time home buyers? That would cost the government about $15 billion.”

We’ll see if that happens!

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://www.jerrysellsorlando.com/ for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

Jerry Tax Credit Central Florida Homes for sale, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Windermere Fl real estate, Winter Garden Fl. Real estate

Fed steps in and cuts again
Bernanke pulls out all the stops to ailing economyThe Federal Reserve significantly cut rates for the sixth straight time since September, this time cutting 75 basis points. This follows a busy weekend where the Fed also extended its hand to Wall Street, bailing out Bear Stearns with JP Morgan Chase. While rate cuts look good at face value, you need to prepare for what’s to come.

Why did they do this?
The Fed wants you to start spending money and wants to boost consumer and Wall Street confidence. Consumers are under stress with increasing consumer prices and a slowing housing market. Wall Street banks have been under stress from mortgage defaults and their impact on corporate balance sheets.

How does this impact you?
Fed rate cuts are inflationary. Since the Fed started cutting rates in September of last year, oil prices are up nearly 40%, gold prices are up over 25%. This is the direct result of a falling dollar which occurs from Fed rate cuts.

As a result, mortgage rates will ultimately rise from here. It is inevitable. Inflation is the arch enemy of fixed-income investments, long-term bonds and mortgage-backed securities, upon which mortgage rates are based.

Here’s a look at the inflation picture: Gas prices last September, prior to the Fed’s current cutting trend, were roughly $2.75 a gallon. Today, gasoline averages $3.25 a gallon nationally, up 18% before the first rate cut. This is a sign of inflation.

What should you do now?
If you are looking to refinance, don’t wait. Act now to get a great interest rate. Home loan rates have come down over 1.00% in the last two weeks. But after each of the last five rate cuts, we have seen rates rise significantly in a short period of time. Don’t get caught saying “I wish I had…”

If you are looking to purchase a home, I want to hear from you right away. Home prices have to fall over 10% to make back what you lose in monthly housing payments if rates increase 1.00%. There are some great buys out there today!

Next step
Pick up the phone and call me. 407-580-7011 You owe it to yourself. I will review your situation and let you know what I can do to put some money in your pocket. If you wait, it could cost you thousands of dollars. I look forward to hearing from you. YES IT”S TIME TO BUY…..NOW!

Jerry Interest Rates Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Interest Rates, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate

Timing Is Everything: When And How To Move

In the next few months making a move can become increasingly more complicated say industry experts.

“June to September is really known as the high season for the moving industry,” says John Bisney, Director of Public Relations for the American Moving and Storage Association (AMSA).

It’s a popular time because kids are out of school and people are trying to get the move done before the children have to return to class.

“So if you can avoid moving during June to September you’re probably going to get better service and have more options,” Bisney.

However, Bisney says, “If you do have to move between June to September, then it’s better to move in the middle of the month and the middle of the week as opposed to doing it at the end of the month when everybody wants to do it.”

AMSA certifies movers and holds them accountable to higher standards and a code of ethics. The association says most people don’t take moving very seriously and they assume that everything will go alright. But Bisney says careful consideration is a must when moving.

“Because people don’t move that many times, maybe it’s their first move, or maybe it’s been a few years since their last move, they will treat it as a less important decision than it needs to be given the fact that [movers] are going to have custody, at least temporarily, of all their belongings,” says Bisney.

So, if you’re gearing up for the big move, AMSA has some advice to simplify and ensure a smooth process. I spoke with Bisney about the top five consumer moving tips.

The most important thing to do is to start with a good foundation. Just like the purchase or sale of your home should involve experts who have your best interest in mind, hiring movers also requires thorough investigation of all your options.

“It really comes down to do a little bit of your own homework to make sure you’re getting the best deal and that you’re dealing with the right people,” says Bisney.

Start by calling a few service companies. Bisney says consumers should be wary of over-the-phone and Internet estimates. “Get three written in-home estimates and when you do that, make sure you show the mover everything including anything in the attic, the basement, the garage, storage areas, etc. Typically two of the three estimates will be pretty close in price, in weight, and in service,” explains Bisney. He adds, “We say to avoid movers who have unusually high or low bids; that might be a red flag.”

Another important tip is to be cautious of any carriers or movers that are asking for a big down payment to either hold a date or reserve service. It’s not that a down payment is uncommon in the industry rather it is how much money is being requested that could be a warning that something isn’t right. “There’s nothing wrong with asking for a reasonable small down payment just in case you cancel on them last minute. But it should not be hundreds of dollars,” says Bisney.

“The moving business can be a very complex business and it has its own jargon,” says Bisney. That’s why making sure you ask plenty of questions. Don’t leave things to chance. If you feel the moving company isn’t being straight-forward with you then consider another option. Get all the details and information up front because you never know when you’ll need to reach the company and the driver.

Make sure the movers have your cell number because you might be in transit too. It’s good to have the drivers full name, and truck number that way you can call the company if something changes with your plans.

Take your valuables with you. Cash, important papers, jewelry, medications–anything that you really would never want anything to happen to should be taken with you or sent ahead with a traceable service carrier.

Where you are moving to also affects what you need to know. AMSA says if you’re moving from one state to another be sure to get and read the required Inter-state shipment booklets/documents. Inter-state shipments are regulated by the Federal Motor Carrier Administration which has more regulations than for an Intra-state move.

Finally, know who you’re dealing with and be sure you have investigated the company’s reputation. This can be the most challenging thing to do for consumers who are frequently in a hurry and often leave moving details to the last minute.

A good way to find out more about a company is to go through associations such as AMSA. “We set certain standards and by being a member of our association, they have agreed to abide by them,” says Bisney. While policing the entire 3,700 members isn’t possible, Bisney says the association does its best to keep track of how its members are conducting business.

“We offer a certified moving consultant credential that means that you adhere to certain ethical conduct and that you represent fundamental competency in terms of moving household goods,” explains Bisney.

Movers go through an application process, pass a certification exam, sign a code of conduct, pay annual dues to the association, and are required to participate in an annual re-certification process to keep their certification status.

Making a move doesn’t have to be a headache if you take some time to plan ahead. So while you’re home is sitting on the market, don’t fret about when it’s going to sell, instead do your due diligence and get ready for the big move.

Jerry Moving Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate

If your home is on the market, you better make it easy for buyers to see!

I was showing homes yesterday and I had problems showing 3 of the 7 homes I was to show my buyers.

At the first home, the home owner was there and unaware of the showing. I guess the realtor never told them. (It’s never a good idea to have the home owner at home when the buyers are there.) The whole situation was awkward and the buyers just rushed through the home.

At the second home, there was a combination lock box on the home. When I opened it up, there was no key inside……how am I suppose to get into the house? I am sure the home owner removed the key. With combination lock boxes, home owners can open them……actually, in my opinion; they are completely unsafe because ANYONE can open them. With electronic lock boxes, you have to have a special key to open.

Finally, at the third home, there were two dogs barking and running around inside. I can’t bring my buyers inside this home with the dogs loose.

How is a buyer supposed to write an offer on your home if it’s difficult for them to see it? All my homes on the market are on an electronic lock box and showings are scheduled through my call center. Call me to make sure your home is getting shown properly.

About the author:  Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs.  Please give me a call if you have questions about the Orlando and Central Florida real estate market.Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

Jerry Sellers Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate

Forty year mortgages can reduce your monthly mortgage payment, but is that enough to offset the extra cost of tacking 10 more years onto the conventional 30-year mortgage?

The question is probably too simplistic, says Dan Green, a mortgage planning specialist at Mobium Mortgage in Chicago.

He says loan products like the 40-year mortgage are deemed risky because they are viewed in a vacuum, without considering the needs of the individual borrower or without comparing their benefits with other mortgages.

“It’s not the loan that is risky, it’s the behavior of the person paying the loan,” is the advice he offers in his treatise on home loans longer than 30 years.

The draw of a 40-year mortgage is its relatively lower payment — compared to a 30-year loan — due to stretching out the amortization schedule over a longer period of time.

That could be attractive to those in high-cost housing areas, those who can’t qualify for a 30-year mortgage payment or for those who want to qualify for a larger home. Longer term loans are also beneficial for people who don’t plan on moving for a long time.

But here’s the rub, not only will you pay more over the life of the loan for a 40-year mortgage, the higher interest rate on a 40-year mortgage bites into some of the expected monthly savings.

According to LendingTree.com the rate on a 40 year mortgage could be 0.25 percent to 0.375 percent higher than the rate on a 30.

So let’s do the math on a $250,000 mortgage, at 6 percent for a 30 year mortgage and 6.25 percent for the 40, using Nolo.com’s “How much will my fixed rate mortgage payment be?” calculator.

The interest and principal payment on the 30-year loan would be $1,498.88 with a total of $539,593.37 paid over the life of the loan.

For the 40-year mortgage, the payment would be, $1,419.35 with a total of $681,285.85 paid over the life of the loan.

That’s less than $100 savings each month in exchange for more than $140,000 in extra cost over the life of the loan.

Also consider the fact that the principal is not paid down on a 40 as fast as it is on a 30, toss in a market with flat or falling home values and homeowners with a 40 year mortgage could really feel a pinch instead of relief.

Or so the theory goes.

“These arguments are all based on a single tenet — that paying down a principal balance is a good thing. That’s not always true,” says Green.

Green says the more a homeowner invests in the home, the smaller the return because the cash-in investment isn’t generating the return. It’s the home’s value that grows — market permitting.

The 40-year mortgage behaves somewhat like a no- or low-down mortgage in terms of using more leverage and leverage is the tool investors use to play the game, for good reason.

You get the same level of market-based equity growth with a 30-year, 40-year or even 15-year mortgage. With a 40-year mortgage it’s just that you get that equity growth at a smaller monthly cost. Greater leverage.

Most people move or refinance within five to seven years and the low monthly payment could work from them in the right market. Given home equity growth historically shows up during a 10 year housing cycle, but not for the entire cycle, timing is important.

The 40-year mortgage can be a good fit if for those at an early stage in their career. It can allow them buy a home they might not otherwise be able to afford. Later during the next equity-growth cycle they can sell and buy anew sell or refinance with the next appropriate financing tool.

A 40-year mortgage can also be advantageous for high-income earners whose mortgage interest payments may be their only large income tax deduction. And it can be used by vacation rental owners to reduce carrying costs.

Other mortgages can perform the same high-leverage trick, provided you can qualify for them, provided they are a risk-fit for your financial status and planning and provided the market cooperates.

The key, says Green, is running all the numbers, both the cost-comparisons of mortgages along with your financial goals, planned tenure in the home and lifestyle.

“New loan products like the 40-year mortgage are not dangerous to everyone. They are only dangerous to homeowners who operate without a financial plan,” says Green.

Jerry Interest Rates Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate

p>Don’t wait too long to buy a home in today’s market?

While today’s market plays to your advantage as a buyer, with reduced housing costs and favorable interest rates, are you sitting by waiting?

When the market turns, today’s bargains will be yesterday’s missed opportunities.

While it is conceivable that home prices may drop further, it is likely that the decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that any money saved on paying less for a house in a few months time will be offset by having to pay off your mortgage at a higher interest rate making “playing the waiting game” a waste of time (and very little fun).

This rate increase isn’t just speculation. Just a couple of weeks ago, in early February, the fixed mortgage rate jumped a full half-percent, making it the fastest rate increase in 20 years.

The table below demonstrates how even as home prices may drop, monthly mortgage payments basically stay the same; due to increased interest rates:

Scenario 1:
Prices decrease by 5% and interest rates increase by 0.5%

Scenario 2:
Prices decrease by 10% and interest rates increase by 1.0%

Today	Scenario 1	Scenario 2
Home Price $218, 900	Home Price: -5% $207,955	Home Price: -10% $197,010
Interest Rates 6.04%	Interest Rates: +0.5% 6.54%	Interest Rates: +1.0% 7.04%
Monthly Payment $1,054	Monthly Payment $1,056	Monthly Payment $1,053

Table: Kadlec, Dan. “Ignore the Headlines!” Time 25 February 2008

Why should you spend months in a situation that you want out of when you can begin your new lives in your new home today, with less interest?

Jerry Buyers Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate

Jerry Orlando Homes For Sale Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate

Jerry Orlando Homes For Sale Avalon Park Fl., Central Florida Homes for sale, East Orlando Real Estate, Luxury Homes in Windermere Fl., Orlando Fl. Real Estate, Orlando Homes For Sale, Waterford Chase Florida, Waterford Lakes Fl., Windermere Fl real estate, Winter Garden Fl. Real estate