More Free Tampa Bay Condo Info> http://www.tampabaycondosale.com
CONDOMINIUM ACT (CH 718, F.S.)
The Florida Condominium Act prescribes the process by which condominiums are created, marketed, and operated. It defines common elements, describes the maintenance and assessment of common expenses, and requires full disclosure of information before the sale of the property. Strong controls govern advance payments and deposits. Developers must warrant the improvements for three years after completion of construction.
For residential condominiums established after April 1, 1992, each unit's share of common elements maintenance must be related to the unit's total square footage or on an equal fractional basis.
Buyers may rescind a purchase contract within 15 days for a new condominium, or three business days for a resale unit. The time period begins when the buyer signs the contract or is given the required condominium documents, whichever is later.
The required documents include the declaration of condominiums, articles of incorporation, bylaws, rules of the association, and a copy of the most recent year-end financial statement.
The 2004 Florida legislature made many changes to Chapter 718, F.S. Among other things:
The requirement that sellers provide a copy of the condominium association's "Question and Answer Sheet" was reinstated, effective October 1, 2004.
A mandate that any amendment to the condominium association's bylaws of that restricts a unit owner's rights relating to the rental of units applies only to those unit owners who consent to the amendment and unit owners who purchase their units after the effective date of that amendment. This was a response to court decisions allowing associations to restrict rentals by majority vote.
A high-rise condominium exemption from installing sprinklers, if three-fifths of the owners vote for the exemption.
Effective January 1, 2005, before the buyer signs a contract to purchase, Florida real estate licensees must give a property tax disclosure that includes the following wording:
PROPERTY TAX DISCLOSURE SUMMARY
BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION.
Wednesday, November 22, 2006
Real Estate Settlement Procedures
More Free Mortgage Info> http://www.floridaonlinemortgages.com
The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to protect buyers by requiring disclosure of the amounts and types of charges they must pay at closing. Transactions involving a federally related mortgage loan secured by a lien on residential property are covered by the Act.
Following are four principal areas of the RESPA:
Uniform Closing Statement: the closing agent must use the HUD-1 form.Borrower's Special Information Booklet ( Settlement Costs and You): Must be given to the borrower at the time of loan application or within three business days of loan application.
Good-Faith Estimate of Settlement Costs: Must be given to the borrower at the time of the loan application or within three business days of receipt of application. It itemizes closing costs known to the lender.Selection of the Closing Agent: The lender must disclose the business relationship and the charges of any closing agent if the lender requires that the loan be closed by that agent.
No Kickbacks: Service fees may not be paid unless a service was actually performed by a person licensed to do so, and all parties are informed. Referral fees between brokers are permitted.
Purchase of Title Insurance: A seller may not make it a condition of the sale that the buyer purchase title insurance from a particular company.
Web Link U.S. Department of Housing and Urban Development: RESPA: http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.
The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to protect buyers by requiring disclosure of the amounts and types of charges they must pay at closing. Transactions involving a federally related mortgage loan secured by a lien on residential property are covered by the Act.
Following are four principal areas of the RESPA:
Uniform Closing Statement: the closing agent must use the HUD-1 form.Borrower's Special Information Booklet ( Settlement Costs and You): Must be given to the borrower at the time of loan application or within three business days of loan application.
Good-Faith Estimate of Settlement Costs: Must be given to the borrower at the time of the loan application or within three business days of receipt of application. It itemizes closing costs known to the lender.Selection of the Closing Agent: The lender must disclose the business relationship and the charges of any closing agent if the lender requires that the loan be closed by that agent.
No Kickbacks: Service fees may not be paid unless a service was actually performed by a person licensed to do so, and all parties are informed. Referral fees between brokers are permitted.
Purchase of Title Insurance: A seller may not make it a condition of the sale that the buyer purchase title insurance from a particular company.
Web Link U.S. Department of Housing and Urban Development: RESPA: http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.
How to Increase Your Credit Score
More Free Mortgage Info> http://www.floridaonlinemortgages.com
Increasing one's personal credit score is a long-term process.
Following are some of the most important steps to a better credit score:
Pay bills on time. Late payments and collections can have a serious impact on the FICO score.
Do not apply for credit frequently. Having a large number of inquiries shown on your credit report can lower the score.
Reduce credit-card balances. Persons who are "maxed out" will find their score declines.
Be certain to obtain enough credit to establish a credit history. Not having sufficient credit can negatively impact the score.
How to increase a personal credit scoreFreddie Mac has found that borrowers with credit scores above 660 are likely to repay the mortgage, and underwriters can do basic reviews of the files for completeness. For applicants with scores between 620 and 660, the underwriter is required to do a comprehensive review. A very cautious review would be made for persons with credit scores below 620.
The secrecy surrounding credit scores is inherently anticonsumer. Because a prospective borrower doesn't know his score, he might be charged far in excess of what he might get at another lender. Predatory lending is a term used to describe a lender who takes advantage of less sophisticated borrowers to charge unconscionable interest rates and points.
Borrowers who are quoted higher-than-market rates should shop among many lenders for the best terms. If borrowers had access to their scores and more knowledge of the lending process, they could obtain better loans. In this endeavor, a real estate licensee can be very helpful.
While most consumers have full credit bureau reports used by lenders to evaluate credit risks, approximately 54 million Americans (young people, recent immigrants, or newly divorced or widowed consumers) have no reports on file. Because these situations make it difficult to qualify for mortgages, FICO has developed a new credit score program that lenders may elect to use. This program evaluates "nontraditional" data, such as how well consumers handled payday loans and retail payment plans. The FICO score will also review how responsibly individuals used their checking accounts' overdraft protections.
Is credit scoring valid?With credit scoring, lenders can evaluate millions of applicants consistently and impartially on many different characteristics. To be statistically valid, the system must be based on a big enough sample. When properly designed, the system promotes fast, impartial decisions.
FICO has recently completed NextGen, designed to more precisely define the risk of borrowers because it analyzes more criteria than the old model. Using the new model, lenders can evaluate credit profiles of high-risk borrowers in terms of degrees, rather than lumping them into the same category.
What are the future uses of credit scoring?
Many experts believe that residential lending will begin to use credit scoring the same way it is used in automobile financing and consumer loans. Freddie Mac is currently conducting a pilot program with large lenders. Interest rates on home mortgages may be based on the credit score. Today's "6 percent mortgage" may be tomorrow's "5¾ percent for A+ borrowers, 6 percent for A, and 6¼ percent for B+."
Web Link Fannie Mae Home Page: http://www.fanniemae.com/
Freddie Mac Home Page: http://www.freddiemac.com/
FHA Single Family Insurance Page: http://www.hud.gov/offices/hsg/sfh/insured.cfm.
Federal Reserve Board: http://www.federalreserve.gov/
U.S. Federal Trade Commission: http://www.ftc.gov/
U.S. Department of Veterans Affairs: http://www.va.gov/
Increasing one's personal credit score is a long-term process.
Following are some of the most important steps to a better credit score:
Pay bills on time. Late payments and collections can have a serious impact on the FICO score.
Do not apply for credit frequently. Having a large number of inquiries shown on your credit report can lower the score.
Reduce credit-card balances. Persons who are "maxed out" will find their score declines.
Be certain to obtain enough credit to establish a credit history. Not having sufficient credit can negatively impact the score.
How to increase a personal credit scoreFreddie Mac has found that borrowers with credit scores above 660 are likely to repay the mortgage, and underwriters can do basic reviews of the files for completeness. For applicants with scores between 620 and 660, the underwriter is required to do a comprehensive review. A very cautious review would be made for persons with credit scores below 620.
The secrecy surrounding credit scores is inherently anticonsumer. Because a prospective borrower doesn't know his score, he might be charged far in excess of what he might get at another lender. Predatory lending is a term used to describe a lender who takes advantage of less sophisticated borrowers to charge unconscionable interest rates and points.
Borrowers who are quoted higher-than-market rates should shop among many lenders for the best terms. If borrowers had access to their scores and more knowledge of the lending process, they could obtain better loans. In this endeavor, a real estate licensee can be very helpful.
While most consumers have full credit bureau reports used by lenders to evaluate credit risks, approximately 54 million Americans (young people, recent immigrants, or newly divorced or widowed consumers) have no reports on file. Because these situations make it difficult to qualify for mortgages, FICO has developed a new credit score program that lenders may elect to use. This program evaluates "nontraditional" data, such as how well consumers handled payday loans and retail payment plans. The FICO score will also review how responsibly individuals used their checking accounts' overdraft protections.
Is credit scoring valid?With credit scoring, lenders can evaluate millions of applicants consistently and impartially on many different characteristics. To be statistically valid, the system must be based on a big enough sample. When properly designed, the system promotes fast, impartial decisions.
FICO has recently completed NextGen, designed to more precisely define the risk of borrowers because it analyzes more criteria than the old model. Using the new model, lenders can evaluate credit profiles of high-risk borrowers in terms of degrees, rather than lumping them into the same category.
What are the future uses of credit scoring?
Many experts believe that residential lending will begin to use credit scoring the same way it is used in automobile financing and consumer loans. Freddie Mac is currently conducting a pilot program with large lenders. Interest rates on home mortgages may be based on the credit score. Today's "6 percent mortgage" may be tomorrow's "5¾ percent for A+ borrowers, 6 percent for A, and 6¼ percent for B+."
Web Link Fannie Mae Home Page: http://www.fanniemae.com/
Freddie Mac Home Page: http://www.freddiemac.com/
FHA Single Family Insurance Page: http://www.hud.gov/offices/hsg/sfh/insured.cfm.
Federal Reserve Board: http://www.federalreserve.gov/
U.S. Federal Trade Commission: http://www.ftc.gov/
U.S. Department of Veterans Affairs: http://www.va.gov/
Your Credit Scores
More Free Mortgage Info http://www.floridaonlinemortgages.com
Your Credit Scores
The most commonly used credit score today is known as a "FICO" score, named after the company that developed it, Fair Isaac Corp. FICO scores range from 400 to 900. The lower the score, the greater the risk of default.
According to FICO, the breakdown of a person's score is as follows:
35 percent of the score is determined by payment histories on credit accounts, with recent history weighted a bit more heavily than the distant past;
30 percent is based on the amount of debt outstanding with all creditors;
15 percent is produced on the basis of how long the borrower has been a credit user (a longer history is better if there have always been timely payments);
10 percent is comprised of very recent history and whether the borrower has been actively seeking (and getting) loans or credit lines in the past months;
10 percent is calculated from the mix of credit held, including installment loans (like car loans), leases, mortgages, credit cards, and so on.
Your Credit Scores
The most commonly used credit score today is known as a "FICO" score, named after the company that developed it, Fair Isaac Corp. FICO scores range from 400 to 900. The lower the score, the greater the risk of default.
According to FICO, the breakdown of a person's score is as follows:
35 percent of the score is determined by payment histories on credit accounts, with recent history weighted a bit more heavily than the distant past;
30 percent is based on the amount of debt outstanding with all creditors;
15 percent is produced on the basis of how long the borrower has been a credit user (a longer history is better if there have always been timely payments);
10 percent is comprised of very recent history and whether the borrower has been actively seeking (and getting) loans or credit lines in the past months;
10 percent is calculated from the mix of credit held, including installment loans (like car loans), leases, mortgages, credit cards, and so on.
Tuesday, November 14, 2006
Tampa Bay Buyers Market
Supply and Demand - Inventory Search
Free Search of All Available Listings on this web site
http://www.tampabaycondosale.com
The Tampa Bay Florida Market is now in a Buyers Market
During buyers' markets, homes may sit on the market for awhile before selling, so sellers become more flexible and usually drop their asking prices. Buyers Agents have stronger negotiating power for their clients, especially those that are pre-approved for a loan or are all cash buyers.
During sellers' markets, homes sell quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. The Tampa Bay Florida market was red hot in pricing increases from 2002 to the end of 2005. It has now cooled off considerably. We have saved thousands for our buyers in this current real estate atmosphere.
The market is determined by supply and demand, interest rates and the overall economic conditions.
In real estate, the relationship between supply and demand is calculated as "available inventory." At the current sales pace, how long would it take to sell the total number of houses available on the market? That is how the real estate industry measures inventory.
Inventory is measured in weeks and months. Longer inventory times are associated with buyers' markets. Shorter inventory periods are associated with sellers' markets. Some buyers and sellers hope to time their purchase to take advantage of market cycles.
Free Search of All Available Listings on this web site
http://www.tampabaycondosale.com
The Tampa Bay Florida Market is now in a Buyers Market
During buyers' markets, homes may sit on the market for awhile before selling, so sellers become more flexible and usually drop their asking prices. Buyers Agents have stronger negotiating power for their clients, especially those that are pre-approved for a loan or are all cash buyers.
During sellers' markets, homes sell quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. The Tampa Bay Florida market was red hot in pricing increases from 2002 to the end of 2005. It has now cooled off considerably. We have saved thousands for our buyers in this current real estate atmosphere.
The market is determined by supply and demand, interest rates and the overall economic conditions.
In real estate, the relationship between supply and demand is calculated as "available inventory." At the current sales pace, how long would it take to sell the total number of houses available on the market? That is how the real estate industry measures inventory.
Inventory is measured in weeks and months. Longer inventory times are associated with buyers' markets. Shorter inventory periods are associated with sellers' markets. Some buyers and sellers hope to time their purchase to take advantage of market cycles.
Mortgage Fraud in Florida
Free Loan Information - Web Site http://www.floridaonlinemortgages.com
FACING FORECLOSURE? Don't become a victim to vultures with rescue programs.
Gripped by fear, many financially troubled South Floridians are falling victim to foreclosure schemes that can rob them of their homes and their equity.
Real estate experts say the occurrence of fraud is growing with the number of foreclosures, which has soared in Broward, Palm Beach and Miami-Dade. According to a study of 100 metropolitan areas released Friday, Fort Lauderdale has the second-highest rate of homes facing the possibility of foreclosure, behind only Detroit. Miami ranks No. 4 and the Palm Beach area is No. 13.
Firms making dubious claims approach homeowners and promise to help them keep their property. While some so-called foreclosure rescue companies are legitimate, many fleece people who are so desperate that they agree to deals they don't fully understand.
In one common scheme, the fraudster persuades the homeowner to sign over the property and pay rent to keep living in it. When the owner-turned-renter believes he's eligible to regain the title, the fraudster refuses to cooperate.
Signatures, documents and all sorts of data are forged or fabricated in the most blatant cases. The victims are typically poor or working-class homeowners with little knowledge of real estate transactions.
"It's pure, unadulterated fraud," said Roy Oppenheim, a Weston lawyer who handles real estate cases. "You've got to be so depraved to do that."
There are no easy solutions for someone facing the threat of foreclosure. But people too often make bad decisions because they are overtaken by "a sense of paralysis, like a deer stunned in the headlights," Oppenheim said.
Here are six don'ts that can prevent you from falling for a foreclosure fraud:
Don't agree to anything if you are being rushed
Fraudsters often say a contract needs to be signed quickly or the opportunity will pass. Call them on their bluff. They're probably trying to get you to sign what they want before you ask a more knowledgeable person to look at the deal. Jackie Scott learned that the painful way. Last year she was panicking over the prospect of losing her Fort Lauderdale house. She fell six months behind on the mortgage and wanted to get some cash out of the home's equity.
A Miami mortgage broker proposed that she sign a warranty deed giving him ownership. She said he promised to get her the money if she paid him rent. Scott claims that she never received a penny. The broker tried to have Scott evicted from the home, but was unsuccessful. They later reached a settlement allowing Scott to keep the house if she agreed not to sue him, but the monthly mortgage payment has increased from $900 to $1,166 and she needed to take a second job to pay for it. She also had to put the home in her stepfather's name because of her poor credit rating. "I was too hasty to make a decision," Scott said. "As long as I had the house, I could have gotten a loan. Or I could have sold it." She said she should have sought advice and taken more time before signing the deal.
Don't sign away ownership via a quitclaim or warranty deed without consulting a lawyer
Signing over ownership is risky to begin with because the other side could find or invent a reason not to give you back the home. The National Consumer Law Center, in Boston, says you should be suspicious of any deal to pay rent for your home in order to buy it back over time.
A staff attorney at the law center, said homeowners without a lot of resources could contact their local Legal Aid office, which can help with the case or suggest a lawyer who can. She also recommends contacting the National Association of Consumer Advocates, an organization of more than 1,000 lawyers who represent consumer fraud victims.
Additional information on hiring a lawyer without spending a fortune can be found through the Florida Bar and the American Bar Association. Attorney Oppenheim points out that even the poor can go to a public library and look for lawyers by logging onto the Internet and entering groups of words such as "South Florida real estate attorneys" into a search engine.
To be sure, the poor are at a disadvantage in fighting foreclosure fraud. Many lawyers are reluctant to take cases from indigent clients, "even though that's what we're supposed to do," says Aventura attorney Lawrence R. Metsch. He is representing a Miami-Dade woman who says she has been defrauded by a foreclosure rescue firm. However, Metsch admits, "It's hard to run a practice if all you're doing is good works."
Don't do business with a company or people you know nothing about
Rescue firms learn of impending foreclosures through public records. Some show up at the front door trying to persuade homeowners to enter a deal. Real estate attorneys say you should be suspicious of such companies. Research the firm on the Internet. Type the company's and owner's names into a search engine such as Google or Yahoo. Check with state agencies to determine whether the company is licensed. Visit http://www.myflorida.com/ and look for "licensee search." Call the state Department of Business & Professional Regulation to see if it has any information on the company. Also check with the Better Business Bureau.
Don't be fooled into thinking you have no other options
"Sometimes you can negotiate with the lender," Metsch said. "Usually they don't want to take [the home] back." You can also try to refinance the home, especially if mortgage rates are low. Or you can simply sell it.
Don't sign anything you don't fully understand
Diane Fiala wasn't facing foreclosure, but the lesson she learned is universal. Fiala was tricked by someone who offered to help her find a house to buy in North Lauderdale. She didn't know that the papers she signed gave the man -- the husband of an acquaintance -- ownership of the home. "I believed him," Fiala said. "I didn't read through all the documents. I went into the process blind."
Don't ignore your gut
At first, Fiala resisted signing the papers. "I said no twice, and the third time I said yes," she said. "Listen to your inner instincts." FORT LAUDERDALE, Fla. – Nov. 14, 2006South Florida Sun-Sentinel, Ian Katz.
FACING FORECLOSURE? Don't become a victim to vultures with rescue programs.
Gripped by fear, many financially troubled South Floridians are falling victim to foreclosure schemes that can rob them of their homes and their equity.
Real estate experts say the occurrence of fraud is growing with the number of foreclosures, which has soared in Broward, Palm Beach and Miami-Dade. According to a study of 100 metropolitan areas released Friday, Fort Lauderdale has the second-highest rate of homes facing the possibility of foreclosure, behind only Detroit. Miami ranks No. 4 and the Palm Beach area is No. 13.
Firms making dubious claims approach homeowners and promise to help them keep their property. While some so-called foreclosure rescue companies are legitimate, many fleece people who are so desperate that they agree to deals they don't fully understand.
In one common scheme, the fraudster persuades the homeowner to sign over the property and pay rent to keep living in it. When the owner-turned-renter believes he's eligible to regain the title, the fraudster refuses to cooperate.
Signatures, documents and all sorts of data are forged or fabricated in the most blatant cases. The victims are typically poor or working-class homeowners with little knowledge of real estate transactions.
"It's pure, unadulterated fraud," said Roy Oppenheim, a Weston lawyer who handles real estate cases. "You've got to be so depraved to do that."
There are no easy solutions for someone facing the threat of foreclosure. But people too often make bad decisions because they are overtaken by "a sense of paralysis, like a deer stunned in the headlights," Oppenheim said.
Here are six don'ts that can prevent you from falling for a foreclosure fraud:
Don't agree to anything if you are being rushed
Fraudsters often say a contract needs to be signed quickly or the opportunity will pass. Call them on their bluff. They're probably trying to get you to sign what they want before you ask a more knowledgeable person to look at the deal. Jackie Scott learned that the painful way. Last year she was panicking over the prospect of losing her Fort Lauderdale house. She fell six months behind on the mortgage and wanted to get some cash out of the home's equity.
A Miami mortgage broker proposed that she sign a warranty deed giving him ownership. She said he promised to get her the money if she paid him rent. Scott claims that she never received a penny. The broker tried to have Scott evicted from the home, but was unsuccessful. They later reached a settlement allowing Scott to keep the house if she agreed not to sue him, but the monthly mortgage payment has increased from $900 to $1,166 and she needed to take a second job to pay for it. She also had to put the home in her stepfather's name because of her poor credit rating. "I was too hasty to make a decision," Scott said. "As long as I had the house, I could have gotten a loan. Or I could have sold it." She said she should have sought advice and taken more time before signing the deal.
Don't sign away ownership via a quitclaim or warranty deed without consulting a lawyer
Signing over ownership is risky to begin with because the other side could find or invent a reason not to give you back the home. The National Consumer Law Center, in Boston, says you should be suspicious of any deal to pay rent for your home in order to buy it back over time.
A staff attorney at the law center, said homeowners without a lot of resources could contact their local Legal Aid office, which can help with the case or suggest a lawyer who can. She also recommends contacting the National Association of Consumer Advocates, an organization of more than 1,000 lawyers who represent consumer fraud victims.
Additional information on hiring a lawyer without spending a fortune can be found through the Florida Bar and the American Bar Association. Attorney Oppenheim points out that even the poor can go to a public library and look for lawyers by logging onto the Internet and entering groups of words such as "South Florida real estate attorneys" into a search engine.
To be sure, the poor are at a disadvantage in fighting foreclosure fraud. Many lawyers are reluctant to take cases from indigent clients, "even though that's what we're supposed to do," says Aventura attorney Lawrence R. Metsch. He is representing a Miami-Dade woman who says she has been defrauded by a foreclosure rescue firm. However, Metsch admits, "It's hard to run a practice if all you're doing is good works."
Don't do business with a company or people you know nothing about
Rescue firms learn of impending foreclosures through public records. Some show up at the front door trying to persuade homeowners to enter a deal. Real estate attorneys say you should be suspicious of such companies. Research the firm on the Internet. Type the company's and owner's names into a search engine such as Google or Yahoo. Check with state agencies to determine whether the company is licensed. Visit http://www.myflorida.com/ and look for "licensee search." Call the state Department of Business & Professional Regulation to see if it has any information on the company. Also check with the Better Business Bureau.
Don't be fooled into thinking you have no other options
"Sometimes you can negotiate with the lender," Metsch said. "Usually they don't want to take [the home] back." You can also try to refinance the home, especially if mortgage rates are low. Or you can simply sell it.
Don't sign anything you don't fully understand
Diane Fiala wasn't facing foreclosure, but the lesson she learned is universal. Fiala was tricked by someone who offered to help her find a house to buy in North Lauderdale. She didn't know that the papers she signed gave the man -- the husband of an acquaintance -- ownership of the home. "I believed him," Fiala said. "I didn't read through all the documents. I went into the process blind."
Don't ignore your gut
At first, Fiala resisted signing the papers. "I said no twice, and the third time I said yes," she said. "Listen to your inner instincts." FORT LAUDERDALE, Fla. – Nov. 14, 2006South Florida Sun-Sentinel, Ian Katz.
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