Homebuyer Assistance Program Offered By Hillsborough County, Florida
Wednesday, February 3, 2010
By Charlie Hounchell, Esquire
A new program in Hillsborough County may give assistance to eligible home buyers by providing money for down payments and closing costs. Beginning February 5, 2010, the Hillsborough County Affordable Housing Department will release $1.18 million and these funds will be available on a first-come, first-served basis. The buyer's lender is responsible for submitting the applications and only lenders who attend a mandatory certified lender partner workshop on February 4 will be eligible for the money. For more information about the program, including application requirements and forms, click here.
Please be advised that this article does not constitute legal advice nor does it provide any basis to form an attorney-client relationship. Nothing in this article should be copied without the express permission of the author.
Mr. Hounchell has a law degree from The University of Florida College of Law and he is a principal in The Law Offices Charles A. Hounchell, P.A., in Tampa, Florida. Mr. Hounchell earned his undergraduate degree from The George Washington University in Washington D.C. and he obtained his MBA in International Management from the American Graduate School of International Management (“Thunderbird”) in Glendale, Arizona. In addition to practicing law in Florida, Mr. Hounchell is a licensed title insurance agent and a real estate agent with Smith and Associates, Inc.
www.smithandassociates.com; www.livecasanova.com. He has lived in and studied in many different countries, including Spain, Brazil, Argentina, Mexico and Germany and he speaks Spanish and Portuguese. A significant portion of Mr. Hounchell’s law practice is concentrated on Real Estate Law. He can be reached at 813-251-2701 or charlie@floridapropertylaw.comNew Rules Designed to Accellerate Short Sale Process
Thursday, January 14, 2010
By Charlie Hounchell, Esquire
Good news for all of those financially stressed homeowners out there who are attempting to sell their homes through a short sale. New federal guidelines will require lenders to respond to short sale purchase offers within ten (10) days after the offer has been made. The rules from the U.S. Treasury, will allow financial incentives for both sellers and lenders.
The Feds have definitely taken a step forward in an effort to expedite the short sale process. Typically, buyers attempting to purchase short sale properties will have to wait for many months before receiving any response from the lender. Longer than normal delays often result in frustrating the buyer so much that they will actually walk away from the deal.
We currently have a number of short sale clients awaiting a response from their lender to contract offers. It is not unusual for these clients to be waiting as long as four (4), five (5) and six (6) months to hear whether the bank will accept the offered terms. As a result, these properties stay on the market and extend the decline in our housing market.
Only banks that owe the federal government TARP bailout funds must comply with the new rules which will take effect sometime between now and April 2010.
A short sale occurs when the homeowner sells his home while owing more to the bank than the property is currently worth in today’s real estate market. The bank must approve of the contract terms and, depending on the negotiation with a specific lender, the homeowner may or may not face a judgment lien on the deficiency amount.
The new Treasury rules allow sellers to receive a $1,500 moving allowance with no obligation to repay any of the deficiency amounts, i.e. the difference between what the property sells for and what is actually owed on the loan.
Lenders will also receive $1,000 to cover administrative costs and investors owning the mortgages will be given a maximum $1,000 for allowing as much as $3,000 of a short sale's proceeds to be distributed to subordinate lenders.
Currently, eighty three (83) loan servicers are participating in the Making Home Affordable loan-modification program, including Bank of America and JPMorgan Chase. All participating lenders are required to follow the guidelines for all borrowers who have requested short sales or who did not complete loan modifications.
Loans guaranteed by Fannie Mae and Freddie Mac, do not specifically fall under these new federal guidelines. The two government run mortgage companies are developing their own rules to apply to short sales.
Lenders must implement the Treasury plan by no later than April 1st and the Treasury Department has warned that non-compliance will result in substantial penalties.
These new short sale rules represent a welcome change to a currently chaotic and disorganized system. If the participating lenders actually cooperate, buyers and sellers will benefit and we will all enjoy a turn for the better in our housing market.
Please be advised that this article does not constitute legal advice nor does it provide any basis to form an attorney-client relationship. Nothing in this article should be copied without the express permission of the author.
Mr. Hounchell has a law degree from The University of Florida College of Law and he is a principal in The Law Offices Charles A. Hounchell, P.A., in Tampa, Florida. Mr. Hounchell earned his undergraduate degree from The George Washington University in Washington D.C. and he obtained his MBA in International Management from the American Graduate School of International Management (“Thunderbird”) in Glendale, Arizona.
Mr. Hounchell is a licensed title insurance agent and a real estate agent with Smith and Associates, Inc.
www.smithandassociates.com; www.livecasanova.com. He has lived in many different countries, including Spain, Brazil, Argentina, Mexico and Germany and he speaks Spanish and Portuguese. A significant portion of Mr. Hounchell’s law practice is concentrated on Real Estate Law. He can be reached at 813-251-2701 or charlie@floridapropertylaw.comLabels: April 2010, bail out funds, contract terms, deficiency, delays, fannie mae, freddie mac, lender delays, Making Homes Affordable, new federal guidelines, short sales, TARP
Housing Starts Free Fall from Heyday
Tuesday, January 12, 2010
By Charlie Hounchell, Esquire
Tampa Bay is experiencing its coldest weather in decades. We have hit below freezing temperatures off and on all week. It even snowed in Florida the other day not far from here. The last time that happened was in 1977. I clearly remember that day.
I also remember the real estate economy in 2005. It was booming and everyone it seemed was making money in real estate by flipping houses, investing in new construction, building spec homes, becoming a developer. That year, Tampa Bay housing starts peaked at 21,438. That was the year that real estate was HOT in Tampa Bay. Developers were the envy of many...imagining their future prospect of mega millions. Oh, those were the daze...
Now? Not so much. It seems that the unusually freezing temperatures in Tampa Bay red flag one more symbol that things just aren't the way that they used to be. Short sales and foreclosures are the norm rather than the extreme. Those hot shot developers are now bankrupt. New construction condominiums remain vacant. Unemployment is remarkably high and housing starts are at their lowest in years.
That's right. No one is chomping at the bit to build a new house these days. In fact, 2009 housing starts (totaling 3,545) represent an 85% nose dive from the housing starts enjoyed by builders in the heyday of 2005.
Are you surprised? I'm not. The good news is that there HAS to be a light at the end of this very dark tunnel. If you hold your breath and stand still while squinting your eyes, you can almost see it. By the end of 2009, vacant homes totalled 1,931, down from 2,655 in 2008. That's a positive. The other HUGE positive is that there a thousands of great buys out there in "A" class neighborhoods.
The negative is that mortgage borrowing remains extremely difficult. So much so that most buyers won't be able to take advantage of the bargain basement 4.8 percent interest rates because the banks now require 20 percent down if you don't pursue an FHA loan. With that said, if you've got cash, you've got plenty of opportunity in today's real estate market.
Remember, new homes still have to compete with those 28,000 existing homes currently for sale in Tampa Bay. The reality is that a large number of homeowners are barely hanging on to their homes as they fight off an inevitable mortgage payment default. So, we will most likely continue to experience a decline in housing prices as we launch into 2010.
What's the lesson here? Well, we can ALWAYS look on the bright side of things. Spring time will come and these freezing temperatures will rise as fast as our memories fade. Sooner or later, our economy will turn for the better and people will want to build new homes again. In the meantime, keep your slanket on and stay warm. It's cold outside.
Please be advised that this article does not constitute legal advice nor does it provide any basis to form an attorney-client relationship. Nothing in this article should be copied without the express permission of the author.
Mr. Hounchell has a law degree from The University of Florida College of Law and he is a principal in The Law Offices Charles A. Hounchell, P.A., in Tampa, Florida. Mr. Hounchell earned his undergraduate degree from The George Washington University in Washington D.C. and he obtained his MBA in International Management from the American Graduate School of International Management (“Thunderbird”) in Glendale, Arizona.
Mr. Hounchell is a licensed title insurance agent and a real estate agent with Smith and Associates, Inc.
www.smithandassociates.com; www.livecasanova.com. He has lived in many different countries, including Spain, Brazil, Argentina, Mexico and Germany and he speaks Spanish and Portuguese. A significant portion of Mr. Hounchell’s law practice is concentrated on Real Estate Law. He can be reached at 813-251-2701 or charlie@floridapropertylaw.comLabels: 2005 Housing Starts, 2010 Real Estate, Buyer Opportunity, Developers, Housing Starts, real estate economy, Tampa Bay Real Estate, Tampa Bay Real Estate Prices
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