Dominic's Blog :
Condo Financing can be a real challenge in South West Florida. I recently
spoke with some Loan Officers at some large banks and what they said was
not very encouraging. Large financial institutions have taken the position
with Fannie Mae Guide Lines. Here are the rules of the road.
New projects require 70% to be presold - established projects require
70% owner occupancy.
· All projects require fidelity insurance - this covers the value of the
association's reserve and active funds.
· No more than 10% of the project can be owned by a single entity.
· No more than 20% of the project can consist of non-residential space.
· Dues delinquency rates can be no more than 15%.
· Borrowers must have individual insurance on their specific portion of
the project.
· The condo association must have at least 10% of its budgeted income
designated for replacement reserves and adequate funds budgeted for the
insurance deductible.
· Payment abatement's (HOA dues paid by seller or other concessions) are
not allowed
· The minimum down payment required for a primary residence in an
established condo project is 10%. Credit score, purchase as an investment
or second home or other factors could increase this requirement.
• Some of these can be modified on a case by case basis
WOW !! With that said will your client get Condo Financing ?
"SAY NO TO AMMENDMENT 4"
www.Florida2010.org
We're Citizens for Lower Taxes and a Stronger Economy, Inc.
We know that Amendment 4 - a statewide "Vote on Everything" initiative -
is a grave threat to Florida's economy.
Amendment 4 - which would impose a referendum requirement on all local
comprehensive plan changes - subverts a well-established, open,
accessible, and democratic planning process. With the Vote on Everything
amendment, many Sunshine State voters - not the representatives they
elected - will be expected to decide 200 to 300 intricate land-use
planning amendments every year.
The interests promoting the amendment have failed three times to qualify
for the ballot. However, they have now paid for all the signatures
required to place their amendment on the November 2010 ballot. Citizens
for Lower Taxes and a Stronger Economy, Inc. has been established by our
State's business and community leaders to combat this dangerous amendment.
Citizens for Lower Taxes and a Stronger Economy, Inc. was founded to alert
voters to this extreme amendment and the hazards it will bring to every
Floridian's daily life. Every citizen, working family, teacher, health
care provider, community leader, elected official, and mainstream
environmentalist - every Florida voter - needs to know that our unique
quality-of-life is at stake. If they succeed in changing our State
Constitution:
THE DISRUPTION of local communities and the daily lives of Floridians will
be extraordinary. Cities and counties will be required to hold elections
for each proposed comprehensive plan change - not just major projects, but
even minor technical details. In the last four years alone, this amendment
would have required an average of over 10,599 additional local votes per
year in Florida. In fact, had Amendment 4 been in place in 2006, the
voters of Carrabelle - a small Franklin County town - would have seen 617
separate questions in a single ballot!
THE DISORDER will further disenfranchise Florida's already-fatigued
electorate. Voters will be deluged with highly technical background
materials prepared by the local government planning staff. The legalese of
proposed comprehensive plan changes, often puzzling for expert engineers
and attorneys, will further dampen voter turnout. Lines at voting booths
will grow as Floridians attempt the virtual impossibility of voting on
hundreds of separate and often confusing ballot questions.
THE COST will be astronomical. Every city and county in Florida will be
burdened with the time and cost of holding additional elections to vote on
proposed changes to comprehensive land use plans. Each of these elections
will be costly. And with smarter growth stalled, Florida's robust economy
will taper off to a recession while property taxes skyrocket to pay the
bills.
THE RESULT will be a system that is far worse, not better. That's why
respected environmental leaders refuse to support the amendment. They know
this amendment will not put a stop to all development, but will make
well-planned, smarter growth impossible - thereby encouraging sprawl that
reduces green space and makes effective growth management unachievable.
Bank Of America Short Sales:
Your Guide to Nagivating SHORT SALES
Declining property values, unemployment and increased expenses are just a few of the concerns facing homeowners. Tough economic conditions have taken a toll on customers as they are unable to make their mortgage payments.
Bank of America remains committed to working with customers to find solutions enabling home retention and foreclosure avoidance whenever possible.
What is a Short Sale?
A short sale allows a borrower to sell the home for less than the total amount due on the mortgage loan secured by the home. It helps the borrower avoid foreclosure and reduces some of the lender's loss by avoiding or minimizing foreclosure activities. The borrower does not receive any of the proceeds of the Short Sale.
When Should a Short Sale be Considered?
Bank of America is focused on helping borrowers retain their homes and avoid foreclosure, whenever possible. However, when the borrower does not have sufficient income. a Short Sale should be considered when there are no other options.
Examples for consideration: when a borrower is no longer interested in retaining the property: when a borrower is unable to make the monthly mortgage payment: or when the borrower is unable to qualify for a loan modification.
A Short Sale is a cooperative process versus a legal resolution ( no foreclosure sale or eviction) that allows the borrower to retain some control and dignity throughout the process.
How do I get started?
As soon as possible, the borrower should contact Bank Of America at 1-800-669-6607 to discuss his or her financial situation and determine whether a Short Sale is necessary. If after that conversation the Short Sale is the best option, the borrower should contact the Short Sale Team at 1-866-880-1232 to request information about initiating a Short Sale.
Short Sale support representatives are there to assist borrowers and will be their primary contact through the process. The Short Sale Team also offers convenient service via the web. During the initial call with the Short Sales Team, borrowers will be provided with a tempoary password to log into the Short Sales interactive Web site. Once the borrower has created a more permanent user name and password, and answered the security questions, he or she will be asked to update their hardship reasons and financial information on the Web site. The borrower can authorize you - their real estate agent - to represent him or her in the transaction and give them access to the site.
1- The borrower will upload supporting financial documentation.
2- The real estate agent will upload the purchase contract, listing agreement and preliminary HUD-1
3- Additional borrower information that may be required:
Verification of borrower's income
Copy of most recent bank statement
Signed and dated copy of most recent year's tax return
How long does a Short Sale process take?
The Short Sale process can take considerable time. Bank of Amercia must obtain its own appraisal of the property, review all of the documentation submitted by the borrower, and in most cases seek authorization from the investor and/or insurer on the loan. For this reason, a real estate agent is urged to contact Bank Of America as soon as possible if you are comtemplating assisting in a Short Sale, especially if the borrower is in default on their mortagage loan.
How can I check on the staus of a Short Sale?
Once the Short Sale Web site setup is complete - and assuming the borrower authorizes the agent during the sign up - the borrower and the agent can check the status of a Short Sale any time at www.reotrans.com . This Web site offers the agent and the borrower the ability to:
Communicate directly with the Bank Of America associate processing the Short Sale.
Upload documents and negotiate the offer.
Manage every step in the Short Sale process.
KEEP IN MIND:
Each Potential Short Sale is reviewed on a case by case basis.
A borrower whose mortgage loans are current ( not delinquent) WILL NOT be considered for a Short Sale unless there is sufficient documentation to demonstrate imminent hardship.
Possible tax implications to the borrower should be reviewed by their real estate attorney or accountant.
The property may not be sold to anyone with close personal ties to the borrower. This includes business and personal relationships.
It is important that you understand, some investors and mortgage insurance companies with an interest in the mortgage loans being serviced by Bank Of Amercia may require the borrower to sign a promissory note or make a cash contribution for some or all of the differences between the net proceeds and the total amount due on the loan.
