Real Estate Information

Nathan Bangs & Associates, Keller Williams Realty
3502 Henderson Blvd., Tampa FL 33609 For Sellers: 813-739-5965

Visit http://www.nathanbangs.com

Buyer Sues Over Secondhand Smoke

A lawsuit over secondhand smoke that went to trial this week in Boston will decide whether the real estate practitioner who represented the now-unhappy buyer is liable for damages over smoke that is wafting from a neighboring apartment.

While secondhand smoke has been a target of many lawsuits, a lawsuit that alleges that the real estate professional representing the buyer can be held liable for failing to inform her that there could be secondhand smoke is a first in Massachusetts and, possibly, anywhere.

Real estate associate Joseph DeAngelo and Gibson Sotheby’s International Realty, with whom he’s associated, deny that Alyssa Burrage, who suffers from asthma, asked any questions about smoke in the condo before she purchased it.

“DeAngelo never made any misrepresentations, or any representations at all, concerning the source of the alleged smoke smell,’’ DeAngelo’s lawyer, Jay S. Gregory of Boston, said in the filing.

The smoker, who lives in the apartment below, and the condominium association were also sued and settled to avoid a trial.

Richard Daynard, chairman of Northeastern University’s Tobacco Products Liability Project, which tracks secondhand smoke litigation nationally, said the outcome of this lawsuit could have broad repercussions.

Source: Boston Globe, Jonathan Salzman (02/09/2010)

4 Reasons to Sell Now

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.


1. Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.

2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.

3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

4. Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)

Check out this online Blog about Loan Modifications and why they don't work.

Why Loan Modifications Don't Work

After watching let me know what you think? 

Let me know what's going on since time is not on your side.

Thanks,

Nathan

FHA Announces Policy Changes to Address Risk and Strengthen Finances

Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending (Effective for FHA loans for which the case number is assigned on or after April 5, 2010)
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.  In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
3. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Those Who Wait Will Pay Thousands More This Spring

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

It is important to note that in order to be eligible for the lower cost up-front mortgage insurance, a lender has to order a case number from the FHA before April 5th. A case number can only be generated for loan applications where a property is involved and a fully executed purchase contract exists. Home buyers who have been pre-approved but are not under contract will not be eligible for the reduced premium effective April 5th.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.

The Advantages of Short Sale Vs Foreclosure in Tampa, FL & Surrounding Areas - Information from a Tampa Short Sale Realtor

If you are one of the numerous Americans having problems making your mortgage payments and are worried about facing possible foreclosure on your home, you may be wondering if there are any other options available to you. Luckily, there are solutions out there, including a short sale. A short sale is the process of selling your home for less than is owed on the mortgage. This process can help you avoid foreclosure and escape from a loan that is no longer manageable, without as many potentially harmful effects to your credit and future financial standing. If you are weighing the pros and cons of short sale vs foreclosure in Tampa, St Petersburg, Clearwater, or anywhere throughout the greater Tampa Bay area, Nathan Bangs & Associates can help.

As your trusted choice for an experienced Tampa real estate agent and short sale specialist, we can inform you of some of the advantages of a short sale vs foreclosure when you are facing serious financial problems. These can include a number of positives, such as:

• The ability to enact a short sale while still remaining current on your payments
• You, not the bank, staying in control of the sale
• Avoiding the stigma of a foreclosure
• The potential eligibility for another loan to purchase another home more quickly than after a foreclosure
• The fact that your credit score may be damaged less by a short sale than a foreclosure
• And more

While there are a number of pros in enacting a short sale instead of allowing your home to fall into foreclosure, this process can be very complex. That's why trusting a Tampa real estate agent with extensive short sale experience, such as the friendly team at Nathan Bangs & Associates, can be a huge help.

If you've studied your options and are seeking free short sale help, or would simply like some more information on the benefits of short sale vs foreclosure, contact us today. We're happy to help you in Tampa, St Petersburg, Clearwater, and anywhere else in the Tampa Bay area.

Seven Important Facts about Claiming the First-Time Homebuyer Credit

If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home.

Here are seven things the IRS wants you to know about claiming the credit:

1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or before June 30, 2010.
2. To be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
3. To be considered a long-time resident homebuyer you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.
4. The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident homebuyer is $6,500.
5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically.
6. New homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement must attach a copy of the retail sales contract.
7. If you are a long-time resident claiming the credit, the IRS recommends that you also attach any documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.

For more information about these rules including details about documentation and other eligibility requirements visit IRS.gov/recovery.

Links:

• 1040 Central
• First-Time Homebuyer Credit Information Center

YouTube Video:

• New Homebuyer Credit - Claim It:  English | Spanish

Finance Information

How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today: