Miami Real Estate Attorney Blog

If you're thinking about buying a home or planning to refinance, act now so you can lock in a mortgage rate. Mortgage rates have been at historic lows for months. But if lawmakers can't reach an agreement on raising the debt ceiling, rates could rise higher.

According to experts, a government default would cause US Treasury bond prices to drop. An analyst from Bankrate.com states that the federal government's borrowing rate is the baseline from which all other borrowing rates are determined. In essence, if the government's borrowing costs go up then everybody else's borrowing costs will go up as well.

Even with a short-lived default, rating agencies have indicated that they will downgrade the federal government's rating. As a result, consumer and business rates would go up because the government would be forced to pay higher rates to bond investors.

On our blog, we've talking about how it's a good time to purchase real estate due to low prices. Well, now it seems that purchasers have another incentive to purchase real estate at this time.

So far, the debt ceiling debate hasn't affected mortgage rates. However, if the government does default, it's going to be real hard to lock in a rate.

Basically, if you don't take action now, you could regret it 6 months from now.

With the ongoing foreclosure crisis, high unemployment rates, and now the debt ceiling issue, we are certainly living in troubled times. While there's occasional good news related to the South Florida real estate market, it takes particular know-how and experience to safely navigate these troubled waters.

At Alvarez & Barbara, LLP, we represent buyers, sellers, lenders, borrowers, and developers with real estate matters. This experience allows us to understand legal issues from various angles to effectively advocate our clients' interests. No matter what you or your business's real estate needs are - think of Alvarez & Barbara, LLP, and contact us for a free consultation.

Continue reading "Re-Finance? Purchase? Time is Now to Lock in Those Historically Low Mortgage Rates" »

While most parts of the country are suffering from the ill-effects of the depressed real estate market, Miami's condo market seems to be the exception. Amid the housing glut, Downtown Miami sat mostly empty. However, many young professionals and families have begun to fill up the once empty residential towers.

Another major driving factor for the sales boom is the recent surge in international buyers.

One major group of foreign nationals that are buying up a sizable portion of condos in South Florida are Brazilians. Brazilians purchased 9 percent of homes and apartments sold to international buyers. This places them only behind Canadians and Venezuelans. Many Brazilians are coming due to the surge in real estate prices back home and their currency's 45 percent gain against the US dollar since 2008.

While many Latin Americans are purchasing in South Florida to seek safety from economic and social uncertainty, Brazilians are mostly coming to enjoy themselves and for investment purposes. Accordingly, some are buying vacation homes and other are buying multiple units at a time to capitalize on South Florida's strong rental market.

The amount of homes being purchased by foreign nationals certainly signals that now is the time to buy in South Florida. Prices have dropped considerably in South Florida, and it doesn't seem that prices have bottomed out either. If you're looking to buy a vacation home or purchase real estate for investment purposes, you should take advantage of the low prices.

Although we're hearing some good news, today's current real estate market, and ongoing foreclosure crises presents all sorts of issues that must be properly navigated. Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers. This broad array of experience allows us to effectively take a multi-faceted approach to our clients' legal issues. No matter what you or your business's needs may be when it comes to real estate, don't hesitate to contact Alvarez & Barbara, LLP.

Continue reading "Foreigners Fuel a Revival of Downtown Miami's Real Estate Market" »

With real estate prices continuing to drop, cash is king. Nationwide cash buyers are purchasing homes at a record rate. In May, all-cash buyers accounted for 30% of existing home sales, which is up from 25% in May 2010 and 12% two years ago.

Economists believe that the cash buyers are lured by the low prices and potential rental income. Sure, cash buyers have helped slow the price drops, but price increases have yet to follow. Cash buyers have realized that now is the smartest time to buy. Without the cash buyers, the real estate market would be in a much worse position.

The cash buyers are most prevalent in the areas that have been hardest hit by the recession and with large numbers of foreclosures. In Miami-Dade and Broward County 63% of first quarter buyers paid in cash compared to 39% in 1997's first quarter. Phoenix and Las Vegas are also seeing these similar figures despite the daunting number of foreclosures they are experiencing.

These numbers are good news because it shows that people are getting back into the market. Cash buyers also often get better deals because sellers know that a deal won't fall through due to a lack of financing. A 5% discount is the norm.

Buyers, and especially cash buyers, have many wonderful investment opportunities available to them. Indeed, buyers continue to find bargains by purchasing foreclosed homes in record numbers. As a seller, it is all the more reason to make sure your that your property is in the best possible condition.

Given the historically low interest rates, coupled with the low prices for many properties, especially foreclosed properties, the timing may never be better to purchase a new a property. Our firm can certainly assist you in your real estate needs should you be interested in purchasing, or selling, your property.

Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers.

This broad array of experience allows us to effectively take a multi-faceted approach to our clients' legal issues. No matter what you or your business's needs may be when it comes to real estate, don't hesitate to contact Alvarez & Barbara, LLP today.

Continue reading "With Real Estate Prices Continuing to Drop, Cash is King" »

If you're currently trying to sell your home, you know this is a tough market. You probably have some neighbors who are facing foreclosure and some other neighbors selling their home at an absurd discount. Apart from our neighbors, we've all seen the "For Sale" signs all around South Florida.

Indeed, there is no question that today's market is a buyer's market.

Not only is it a buyer's market, this may be the toughest sellers' market in years. Some experts say this is the toughest sellers market since the late '70s and early '80s.

On the flip side, selling your home in this market means that you get to look for your own bargain.

So, what should you do in this tough sellers' market? Here are some tips to help sell your home:

1. Price your home aggressively. Holding out for a high price doesn't work well in this market. In the last two years, the typical home is on the market for 8 to 10 weeks. This statistic doesn't take into account homes that never sold or were pulled off the market. With this statistic in mind, its recommended that you ask for at least 1% less than competing homes.

2. Stage your home like a pro. It is difficult to compete with the price of homes in foreclosure or with short sales. While you might not be able to outshine your home price-wise, you definitely can outshine others when it comes to the appearance of your home. This process may be pain-staking, but the renovating, painting, and planting of flowers will pay off when your home is the nicest one on the block.

3. Use the internet to your advantage. Today, 90% percent of buyers start their search on online. Use high-resolution photos and place as much info as possible online. Show photos of the main areas of your home - kitchen, bathrooms, backyard. If you don't, buyers will assume something is wrong.

4. Be flexible with buyers. The toughest part of this market is tighter financing. A requirement of 20% down is becoming the norm these days when all that was needed was 5% in some cases just a few years ago. Because of these factors, be conscious of how hard it is to qualify for a loan.

Buyers have many wonderful investment opportunities available to them. Indeed, buyers continue to find bargains by purchasing foreclosed homes in record numbers. As a seller, it is all the more reason to make sure your that your property is in the best possible condition.

Given the historically low interest rates, coupled with the low prices for many properties, especially foreclosed properties, the timing may never be better to purchase a new a property. Our firm can certainly assist you in your real estate needs should you be interested in purchasing, or selling, your property.

Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers.

This broad array of experience allows us to effectively take a multi-faceted approach to our clients' legal issues. No matter what you or your business's needs may be when it comes to real estate, don't hesitate to contact Alvarez & Barbara, LLP today.

Continue reading "Tips for Selling your Home in a Buyer's Market" »

What once symbolized the glut of condos in Miami now symbolizes the condo turn-around. The Icon Brickell condo faced major problems as speculators walked out on sales contacts, sat half-empty, and faced foreclosure.

However, the condo complex represents some of the things that are going right in this horrific housing market today.

The complex, composed of three towers, had two towers seized by a group of banks. That was one year ago, but since then 930 units have been sold. This means that a building that was 3/4 empty is now 3/4 sold. The third tower, which was not seized by lenders, has sold 518 of its 520 units.

The banks retained the services of Fortune International Realty to market the project and they have spearheaded the turnaround with their marketing efforts. According to the head of Fortune, the banks expected it to take three years for the building to sell out. However, its expected that they will sell out in 18 months. Fortune believes that the remaining 250 units will be sold by year's end.

Across the board we see price-slashing in the current market and this is what has helped Icon emerge from failure. For example, pre-construction sales had prices at about $600 per square foot. Presently, they are at about $440 per square foot.

With condo sales up 94 percent in April as compared to April 2010 and prices being cut, it certainly seems that amid this recession, the Miami condo market is a bright spot. Potential buyers need to take advantage of the current market conditions.

At Alvarez & Barbara LLP, we have extensive experience handling all types of real estate issues. We can handle all aspects of your real estate transaction. A major part of our practice includes real estate litigation as well. So, whatever real estate legal issue you're facing think of Alvarez & Barbara, LLP.

Continue reading "Icon Brickell Turn-around" »

We are still fairly deep in the housing market crash and it seems that it won't be ending anytime soon. All the news we hear these days deals with prices dropping lower, foreclosures continuing, homes underwater, and the continued high unemployment rate. It seems like chaos out there, but in chaos lies opportunity.

So where's the opportunity in all of this? Well, right now is a great time to buy a home or condominium. With sale prices continuing to drop, potential buyers need to take advantage of the current market condition.

This drop in prices seems like its going to continue for some time. This trend is likely to continue because of the amount of homes that are a part of shadow inventory, which are homes that are in the early phases of the foreclosure process or have already been repossessed, but have yet to placed for resale.

If you're looking into purchasing a home or condo, don't just look here in South Florida.

A great place to look right now is at the Bimini Bay Resort and Marina. Located in the Bahamas and just a short boat trip from Miami, it was recently recognized by the Miami New Times as the Best Day Trip in Miami for its 2011 Best of Miami issue. Paradise is just a day trip away!

If you are interested in purchasing property in Bimini Bay, please contact our office today as we could assist you in this transaction.

At Alvarez & Barbara LLP, we have extensive experience handling all types of real estate issues. We can handle all aspects of your real estate transaction. A major part of our practice includes real estate litigation as well. So, whatever real estate legal issue you're facing think of Alvarez & Barbara, LLP.

Continue reading "Bimini Bay Presents Great Real Estate Opportunities for Those Seeking to Purchase Property" »

In what seems like a reversal of roles, a homeowner showed up at a Bank of America with a truck ready to haul away furniture for public action in order to enforce a court order.

Back in 2009, the homeowner and his wife purchased a home in the Fort Myers area without taking out a mortgage - they purchased it cash. However, about 5 months ago, Bank of America started foreclosure proceedings against them for non-payment of their mortgage. Well, of course they weren't paying! They had no mortgage at all!

The bank did eventually drop the case. Nonetheless, it cost the homeowner about $2,500 in legal fees to defend the case. Luckily, a judge ordered the bank to reimburse him for his legal expenses. But for some unknown reason the bank never paid up. That is why the homeowner had to show and attempt to repossess property. After being there for one hour with deputies and moving trucks, the bank handed the homeowner a check.

Whenever a lender dismisses a case, or even if a judge does so, you may be entitled to recovery attorney's fees from the bank that tried to foreclose on your home. More often than not, the mortgage and note will contain language that says the prevailing party is entitled to recover fees. If a judge dismisses a foreclosure case, the homeowner is the obvious prevailing party. Therefore, recovery of attorney's fees may be possible if a judge orders it.

Indeed, our firm has recovered thousands of dollars in legal fees from the banks in foreclosures actions where we have prevailed.

At Alvarez & Barbara, LLP, we have extensive experience defending foreclosure cases. Not only have we worked to get cases dismissed, we've been able to recover attorney's fees for our clients as well. If you're in default or are already facing a foreclosure lawsuit, don't hesitate to contact us for a consultation.

Continue reading "Bank of America Pays Legal Fees to Homeowner in Failed Foreclosure" »

For the first time in eight months, home prices are rising in most major US cities. The boost can be attributed to the annual wave of spring purchases.

Unfortunately, Miami is not included in this list. As a matter of fact, prices in South Florida have reached their lowest level in four years.

Thirteen of the twenty cities tracked by the Standard & Poor's/Case-Shiller home-price index saw prices rise. Washington, D.C. saw the sharpest increase in prices. Even though the index covers 20 major US cities, it provides a good idea of what is going on nationally because these 20 metro areas compose about 50 percent of American households.

Right now, it's too early to say if the price increase is due to a market turnaround or simply the warmer weather. Nevertheless, when adjusting the figures to take into account the seasonal factors, prices rose in most markets that experienced decreasing sales.

The best sign of an improving market would be to see prices to continue rising over the next few months. But let's not get too hopeful. Its expected that about another 2 million foreclosures could hit the market over the next 2 years. As we've discussed, many foreclosures have been delayed due to a review of the foreclosure process by banks and state and federal regulators.

Although we're hearing some good news, today's current real estate market, and ongoing foreclosure crises presents all sorts of issues that must be properly navigated.

Often, an attorney is needed to navigate these troubled waters. We currently represent lenders, borrowers, buyers, sellers, and developers. This broad array of experience allows us to effectively take a multi-faceted approach to our clients' legal issues. No matter what you or your business's needs may be when it comes to real estate, don't hesitate to contact Alvarez & Barbara, LLP.

Continue reading "Real Estate Sales Increase in 13 U.S. Cities" »