Are We Seeing the Start of a Real Estate Rebound?

sellhomepicture.pngThere was a time, not so long ago, when a buyer could offer pennies on the dollar for a dream home in South Florida. It was not rare for a potential buyer to offer up to 25% or more below the asking price. After all, the market was congested with available homes and the economy was in a deplorable state. However, times are changing and making an unreasonable offer can actually hurt, instead of help a buyers chances of securing their dream home.

Across the United States, including South Florida, more and more homes are being purchased at higher than normal rates leaving very little inventory for realty agents to work with. A potential buyer who comes in and makes a very low offer often finds him or herself being left off the radar when being compared to other, more serious buyers.

In other words, a buyer no longs holds the power, sellers do. A seller is likely to come back more aggressive if he or she receives a low-ball offer compare to an offer that is reasonable or closer to the asking price.

Home values in South Florida rose 1.1 percent year-over-year in March, to $141,300, after reaching bottom in late 2011. Only Phoenix had a higher year-over-year increase at 2.8%. Moreover, Miami ranked among just five cities in the nation to show an increase in annualized housing prices in February, up 0.6 percent from January, and up 0.8 percent year-over-year.

Consequently, a low-ball offer may still work in some communities were one can find stockpiles of inventory, but these are far and few between in places such as Chicago, Miami, Washington D.C., etc. For example, some out of town buyers still appear to be under the impression that all Florida real estate remains depressed. They insist on submitting offers that make no sense in today’s environment.

As such, a buyer who is serious about purchasing a home must ask themselves whether the risks out weigh the potential reward. Put simply, if the property has potential to be your dream home, don’t be cheap or you will risk losing the home altogether.

Distressed Properties Still Dominate the Market.

With that said, however, the real estate market is still far from a full recovery. Prices continue to remain low compared with prices just five years ago. In Miami, prices fell 50 percent from the peak, and are just up 2 percent since reaching a low in April 2011

Prices may not return to the price points seen just a few years ago for some time still. So now is a good time to buy a property. Especially when you consider that interest rates continue to remain at historically low interest rates.

Therefore, while the market is moving in a positive direction, it will be some time before it can attain a healthy state.

The reason being is that distressed properties still make up more than 50 percent of sales. That is down, however, from more than 60 percent a year ago. Distressed properties are keeping a lid on properties, and they will continue to do so for some time.
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If you need a real estate attorney, or just need to assess your legal rights, please contact our office today.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

The Latest Twist in the Foreclosure Crises Has Bank of America Suing …. Bank of America!

bank-foreclosed-homes-for-sale.jpgTo add to the tragic comedy that is the housing and mortgage market in the United States, it turns out that several news outlets recently reported that that Bank of America, on several occasions, has sued itself in foreclosure proceedings.

It is not as far-fetched as one would think. The problem lies with the robo-signing crisis, which, among other things, was a result of bank employees cutting corners when processing paperwork. Now lenders, borrowers, and the judicial court system are finding themselves severely backlogged in the foreclosure process. This has allowed cases to go through the system with the same bank being on opposing sides of the foreclosure.

This happens when a bank services the first mortgage on behalf of an investor while contemporaneously owning the second mortgage. The law requires the bank to name themselves as a defendant in order to dispose of the junior interest. Adding insult to injury, the bank will have to hire a lawyer to file the foreclosure suit and another lawyer to defend the suit.

Financial institutions, such as Bank of America, and Wells Fargo, will continue to see these scenarios pop up again so long as the foreclosure crisis continues. With no end in sight, we are left imagining what it must be like to contact opposing counsel, who happens to be only a cubicle or office space away.
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We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

Is It Time To Buy A Home In Today’s Real Estate Market?

buy-hold-sell-real-estate.jpgHousing is one of the great investments right now. Today’s market presents wonderful opportunities for many. Interest rates continue to remain at historic lows. Housing prices also continue to remain at very affordable levels.

Indeed, legendary investor Warren Buffett recently stated that if he had a way to manage them he would buy several hundred thousand single-family homes and rent them out. Consequently, there are many investors that are buying homes in today’s market as an investment and subsequently renting them.

But for the many that wish to purchase a home and actually live in it, the question becomes is today’s market the perfect time to buy.

There is certainly the valid argument that those individuals could wait to see if home prices continue to fall. Indeed, many experts suggest that home prices will continue to decline through at least this calendar year, and possibly in next year as well.

However, you cannot time the housing market anymore than you can time the stock market. True, the housing market moves far more slowly, but that works to its benefits, as prices don’t rise and fall on daily news or even major events.

Another factor to consider are thehistorically low interest rates. By all accounts, interest rates should remain pretty consistent through at least the end of the year, and possibly into the early part of next year.

Therefore, the combination of low prices coupled with historically low interest rates makes it a very attractive time to be a home purchaser for both investors and as someone who is looking to buy a home for his family.
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If you need a real estate attorney, or just need to assess your legal rights, please contact our office today.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

South Florida Home Prices Increased in January

Short-Sale-Home.jpgAll signs point to a continued recovery in the housing market.

Recent statistics show that home prices statewide rose 5 percent in January. The median price for existing homes across Florida last month was $129,000, compared with $122,500 a year ago.

Although sales declined statewide, pending deals have increased in every month since May and the number of homes for sale statewide has fallen by 34 percent from a year earlier.

Here, in South Florida, home prices continue to trend upward, offering hope of a housing recovery even while many say a bottom may still be a year away.

Some still expect a flood of bank owned properties to hit the market. But when that does, there is a growing school of thought that such a development will be a favorable one for a housing market that is appears to be bouncing back. The reason being is there is actually a shortage of available properties in many areas throughout South Florida. And if the property is priced right, it will not be on the market very long. Many are taking advantage of the record low interest rates, and other such favorable factors, and jump from the rental market into home ownership.

Today’s market presents all sorts of unique opportunities for both buyers and sellers. It also presents wonderful opportunities for those with homes that are underwater as today’s market is a short sale driven market. It may be time to consult with a real estate attorney to assess your options.
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We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

Mortgage Deal Fails to Make an Impact to Help Struggling Homeowners

mortgage-settlement.jpgA mortgage settlement over the mishandling of millions of foreclosures was recently reached following 16 months of complex negotiations between 50 attorneys general and five major banks amid allegations of robo-signing and other abuses further fueling the foreclosure crises.

Under the terms of the settlement, those who have lost their homes or have fallen underwater on their loans could receive a $2,000 check, a $20,000 mortgage reduction or a lower interest payment.

But while everyone involved in procuring this deal should be applauded for their effort, the deal falls short. The deal is saddled with glaring limitations which will make it difficult to reach the millions of homeowners currently struggling.

For starters, the numbers simply tell us that this deal won’t reach that many people which means this settlement will be felt by just few fortunate individuals. Specifically, borrowers around the country owe more than $700 billion more on their homes than the homes are worth, yet the settlement offers only $26 billion in fines and relief to homeowners.

Additionally, approximately one million homeowners will have their mortgage debt reduced or loans refinanced at a lower interest rate, and up to 750,000 other borrowers who became victims of abuses in the foreclosure process could receive an average of $1,500 to $2,000. On the other hand, many estimate that some 11 million U.S. homeowners are underwater — they owe more on their homes than the homes are worth. Some 4 million are in foreclosure or seriously delinquent.

So to repeat, a mere cursory look at the numbers reveals that the deal won’t be as far reaching or helpful to the great majority of struggling homeowners.

But the deal has other limitations as well. The settlement is limited to five big banks that own the mortgages directly. Those include Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally.

It excludes private investors, other banks and — most important — mortgages backed by federal agencies known as Fannie Mae and Freddie Mac, as well as the FHA. These agencies, which are subject to controls from the executive and Congress, account for about 56 percent of all existing loans.

This settlement fails to satisfy the need for accountability by those responsible for the housing collapse. If the only punishment is a slap on the wrist, the mortgage industry will have learned nothing from this epic debacle.
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We are certainly in difficult times. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

Has Miami’s Real Estate Market Hit Bottom? Is It Time to Buy Now?

RealEstate.jpgOne of the tragedies of the real estate collapse is that fewer Americans own their homes today. Not only that, but the American that’s do own their homes today have seen the value of those homes decrease rather dramatically over the span of the past several years.

The United States Census Bureau recently reported that the nation’s home ownership rate fell to 66% in the fourth quarter, continuing a seven year drop from the one quarter peak of 69.2% in 2004. At the same time, United States home prices fell 1.3% in November from October and were 3.7% below 2010 levels.

These statistics illustrate that the recent real estate collapse was the worst that this nation has experienced since the Great Depression of 1930’s.

Locally, we are seeing mixed signals. On the one hand, 2011 was actually a record year. More properties were sold in 2011 than at any other time in our county’s history. And that includes during the height of the real estate boom.

Those sales are bolstered in large part by foreign buyers that see great value in a depressed market such as Miami. International investors, with wads of cash, are buying fantastic properties at bargain prices in Miami.

Additionally, interest rates continue to hover at historic lows that we are not likely to see for another generation.

But all of that does not spell the end of the bust associated with the real estate market. Indeed, inventory is still high, and it is still unknown how much “shadow inventory” the banks actually possess. Foreclosures also continue to rise.

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.
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Consider Your Options. Contact Us Today.

We are certainly in difficult times. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

Miami’s Real Estate Market was Bolstered by Foreign Buyers for a Record 2011 in Terms of Number of Homes Sold

Miami_Beach_Oceanfront_Condos_On_Sale.jpgThanks in large part to international buyers purchasing real estate in Miami-Dade County, 2011 set records for the number of real estate sales for all years on record. Yes, even more than the years associated with the real estate boom, and, in particular, the peak of the boom back in 2005.

A total of 24,929 combined condominiums and homes were sold in Miami-Dade County in 2011, up 46% from 2010 and up 4%when compared to 2005.

Condominium sales surged 54%, to 15,009 in 2011, and home sales rose 36% to 9920. Interestingly enough, some are suggesting that Miami Dade County is on the verge of a real estate boom. Demand is particularly high for properties located in the design District, Brickell, and Miami Beach.

A major reason for the record numbers, and boom, is the fact that international investors, with wads of cash, are buying fantastic properties at bargain prices in Miami-Dade County.

Additionally, interest rates and real estate prices remain at historic lows. Bank-owned properties and short sales, comprising “distressed sales,” also helped fuel the real estate market last year. In December, 54 percent of all closed residential sales in Miami-Dade were distressed, compared to 59 percent in December 2010. Unlike a year ago, there are now more short sales closing than bank-owned properties.

Although we’re hearing some good news, today’s current real estate market, and ongoing foreclosure crisespresents 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.
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EXTENDED BODY:
Consider Your Options. Contact Us Today.

We are certainly in difficult times. At Alvarez & Barbara, LLP, we understand all of our client’s individual needs and pride ourselves in providing high quality service.

Call us today toll free at 1-866-518-2913 or at 305-263-7700.

Miami Leads Florida’s Housing Comeback

home-for-sale-sign.jpgMiami’s real estate market is heading into 2012 showing signs of revival.

Over the past few months, our firm has seen sales trending up, listing inventories falling, the supply of lender-related properties stabilizing, as well as multiple offers being placed on homes in some neighborhoods. Additionally, foreign buyers, especially those in Central and South America, continue to come to South Florida to snatch up bargains.

As we look behind the numbers, we see that Miami, in particular, has gone from ground zero for the subprime mortgage crash to having a healthy inventory of properties that is only half the size from a year ago. Today, Miami is only reporting one foreclosure for every 407 home, compared to the national rate of one per every 213. Condo sales have also increased 79% in the first five months of the year. That increase in condo sales, again, is fueled in large part due to foreign buyers buying property in South Florida.

These numbers point to a mini-recovery in Florida, and especially in Miami. Indeed, while prices for continued to drop in Broward and Palm Beach county, they are not in Miami. In October, for instance, Miami-Dade County actually squeezed out a price increase for home sales.

While all of this points to a revival of sorts to Miami’s real estate market, the recovery is still rather tenuous. Banks have pulled back the filing of foreclosure actions due to the ongoing robo-signing scandal. Additionally, unemployment remains high. And for their to be a true correction, and recovery, unemployment needs to be lowered.

On the other hand, there are many alternatives to a foreclosure. Many homeowners are exploring those options. It is best to be pro-active in this real estate market.
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If you are facing the prospects of having your home foreclosed on, or if you are seeking to purchase a home in this current market, please contact us today for a free consultation.

The Foreclosure Crisis Continues to Haunt South Florida’s Real Estate Market

foreclosure.jpgIf the current foreclosure crisis were a football game, we would be in half time right now. Based in large part on new data that was recently released it appears as though the foreclosure crisis is only about halfway over.

New home foreclosures recently increased while the number of borrowers falling behind on their payments decreased slightly. Not surprisingly, borrowers with subprime adjustable mortgages saw the biggest jump in foreclosures recently.

Almost 5% of all subprime loans recently entered into the foreclosure pipeline, up from 3.6% in the second quarter. One of the main reasons for that increased foreclosure spike was the expiration of the foreclosure moratorium placed on a number of states. In other words, many states were recently given the go ahead to file new foreclosure actions against borrowers who have fallen behind on their payments.

Additionally, another reason for the recent spike in foreclosure activity is that many of the borrowers who have fallen behind were not approved for a loan modification or other program to help save their home.

On the other hand, the pace of new foreclosures for all loans for this time last year was actually down. Simply put, there were less foreclosures filed at the same point this year than there were compared with last year at this point in time.

Overall, the pace of new foreclosures for all loans was up by almost 11% in the third quarter from 9% in the prior three-month period. That’s down from 1.3% in the same period a year ago.

As for the overall health of the nation’s current real estate market, a lot still depends on the economy of the whole. The economy is still not producing jobs fast enough to aid the nation’s housing market.

Additionally, continued improvement in home sales and home prices will depend heavily on the volume of foreclosed homes in the housing market. Recent housing data suggests that many lenders have barely made a dent in the overall inventory of foreclosed homes.

As such, there is no question that this is a buyer’s market. Indeed, South Florida’s real estate market has picked up some steam recently due in large to foreigners investing in South Florida.
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If you are facing the prospects of having your home foreclosed on, or if you are seeking to purchase a home in this current market, please contact us today for a free consultation.

Growing Number of Underwater Homes in Miami are Causing Many to Walk Away from their Homes

Underwater.jpgAlmost half of all single-family homes with a mortgage in South Florida are currently under water. An underwater home loan is one where the loan balance is greater than the fair market value causing the homeowner to be upside down on the mortgage.

The State of Nevada leads the country in underwater homes, and Las Vegas leads the country. The State of Florida ranks third in the country, and Jacksonville, Tampa and Ocala have the highest percentage of underwater homes in the state.

Since the housing market peaked in 2006, thousands of homeowners have seen their home equity disappear while home prices decreased more than 50%. Because of the decline in home prices, coupled with the loss of home equity, many homeowners have stopped paying their mortgages and simply turned the home over to the bank.

When facing an underwater mortgage, as well as higher property taxes and home insurance, walking away from your home could be extremely tempting to homeowners.

However, walking away from your home does not come without consequences, and often times those consequences are negative.

It is imperative that you understand both the pros and cons associated with walking away from your home. The negative implications could haunt you for years. But the positive ramifications may set you free financially.

There are also often times many alternatives available to you in an effort to avoid foreclosures. Indeed, one such potential option may be to explore the government’s newly enacted and revised re-finance program, i.e. HARP.
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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.