Downtown Miami’s Condo Deal of a Deal

I know some of you, not all, are sitting on the sidelines

of the real estate game, waiting for the right moment to score on a deal. Right!,

Well, I believe I have one for you.

There is this 1/1, a corner unit, overlooking the pool of the  Met1,

waiting for you. Designer ready!

You could have this unit for under $340,000. This would be below

builders prices. Don’t delay! It would have to be a cash deal!!!!   (Only Unit under $300,00)   

                                                   $285,000

                                               Motivated Seller!

This unit wont be listed in the MLS so, I’ll keep you posted on the progress of this deal! This will be a good gage as to how effective blog marketing can be. May the fastest draw win! 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

A Short on the Short

As you know, property tax, foreclosure and short sale are the dominant words for 2007/2008. I’ve covered these subjects in previous posts, however, short sales, now it seems, are running neck and neck with foreclosures these days.

Many people did very well buying and selling real estate while home values rose year after year  and home equity loans where being cashed out almost as easily as an ATM transaction.

The tide has turned. The market has slowed and values have declined. Leaving those that bought at the tale end of the boom market holding the bag with not enough equity to sell or refinance the loan.

When a homeowner (seller) is faced with zero or negative equity at the closing table, a short sale may be a viable option.

Now, this can only occur when:

-The lender is willing to accept a reduced amount to pay off the mortgage at closing instead of foreclosing on the property.

- The seller must be unable to pay the mortgage.

- It must be an arm’s length transaction.

If you elect this route, run the numbers. A knowledgeable realtor can prepare a HUD-1 settlement statement before agreeing to the listing. Most lenders require the home to have been on the market for at least three months on the market. Also, discuss the short sale with an accountant to understand the tax consequences.

Hope this short on the short helps!

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

On Contingencies

Contingencies on a contract are conditions that must be met in order for the sale to go through. The most common ones in residential real estate are for inspections and financing.

An inspection contingency protects the buyers. It gives them the right to inspect the property to there liking. If the buyers find it unsatisfactory to them and the sellers refuse to correct the problem, the buyers can, most likely, walk away.

A financing contingency also protects the buyers. If the buyers use diligent efforts to attain a mortgage but can’t, they could also walk away from the contract.

An inspection contingency can run 10 to 14 days from the effective date-acceptance of the contract. Financing contracts can run up to 30 days or more. In a tight or strong market, where buyers are lining up with money to burn, smart sellers often request shorter time frames for contingencies-perhaps 3 days for inspections and 10-14 days for financing.

Work to do

A week or two may sound like plenty of time to satisfy contingencies, but as most people do, they wait until the last minute. Like the old adage-If you want something done fast, give it to a busy person, not someone with lots of time in their hands. The one person with plenty of time will undoubtedly wait for the last minute to get the job done. The more time you allow, the greater the risk of failure you face. 

A lot needs to get done in a short period of time:

• Select inspectors
• Complete Inspections
• Order further inspections if necessary
• Choose a mortgage broker
• Assemble your financial documentation
• Apply for a mortgage (Get Pre-Approved)
• Choose a loan
• Appraisal (Schedule it a day or so after the inspections are done)
• Choose an Insurance Broker
• Choose and Attorney if needed
• A closing agent

A good Real Estate Agent will simplify the process.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

HAPPY NEW YEAR!

Theme for 2008. Accept it, or join the foreclosure line!

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com  

The Recuset Group

Some Relief for Those Less Fortunate

The National Association of Realtors® thanked President George W. Bush for signing the Mortgage Forgiveness Debt Relief Act into law. The president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home due to a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt.

“NAR has been advocating for such a change to the IRS tax code for nearly 10 years. We have always believed that it is clearly an issue of fairness and of not kicking people when they are down. By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.

“Today’s bill (Dec. 20, 2007)will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership.”

Some background on the issue:

Realtors® Urge President To Sign Tax Relief Bill Quickly To Ease Foreclosure Burdens

WASHINGTON, December 18, 2007 - 

Many families and individuals are one step closer to seeing tax relief, thanks to the passage of the Mortgage Cancellation Tax Relief Act by the U.S. Senate and House of Representatives, according to the National Association of Realtors®. Since the early 1990s, NAR has advocated repealing the current law that forces individuals to pay an income tax when they have had a loan forgiven in either a foreclosure, a sale in a market where prices are declining or because the lender grants new mortgage terms.

“In sending this bill to the president, Congress made a good decision today that will affect many Americans who find themselves in a truly bad situation,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “As the leading advocate for housing issues, NAR believes that changing the IRS code is an issue of fundamental fairness. It will relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These people are already in financial distress and are most likely unable to pay additional taxes.”

NAR is committed to continuing efforts to make the horror of losing a home less burdensome for families. “This is not only about the subprime turmoil we are currently experiencing. This is about families where job loss, divorce, health issues, a drop in the value of the home or other unfortunate circumstances have caused them to lose their home or have to sell that home for less than the amount owed. Clearly, it is unfair to tax people on a phantom income when they most likely have no cash with which to pay the tax,” said Gaylord.

The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less then was borrowed, that difference is considered income and is subject to the tax.

The Mortgage Cancellation Tax Relief Act would ensure that any debt forgiven on any mortgage debt secured by a principal residence will not be taxed. The legislation includes a provision to safeguard against abuses. The provision, similar to one that already exists for commercial real estate owners, would treat commercial and residential property equally.

“Realtors® are about building communities, not just selling homes. We must work together to prevent the dream of homeownership from becoming a nightmare,” said Gaylord. “This is just one step that will help families get on with their lives and begin rebuilding their economic security. As the president has been a proponent for this change, we hope he will quickly sign this bill into law.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com  

The Recuset Group

Clean contracts may be a thing of the past

We (real estate agents) often talk about the merits of a clean contract. A clean contract, or an offer to purchase is simple and straight forward - one that’s not complicated by lots of contingencies.

In a tight market, those with hang ups (contingencies) lose to the quickest and cleanest offer. In a soft market, contingencies become more prevalent and important because, let’s face it, the reason the market is soft is because there is an unbalance in the supply and demand, and therefore, must proceed with caution.

A contingency in a real estate purchase is something that must be satisfied in order for the sale to go through. Contingencies protect buyers and sellers, but they also provide opportunities for real estate transactions to fall apart.

For example, the buyers may need to sell another property to come up with enough cash for the down payment. If  their property sells, the deal goes forward. If it doesn’t, the deal more than likely will fall through. Other common contingencies are for inspections, for financing, and for approval by other parties (like attorneys or accountants).

Less-common contingencies are sometimes more difficult to satisfy. Perhaps the buyers only want to buy a property if they can modify it, or use it, for a specific purpose-more common in commercial real estate. For example, they might need city approval to run a day-care center.

Given the emotional of home buying and selling, most buyers and sellers prefer the cleanest contract possible.

In today’s soft market, being able to offer a clean contract may give you an advantage when negotiating with the sellers. In other words, the more contingencies there are, the more opportunities there are  for something to go wrong.

In my opinion, the most important contingency in a real estate contract is for financing. If you write an offer without a financing contingency, you may risk losing your deposit money if you can’t get the loan.

You should also have a contingency for inspections- a time frame from the effective date and set parameters.

To make a clean offer, get your financing in order and take care of as many contingencies as possible before you start negotiating.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com  

The Recuset Group

Mortgage Insurance premium is deductible

 

A break for borrowers (the few that qualify) paying a m0nthly mortgage insurance premium. President George W. Bush signed shortly before the close of 2006.

Some of the provisions:

One Year Term. The deductible applies only to Mortgage Insurance policies issued in 2007 for homes purchased in 2007. It doesn’t apply to premium payments for policies issued before 2007.

Applicability. The deduction applies to private Mortgage Insurance, and to FHA, VA, and Rural Housing Service premiums as well. The mortgage insurance premium amount is to be treated as mortgage interest.

Income Eligibility. The new deduction is available only to individuals or families with less than $100,000 adjusted gross income (AGI) on a joint or single tax return ($50,000 for married filing separately).

Premium prepayment. Individuals who claim the deduction are not permitted to prepay premiums that are otherwise due after 2007. The provision expires for any premium payment that’s paid or that accrues after Dec. 31, 2007.

Mortgage Prepayment. If a mortgage (other than a VA, FHA, or RHS mortgage) is prepaid during 2007, the unamortized premium balance on that mortgage isn’t deductible. (The unamortized premium balance is the amount of premium that would have been paid in a particular year if the payments had extended throughout that year.)

Notification. The home owner is supposed to receive a statement from either the  lender or the mortgage insurance provider stating the proper amount of the mortgage insurance deduction. That information will also be provided to the IRS.

Given it’s one-year authorization and limited applicability, it’s not known when or if the IRS will provide additional guidance for the deduction. How’d yah like them apples!

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: BailOutCentral@yahoo.com
The Recuset Group

Lost whithout the net

O.K., I’m back. My computer (laptop) went out on me and now I finally replaced it with another. (Toshiba to HP). It takes, or at least it took  me a while, as you can see from my last post a few months ago, to analyze, scrutinize and then allow my hard earned money to part my wallet. 

It’s amazing the feelings and emotions one can go through when all of a sudden you find yourself without a computer. Of course, it’s not like I’ve lost business because of it. Well, maybe I have (what I don’t know wont hurt me). I really felt out of touch, but because I’ve been without a computer, well, not entirely (I used the office desktop whenever I really had t0), It forced me to have more face to face with my clients and it really has paid off. Resulted in creating closer bonds and more genuine relationships with my clients, which I consider friends. One can only hope to reap while you sow.

Times like this- a crappy market, makes marketing and networking a must do to preserver. So to that end,  I will embark in this thing called blogging. So stay tunned for some real real estate scoop that you can use. No fluff.

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272

Richard Recuset-Multi-Million Dollar Producer

RecusetRealEstate@Gmail.com

Metal Roofs approved for 90 days only in S.Gables

Matal roofs in the city are approved only south of South Dixie Highway and only for 90 days, after which applications for such roofs would be suspended.  

The commission approved the compromise measure as a way to gage the impact of the new law without moving forward with a citywide law. The concerns are that approving for the whole city could significantly alter the character of many city neighborhoods, especially in the north part of the city. Liniting the program would give the city time to  study how the metal roofs would be received on a bigger scale, possibly across the whole city at a later date.

The commission is split at this time on whether to allow full or partial city coverage. Both scenarios require approval by a full session of the Board of Architects and the new city architect to make sure that the metal roofs would only be allowed in appropriate cases and would not be forced on Mediterranean revival architecture style homes or other historically important residences.

It seems that if by just allowing metal roofs on certain ranch style or non-descript architectural style homes in the city it would solve this issue. And by doing so in a contoled manner, it would do little to negatively affect the character of those neighborhoods. allowing the controlled use of metal roofs would raise the aesthetic and economic value of many homes.

 

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:http://recusetrealestsate@gmail.com Richard Recuset-Multi-Million Dollar Producer

 

Market Snapshot

Secondary Market 6/15/2007 11:18:00 AM Fannie Mae (Subject to change) Agencies  30-Day 60-Day 90-Day FHLMC   6.53% 6.57%   Fannie Mae   6.69% 6.71%   Weekly Indicies     06/08/07 06/01/07 6 Month CD   5.35% 5.34% 1 Year T-Bill   4.98% 4.96% 2 Year T-Note   4.99% 4.92% 3 Year T-Note   4.98% 4.88% 5 Year T-Note   4.98% 4.86% 10 Year T-Note   5.02% 4.90% 25+ Year T-Bond   5.12% 5.02% Monthly Indicies     Jun  May 11th Dist. COFI 4.224% 4.299% 6 Month LIBOR 5.384%  5.358% 1 Month LIBOR 5.321%  5.320% MTA Index 5.022%  5.029% Other   Prime Rate 8.250%     Fed. Funds Rate 5.250% Discount Rate 6.250%  12 Month LIBOR 5.490%  (daily)

Don’t know what to do with your money? Park it in a CD. Better than leaving it in a bank account. Just a thought!

For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:http://recusetrealestsate@gmail.com
Richard Recuset-Multi-Million Dollar Producer