Mount Dora, Lake County, Florida – Our hearts go out to the   many who have already been affected by tropical storms and other severe weather conditions this year.   For those whose properties have sustained damage, now is a very important time to evaluate the damage and make the necessary repairs so that further damage will be less likely to occur during the next storm.    Some of the effects may not be readily visible, so please take some time to  walk around the house and property to  confirm  that all is safe and sound.    We also recommend hiring a professional home inspector to assist you with this evaluation.    The dollars you spend with your inspector up front will be well-worth the investment  considering the costly risk of unrecognized damage.   For those who did not suffer any ill effects, this recent tropical storm is  great motivation for hurricane preparedness.

You may want to  check  with your insurance office to see if your existing home owner’s insurance policy includes coverage for damage related to things like lightning, winds and  flooding, and any damage caused by  or during a hurricane.   This is also a good time to take inventory of  (and photograph)  your belongings to be sure the that the contents coverage portion of your policy is adequate.    If you’ve made improvements to your home or property recently, or if you’ve never checked to see what the replacement or rebuilding cost is for your home, please be sure your insurance company has the most up-to-date record of your home’s value and improvements so that if you need to make a claim you will have a greater probability of sufficient coverage.  

To reiterate the importance of the insurance matter…check to see what coverage you have for your automobiles that  are damaged  during storms.   If  the vehicle is not in operation at the time of the damage, the coverage may be different than if it were sustained while driving.

General home  preparation tips include some of the following things, most are to prevent water and debris intrusion to your home:

Caulk around windows and doors and  install or replace  weather stripping.

Clean out gutters and downspouts and make sure they are securely attached to the house.   For areas that are prone to washout, you can purchase gutter extensions and adapters that  connect  flexible piping to divert water flow to  other water retention areas.    

Inspect your roof  to be sure that all shingles or tiles are attached and anything attached to the roof is secure.   Remember your TV antennae, cable/satellite dishes, too.

For severe weather, install  your storm shutters, either professionally or make your own “custom” shutters with plywood.

Clean up and put inside any non-stationary items on your property by placing them inside, in the garage, or at least under cover to minimize potential  damage.   This includes things like  the trash cans, recycling bins,  lawn equipment, hoses and manual lawn sprinklers, toys, lawn furniture, wind-chimes,  and even potted plants.  

We’ve already seen the local utility companies trimming  the trees in the easements and right-of-ways that  surround the power lines.   In addition to that,  you will need to  have those on your private property inspected and trimmed.    Tree trimming by a licensed, bonded, and insured professional is the best recommendation.   They can trim branches that  hang over your home,  any limbs that are  already noticeably damaged, and by they can also improve the likelihood that your  trees will  survive the high winds by  thinning  out dense canopies to allow maximum wind flow through the treees.   If you do  have any limbs that fall onto  power lines do not attempt to remedy the problem on your own.   Call  your power company immediately and await their response team.

On a related note, to be sure that you are not  the victim of a scam, you can do a few things:    a) ask for their references, b) check with the the referring party, and c) most importantly, you can also  log on to myfloridalicense.com to validate  that your professional is licensed with the State of Florida.   Be sure the job order is made in writing so that each of you know what to expect from the other.  

We would by happy to  give your our  personal recommendations at your request.   Email Tanya@SellingLakeCounty.com or call us at 352.735.7915.  

Be safe!

On July 19, 2008 at 12:00 PM, you are invited to an Open House at 2471 E Crooked Lake Club Boulevard in Eustis. If you are looking for a Resale – single family property in this area, don™t miss this rare opportunity to visit this magnificent property. For a preview of this Resale – single family property, check out my site at SellingLakeCounty.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

Calling all buyers!   We have fabulous news for you from our legislature in Tallahassee.   $5,000,000, yes, that’s five million dollars,  was  just released  this morning as part of the Homeownership Pool (HOP) Program.   It gets better.   Another $5 million dollars will be released in 6 months.    These funds are awarded as directed by Rule Chapter 67-57, Florida Administrative Code (F.A.C.)  by the State’s workforce housing program  to eligible home-buyers and according to our report from the Florida Association of Realtors, the funds are  allocated  in four  ways:    20% to  Community Housing Development Organizations (CHDOs), 10% to  Self-Help Housing, 45% to  Non-Participating Jurisdictions (Non-PJs) and 25% to  Participating Jurisdictions (PJs).   The interesting part  of  this on-going State program of 25 years is that the funds are distributed via  an online reservation program to developers on a first-come, first serve basis, thereby  enhancing the developer’s ability to provide down payment assistance to  eligible buyers.    

Are you  eligible for a share of this money?   For help finding out, please contact us directly.   For more information regarding the HOP  directives  go to http://www.floridahousing.org/Home/BusinessLegal/Rules/67-57.htm.  

Mount Dora, Lake County, Florida

John Paul Mathews
Mortgage Advisor
Cell: 352-434-2246
Office: 352-508-4377
Home: 352-357-8860
John.Mathews@mortgagefamily.com
John.Mathews@embarqmail.com

What did our interest rates do this week? Slightly Lower

Weekly Application Survey Reported by Mortgage Bankers Association – www.mbaa.org
Please note that on the national average the 30 year fixed is at 5.91% with 1.12 Points on an 80%
LTV & a 15 year fixed is at 5.49% with 1.07 Points on an 80% LTV. – JPM

WASHINGTON, D.C. (May 7, 2007) ” The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications

Survey for the week ending May 2, 2007:
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.91 percent from 6.01 percent, with points decreasing to 1.12 from 1.26 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.49 percent from 5.53 percent, with points decreasing to 1.07 from 1.24 (including the origination fee) for 80 percent LTV loans.

The Housing Crisis Is Over?  
The Wall Street Journal May 7, 2008, 11:08 am “www.wsj.com
Is it time to start house hunting? Cyril Moulle-Bertaux opined that April 2008 marked the bottom of the U.S. housing market.   And in his R.O.I. column WSJ™s Brett Arends makes a similar argument. He looks at the data on housing starts  since 1972, which shows that new housing starts slumped below the one million mark in March. Every time that has happened in the last 50 years, Mr. Arends writes, it proved to be the bottom of a recession.

œIt™s bottom-fishing time, I think,says Wellesley College Prof. Karl E. Case in the column. Mr. Arends says that he is one of the leading experts on the housing market in the country. œThere™s got to be bargains in Florida, Arizona and Nevada.

Mr. Arends points out that Bill Wheaton, a legendary real-estate professor at the Massachusetts Institute of Technology, has also suggested that fears about the real-estate crash were overdone. And he points to a private portfolio manager in London, who said the home-building stocks on Wall Street were at last a œbuy.

In the Journal editorial, Mr. Moulle-Bertaux suggests that the housing market will revive, as more first-time buyers are lured in by falling prices and lower mortgage rates. œHomes on average are back to being as affordable as during the best of times in the 1990s,he writes. œNumerous households that had been priced out of the market can now afford to get in.

Soft Existing-Home Sales Expected to Rise Midsummer
Wednesday, May 07, 2008 “www.originatortimes.com

WASHINGTON, D.C. – A flat pattern in home sales activity should continue for the next couple months before improving over the summer, according to the latest forecast by the National Association of Realtors ®.

Lawrence Yun, NAR chief economist, said the extent of an expected recovery hinges on better access to affordable loans. “Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas,” he said. “As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half.   Some time is needed for FHA and new conforming jumbo loans to become widely available.”

Our thanks to Ruben Guzman, Assistant VP in Mortgage Sales at Bank of America, for his quick response.  

Q:   Are there any programs available to help me purchase a home?

A:   The Nehemiah Pathways program is a good option for potential buyers of new or resale homes, whether you are a first-time buyer or repeat home buyer.   There are no geographic restrictions in this program, which is available in all 50 states.   It permits gift funds of up to 6% of purchase price towards closing costs/reserves OR the seller can contribute up to 6% of the sales price to the Nehemiah down-payment program, and the buyer can use the funds  to make the down payment and pay part/all of closing costs.

Q:   What up-front costs are involved?

A:   All buyer inspections (home inspection, well, septic, pest, etc.), and a $315 appraisal deposit fee for FHA,  or $355 for VA, refundable only if customer is declined or withdraws before the appraisal has been completed.

Q:    Are the rates higher with buyer assistance programs than they would be with traditional loans?

A:   In most cases, rates are generally at or below conventional loan prices.

Q:   How important is my credit score for a home-buyer assistance program?

A:   FHA minimum credit score is 560, VA is also 560.   FHA offers purchase financing up to 97.75% loan-to-value (95% on cash out refinance).   VA offers purchase financing up to 100% loan-to-value.      

For more information, please contact us at 352.267.8278 or email TheExperts@SellingLakeCounty.com or contact Ruben Guzman at 352.455.0231 or Ruben.Guzman@BankofAmerica.com.

Weekly Application Survey Reported by Mortgage Bankers Association – www.mbaa.org

What did our interest rates do this week? Relatively Unchanged

Please note that on the national average the 30 year fixed is at 6.01% with 1.26 Points on an 80%
LTV & a 15 year fixed is at 5.53% with 1.24 Points on an 80% LTV. – JPM

WASHINGTON, D.C. (April 30, 2007) ” The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.01 percent from 6.04 percent, with points increasing to 1.26 from 1.04 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.   The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.53 percent from 5.60 percent, with points increasing to 1.24 from 1.06 (including the origination fee) for 80 percent LTV loans.

NEW YORK (CNNMoney.com) — The Federal Reserve cut its key interest rate by a quarter percentage point Wednesday, but the central bank’s statement signaled it may be the last rate cut for at least a while.

The cut took the federal funds rate, the key overnight rate at which banks loan money to one another, to 2%. It had been at 5.25% as recently as September, when the Fed started slashing rates in an effort to spur the economy and keep the nation out of recession.

The fed funds rate, as it is more commonly known, is a benchmark for home equity lines of credit, credit cards and other consumer loans as well as the prime rate used for short-term business loans.

The Fed’s statement repeated earlier ones about how rate cuts up to this point should help to spur the economy and lessen the risk of a downturn. But the central bank removed the following language form the current statement: “downside risks to growth remain.”

John Paul Mathews
Mortgage Advisor
Cell: 352-434-2246
Office: 352-508-4377
Home: 352-357-8860
John.Mathews@mortgagefamily.com
John.Mathews@embarqmail.com

Mount Dora, Lake County, Florida

Ruben Guzman, our local mortgage advisor with Bank of America, provided us with the following information.   Call (352-267-8278) or e-mail TheExperts@SellingLakeCounty.com with any questions.

The Market is adjusting to bring stability to the Mortgage Industry. A more conservative approach/move on behalf of Bank of America to guarantee the quality of our loans to our Buyers, Share holders and Investors.

Expect the near future to bring more tightening of products and their parameters.
 
Remember that VA still can do 100% financing and that FHA is only 3% down.

Also, do not forget NEHEMIAH, it can use seller funds, convert them into gift funds and assist in down payment for the buyers.

Make special note of the increase in the minimum credit score required to go from 80% to 90 LTV on any product.

We are also suspending our ARM (Adjustable Rate Mortgage) products and the majority of non-conforming products.

Investment Property Limits

Conforming products and programs:
1.   LTVs over 80% are only allowed for Purchase and Rate/Term Refinance on 1-2 units up to a maximum LTV of 90%.
2.   LTVs > 80% require a minimum FICO score of 680.  
3.   All other Property Types, the maximum allowed LTV is 80%.
4.   In Declining Markets, the maximum allowed LTV is 80%, regardless of loan purpose and property type.
Cash Out Refi Limits

Conforming products and programs:
1.   LTV™s over 80% are only allowed on 1-2 unit Primary Residences, up to a maximum 90%.
2.   LTVs > 80% require a minimum FICO score of 680.
3.   All other Property and Occupancy types, maximum allowed LTV is 80%.
4.   In Declining Markets, the maximum allowed LTV is 80%, regardless of property type and occupancy.

Mount Dora, Lake County, Florida

Bly J. Lucas, processor and Tim Hoban, attorney at law, from Apple Title were our guest speakers today.Bring these documents to closing or provide them to your closing processor prior to closing

Mount Dora, Lake County, Florida

What did our interest rates do this week? Relatively Unchanged

Weekly Application Survey Reported by Mortgage Bankers Association – www.mbaa.org

Please note that on the national average the 30 year fixed is at 5.78% with 1.11 Points on an 80% LTV & a 15 year fixed is at 5.39% with 1.11 Points on an 80% LTV. – JPM

WASHINGTON, D.C. (April 16, 2007) ” The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications

Survey for the week ending April 11, 2007:
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.74 percent from 5.78 percent, with points decreasing to 1.05 from 1.11 (including the origination fee) for 80 percent loan-to-value (LTV)
ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.27 percent from 5.39 percent, with points increasing to 1.19 from 1.11 (including the origination fee) for 80 percent LTV loans.

John Paul Mathews
Mortgage Advisor
Cell: 352-434-2246
Office: 352-508-4377
Home: 352-357-8860
John.Mathews@mortgagefamily.com
John.Mathews@embarqmail.com

Mount Dora, Lake County, Florida

If you or someone you know is considering selling property in this market and you would like to know more about  short sale eligiblity  or the short sale process,  please read on.   It is our mission to share what we learned about this process with you so that we can help you become better equipped to deal with this scenario, whether you are a seller in this situation, or a buyer who has found a property that is undergoing the process.

One of the first, most important things to know is this:   your Realtor is your liaison.    In the experience of one of our advisors, no short sale application is accepted unless the property is listed for sale with a Realtor.    Although this was  not the case  earlier on,  Realtors have become the conduit of choice  between the banks and the sellers.   Realtors  have a consulting role and  you can expect  them to collect  personal information as part of this process.   Executing an  authorization that permits your Realtor and the  title company to  correspond  with the lender on your behalf and conducting a title search  on the property will be  the first things your Realtor  may require.   So, go ahead and contact  your Realtor to begin the process.        

Next, a seller should contact a tax professional, either a CPA or a tax attorney, to evaluate the tax consequences for that particular transaction.   Each situation is unique and  each  bank’s  loss mitigation department handles applications on a case-by-case basis.

Here are some other important points:

• Sellers must have a financial hardship and be able to  substantiate the financial hardship in writing
• There is about a 100-point difference between a short sale and a foreclosure that impacts the seller’s  credit rating.
• If  there are child support  judgements or  federal tax liens applied to the seller or the property, the bank will not  absorb these  as part of the short sale      
• You may be issued a Form 1099 for the amount of “debt relief”  provided
• There may also be state taxes due  for primary residents of other states going through a short sale of a Florida property
• Buyers should not expect the seller or the seller’s bank to cover any of the buyer’s closing costs
• Short sale properties are being sold at market value:   Thinking that a short sale is a “good deal with instant equity” for buyers is a common misconception

Comments or questions?   Feel free to submit through our team blog.   To schedule an appointment or for more information, please contact us at 352.267.8278 (cell) or 352.735.7915 (office).