Foreclosures down 14% in June, lowest in 6.5 years

from Florida Realtor News

IRVINE, Calif. – July 11, 2013 – U.S. foreclosure activity decreased 14 percent in June to its lowest level since December 2006, despite a 34 percent jump in judicial foreclosure auctions from a year ago, according to RealtyTrac’s Midyear 2013 U.S. Foreclosure Market Report.

The report finds 801,359 properties with foreclosure filings – which includes all default notices, scheduled auctions and bank repossessions – in the first half of 2013. It’s a 19 percent decrease from the previous six months and down 23 percent from the first half of 2012. One in 164 U.S. housing units had at least one foreclosure filing in the first six months of the year.

June report

• 127,790 U.S. properties had foreclosure filings in June, down 14 percent from the previous month and 35 percent from a year ago. It’s the lowest monthly level since December 2006 – a six and a half year low.

• The number of new foreclosure starts in June dropped 21 percent from the previous month and 45 percent from a year earlier, hitting its lowest monthly level since December 2005 – a seven and a half year low.

• In Florida, new foreclosure starts dropped 26 percent. Other states with a significant drop in starts include Nevada (down 84 percent), Colorado (62 percent), New Jersey (40 percent) and Illinois (39 percent).

• June bank repossessions (REO) decreased 9 percent compared to May and 35 percent from one year earlier. Bank repossessions in June decreased from a year ago in 34 states.

• Judicial foreclosure auctions (NFS) were scheduled for 28,296 U.S. properties in June, up less than 1 percent from May but up 34 percent year-to-year. States with substantial annual increases in scheduled judicial foreclosure auctions included New Jersey (up 103 percent), Florida (up 100 percent), Maryland (94 percent), New York (66 percent), and Illinois (65 percent).

• Florida, Nevada, Illinois, Ohio and Georgia posted the top five state foreclosure rates for the first half of the year, while five Florida cities posted the top five metro foreclosure rates: Miami, Orlando, Jacksonville,Ocala, and Tampa.

Daren Blomquist, vice president at RealtyTrac, says that foreclosures are “no longer a problem nationally,” but they continue to be a problem in states like Florida where the long court process has delayed the progression. However, even states like Florida will soon see an improvement.

“The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion,” says Blomquist. “Given the rising home prices in most of these markets, it is an opportune time for lenders to dispose of these distressed properties, either at the foreclosure auction to a third-party buyer, or by repossessing the property at the auction and subsequently selling it as a bank-owned home.

Half-year 2013 Florida report

Florida posted the nation’s highest state foreclosure rate in the first half of 2013: 1.74 percent of housing units with a foreclosure filing (one in every 58) during the six-month period – nearly three times the national average.

A total of 155,264 Florida properties had a foreclosure filing in the first six months of the year, the most of any state and up 12 percent from a year ago.

In June, Florida foreclosure starts (LIS) decreased 23 percent from a year ago but scheduled foreclosure auctions increased 100 percent and bank repossessions increased 14 percent during the same time period.

Other states with foreclosure rates among the 10 highest in the first six months of 2013 were Arizona (0.81 percent of housing units with a foreclosure filing), South Carolina (0.80 percent), Maryland (0.80 percent), Washington (0.78 percent) and Indiana (0.66 percent).

Half-year 2013 Florida cities report

Florida had all five of the top metro areas for foreclosure in the first half of 2013. Miami ranked No. 1 among metropolitan statistical areas with a population of 200,000 or more – 2.35 percent of housing units had a foreclosure filing (one in every 43) during the six-month period – nearly four times the national average.

Four other Florida cities joined Miami to round out the top five metro foreclosure rates in the first half of 2013: Orlando at No. 2 (1.94 percent of housing units with a foreclosure filing), followed by Jacksonville (1.91 percent), Ocala (1.85 percent) and Tampa (1.74 percent).

Florida cities accounted for a total of 12 of the top 20 metro foreclosure rates.

In Florida, the foreclosure process – from first notice to REO status – took an average of 907 days in the first half of 2013, or roughly two-and-a-half years.

In the U.S., a foreclosure averaged 526 days, though two states have a longer foreclosure process than Florida. In both New York and New Jersey, the average foreclosure takes 1,033 days.

© 2013 Florida Realtors®

Real estate ownership rights for same-sex couples in Florida

From Florida Realtor News

FORT LAUDERDALE, Fla. – July 10, 2013 – Question: My partner and I are looking to buy our first house together, but Florida doesn’t recognize our marriage. Does the recent Supreme Court decision help us in terms of owning real estate? – Steve

Answer: Not yet. It’s likely to be a while before the high court’s marriage ruling trickles down to real estate law.

Typically, when a married couple buys a home, they do so as “Tenants by the Entireties,” which is a legal status of ownership that gives the spouses certain privileges. For example, when one spouse dies, the other automatically owns the property alone without any further action.

While same-sex couples aren’t allowed to own property this way in most jurisdictions, including Florida, a similar bundle of rights can be created. I have long advised that unmarried couples buying property together enter into an agreement regarding the management of the house. That pact also should specify what happens to the home if the relationship sours.

Same-sex couples should follow this advice as well. They can set up a trust agreement for the ownership of the house, and the details of the agreement can help decide what happens in the event of a split or death of a partner. Certain types of trusts can even provide for protection from creditors, if that’s an issue for you. So while the simplicity of Tenants by the Entireties ownership structure is not yet available to most same-sex couples, proper planning can give them the same legal protections.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

Copyright © 2013 Sun Sentinel (Fort Lauderdale, Fla.). Distributed by MCT Information Services.

Happy 4th of July

On this day of family picnics, and fireworks and joy, take just a few minutes to say thanks for the privilage of being an American. Most of us have never lived anywhere else, and especially not in a third world country where our freedom and liberties are unheard of. Life is not perfect  in America, but it the only place I would ever want to be. With the majestic landscapes, from ocean shores to rocky mountains, to wind swept prairies to rolling hills – there is no place like home.

Unless you are a native American, your family once came from somewhere else. Perhaps it was just a generation ago . . .  or perhaps like my family, you have been hear since this all began in 1776.  My father’s family first arrived in America  on Nov. 9, 1738. They sailed on a ship called the “Charming Nancy” and they only spoke German. It took over a hundred years for my mother’s family to make it to the “new world” from Sweden in mid 1850′s. Eventually both families ended up in Ohio and two families merged into one, the first mix of nationalities when my parents married in 1940.

The homestead house, painted by Koczwara, still owned by my cousin

I was fortunate to grow up on the same land that my father, and grandfather and great-grandfather lived on. My neighbors were my cousins  and life was a simpler time. Now only one family member lives on the family homestead, that is soon to fall out of the family forever. It saddens me to know that part of our history will be gone. But we are more than “Boardmanites” or Ohioians, (and now a Floridian),  we are Americans.

I am one of those people who can’t sing the Star Spangled Banner because of the lump in my throat.  I stand when our flag passes me in a parade , and I put my hand over my heart. I understand the sacrifice that hundred of thousands of men and women have paid since 1776 to give us the country we have today. No, it’s not perfect and as long as we have humans in all our frailties, it will never be perfect  . . . but This is MY Country, Land that I Love.

Remember those that gave their lives for our freedom today. And take a minute to pause for the other types of heroes as well . .  . the first responders, the police, the paramedics, the fireman —- ah, the fireman. While you re splashing on the beach, or clapping to the high school marching band, say a little prayer for the families of the 19 fireman that lost their life in the Arizona fires.

Then laugh from your belly, sing a little more in key, clap your hands a little louder and ooh and ahh at every firework, and say “Thanks for letting me be an American.”

Have fun and stay safe.

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Real estate Q&A: Divorce doesn’t wipe out joint mortgage

From Florida Realtor News.

FORT LAUDERDALE, Fla. – July 3, 2013 –

Question: I got divorced in 2010 and deeded the house to my ex-husband. Little did I know that mortgage would still be haunting me today. I’m trying to get a loan for a new house, but the lender sees that other mortgage and won’t approve my financing. What can I do? – Anjie

Answer: The first thing to do is to ask your ex-husband to refinance the mortgage in his name alone. Normally, a married couple will borrow for their home together and have to put both names on the mortgage to qualify. When the marriage turns sour, one spouse will get the house and make the mortgage payments going forward. The divorce, however, is from each other. The loan from the bank is not affected.

The other spouse rarely realizes this until he or she gets turned down for a new mortgage because the debt load is too high. Or he or she gets served in a foreclosure lawsuit when the ex-spouse stops making the payments. This sort of problem is best dealt with before the divorce is final. Have the property sold or refinanced into one name while all of the other details of the divorce are being negotiated.

Trying to get a former spouse to cooperate several years after the divorce can be an exercise in futility. By shopping around to several lenders, you may find one that will look at the situation and the divorce paperwork and make an exception for the debt on the old house – especially if your ex-husband makes his payments on time.

About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.

© 2013 Sun Sentinel (Fort Lauderdale, Fla.). Distributed by MCT Information Services

What’s all this talk about Home Warranties?

With my twenty four years of experience in real estate, I can safely say that a Home Warranty is one of the best securities both buyers and sellers can have. Who pays for the warranty can be a negotiated item, but I recommend sellers to take one out before listing their home. Like Murphy’s Law, the minute you put your home on the market, unexpected repair issues arise, either while it is on the market or discovered during a Home Inspection.

A home protection plan is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances. It lets homeowners know they’re okay if something goes wrong with a covered item.

Home protection plans can cover a wide variety of properties, including single family homes, new construction homes, condos, vacation homes, townhouses, foreclosure properties and multi-unit properties such as duplex/triplex/fourplex.

Besides helping to take the worry out of purchasing a home with older systems and/or appliances, a home protection plan helps guard against potentially high costs of repairing or replacing items in case of a breakdown. Unexpected repairs can be expensive for most families. A home protection plan can help guard against some of the unexpected costs of home ownership.

HOW DOES A HOME PROTECTION PLAN WORK?

When a covered item breaks down, customers can request service online or by calling to speak with a trained customer service representative. After a service request is received, one of our approved contractors will contact the customer to schedule a time to diagnose the problem. A service call fee, per trade, is due when the service contractor arrives to diagnose the problem.Typically, once repair or replacement is complete, a follow-up survey will be sent out to measure your satisfaction regarding the service performed.

WHO DOES THIS PLAN BENEFIT?

For Sellers

1. Adds value to listings and may help homes sell faster
2. Improves marketability of homes
3. Distinguish listings from others on the market
4. Boost buyer confidence
5. Protect the covered system components and appliances while it is on the market
6. Remove worry about costly, covered repairs

For Buyers

1. Provide relief from unexpected, covered breakdowns
2. Bring an expedited repair process on covered items
3. Give access to the company’s network of qualified contractors
4. Make requesting service easy either online or over the phone — 24 hours a day, 365 days a year