Gulf Coast Associates' Blog: Around Florida

Many homeowners who have opted for a short sale still seem to have a great deal of confusion over when the lender will issue an IRS 1099 form. As we described in our post A Reminder - Mortgage Workouts Are Now Tax-Free for Many Homeowners, there are specifics as to how this situation is handled and who will actully incur a tax liability.

When a lender forgives a debt in a short sale transaction, the benefit the homeowner receives is the same as if they were receiving income. Lenders that forgive all or part of the debt are obligated to issue a 1099. Here's how they are applied to differing short sale transactions:

• For Primary Residences - The Mortgage Forgiveness Debt Relief and Debt Cancellation Act is in effect until December 31, 2012. Under this…

Read Full Post

After a sizzling first six months of the year, real estate sales in Southwest Florida remained strong in July. In fact, July marks the thirteenth month in a row sales have climbed in Lee and Collier counties. The Cape Coral and Ft. Myers market area saw total sales soar over 100% on a year over year basis and the Bonita Springs and Naples market area wasn't too shabby either, up 67%.

Overall, Florida's existing home and condominium sales have risen on a year over year basis for eleven straight months. And, for three consecutive months in a row, the statewide median sales price ($147,600 in July) for existing homes rose over the previous month's figure and it also was higher than the statewide median price reported each month since the start of 2009. Not…

Read Full Post

The residential task force set up by members of the Florida Supreme Court and others to review current foreclosure guidelines used by Florida courts recommended Monday that all cases involving "primary homesteaded foreclosure homes" should be subject to mandatory managed mediation. In addition, the 15-member panel also said that judges should expedite cases dealing with vacant or abandoned properties.

According to the task force, Florida should require mediation between lenders and borrowers to help the courts better manage the crush of foreclosure cases and improve the borrowers' chances of keeping their home. Other recommendations included having the state standardize some court required forms, creating a foreclosure clearinghouse on the Web and making…

Read Full Post

Florida homeowners are saving hundreds of dollars on their property insurance premiums thanks to increased coverage options and their own efforts to claim discounts from getting a wind mitigation report on their homes' storm resistance. Many customers are seeing a 10 to 20 percent drop in premiums from just one year ago.

Local insurance agents are saying the property insurance market today is very different from just a few years ago, when homeowners might only have found one company willing to write coverage in their area. Basically it was a take it or leave it scenario. Today however, most folks have the opportunity to choose from between three to five options as market forces have increased competitive pressures and brought homeowner insurance prices…

Read Full Post

I wanted to follow up on our previous post on Short Sales and the Florida Foreclosure Rescue Fraud Law. In it, I referenced the following situation:

...One of these individuals recently made an interesting observation regarding "short sale" listing prices and fraud on the public. If you notice in Attorney General McCollum's statement above, "...ascertains that the fair market value of the home is less than the loan amount...", this particular complaint might just carry some weight. Specifically, the complaint is about the practice (at least in our area) of some agents listing "short sales" at values they know the lender will not accept. How do they know this you say? Well, because in many instances, they are appending a very recent appraisal to the… Read Full Post

According to a letter sent to the Florida Association of Realtors (FAR) by Attorney General Bill McCollum, the new Foreclosure Rescue Fraud Prevention Act does not prohibit Florida real estate agents from being involved in a short sale, as long as the only compensation they seek for their services is the commission on the sale.

The new law, which took effect Oct. 1, 2008, is designed to help protect homeowners who are facing the possibility of foreclosure from individuals who would seek to prey on them. FAR had asked the AG's office for an advisory explanation because many individuals were interpreting the new law's guidelines as putting real estate agents at risk for fines for being involved in a short sale transaction. According to McCollum, "as long as…

Read Full Post

Under the Neighborhood Stabilization Program enacted as part of the Foreclosure Prevention Act of 2008, 48 local and state governments in Florida will receive U.S. Department of Housing and Urban Development (HUD) funding specifically for foreclosure relief.

The program is designed to provide local governments with a source of funding to respond to rising foreclosures and declining property values. Florida was allocated $541 million, which includes $91 million to the Department of Community Affairs and $450 million for 48 local governments.

Eligible uses for the programs funds include:

• Buying foreclosed properties.
• Demolishing or rehabilitating abandoned properties.
• Offering down payment and closing cost assistance to low-to-moderate…

Read Full Post

It looks like wind storm homeowner's insurance costs may become more expensive for some Florida homeowners come next year. Citizens Property Insurance Corp. officials announced this past Tuesday they will require some 350,000 wind-only customers within the state to reapply for coverage beginning February 1, 2009.

Citizens is the state's insurance company of last resort and has become the largest insurer in Florida covering some 1.2 million customers. The company cited two reasons for the changes. One, they are modernizing their wind only policies and integrating everyone with that type of coverage into their new internet based computer system; and, two, they want to ensure that these homes are insured up to their true replacement cost values.

A synopsis…

Read Full Post