Some Florida property insurers reverse plans to offer lower prices

A dozen Florida property insurers are sharply reversing plans to offer homeowners lower prices.

Under the new insurance law, the state's insurers are supposed to pass along to homeowners savings they get buying reinsurance from the expanded Hurricane Catastrophe Fund.

Consumers were supposed to see the revised rates by July 1.

Insurer moves anger Gov. Crist

Florida Gov. Charlie Crist said Monday he expects the state to reject recent requests by property insurance companies to raise prices.

Miami sets cap for property tax rate

Miami city commissioners Thursday set a cap for how high the city's property-tax rate can go in the upcoming fiscal year: $7.92 per $1,000 of assessed property value.

That tax rate, a combination of the city's general operating and debt service rates, is a significant drop from the city's current $8.99 combined tax rate. Most other South Florida cities, however, are being forced to implement deeper cuts because of property-tax reforms approved by state lawmakers this year.

Miami was spared from having to make the deepest cuts because new state laws exempted cities that experienced financial difficulties in recent years.

The rate approved Thursday is not final, just a cap. The city could still decide to lower its tax rate further during upcoming budget talks.

Federal plan would cover windstorms

A House panel OK'd expanding an insurance program to cover wind damage -- which could bring comfort to Florida residents

Placesaroundflorida.com

Kirby Collins does a great write up on "South Florida Real Estate Today".

Thanks Kirby. I'm flattered. I appreciate your interest in my blog.

It's all about real estate and real estate is what I do.

How to Finance Foreclosure Properties

Foreclosure properties, REO (Real Estate Owned) property owned by banks and other lenders, and properties threatened with imminent foreclosure all represent great investment opportunities for property buyers. They are the most popular source of affordable deals for those seeking bargain homes, because foreclosures often sell at or below wholesale prices.

Tips on Buying Foreclosure Properties

If you’ve been thinking about buying a foreclosure property as a smart investment or as a second home for your family, you may be on the right track. However, buying a foreclosed home is a task that should not be taken lightly. You need to know the ins and outs of foreclosures and that’s why Bargain Network has put together this must-know list of tips for buying such a property.

Who is your real estate agent?

If you’ve made the decision not to go it alone and work with an agent, your next step will be picking one out. Many rely on the recommendations of friends, lawyers or accountants. Even with those recommendations, you should interview prospective agents.

Questions for the Buyer

Owning your own home is part of the American dream, a dream that’s become easier to attain in recent years. Nearly 7 in 10 American households own their own home, up from 44 percent in 1940. Still, a home is the biggest investment most people will ever make. So, you have to be sure you are ready. If you’ve just caught real estate fever, you could end up buying more home than you can afford.

Searching for a Realtor

Finding Your Realtor

When someone decides it is time to sell their home, they interview several Realtors from different companies to determine which one is best for them. They want someone who will represent them and someone they feel will do an effective job at marketing their home.

However, when someone decides to buy a home, they usually end up with their Realtor through sheer accident. Why don’t homebuyers search for a Realtor the same way that homesellers do?

Why Buying a Home is a Good Idea

The Best Investment

As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.

Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.

But take a second look …

Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down -- that would be an investment of $40,000.

More older adults could get reverse mortgage if FHA reform passes

WASHINGTON – July 23, 2007 – Two million more older adults could put their home to work for them during retirement under current Federal Housing Administration FHA reform proposals. The current FHA limit of $362,790 would rise to $600,000 if legislation in Congress becomes law.

U.S. Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson is urging Congress to quickly enact The Expanding American Homeownership Act of 2007. “If you love your home and want to stay in it for years to come, then a reverse mortgage is your best and safest bet for retirement security. Reverse mortgages offer seniors the financial freedom they deserve, and this legislation could help two million more older Americans turn their homes into retirement nest eggs,” said Jackson.

Many older Americans who have lived in their current homes for several years or decades have seen the value of their homes rise dramatically, especially in recent years. However, in high cost areas, home values have surpassed the congressionally mandated cap of $362,790 for obtaining an FHA-backed reverse mortgage. The Expanding American Homeownership Act of 2007 would make reverse mortgages available to an additional two million seniors by raising the FHA’s Home Equity Conversion Mortgage (HECM) loan limit equal to the Fannie Mae/Freddie Mac conforming loan limit.

Eligible older adults would still have to be 62 years of age or older and have paid off their mortgages or have only a small mortgage balance remaining. The loan amount depends on the value of the home, the age of the homeowner and the expected interest rates. The reverse mortgage does not have to be repaid until the borrower moves out of the home permanently.

Last month, HUD announced that more than 308,000 seniors have used the federally-insured HECM loan program since 1990 to convert the equity in their home into cash without having to move. The volume of new reverse mortgages insured by the FHA’s HECM program has increased 10-fold over the past six years.

To read more about the HECM program, go to: www.hud.gov/buying/reverse.cfm.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

A new way to pay off your house

A different type of home loan, called a mortgage accelerator, has migrated to the United States. It uses home-equity borrowing and a borrower's paychecks to shorten the time until a mortgage is paid off, potentially saving tens of thousands of dollars in interest expense.

VIDEO: Buy your first home in a year

If you'r thinking of buying your first home, it helps to have a game plan. Liz Pulliam Weston offers a practical, one-year plan for making your dream come true.

5 lousy excuses for not buying a home

Hard-core renters can come up with all kinds of reasons to avoid real-estate purchases. Here are some of the usual stories -- and why they just don't wash.

It's still better to buy a home

Renting may be cheaper in the short run, but inflation -- yes, that boogeyman – is the homeowner's friend if you stay in your home longer than 10 years.

Cautious Renters Put Off Buying a Home

Despite widespread predictions that the market will turn around next year, some first-time home buyers are hesitant to make their first home purchase and are choosing to rent instead.

"During the housing boom, the 'rent vs. buy' decision became a 'buy,'" says Manhattan real estate appraiser Jonathan Miller of Miller Samuels. "Now, nationally, the pendulum is swinging the other way."

One reason is financial. Prices in many areas haven’t fallen — or at least they haven’t fallen very much. In expensive markets like San Francisco, New York, and Orange County, Calif., “where do you come up with $100,000 for a down payment?” asks Sam Chandon, chief economist at Reis, a New York real estate firm.

But the big reason for staying a renter appears to be psychological. "Two years ago someone in New York or San Francisco might have said, 'I'm willing to stretch to buy that studio apartment even though it means I'm going to have to allocate a disproportionate amount of my income to housing costs,'" Chandon says. "What we're finding now is that even in some of these best markets, that sense of urgency has dissipated."

Source: BusinessWeek Online, Maya Roney (07/19/07

PROPERTY INSURANCE

Home insurers ask to raise rates

Florida's insurance crisis persists as nearly two dozen companies have filed for rate increases, and State Farm plans to drop thousands of policies.

AFFORDABLE HOUSING | MIAMI

City unveils low-income rent project

At a grand opening for Miami's latest affordable housing project, Mayor Manny Diaz vowed to get the city's troubled housing agency back on track.

Tax Cut

“In signing these laws, we put people’s money back where it belongs – in their wallets and pocketbooks. By signing the people’s tax cut, the power to cut taxes even further is now in the hands of the people. On January 29, you will have the power to cut your property taxes in a historic way. Floridians will once again live the American dream of home ownership and have the freedom to follow their dreams of moving to a different home better suited to their needs.” – Governor Charlie Crist

Tax Cut News

Governor Crist Signs Legislation Providing the Largest Tax Cut in Florida History

Tax Cut ExamplesFamily Tax Cut

What's 'beautiful' worth? About $12,500

The right phrasing in real estate listings can speed a sale and even boost the final price, a Canadian study says. And here's a tip: If you must sell, don't put "must sell" in your ad.

Lawsuit: Take tax plan off ballot

Weston's mayor has asked the Florida Supreme Court to halt a January vote that would overhaul the homestead exemption, saying voters would be misled.

What do you think? It would be interesting to see how Floridians feels about this issue.

Share your comments below for all to see.

Homeownership Assistance Program

MMAP HAP is designed to address the need of low/moderate income families in Miami-Dade County by providing down payment and closing costs assistance to purchase their first home. It serves as a primary channel through which financial assistance flows to assist in purchasing a home.

The zero interest deferred loan program provides up to 6% of purchase price associated with first-time homebuyers for down payment and/or closing cost. This helps reduce the up front costs of purchasing a home -- making it easier for prospective homeowners to qualify for a mortgage. Homebuyers can not directly apply to MMAP for HAP funds. Application files must be submitted to MMAP HAP by an approved lender or mortgage broker.