Jeanne Gavish, GRI, SRES

Crist announces support for Amendment 5 property tax reform

2008-08-11T13:01:00Z

TALLAHASSEE, Fla. – Aug. 5, 2008 – The property tax reform amendment advocated by FAR has a new backer – Florida Gov. Charlie Crist. Concerned about the Florida economy, Crist offered his first full endorsement yesterday, and says he will stump for passage.

“If this Amendment 5 were to pass in November, which I hope it does, people will look at that as a lot more than a tweak,” Crist says. “I think it could be a significant stimulant for Florida’s economy.”

Crist’s position puts him firmly on the side of Florida’s Realtors but at odds with a number of other groups, including schoolteachers, business groups and some fellow Republicans. But even opponents admit that Crist carries significant weight in Florida, and say that his support will go a long way to pass the Amendment 5 at the polls in November.

“I think the governor would be formidable in his campaign,” says Associated Industries of Florida President Barney Bishop, who opposes the property tax reform. “I just hate to see him lose, because I don’t think this amendment is going to pass.”

Other opponents are not deterred. “He’s one person, but statewide, we have 260,000 teachers, bus drivers, cafeteria workers,” says Pat Santeramo, president of the Broward Teachers Union.

However, proponents of the amendment see Crist’s support as a significant coup. “I don’t think it would be possible to overestimate the importance of the governor’s endorsement,” says former Senate President and Amendment 5 architect John McKay. “Charlie may be the best campaigner I’ve ever seen. I think the governor will sell this quite effectively.”

There is one caveat to Crist’s support, however: If John McCain picks him as a vice-presidential running mate, Crist won’t have much time to spend advocating Amendment 5. “Only time will tell,” Crist says. “I’m just trying to figure out the degree of help, the time I’ll have to do it. I hope to be very helpful.”

To read more about the campaign to pass Amendment 5, go to: http://www.giveme5florida.com.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

Short Sale Price on 4037 THUNDERBIRD AVE in Weeki Wachee

2008-08-06T17:41:00Z

Weeki Wachee, Hernando County - Announcing an amazing price on 4037 THUNDERBIRD AVE, a 1,182 sq. ft., 1 bath, 2 bdrm single story. Now MLS® $61,900 - Short Sale - Must See!. Thinking of buying a home? Thinking of purchasing a short sale home? Got questions? I've got the answers! Call me today for all of your real estate needs. Jeanne Gavish, Broker-Owner Gavish Properties & Investments, Inc. (352) 650-1029

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4 Bed/3 bath/2 half bath Pool Home w/In-Law Apt!

2008-06-19T17:27:00Z

Spacious Home on 4 Lots w/ In-Law Appt

• 3,569 sq. ft., 3 bath, 4 bdrm single story - MLS® $199,850 - Pool Home w/ Extras!!!

Moon Lake, New Port Richey - Perfect family home on 4 lots with Playhouse, upstairs in-law apartment w/separate entrance, wet bar & game room upstairs, wood burning fireplace in Master Bedroom, sundeck upstairs, privacy fencing in back yard shed w/electric, oversized 3 car garage with work area, above ground pool with deck in back yard, gazebo area for hot tub. Perfect house for entertaining & enjoyment.

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Chill creeping into home-equity lines of credit

2008-06-16T19:29:00Z

MELVILLE, N.Y. – June 12, 2008 – Homeowners have been getting their home-equity lines of credit frozen or pared down by lenders trying to cut risks.

It happened to dentist Michael Sherman, who can’t touch his $100,000 credit line for bathroom renovations because he has little equity in his home, and to homeowner Suzanne Dzolan, whose $200,000 limit was halved soon after she paid what she used to redo the house.

“It’s almost hurt me to be someone who was a good borrower,” said Dzolan, a mortgage broker. “They just felt they could take the luxury and cut it.”

Sherman expected his lender’s move because the value of his home has dropped. “It’s hard to admit that it’s not worth $530,000 today.”

Banks and other lenders, wary after the subprime collapse, have been suspending equity lines of credit because homeowners’ debt have exceeded their homes’ property values, communities have seen significant declines in home prices and borrowers have little equity in their homes.

Stopping the flow of cash from such credit lines also gives lenders more liquidity and frees potential capital to be used on less risky loans.

“Please understand that this suspension of your account was not based on your payment record,” Citibank wrote to one Amity Harbor, N.Y., resident. “Citibank wants to help protect you from borrowing beyond the value of your house.”

In a statement, Citibank said: “These are standard industry practices and are consistent with safe and sound banking practices.”

People have been using such unsecured loans, also known as HELOCs, for college tuition, daily expenses and more. These accounts work like credit cards, allowing borrowers to draw within the limits and pay loans in monthly installments. HELOCS, usually given to good borrowers, carry adjustable interest rates 1 or 2 percentage points above prime and generally don’t have prepayment penalties.

But during the hot real estate market, some lenders overextended on such credit, mortgage bankers and brokers said. When borrowers didn’t qualify for bigger mortgages, lenders used the credit lines as second mortgages. Some lenders approved 100 percent financing – setting the limit equal to the borrower’s equity in the house.

The HELOCS with late payments have grown from .31 percent in March 2004, when the housing market was hot, to 1.74 percent in March, according to the latest figures from First American CoreLogic, a San Francisco-based company that analyzes loan data.

Some critics question whether lenders freeze accounts on a broad scale, on grounds that would have been ignored two years ago before housing sales began to fizzle. Mortgage brokers and homeowners said credit lines have been suspended when the borrower is late on just one payment; a letter’s returned; and even when the property value has gone up.

“We’re seeing a little bit of everything,” said John Meecham, a spokesman for the Mortgage Bankers Association.

Some lenders are a “little nervous” about the risks, he said, and have been making decisions by community or by zip code.

Unlike mortgages, in which the money’s already in borrowers’ hands, lenders can stop the flow of cash from HELOCs.

“They got into a risk position by being too generous with the credit lines, and credit lines are the only form of mortgage they have the ability to minimize,” said Don Romano, president of Shelter Rock Mortgage, a Long Island mortgage broker.

On the advice of his broker, Blackstone Mortgage, energy commodities trader David Seidner wrote himself a check from the unspent portion of his $750,000 home equity line of credit and put it in the bank – in case his lender decides to freeze his line later.

“Disposable cash like that at a pretty good rate is irreplaceable,” Seidner said of his 6.9 percent interest. “I know they can’t take it from the bank.”

© 2008, Newsday. Distributed by McClatchy-Tribune News Service, Ellen Yan. All rights reserved.

Eminent domain: Full court pressure

2008-06-16T19:24:00Z

ORLANDO, Fla. – June 12, 2008 – Eminent domain law, traditionally somewhat sedate, generated an earthquake in 2005 with the U.S. Supreme Court’s decision in the Kelo v. City of New London case. The court ruled that the city of New London could use eminent domain to take private land because the land was to be used for a “public use.” The Connecticut city’s “public use” involved forcing property owners to sell so that the city could turn the land over to a private developer planning new homes, a hotel, shops and office space.

In the wake of the court’s ruling, scores of states, including Florida, approved legislation essentially reversing the decision. In Florida, the new eminent domain statute prohibits governments from taking private property from a person or entity and then leasing it or selling it to another.

The new statute came just in time for one family – and nearly derailed a major development project in downtown Orlando.

Looking for a site for a $480-million arena for the Orlando Magic, the city of Orlando purchased 10 acres in Parramore for $35.5 million. Smack in the middle of the site, however, were two adjoining lots owned by the Salter family that were situated on about a quarter of what was supposed to become the proposed arena’s basketball court. The family, which had owned the parcels for 60 years, didn’t want to sell – and didn’t think the city could force it to sell.

The family refused the city’s initial offer of $1.5-million. At one point, an offer also would have included free Magic tickets. There was even talk of a street being named after the family, but the Salters still wouldn’t budge.

The dispute began shaping up as the first major test of the state’s new eminent domain statute, says Richard Milian, a partner at Orlando’s Broad and Cassel who represented the family. As the eminent domain process moved along, both parties argued their side to a judge, who scheduled a December 2007 hearing to decide whether the city had a right to continue with eminent domain.

Milian expected the family to win, since the updated statute prohibits condemning land and then leasing it to private user, which in this case would have been the Orlando Magic.

Like its disputed property, the family found itself squeezed in the middle of a very public debate. “On one hand, they live in this community and they like the Orlando Magic and they didn’t want to be disruptive,” Milian says. “They liked Buddy Dyer, the mayor, and they didn’t want to be disruptive to him. There was also pressure because the city promised to hire minority contractors, and the project would have created jobs within their community. On the other side, there were people who were against the project and felt it was wrong for the city to try to force them to sell. They felt pressure from a lot of different angles.”

Shortly before the December hearing, the Salters finally decided to sell. The deal didn’t come with free basketball tickets or a Salter Boulevard, but it did include $8.4 million for the family’s third-of-an-acre property. “They always just wanted to be treated fairly,” Milian says. “When the compensation reached what they thought they could have made from developing the property themselves, that’s when they agreed to sell.”

© 2008 Florida Trend; Levy, Art. Via ProQuest Information and Learning Company; All rights reserved.

Commercial For Sale in Gulf Side Estates

2008-06-02T17:06:00Z

• 2,084 sq. ft., 1 bath, 2 bdrm commercial "Established RV Resale & Consignment Business" - MLS® $1,200,000 - Commercial Property

Gulf Side Estates, Hudson - You can't beat the location! What an opportunity! Established RV resale & consignment business on the corner of US19 and NY. Service area equiped with lift. Business, buliding, land, and adjoining residential house (7920 Akron) included. Great location and price.

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Price Reduced on 15011 US HWY 19 in Gulf Side Estates

2008-06-02T17:06:00Z

Gulf Side Estates, Hudson - Announcing a price reduction on 15011 US HWY 19, a 2,084 sq. ft., 1 bath, 2 bdrm commercial "Established RV Resale & Consignment Business". Now MLS® $1,200,000 - Commercial Property.

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Fannie Mae nixes declining markets down payment requirements

2008-05-29T14:39:00Z

Wednesday, May 21st, 2008

Dear Jeanne,

Mortgage financing company Fannie Mae has instituted a new, single down payment policy, doing away with its "declining markets" requirements.

Fannie nixes declining markets down payment requirements

The mortgage finance giant has adopted a new, single down payment policy, doing away with its "declining markets" guidelines that required higher down payments in areas with falling home values.
(5/20/2008)

Mortgage financing company Fannie Mae has instituted a new, single down payment policy, doing away with its "declining markets" requirements.

Starting June 1, Fannie will accept up to 97 percent loan-to-value (LTV) ratios for conventional, conforming mortgages processed through its Desktop Underwriter (DU) automated underwriting system, and 95 percent LTV ratios for loans underwritten outside of DU, in all geographic locations in the United States, according to a statement from Fannie.

The new policy replaces Fannie's "declining markets" policy, which required higher down payments in markets where home prices are declining and was adopted in December.

"As another part of our 'Keys to RecoveryTM' initiative, we are today announcing that we will be equalizing the down payment requirements for borrowers in all parts of the country, regardless of local market conditions," said Marianne Sullivan, senior vice president of Single-Family Credit Policy and Risk Management. "This new down payment policy reinforces our goal to support successful home-owning, not just home-buying, as we seek to bring liquidity to all communities and help the housing market recover."

The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. Fannie will implement systems and operational changes over the summer to accommodate the new national policy, according to the statement.

"We are able to adopt this new, national down payment requirement, even in markets where home prices are declining, because our new automated underwriting risk assessment model DU Version 7.0 will limit risk layering and assess each loan more precisely," Sullivan added. "At the same time, we believe that equity matters, especially in this market. Down payments are a critical success factor in homeownership -- and responsible lending is good business."

Your input would be greatly appreciated. If there is a particular topic of discussion you would like more information on, please do not hesitate to either email or call me directly.

Sincerely,

Anthony Kanaris
Anthony M. Kanaris & Associates, Inc.

State Law Increases Mortgage Fraud Penalties

2008-05-02T17:06:00Z

State law increases mortgage fraud penalties

TALLAHASSEE, Fla. – April 30, 2008 – In the wake of Florida’s real estate downturn and rapid rise in foreclosures, the state Senate Tuesday passed a second bill in as many years increasing the penalties for those convicted of mortgage fraud.

The legislation, which will now head to Gov. Charlie Crist for signing, also creates a remedy for some of the damage mortgage fraud can inflict on neighborhoods and condominium buildings in the form of higher property taxes.

Florida has become a hot bed for real estate fraud, one of the fastest-growing white collar crimes in the nation, according to the FBI, and the state leads the nation in the number of complaints of suspected fraud from lenders.

Mortgage fraud schemes typically involve inflated appraisals, which criminals need to siphon funds from bigger loans.

Bogus sales data, consequently, can enter the pool of values property appraisers use to derive tax assessments on surrounding homes, leading to higher property taxes for those homeowners.

The legislation, sponsored by Sen. Gwen Margolis, a Miami Beach Democrat, requires law enforcement to promptly notify the appraiser when probable cause for fraud exists and may have affected the value of a given property. The appraiser, then, may reassess the home and those around it.

Glenn Theobald, chief counsel for the Miami-Dade County Police Department, which backed the bill, said the department was ready to deliver suspicious properties to the property appraiser once the bill is passed. He would not say where the properties were located.

“It’s going to be some of these places where there are a lot of foreclosures – we’ve identified those as having a lot of mortgage fraud,” Theobald said.

The legislation increases the penalty for mortgage fraud on home loans for more than $100,000 to a second-degree felony, rather than a third-degree felony, punishable by up to 15 years in prison and up to $10,000 in fines.

“There have been so many cases and so many people victimized, so many units,” Theobald said, “[Criminals] need to pay a higher price for their crimes.”

Last week, Richard Crowder II, the architect of a $37 million mortgage fraud scheme involving 17 luxury condos on South Beach was sentenced to nine years in prison. His accomplices, former title attorney Gary Mills, who owned Deerfield Beach-based Four Star Title, and former Wachovia loan officer Karen Lynn Sullivan, were sentenced to 46 months and 50 months, respectively.

Copyright © 2008 Monica Hatcher. The Miami Herald, Distributed by McClatchy-Tribune Information Services.

Great Time to Buy

2008-05-02T17:03:00Z

FAR’s GTTBF site wins national web site award for outstanding member service

ORLANDO, Fla. – May 1, 2008 – The Florida Association of Realtors’ (FAR) new “Great Time to Buy Florida” microsite of its member Web site floridarealtors.org won top honors nationally in the prestigious “2008 Outstanding Realtor Association Web Site Contest,” sponsored by the National Association of Realtors (NAR) and Realtor AE (Association Executive) magazine.

The “Great Time to Buy Florida” (GTTBF) microsite won in the outstanding member service feature category. This is the seventh year for the Realtor Association Web Site Contest, according to NAR. Last year, FAR’s new-at-the-time member Web site, www.floridarealtors.org, won in the outstanding design category.

“Our Communications Department continues to make us all very proud,” says 2008 FAR President Chuck Bonfiglio. “They have won numerous awards for our magazine and now this prestigious award. These are some of the most talented and dedicated individuals in the business and I am proud to call them ours. Kudos on another job well done.”

The contest’s judges noted that FAR’s GTTBF site does a winning job of equipping Realtor members with real estate market facts – and a wealth of resources – they can use to reach consumers in their local markets.

“[The site] is dedicated to the Florida Realtor community and helping each member get the word out to buyers that now really is a great time to buy Florida real estate,” says Peggy Musial, managing editor of online content for FAR. “Who in the real estate business hasn’t complained about or been affected by negative press relating to all aspects of the market? We examined ways to counter those critics and decided a microsite was the best and least expensive way to help Realtors get the word out about what continues to be great in Florida’s market – including inventory, price, destination, location and investment potential. The positive ‘buzz’ created from NAR’s Good Time to Buy campaigns helped us brand our statewide promotion.”

Judges found the site “vibrant,” “current,” and “well planned and well executed,” and also commended its clever and engaging use of multimedia. As noted in the current issue of Realtor AE magazine, the “Great Time to Buy Florida” site really delivers when it comes to online member service, offering stacks of materials that members can pluck to use on their blogs, in their newsletters and in their marketing brochures.

Regarding the GTTBF site, FAR Executive Vice President John Fridlington says: “Delivering real value to FAR members, especially in a changing marketplace, is our highest priority. We hope our members find useful information and inspiration here.”

According to NAR, this year’s competition highlighted great features of Realtor association Web sites nationwide and is a reminder of just what a powerful tool the Internet is for serving members.

© 2008 FLORIDA ASSOCIATION OF REALTORS

How Realtors work for YOUR property rights

2008-05-02T16:55:00Z

April 25, 2008

Dear Jeanne:

Below is a note I just received from John Sebree at FAR. This is wonderful news. If you are wondering where your RPAC donations go, here is one example. This bill if approved by the public in November will reduce taxes by 25%.

Until later.....Bob Memoli

Political Affairs Chairman

Subject: Thank you for Contacting the Tax & Budget Reform Commission

We are happy to report that your messages to the Florida Tax and Budget Reform Commission (TBRC) were heard. In just over 30 hours Realtors from around the state sent over 50,000 messages to the Commission! Today, the TBRC formally adopted CP 002, which if passed by the voters in November will eliminate the state's required local effort for schools portion of property taxes in 2010. The proposed constitutional amendment also places a 5% assessment cap on non-homestead property -- beginning next year. It allows the Legislature to make up the $9 billion to schools in a number of ways, including raising the sales tax by up to 1 cent. Past-President Nancy Riley, who is a member of the TBRC, voted in favor of the proposal.

This is a big victory for Realtors, property owners struggling under crushing tax bills, and businesses who will see their tax bills limited by a lower, permanent assessment cap. Most importantly, Commissioners heard your voice and agreed with it -- sending CP 002 and other important proposals to the November ballot is the right thing to do.

Thank you for being a part of the solution to this property tax problem. As the 2008 Legislative Session winds down your Office of Public Policy may need your help with that final push on FAR priority issues. Please look for other possible Calls-to-Action over the next week. Stay tuned to the FAR website at www.floridarealtors.org for more updates. And again, thanks so much.

Mortgage Fraud

2008-04-07T18:13:00Z

MORTGAGE FRAUD

Reports of suspected mortgage fraud rose 42 percent last year, and U.S. banks now take a much closer look at loan applications. The most common type of fraud: misrepresentation of income or assets followed by forged documents, misrepresentation of a borrowers' intent to occupy a property, and inflated appraisals.

Read the full story:

http://www.floridarealtors.org/NewsAndEvents/n1-040408.cfm

Most Resilient U.S. Real Estate Markets

2008-02-21T16:34:00Z

Most Resilient U.S. Real Estate Markets
Matt Woolsey, 06.08.07, 12:01 AM ET

When it comes to real estate, the questions on everyone's lips are: How low is low, and when's the perfect time to buy back in?

That moment has passed in Seattle and Charlotte--both metros hit bottom in the first quarter of 2006 and have since posted price gains of 12.3% and 6.3%, respectively, according to National Association of Realtors (NAR) data.

Of the 40 largest metros that have yet to bottom out, which are ripe for investment? Philadelphia and New Orleans. Based on housing inventory and local economic conditions, both should hit price troughs by year's end and bounce back with moderate gains around 4% in 2008.

In markets expected to recover more slowly, such as Boston and Denver, low buyer confidence coupled with a surplus of housing stock has lengthened the slump. NAR chief economist Lawrence Yun points out that buyers are looking for clear signs of a market bottom and are content to wait on the sidelines until then.

It's easy to see why. Most of the country's real estate markets are feeling the effects of overproduction. A strong market hovers near a 1.5% vacancy rate, but the national average currently stands at 2.8% and in cities such as Miami, Atlanta and Denver, figures hang around 3.5%. In addition, every nugget of good news (a May Commerce Department report said that new-home sales are at a 14-year high) comes with bad news (median price growth is at a 10-year low).

So which other metro area markets stand the best chance of recovery, and when will that upturn occur?

Behind The Numbers
Market corrections follow three basic recovery patterns. A V-shaped recovery where a market experiences a sharp, fast decline but comes out strong once it hits bottom; a U-shaped recovery, where prices decline gradually and recover slowly; and an L-shaped curve, a hard, fast fall with paltry price bounceback following the market trough.

The differences between a V-shaped market and a U-shaped one has to do with barriers to growth. High vacancy rates and high investor share can hurt a market, but if the local economy remains strong and housing stock affordable it's only a matter of how long it takes to absorb the excess inventory.

Tampa is a perfect candidate for a V-shaped recovery, according to research from Moody's Economy.com, an economic analysis, forecasting and credit risk firm. The local economy remains strong, and subprime lending is relatively low. Tampa's problem? A high investor share that lead to high vacancy rates. When the market turned sour in 2005, more than 25% of Tampa homes were owned as investment properties. Investors are quicker to flee during a downturn, thus creating a glut of available housing stock. In Tampa's case, vacancy rates now stand at 3.5%.

"As investors exit, the market revives," says Mark Zandi, chief economist at West Chester, Pa.-based research firm Moody's Economy.com, as fewer speculative buyers results in a more stable market. "Tampa's a pretty affordable market and first-time buyers can come in once prices fall."

Based on Moody's Economy projections, Tampa should burn off its excess inventory and hit a price trough in the first quarter of 2008, at which point prices are expected to increase by 10.6% the following year.

These projections take into account housing affordability, vacancy rates, the strength of the local economy and job market, investor share in 2005 and the share of subprime mortgages. Data comes from Moody's, the Bureau of Labor Statistics and the Federal Reserve's Home Mortgage Disclosure Act.

Predicting the bottom of any asset market, especially real estate, is a difficult thing. While these projections are based on sound data and advanced modeling by Moody's, no one can predict futures markets with absolute certainty.

Other Bounce Backs
Like Tampa, Phoenix is similarly afflicted by high investor share (26.1%) and it has a vacancy rate over 3%. Good affordability rates and a surging job market suggest that once Phoenix bottoms out, price growth will be strong. Moody's projection model has Phoenix reaching its price trough in the fourth quarter of 2008 and then growing by 7.7% the following year.

Slower recovery rates are expected in markets such as Minneapolis and Boston, where a slumping local economy, slow job growth and negative migration numbers hamper long term prospects. Along with other U-shaped markets like Sacramento, that have double-digit subprime lending share, Zandi says it's going to be harder for these markets to get going again.

That doesn't necessarily mean V-shaped markets are in the clear. The labor markets in cities such as Las Vegas, Phoenix and San Diego, whose future economic success will be critical to recovery, are heavily in housing-related industries, according to Moody's. So long as those economies can weather their respective corrections, they should be all right.

"These markets are going to experience more substantial declines in the coming year," says Zandi. "Gauging the bottom is a very intrepid affair and the job market is very important to recovery."

Single Story For Sale in Spring Hill Unit 24

2008-02-06T06:00:00Z

Backs up to No Build Area

• 2,279 sq. ft., 2 bath, 3 bdrm single story - MLS® $155,000 - POOL Home on Quite Street

Spring Hill Unit 24, Spring Hill

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Single Story For Sale in Brookview Villas

2008-02-04T06:00:00Z

Poolside Villa - Lease/Purchase Possible

• 979 sq. ft., 2 bath, 2 bdrm single story - MLS® $84,900 - Price Reduced!

Brookview Villas, Brooksville - Beautiful Pool View. Walk out the patio to the pool.Vacant and ready to move in. Close to Suncoast Parkway and shopping. Ideal for commuters. New Roof in 4/2001 Lease/Option, Lease/Purchase Available

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