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Home prices hit six- year low , led by Miami

Home prices in 20 Metropolitan areas fell in October by the most in at least

Six years, a private survey showed Wednesday.

Property values fell 6.1 percent from October 2006, more that forecast,

After dropping 4.9 percent in September, according to the S&P/Case-Shiller Home

Price index. The decrease was the biggest since the group started keeping year over year records in 2001. The index has fallen every month this year.

Prices are forecast by the experts to decline even more as the jump in foreclosures

And stricter lending rules make it harder for buyers to find financing.

These declining values make it harder for owners to tap home equity

For extra cash, posing a risk to consumer spending.

Compared with a month earlier , home prices dropped 1.4%, the biggest one month decline since records began. The index is a composite of transactions

In 20 metropolitan areas. Seventeen cities showed a year over year

Decline in prices, led by 12 percent slumps in Miami and Tampa.

A report on Nov 21st from the National Association Of Realtors show

Home prices fell in one third of U.S. cities last quarter.

The glut of foreclosures adding to the unsold homes on the market

Is predicted to further reduce market values in many homes.

With all these predictions by the experts it seems that it may be awhile

Before we start seeing real improvement in this market.

Bankruptcy Judges may get power to Modify Mortgage Terms (edit/delete)

Bankruptcy judges would get new authority to  modify the  terms of a mortgage on a homeowners primary residence under legislation approved last week by the house Judicary commitee  to assist homeowners facing forclosure because of the recent sub prime mortgage crisis

 Under current law, bankruptcy judges are able to adjust terms of a loan only on second homes. H.R 3609 allows them to modify the mortgage for a primary  residence based on its actual value rather than an an inflated appraised price if the borrower shows he or she is unable to make payments and the home is in the foreclosure process.

The bill is supported by a number of consumer groups including the center for responsible lending , as well as the governors of Ohio, MIchigan, Illinois and New Mexico. This bankruptcy change  could directly assist the more than 600,000 homeowners currently facing foreclosure and the two milliion homowners who will see there mortgage rates skyrocket over the next two years. In addition the bill  will encourage lending institutions to renegotiate the terms of loans that have become too costly for the homeownes to afford.

Filing for bankrupty is something that most people would not like to do, but the future may force some of those home owners who really want to save there home, and bankruptcy  may be an option that may be a consideration.

For those who live in Florida and need info on the Foreclosure process in Florida  please read the info Listed below. Florida carries out foreclosures through court proceedings. The foreclosure process in Florida takes about five months. Pre-foreclosure Period A foreclosure in Florida begins when a lender files court action and records a notice of a pending lawsuit (Lis Pendens) against the borrower. The lender notifies the borrower and any other affected parties in person or in some cases by mail or publication. If the borrower does not respond to the court action within a specified amount of time, the county clerk can find the borrower in default and

the lender can ask the court to make a final ruling. If the court rules against the borrower, the ruling will include the total amount owed to the lender and the foreclosure sale date. The lender is not required by state law to notify the borrower before initiating the foreclosure process, but individual mortgages or deeds of trust might call for this. The borrower can stop the foreclosure up until the date of the sale by paying the total amount owed to the lender. Notice of Sale / Auction The sale date is typically 20-35 days after the court ruling, but this may vary depending on the individual court. The clerk of court issues a notice of sale containing the location, date, and time of the sale. The notice is published once a week for two weeks, with the second notice appearing at least five days before the sale. The clerk usually oversees the sale, which ordinarily occurs at the county courthouse at 11:00 a.m. on the sale date. The winning bidder must provide a 5 percent deposit and pay the remaining balance by the end of the day or a new sale is scheduled a minimum of 20 days later. After a successful sale, the clerk gives a certificate of sale to the winning bidder Within 10 days of the sale, the clerk transfers ownership to the winning bidder if no one disputes the sale. In most instances, a borrower has no right of redemption after the certificate of sale is issued.

If you have any other questions please contact me anytime.

Thanks

James Loftis P.A. Realtor/Broker assoc, CRS,GRI,EPRO

http://www.RealEstate911.com

For those of you who are selling there home

11 Things You Need to Know to Pass Your Home Inspection

"According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection when your home is for sale. Here are 11 you should know about if you’re planning to put your home up for sale."

Homebuyers Want to Know Your Home Inside and Out

While homebuyers are as individual as the homes they plan on purchasing, one thing they share is a desire to ensure that the home they will call their own is as good beneath the surface as it appears to be. Will the roof end up leaking? Is the wiring safe? What about the plumbing?  These, and others, are the questions that the buyers looking at your home will seek professional help to answer.

According to industry experts, there are at least 33 physical problems that will come under scrutiny during a home inspection. We’ve identified the 11 most common of these and, if not identified and dealt with, any of these 11 items could cost you dearly in terms of repair.

In most cases, you can make a reasonable pre-inspection yourself if you know what you’re looking for. Knowing what you’re looking for can help you prevent little problems from growing into costly and unmanageable ones.

11 Things You Need to Know to Pass Your Home Inspection

1. Defective Plumbing

Defective plumbing can manifest itself in two different ways: leaking, and clogging. A visual inspection can detect leaking, and an inspector will gauge water pressure by turning on all faucets in the highest bathroom and then flushing the toilet. If you hear the sound of running water, it indicates that the pipes are undersized. If the water appears dirty when first turned on at the faucet, this is a good indication that the pipes are rusting, which can result in severe water quality problems.

2. Damp or Wet Basement

An inspector will check your walls for a powdery white mineral deposit a few inches off the floor, and will look to see if you feel secure enough to store things right on your basement floor. A mildew odor is almost impossible to eliminate, and an inspector will certainly be conscious of it.

It could cost you $200-$1,000 to seal a crack in or around your basement foundation depending on severity and location. Adding a sump pump and pit could run you around $750 - $1,000, and complete waterproofing (of an average 3 bedroom home) could amount to $5,000-$15,000. You will have to weigh these figures into the calculation of what price you want to net on your home.

3. Inadequate Wiring & Electrical

Your home should have a minimum of 100 amps service, and this should be clearly marked. Wire should be copper or aluminum. Home inspectors will look at octopus plugs as indicative of inadequate circuits and a potential fire hazard.

4. Poor Heating & Cooling Systems

Insufficient insulation, and an inadequate or a poorly functioning heating system, are the most common causes of poor heating. While an adequately clean furnace, without rust on the heat exchanger, usually has life left in it, an inspector will be asking and checking to see if your furnace is over its typical life span of 15-25 yrs. For a forced air gas system, a heat exchanger will come under particular scrutiny since one that is cracked can emit deadly carbon monoxide into the home. These heat exchangers must be replaced if damaged - they cannot be repaired.

5. Roofing Problems

Water leakage through the roof can occur for a variety of reasons such as physical deterioration of the asphalt shingles (e.g. curling or splitting), or mechanical damage from a wind storm. When gutters leak and downspouts allow water to run down and through the exterior walls, this external problem becomes a major internal one.

6. Damp Attic Spaces

Aside from basement dampness, problems with ventilation, insulation and vapor barriers can cause water, moisture, mold and mildew to form in the attic. This can lead to premature wear of the roof, structure and building materials. The cost to fix this damage could easily run over $2,500.

7. Rotting Wood

This can occur in many places (door or window frames, trim, siding, decks and fences). The building inspector will sometimes probe the wood to see if this is present - especially when wood has been freshly painted.

8. Masonry Work

Re-bricking can be costly, but, left unattended, these repairs can cause problems with water and moisture penetration into the home which in turn could lead to a chimney being clogged by fallen bricks or even a chimney which falls onto the roof. It can be costly to rebuild a chimney or to have it repainted.

9. Unsafe or Over-fused Electrical Circuit

A fire hazard is created when more amperage is drawn on the circuit than was intended. 15 amp circuits are the most common in a typical home, with larger service for large appliances such as stoves and dryers. It can cost several hundred dollars to replace your fuse panel with a circuit panel.

10. Adequate Security Features

More than a purchased security system, an inspector will look for the basic safety features that will protect your home such as proper locks on windows and patio doors, dead bolts on the doors, smoke and even carbon monoxide detectors in every bedroom and on every level. Even though pricing will vary, these components will add to your costs. Before purchasing or installing, you should check with your local experts.

11. Structural/Foundation Problems

An inspector will certainly investigate the underlying footing and foundation of your home as structural integrity is fundamental to your home.

When you put your home on the market, you don’t want any unpleasant surprises that could cost you the sale of your home. By having an understanding of these 11 problem areas as you walk through your home, you’ll be arming yourself against future disappointment