Home Foreclosures WAY Down Across SW Florida, Sunshine State

According to a report released today by ATTOM Data Solutions, most of today's foreclosures in SWFL and across the Sunshine State are on loans made before the housing bust -- not on loans made in recent years.

While prices have rebounded in most areas and there are often bidding wars for properties (though not in this region at the moment), a review of foreclosure activity for the first six months of 2017 shows a steady decline in foreclosures in Florida. The same examination shows eight states have seen such activity rise during the same period.

The Naples Daily News this morning reminded readers that in this region eight to 10 years ago: After a housing boom, foreclosures in Lee County bottomed out in October 2005 when 127 were filed. They reached a high of 2,665 in October 2008, when the county represented one of the nation's foreclosure capitals.

Fast forward to today: Foreclosures are down in Collier County 32 percent during the first six months of this year compared to the first six months of 2016. In Lee County, the number of foreclosures are down 31 percent during the same period. In Charlotte County, foreclosures are down 44 percent year over year (for the first six months). This compares to the nation, which is down 20 percent during the first six months of 2017 when compared to a year ago.

Home Buyer Mistakes Are Easy To Avoid

Our market here in Southwest Florida is one that is a little different than the rest of the USA.

Many of our home buyers are investing in their second home -- a vacation place for the winter months. We also have a number of owners here whose Naples or Bonita Springs address is one of three or four or even five homes they own around the world. As such, a very large percentage of purchases here are cash buys.

Still, we have our share of finance home purchases. Which is why I'm writing this particular blog post. You see, home buying blunders -- when they occur -- almost always revolve around the financial side of the transaction.

Having worked with many buyers, I thought I would put together a list of "Home Buying Blunders" that's a must read for anyone considering buying a home -- particularly for the first time.

First off I can tell you that half the battle and a lot of the blunders are all found in preparation, or lack thereof:

Home Buying Failures

1. Credit - Putting off making sure your credit in good order is no doubt one item that for many takes the longest. This means paying bills on time, knowing how to manipulate your credit card history, taking care of erroneous information etc.

2. Debt - Getting a handle on debt naturally follows good credit practices. Many new or first time buyers neglect their debt-to-income ratio, not knowing what an important factor in getting pre-approved (which is different than qualified). Generally your debt-to-income ratio should be 28% or lower, to be well qualified. FHA is currently 43% though sometimes can be higher with justification from the lender. VA loan limits are calculated with a debt ratio of 41%. These rules and limits do change, but less debt is obviously a no-brainer.

FHA loans have long been a loan of choice, as they have low down payments, and some FHA loans like a 203k allow funds for repairs or renovations to be structured into the loan (you cannot do the repairs yourself if you're financing, sorry).  If money is tight, there are many types of no-down payment and low down payment home loans -- though we don't see that much in this market. A lot of which type of home loan you roll with has to do with the property(s) you're interested in and what type of home is right for you.

The best thing to do after getting your credit up to the mid 600's is to talk with an experienced Realtor to help determine the loan types that are going to be best suited to your needs; new construction, foreclosure or rehab, VA, conventional, etc. An experienced Realtor will have a number of good lenders to refer to you to begin mortgage shopping and comparison.

Part of handling debt with regard to home buying is preparing for extra expenses likc earnest money.

3. Not getting pre-approved before asking for showings is a huge mistake. Pre-Approval is pracmatic. First of all, no real estate agent wants to work with someone who has not obtained a pre-approval letter from a lender. Put the shoe on the other foot. Don't be surprised if one of the first questions a real estate agent asks you is "have you talked with a lender yet" and don't be insulted or put-off by that question. As Realtors, it's an integral part of our job to help you connect with lenders that have the loan products best suited for your unique situation.

Further, if you make an offer on a property, you'd better have your paperwork include your pre-approval letter. In Southwest Florida, if you don't show a pre-approval letter or proof of funds (if you are paying cash), the sellers will assume you aren't serious. 

4. Not Speaking with more than one lender. Did you know that some lenders participate in varying forms of mortgage loan programs that others may not? Did you know that you might be eligible to get a conventional loan with less down payment than an FHA loan? Did you know that you might be eligible for a mortgage with only 5% down payment and not have to pay the nasty PMI every month or even at all? Did you know there are "no money down" programs that might be your best bet? 

While I am personally not a huge fan of these programs, they do exist. Don't pin your hopes on obtaining this type of program for your purchase, but its worth looking into.

5. Abusing your credit after getting pre-approved. Don't make the mistake of thinking that you are "good to go" once you have your pre-approval letter in hand. MANY home buyers have actually lost out on completing their home purchase due to abusing or using their credit unwisely. It is in your best interest to wait until after you have closed on your home before using any credit at all. Something as simple as a push mower purchase on credit after getting into contract on a property has killed more home purchase transactions than you can imagine.

6. Not having the home inspected by a professional. It doesn't matter if the home is brand new or older. A home purchase is the single most expensive purchase you will ever make. Why take the chance of buying a lemon? Have the house professionally inspected before you close the transaction.

7. Buying a home without a professional buyer's agent. Did you know that the seller is responsible for paying your Realtor's real estate commissions? If you enter into a purchase agreement without having the professional representation and protection of having your own Realtor, you could be costing yourself thousands of dollars without just cause. Would you go into a courtroom as a defendant without having your own professional representation? The listing agent promised to net the seller as much as possible. Buyers' agents represent you.

Just a few tips to think about. If you want to know more, contact me for a no obligation consultation.

South Miami On FL East Coast Votes To Require Solar Panels On New Builds

South Miami is officially the first city in Florida to mandate new solar panels on all new homes.
The South Miami city commission last week voted 4-1 to approve the legislation, which also applies to existing properties whose owners increase the square footage of a home by 75 percent or more.

"The law passed after the commission was required to hold a third public hearing because of revisions made to the measure between the first and second reading of the ordinance. However, the votes in favor of the legislation were seemingly never in doubt as Mayor Phillip Stoddard, Vice-Mayor Bob Welsh and commissioners Gabriel Edmund and Walter Harris have steadfastly supported the measure since it was initially proposed."

In the weeks leading up to yesterday’s vote there was vehement opposition to the renewable energy law by representatives of builders groups and property owners who criticized South Miami elected officials for forcing residents and developers to install solar panels. This time around, there were less critics voicing their concerns.

There also are concerns that the new requirement may make affordable housing that much more out of reach for low income buyers.

Click here for the full story. Additionally, pass it on. We will be seeing many more pushes to require solar panels on new builds across the nation. And now in Florida as a result of this measure!

If you aren't already aware, the nation's first solar-powered, electric city/development is being developed east of Fort Myers at Babcock Ranch. Its a sustainable community worth checking out!

Recent Mortgage Stats News Coverage Missed The Big Positive News

Recently, the nightly news and general newspapers business sections blurted out the news that mortgage applications are down -- signaling a possible slowdown to the economy and less-than-positive feelings about housing. Worse, that the Trump Economy was scaring new homebuyers away.

While the first part was correct -- yes mortgage applications are slightly down -- they never peeled back the book cover and asked WHY? Which led to the assessment that housing is going to stagnate. Blame it on media that no longer asks hard questions. But then I'm a recovering journalist with strong feelings about the state of the media today. But that's another story for another day ....

Here is the real story.

Mortgage refinance applications are WAY down. I mean DOWN. Somewhat because rates have inched up, but mostly because anyone who was going to refinance has already done so.

The more important news that was totally missed in most of the media coverage of the announcement is that applications for home purchases are WAY UP! Buyers are applying for mortgages for existing resale homes and new builds at a fast pace. Accordingly, builders are building. This is happening across the U.S.A.

And after nearly a decade of little development during the recession of some years ago, Southwest Florida is a hotbed of new development as well. As a lender friend of mine told me last week, his office hit a record for mortgage applications for home purchases in a single month. And he's been in the business for more than 30 years.

So the health of the housing market is strong! Here in SW Florida we have a little more inventory than the rest of the nation. Prices are stable in much of the Naples area, higher on Marco Island, and stable to a little lower in Bonita Springs and Estero (creating a buyers market there).

Even our typically slow summer season has seen steady interest from buyers. Which shows this market is becoming a little more of a year-round market for real estate, and not just busy from January through April!

Started Playing With A New Video Editor

Years of blogging about real estate have helped buyers and sellers find me!

But I've always struggled with producing videos to promote area real estate, attractions, and my practice. That changed today, thanks to a great seminar I attended at Fidelity National Title in Estero, FL. Thanks Corlin Tucker for bringing Bill to your office, and for inviting agents in to learn some quick ways to produce video.

Wait! I think I hear someone calling me for my screentest . . . . .

Our Favorite North Naples Restaurant Has Closed

So our favorite restaurant in North Naples closed last week while we were in Colorado.

Fish Crazy Restaurant and Fishmarket, opened by Randy Essig (of Randy’s Fishmarket fame) and a partner in 2015, is no more. It opened up a long vacant space and was outstanding at the outset. But we noticed things sliding. Often they were out of menu items. Word is Essig and his partner may have had a falling out.

Nevertheless it will hold special memory for us. Its where we went frequently after house-hunting and Sunday open houses. It was where we spent hours sketching renovation plans for our home on cocktail napkins and paper placements.

And it’s where we discovered keylime martinis!

Randy – here’s hoping you open a new place soon! You are too much of an institution in SW Florida to leave the restaurant scene!