6 common misconceptions about hurricane season

6 common misconceptions about hurricane season

 
BILOXI, Miss. – June 13, 2017 – If you've seen one hurricane, you've seen them all, right? Wrong.
Even the most seasoned Gulf Coast residents have something to learn about the amazingly complex and destructive storms that are hurricanes.
That's why we asked an expert meteorologist to share his knowledge. Rocco Calaci is a partner and chief meteorologist at a weather technology company called MetLoop. He's been studying the weather for 46 years now, and his daily email on Gulf Coast weather has thousands of readers.
Here's six common misconceptions he said people have about hurricanes:
1. Hurricane season is from June 1 to Nov. 30.
Yes and no. Unfortunately, global weather patterns largely ignore our detailed way of tracking time. For example, 2017 saw its first named storm -- Tropical Storm Arlene -- in April. Many people on the Gulf Coast associate August with peak hurricane season, and that's mostly accurate. But it may surprise you to know that, historically, the most active day for hurricane activity is Sept. 12.
Calaci said for the Gulf Coast, the peak is generally from mid-August to mid-September, when the Gulf of Mexico waters are nice and warm and provide fuel for passing storms.
There are a frankly mind-numbing amount of factors that can affect where a hurricane goes, but Calaci says he generally keeps an eye on a few throughout the season.
One is something called the Intertropical Convergence Zone, which he described as a shifting belt around the globe where winds in the Southern Hemisphere meet winds in the Northern Hemisphere. Usually around late July and early August, the zone moves north far enough to create an ideal path for hurricanes to spin off the coast of Africa toward the United States. Once it gets above 11 degrees latitude, it sends those storms straight on over.
Another factor Calaci watches is the dust from the Sahara Desert. Yes, you read that right. Weather patterns actually carry the dust -- known as the Saharan Air Layer -- over the Atlantic Ocean to parts of the U.S. and South America. Fun fact: The dust actually fertilizes the Amazon rain forest and scientists credit this for the region's amazing biodiversity. However, the dry air also acts as a barrier to hurricanes trying to cross the Atlantic.
2. El Nino is a major factor.
Again, yes and no. Calaci takes issue with El Nino, saying there are actually three prevailing definitions. He said it's like describing something as "tall." It means different things to different people.
"I don't believe in El Nino affecting hurricanes," he said.
Also, predictions so far vary wildly for how El Nino will behave this year: when it will occur and how strong it will be.
However, Calaci did say generally El Nino brings stronger wind shear, which can prevent hurricanes from forming.
3. Global warming isn't a major factor.
The U.S. and the Gulf of Mexico waters have been seeing months of record heat over the past year, according to the National Oceanic and Atmospheric Administration. Why that's happening is a topic of much debate, but the fact that it's happening is not.
Heat is fuel for hurricanes.
"The Gulf is getting warmer at an earlier date each year," he said. "That means there's more potential for stronger hurricanes."
4. All hurricanes form off the Coast of Africa.
Actually, hurricanes are more than capable of forming anywhere, including in the Gulf and the Caribbean Sea. An example is Hurricane Otto in November last year, which formed in the western Caribbean.
These kinds of storms are a unique threat because of how quickly they form and how close they already are to land. Combine that with the aforementioned hotter-than-usual Gulf waters, and we have a dangerous combination.
They also don't follow the peak season rules, as the ITCZ zone and Saharan dust aren't as much of an issue. So be on the lookout for tropical systems that pop up in May, June and July.
4. Tornadoes only happen in the outer bands of a hurricane.
No. Tornadoes can occur anywhere in a hurricane if the conditions are right.
5. Microbursts only happen in thunderstorms.
Microbursts are sudden, powerful drafts of air that drop down and wreak havoc. Calaci said there were actually a lot of them during Hurricane Katrina.
"A hurricane is just a rotating area of thunderstorms," he said, so microbursts can occur at any time during one.
6. Preparation is for newbies.
"People don't prepare," he said. "People don't think of what they should be doing now when they have the opportunity."
Quick question for homeowners: Do you know exactly how much your house is insured for, and proof of what you own? You should.
Calaci said people who bought a house a decade or more ago may not have updated their insurance policy to reflect its current value. Mississippi Coast residents found that out the hard way after Katrina.
He said to check with your insurance company to see what you need to prove what you own, such as photos of your property.
"If a hurricane hits and you lose everything, you've got nothing to start with."
And check the policy. Do you have flood insurance? Wind insurance?
He said insurance companies and local emergency management agencies both have great information on how to prepare. And preparing is always preferable to the alternative.


Copyright © 2017 The Sun Herald (Biloxi, Miss.), Lauren Walck. Distributed by Tribune Content Agency, LLC.
6 common misconceptions about hurricane season

25 tips for first-time home buyers

GROVE, Okla.– June 9, 2017 – Buying a home can be a nerve-racking experience, especially if you're a first-time home buyer. Not only is it probably the biggest purchase of your life, but the process is complicated and fraught with unfamiliar lingo and surprise expenses.
To make the first-time home buying journey a little less stressful, NerdWallet has compiled these 25 tips to help you navigate the process more smoothly and save money.
1. Start saving for a downpayment early
It's common to put 20% down, but many lenders now permit much less, and first-time home buyer programs allow as little as 3% down. But putting down less than 20% may mean higher costs and paying for private mortgage insurance, and even a small downpayment can still be hefty. For example, a 5% downpayment on a $200,000 home is $10,000. Play around with a downpayment calculator to help you land on a goal amount. Some tips for saving for a downpayment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress.
2. Check your credit
When you're taking out a mortgage loan, your credit will be one of the key factors in whether you're approved, and it will help determine your interest rate and possibly the loan terms. So check your credit before you begin the home buying process. Dispute any errors that could be dragging down your credit score and look for opportunities to improve your credit, such as making a dent in any outstanding debts.
3. Pause any new credit activity
Any time you open a new credit account, whether to take out an auto loan or get a new credit card, the lender runs a hard inquiry, which can temporarily ding your credit score. If you're applying for a mortgage soon, avoid opening new credit accounts to keep your score from dipping.
4. Determine how much home you can afford
Before you start looking for your dream home, you need to know what's actually within your price range. Use a home affordability calculator to determine how much you can safely afford to spend.
5. Explore your downpayment options
Struggling to come up with enough money for a downpayment? First-time home buyer programs are plentiful, including federal mortgage programs with Fannie Mae and Freddie Mac that allow loans with only 3% down, plus Federal Housing Administration loans and Veterans Affairs loans. You could also try crowdfunding or asking if family members are willing to pitch in with a gift.
6. Research state and local assistance programs
In addition to federal programs, many states offer assistance programs for first-time home buyers with perks such as tax credits, low down payment loans and interest free loans up to a certain amount. Your county or municipality may also have first-time home buyer programs.
7. Budget for closing costs
In addition to saving for a downpayment, you'll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowner's insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent's commission.
8. Set aside more money for after move-in
Sorry, that's not all you need to save up for before home shopping. Once you've saved for your downpayment and budgeted for closing costs, you should also set aside a buffer to pay for what will go inside the house. This includes furnishings, appliances, rugs, updated fixtures, new paint and any other touches you'll want to have when you move in.
9. Consider what type of property to buy
You may assume you'll buy a single-family home, and that could be ideal if you want a large lot or a lot of room. But if you're willing to sacrifice space for less maintenance and extra amenities, and you don't mind paying a homeowners association fee, a condo or townhome could be a better fit.
10. Research mortgage options
Is a 30-year, fixed rate mortgage a given, or is another loan type right for you? If you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage.
11. Compare mortgage rates
Many homebuyers get a rate quote from only one lender, but this often leaves money on the table. Comparing mortgage rates from at least three lenders can save you more than $3,500 over the first five years of your loan, according to the Consumer Financial Protection Bureau. Get at least three quotes and compare both rates and fees.
12. Decide if paying points makes sense
Lenders often allow you to buy discount points, which means prepaying interest upfront to secure a lower interest rate. There may also be an option for negative points, in which the lender pays some of your closing costs in exchange for a higher interest rate. How long you plan to stay in the house is one of the key factors in whether buying points makes sense. You'll need to do some calculations or speak to a mortgage broker or loan officer to help you decide if buying points is worth it for you.
13. Get a preapproval letter
You can get prequalified, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it's smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it's willing to lend you and at what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven't taken this step.
14. Hire the right real estate agent
You'll be working closely with your real estate agent, so it's essential that you find someone you get along with well. The right buyer's agent should be highly skilled, motivated and knowledgeable about the area.
15. Stay under your preapproval limit
As your agent shows you homes, look for properties that cost a little less than the amount you were approved for. While you can technically afford that amount, it's the ceiling " and it doesn't account for a broken washer or dryer or any other expenses that arise during homeownership, especially right after you buy. Rather than maxing out that amount, set a lower purchase budget to leave yourself wiggle room for unexpected costs.
16. Pick the right neighborhood
Finding the right neighborhood is just as important as locating the right house. Research the schools, even if you don't have kids, since that affects a home's value. Look at local safety and crime statistics. How close are the nearest hospital, pharmacy, grocery store and other amenities you'll use? Also, drive through the neighborhood on various days and at different times to check out traffic, noise and activity levels.
17. Make the most of an open house
Use this as another opportunity to scope out the neighborhood and your potential neighbors. During the open house, pay close attention to the home's overall condition and look for any smells, stains or items in disrepair. Ask a lot of questions about the home, such as when it was built, when items were last replaced and how old key systems like the air conditioning and the heating are. If several other potential buyers are viewing the home at the same time as you, don't hesitate to schedule a second or third visit to get a closer look and ask more questions.
18. Buy a home for tomorrow
It's easy to look at properties that meet your current needs. But if you plan to start or expand your family, it may be preferable to buy a larger home you can grow into. Consider your future needs and wants and whether this home will suit them.
19. Let little things go
When you're looking at a home, it's easy to get caught up on superficial details like paint color, fixtures and carpets. These features are easy to change once the home is yours, so don't let those little details get in the way.
20. Be prepared to compromise
It's rare to find a house that's perfect in every way, so think carefully about what you're willing to compromise on and what you're not. Perhaps no walk-in closet in the master bedroom is a deal breaker, but an outdated guest bathroom will be tolerable until you can renovate it.
21. Make a strong offer
Your real estate agent can help you with this, but consider how much under or over the asking price you're willing to pay to obtain your dream home. If there are multiple bids, think about tactics to win over the seller, such as a personalized letter.
22. Avoid a bidding war that blows your budget
In a competitive real estate market with limited inventory, it's likely you'll bidding on houses that get multiple offers. When you find a home you love, it's tempting to make a high-priced offer that's sure to win. But don't let your emotions take over; stick to your purchase budget to avoid getting stuck with a mortgage payment you can't afford.
23. Negotiate
A lot can be up for negotiation in the home buying process, which can result in major savings. Are there any major repairs you can get the seller to cover, either by fully handling them or by giving you a credit adjustment at closing? Is the seller willing to pay for any of the closing costs? If you're in a buyer's market, you may find the seller will bargain with you to get the house off the market.
24. Buy homeowners insurance
Before you close on your new house, your lender will require you to buy homeowners insurance. Shop around and compare rates to find the best price. Look closely at what's covered in the policies; going with a less expensive policy usually means fewer protections and more out-of-pocket expenses if you file a claim. Be aware that your insurer can drop your property if it thinks the home's condition isn't up to snuff, so you may have to be prepared to find a new policy quickly if it sends someone out to look at the property and isn't happy with what it finds. Also, flood damage isn't covered by homeowners insurance, so if your new home is in a flood-prone area, you may want to buy separate flood insurance.
25. Know the limits of a home inspection
Once your offer is accepted, you'll pay for a home inspection to examine the property's condition inside and out. But not all inspections test for things like radon, mold or pests, so be sure you know what's included. Make sure the inspector can access every part of the home, such as the roof and any crawl spaces. Attend the inspection and pay close attention. Don't be afraid to ask your inspector to take a closer look at something and ask questions. No inspector will answer the question, 'Should I buy this house?', so you'll have to make this decision after reviewing the reports and seeing what the seller is willing to fix.
© 2017 The Grove Sun, Emily Starbuck Crone, a staff writer at NerdWallet, a personal finance website.
25 tips for first-time home buyers

New ‘HomePod’ speaker coming to smart homes-APPLE Enters the Smart Home Market

New ‘HomePod’ speaker coming to smart homes

 
SAN JOSE, California (AP) – June 6, 2017 – Apple nodded to several up-and-coming technology trends, unveiling a new "smart" home speaker and device features touching on virtual reality, online privacy and a form of artificial intelligence called machine learning.
The "HomePod" speaker unveiled Monday is similar to devices from rivals, some of which have been on the market for years. Like the Amazon Echo and Google Home, the HomePod will play music while also helping people to manage their lives and homes. Siri will be voice activated to respond to requests for information and other help around the house.
It is the first new device Apple has announced in almost three years. It unveiled the Apple Watch in September 2014.
Apple "can't afford to yield valuable real-estate in the heart of people's homes to Amazon, Google and others," said Geoff Blaber, research analyst at CCS Insight. That's especially important because people are starting to access information, entertainment and search in a more "pervasive" way that's less dependent on smartphones, he said.
The speaker will sell for about $350 in December in the U.S., U.K. and Australia. Amazon sells the main version of the Echo for $180; Google's Home speaker goes for $130.
The Echo, released in 2015, and Google Home, released last year, were the first entrants in a promising market. The research firm eMarketer says than 35 million people in the U.S. are expected to use a voice-activated speaker at least once a month this year, more than double its estimate from last year.
Keeping it real with VR
New iMacs unveiled Monday at Apple's annual conference for software programmers are getting better displays and graphics capabilities. Apple said that makes the Mac a great platform for development virtual-reality "experiences."
But Apple is late to the game on VR. Samsung and Google already have VR systems centered on their smartphones. Facebook, HTC and Sony have high-end VR systems, too.
Virtual reality has been described as the next big thing for decades. But so far, interest has been strongest among gamers, developers and hardware makers rather than everyday users.
Apple's entry into the market could change this. Its entry into digital-music sales with iTunes, and into the smartphone market with the iPhone, upended those industries and gave them mass appeal.
New iPhone features
New features coming to iPhones and iPads include messages that sync to Apple servers in the cloud. These devices will only keep the most recent messages in local storage.
For photos, Apple is turning to a "high efficiency" format to replace the widely used JPEG standard. Although the format is not exclusive to Apple, it's not yet clear how well the photos will work with non-Apple software and devices, which mostly use JPEG.
Apple is also bringing the ability to send money to friends or other people through its payment service, Apple Pay. So far, the service has limited payments to purchases of products and services from companies and other organizations.
The free software update for mobile devices, iOS 11, is expected in September, when Apple typically releases new iPhones.
MAC gets an upgrade
Apple CEO Tim Cook unveiled the latest operating system for Mac computers. Called High Sierra, it recognizes more faces automatically, which should make it easier to organize photos, and will offer more photo editing tools.
Safari, Apple's web browser, seeks to make users' online experience smoother and less annoying. It will allow users to automatically block auto-play videos by detecting videos that shouldn't be playing when you open a webpage to read an article, for example.
The browser's new "intelligent tracking prevention," meanwhile, will use machine learning to identify and block digital-ad trackers in order to keep advertisers from following and profiling users. It will not block the ads themselves, though.
Sizing up the iPad
Apple is introducing an iPad Pro in a new size in an attempt to revive interest in its once hot-selling line of tablets. The new 10.5-inch model offers room for a full-size keyboard, something the 9.7-inch model couldn't. Yet it isn't as bulky as the 12.9-inch model.
With consumers less interested in buying new tablets, Apple has increased its focus on designing tablets for professionals to do much of the same work that they usually perform on a laptop computer. It's also what Microsoft is targeting with the Surface Pro; a new model comes out on June 15.
The new iPad Pro also comes with a better camera – the same one found in the iPhone 7 – along with more storage, a better display and faster refreshing of moving images. The new model starts at $649 and will start shipping next week.
Watch the watch
Apple is also updating the operating software for its Apple Watch, including new watch faces, more personalized alerts that use machine learning to tailor information to you based on your routines and tastes.
It also enhanced its workout app to, for instance, support high intensity interval training. It will also be possible to exchange data between gym equipment and the watch.
In a nod to Amazon streaming fans, Apple is also bringing Amazon Prime to its Apple TV app.
AP Logo Copyright © 2017 The Associated Press, Michael Liedtke and Barbara Ortutay, AP technology writers. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  

New ‘HomePod’ speaker coming to smart homes

First-time homebuyer mortgage options

First-time homebuyer mortgage options

 
NEW YORK – April 28, 2017 – Buying a home for the first time can be daunting. In addition to mountains of paperwork and new financial terms to sort through, you'll face costs and fees that can quickly add up.
Fortunately, many grants and programs exist to help first-time homebuyers. Here are some of them:
FHA loan
With this option, the Federal Housing Administration, or FHA, insures the mortgage. The FHA is an agency that operates within the U.S. Department of Housing and Urban Development, or HUD. Lenders receive a layer of protection and won't experience a loss if you default on the mortgage.
FHA loans typically come with competitive interest rates, smaller down payment requirements and lower closing costs. Buyers with a credit score of 580 or higher could be eligible for a mortgage with a downpayment as low as 3.5 percent.
USDA loan
The homebuyer assistance program of U.S. Department of Agriculture focuses on residences in certain rural areas. And you don't need to purchase or run a farm to be eligible.
Through this setup, the USDA guarantees the loan. There may be no down payment required, and the loan payments are fixed. Applicants with a credit score of 620 or higher typically receive streamlined processing.
VA loan
The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses purchase homes. The VA guarantees part of the loan, which makes it possible for lenders to offer some special features.
VA loans offer competitive interest rates and require no downpayment. You may not be required to pay for private mortgage insurance, and there isn't a minimum credit score needed.
Good Neighbor Next Door
This program is sponsored by HUD and focuses on providing housing aid for law enforcement officers, firefighters, emergency medical technicians and teachers.
Through this program, you could receive a discount of 50 percent off a home's listed price in specific regions known as revitalization areas.
Fannie Mae or Freddie Mac
Fannie Mae and Freddie Mac are government-sponsored entities. They work with local lenders to offer mortgage options that benefit low- and moderate-income families.
With the backing of Fannie Mae and Freddie Mac, lenders can offer competitive interest rates and down payment amounts as low as 3 percent of the purchase price.
Energy Efficient Mortgage
This type of loan's purpose is to help you add improvements to your home that will make it more environmentally friendly. The federal government supports Energy Efficient Mortgage loans by insuring them through FHA or VA programs.
The key advantage to this grant is that it allows you to create an energy-efficient home without the need to make a larger downpayment. The amount is rolled into your primary loan.


© Copyright 2017, Erie Times-News, Rachel Hartman. All rights reserved.
First-time homebuyer mortgage options

Feb. home prices rose at fastest pace in 3 years

Feb. home prices rose at fastest pace in 3 years

 
WASHINGTON (AP) – April 25, 2017 – U.S. home prices rose steadily upward in February as more homebuyers chased fewer available properties, a trend that many analysts say may not be sustainable.
The Standard & Poor's CoreLogic Case-Shiller national home price index, released Tuesday, increased 5.8 percent in February, the most in 32 months. Such strong price gains and slightly higher mortgage rates may eventually cool off demand.
But for now, sales of new and existing homes are robust. Last month, sales of existing homes reached their highest level in a decade. The strong demand, however, hasn't enticed more Americans to sell their homes. The number of houses for sale has dropped to its lowest level in nearly 20 years, which makes finding an available home the toughest challenge awaiting potential buyers in the spring home buying season.
Many homeowners have benefited from the sharp price gains of recent years, but those increases have also made it harder for them to "trade up" to a bigger house, discouraging them from selling. Others have very low mortgage rates and may be reluctant to sell if doing so would force them to take on higher borrowing costs.
The cities with the biggest annual price gains in February were Seattle; Portland, Oregon; and Dallas.
Still, some relief may be on the horizon, though it's not clear when. Average rents are leveling off, which could keep many people in apartments and dampen demand for homes.
Mortgage rates are also up from last year's record lows. Those two trends "could put a dent in home-buyer demand and overall price growth," said Svenja Gudell, chief economist at real estate data provider Zillow. "Those changes won't necessarily be unwelcome, especially in some rapidly growing coastal markets in which buyers, sellers and renters could all use a breather."
The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The February figures are the latest available.
Home builders are ramping up construction to meet the healthy demand, which may provide buyers some relief. Ground breakings on new homes rose 8.1 percent in the first three months of this year compared with 2016.
And the supply of new homes available for sale in February climbed to a seven-year higher of 266,000.
AP Logo Copyright © 2017 The Associated Press, Christopher S. Rugaber. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  

Feb. home prices rose at fastest pace in 3 years

Ins. agents: Citizens will be insuring more Fla. homes

Ins. agents: Citizens will be insuring more Fla. homes

 
ORLANDO, Fla. – April 24, 2017 – Get used to the idea that more South Florida homeowners will be forced back to state-run Citizens Property Insurance Corp., the so-called insurer of last resort.
That's the message members of the Professional Insurance Agents of Florida will be hearing when they convene at the Rosen Plaza Hotel in Orlando on April 27-28 for their annual "Agent Expo."
Prospects for a legislative solution to costly claims abuses in South Florida are dimming again this year with just two weeks left in this year's session. If the Legislature fails to address "assignment of benefits" abuses for a fifth-straight year, more private insurers will likely decide parts or all of the tri-county region are too risky and refuse to take new customers, said Corey G. Mathews, CEO and executive vice president of the insurance agents' trade group.
"Unfortunately, from what we're hearing, it's already happening," Mathews said in an interview Friday. "I'm hearing from agents who say they submitted [a new policy] in a zip code they wrote [a policy in] last week, and the insurer is saying 'Sorry, we're closed in that zip code.'"
Citizens spokesman Michael Peltier said the company expects to grow by about 50,000 in coming months – a sharp reversal from the previous five years in which about a million policies were absorbed into the private market. Most of those policies will be in South Florida, he said.
Last year, Heritage Property & Casualty Insurance stopped writing new policies in Miami-Dade, Broward and Palm Beach counties, then later resumed writing to a "very select" number of homeowners through a small number of agents.
In December, Citizens released a report quoting United Property & Casualty president John Forney as saying his company stopped writing new business in Miami-Dade and Broward because claims had become far more costly there than in the rest of the state.
Citizens and other insurers have been asking the Legislature to help stem a flood of lawsuits generated by South Florida water damage restoration companies and about a dozen law firms. They say the contractors convince policyholders to sign over benefits of their policies, then quickly file suit if insurers refuse to pay inflated claims.
Attorneys are motivated by a law that shields policyholders from paying their insurer's legal fees if they sue a company in a claim dispute and lose, but lets them collect legal fees if the insurer loses or agrees to pay more than originally offered.
Contractors have learned to secure an assignment of benefits to assert the same right, and that encourages them to file large numbers of suits with little risk, insurers say.
This year, insurers backed a legislative bill that would bar contractors from collecting legal fees if working under an assignment, but the chair of the Senate's Banking and Insurance Committee refused to bring it up for debate.
A House bill that would award fees under a complicated formula was advanced this week but faces poor prospects of enactment with so little time left in the session.
Citizens was created to ensure Florida homeowners could buy insurance after a series of hurricanes prompted large national carriers to stop writing new policies in the state.
By 2012, Citizens' policy count had swelled to 1.5 million. But the creation of new private companies, a 10-year hurricane drought, and a state-mandated "depopulation" program incentivizing private companies to absorb Citizens policies, has reduced its policy count to 450,000.
In recent months, Citizens officials have been warning the company will be "repopulated" if the Legislature doesn't act to curb claims abuses.
As the insurer of last resort, state law requires Citizens to accept property owners who cannot otherwise get insured. State law also limits annual rate increases to 10 percent, which Citizens president and CEO Barry Gilway has warned might be necessary for the foreseeable future.
The Citizens workshop at next week's Agent Expo will be moderated by Carl Rockman, Citizens' director of agent services. According to an email flier sent to Professional Insurance Agents of Florida, the session will cover changes that Citizens has implemented "since you last wrote a substantial number of policies with them."
"We all know that writing Citizens [policies] is the last thing any of us want to do, but until and unless something changes, we have to get used to the idea, and more importantly, prepared for the reality," the flier said.


Copyright © 2017 the Sun Sentinel (Fort Lauderdale, Fla.), Ron Hurtibise. Distributed by Tribune Content Agency, LLC.
Ins. agents: Citizens will be insuring more Fla. homes

Fla. home sales up 9.3% year-to-year in March

Fla. home sales up 9.3% year-to-year in March

 
ORLANDO, Fla. – April 21, 2017 – Florida's housing market reported more closed sales, higher median prices and increased pending sales in March, according to the latest housing data released by Florida Realtors. Sales of single-family homes statewide totaled 25,921 last month, up 9.3 percent compared to March 2016.
"March's strong sales likely were influenced by buyers ready to take action before interest rates could move higher," says 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. "Higher demand, coupled with a shortage of available homes for sale, continues to put pressure on prices – so buyers are eager to make an offer when they find the right property.
"That means it's a good time for sellers to list their homes since they continue to receive a higher sales price as inventory remains scarce," Wells adds. "In March, sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent – an indication that the listed price is extremely close to market value.
"Consumers who work closely with a local Realtor have an expert guide to help them navigate the often-complex process of buying or selling a home."
The statewide median sales price for single-family existing homes last month was $231,900, up 10.4 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in March was $171,000, up 9.4 percent over the year-ago figure.
March marked the 64th consecutive month that statewide median prices for both sectors rose year-over-year. The median is the midpoint; half the homes sold for more, half for less.
According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in February 2017 was $229,900, up 7.6 percent from the previous year; the national median existing condo price was $216,100. In California, the statewide median sales price for single-family existing homes in February was $478,790; in Massachusetts, it was $330,000; in Maryland, it was $251,816; and in New York, it was $242,000.
Looking at Florida's townhouse-condo market, statewide closed sales totaled 11,193 last month, up 11.4 percent compared to March 2016.
Closed sales data reflected fewer short sales and cash-only sales last month: Short sales for townhouse-condo properties declined 29.7 percent while short sales for single-family homes also dropped 33 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
"March turned out to be one of the strongest months we've seen in a long time for sales of existing homes in the Sunshine State," said Florida Realtors Chief Economist Dr. Brad O'Connor. "Sales for both single-family homes and for townhouse-condo units in March marked the fourth-highest monthly total for any single month over the past decade.
"The data shows that inventory levels in the more affordable price tiers continue to fall, especially in the case of single-family homes. The number of active single-family home listings was down almost 5 percent year-over-year at the end of March. As a result, the single-family sector remained a seller's market, though the inventory situation in the townhouse-condo market appears more balanced."
In a continuing trend, inventory remained at a tight 4.1-months' supply in March for single-family homes and at a 6.3-months' supply for townhouse-condo properties.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.20 percent in March 2017, up significantly from the 3.69 percent average recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Media Center and look under Latest Releases, or download the March 2017 data report PDFs under Market Data.


© 2017 Florida Realtors

Is it worth suing a rogue condo board president?

All condo's and HOA's will at some point have issues from people with very different viewpoints on how the issue should be addressed. Below is an article from the Florida Association of Realtors that addresses an extreme situation.



FORT LAUDERDALE, Fla. – April 20, 2017 – Question: I live in a community association where the president of the board is violating several statutory provisions and community rules. When a homeowner brought this up at a board meeting, the president told the audience to deal with it or just sue him. What should we do? – Jeff
Answer: The very large majority of people who take on the often-thankless and time-consuming job of serving on the board have the best of intentions. Unfortunately, sometimes a rogue board member gets in power and wants to carry out his or her own agenda or to abuse the new-found power by ignoring the rules.
Even if the president is just trying to bend the rules for what he perceives to be a good cause, no one in any position of authority should ever substitute his own judgment for what was agreed to in the community documents or the law.
Your best course of action is to discuss the matter with the offending party. Instead of immediately challenging the president, thereby putting him on the defensive, try to find out what his motivations are. He may simply be trying to do the right thing in the wrong way.
However, if his actions are truly harmful, you may need to take legal action. Your choices include suing the board to make it do the right thing or to force a new election to get the right people in place. Of course, you would need to pay the legal fees, and such lawsuits can get expensive. While there is a chance of being reimbursed if you win, there also is the danger of having to pay your community's legal fees if you lose.
Before you go this route, consider whether his actions have any consequences worth fighting over. For example, if he's breaking a technical rule that doesn't have a negative effect on the community or yourself, it's probably not worth spending the time, money and energy on a lawsuit. You might be best served waiting it out and voting for someone better at the next election, no matter how emotionally frustrating it may be.
About the writer: Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He practices real estate, business litigation and contract law from his office in Sunrise, Fla. He is the chairman of the Real Estate Section of the Broward County Bar Association and is a co-host of the weekly radio show Legal News and Review. He frequently consults on general real estate matters and trends in Florida with various companies across the nation.
Copyright © 2017 Sun Sentinel (Fort Lauderdale, Fla.), Gary M. Singer. Distributed by Tribune Content Agency, LLC.  

Related Topics: Legal
Is it worth suing a rogue condo board president?

Small nest egg, big dreams? Retirement home tips

ORLANDO, Fla. – April 19, 2017 – Planning for retirement means making a lot of decisions, including when you'll stop working, how much you'll withdraw from your savings each year, and where you'll live. Many Americans view retirement as an opportunity to move into a house they'll love and live in for all their golden years. In fact, 64 percent of retirees either have moved or plan to move, according to a Merrill Lynch survey.
Some retirees move to be closer to children or grandchildren, to downsize into a more manageable home, live in a warmer locale, or to secure a more luxurious home where they can easily age in place.
"The decision of where to live in retirement is important and can directly affect quality of life in your golden years," says Geoff Lewis, president of RE/MAX, LLC. "Research by Trulia shows that in virtually all areas of the country, it makes better financial sense for retirees to buy a home, rather than rent. In fact, buying is nearly 42 percent cheaper than renting for seniors across the country."
RE/MAX agents have helped millions, including retirees, find the home of their dreams. Lewis and the RE/MAX team offer some advice for buying your retirement home:
Have a plan
Ideally, you should think about where you want to live long before retirement, but it's never too late to think about your priorities. Do you want to be close to family or health care resources? Do you desire a home in the mountains or somewhere you'll never see snow again?
Trulia's research shows that some of the cities most popular for retirees are also ones where buying a home can save you the most money over renting. Desirable, warm-weather locations in Florida and Arizona offer significant value, even in regions where average home prices are higher.
Make a list of what you want in a home location so you'll have a starting point for your search.
Don't delay
If possible, don't wait until poor health or declining finances force you to move somewhere that's not your ideal location. Move while you're still young enough to enjoy your dream retirement home.
Get professional financial advice
It's important to protect your nest egg and keep it growing throughout retirement. A professional financial planner can help you understand what size mortgage is right for you, so your dream home doesn't strain your finances.
Be mindful of amenities
When choosing a location and a home, in addition to your personal priorities, it's important to keep in mind accessibility to amenities important to seniors. Community features such as good transportation, quality of roads, safe neighborhoods, and access to health care, socialization opportunities, shopping and cultural venues are all options to consider.
Focus on must-haves
Make a list of must-have features and those you would like your retirement home to have. Share the list with your agent to help him or her focus on properties that meet your criteria. Your list of must-haves and desirables will likely be very different from the list you made when you bought your first home. Now, a single-level house with large bathrooms and a level lot may be more desirable than a two-story with lots of bedrooms and a big backyard.
Finally, says Lewis, keep in mind whether you plan to age in place.
"More Americans are looking for homes that will allow them to stay independent and living on their own throughout their retirement years," he says. "If that's your plan, look for home features that will help facilitate that, like wider doors, few or no exterior stairs, and good lighting."
Copyright © 2017 Chestnut Hill Local. All rights reserved.
Small nest egg, big dreams? Retirement home tips

Flipping property? Legal details can be challenging



Flipping property? Legal details can be challenging

By Meredith Caruso
 
April 17, 2017 – There are many ways to transfer real property beyond "Joe Buyer purchased a property from Bob Seller." Realtors who call the Legal Hotline about transfers often ask about property "flips" or "simultaneous closings." Usually the scenario involves a buyer interested in a property that the seller only recently acquired; in some cases, it's a property the seller will acquire very soon but doesn't even own yet.
If a customer wants to use any type of unfamiliar transfer method, it can be intimidating – and potentially risky – unless you know the issues your customer might face during the transaction.
Here are some factors to keep in mind if you're considering involvement in a transaction like this:
1. Who is the seller and how did the seller acquire the property?
Is it a bank/REO sale? Or is it an investor who acquired the property after the lender foreclosed? Or is it the son or daughter of a deceased homeowner? Was it acquired at a tax sale?
If the seller hasn't owned the property long, he probably has little-to-no knowledge of its history, and your buyers should plan to have all inspections done to verify the property's condition – including ones beyond a physical inspection of the property. There can often be property issue(s) that the seller doesn't know about, making these inspections extremely important.
Even if a buyer gets a seller's property disclosure form, it likely won't contain much usable information. Depending on how the seller acquired the property, there could also be title issues that need addressed, which likely involves the use of an attorney. It's always better to tackle potential title issues upfront rather than discover one right before closing.
2. Does the seller actually own the property – or is he in the process of acquiring title before closing?
Many times, lenders foreclosing on a property will go under contract with a buyer before the foreclosure is finalized to shorten the length of time they hold title and lessen their financial losses. Usually the fine print within REO contracts contains a clause about this, detailing what happens if the lender can't obtain title to the property before closing. It's important for buyers to read – and fully understand – provisions like this in the sales contract, which can vary by lender.
Sellers should make sure they have language in the contract that addresses this contingency (i.e. obtaining title) and verify the contingency language with their attorney. For example, if the seller is the son or daughter of a deceased parent, is that parent's name still on the title? If so, showing up at closing with a death certificate isn't normally enough for a title company to close the transaction, and the son/daughter must take additional legal steps to pass marketable title on to the buyer. It's always advisable for the seller to check with the closing agent (or his or her attorney) when the process starts to find out what, if any, documents may be required for the closing to occur on time.
3. How does the buyer intend to purchase the property?
Cash? Mortgage? If mortgage, what type of financing? Certain types of financing, like FHA/VA loans, require the seller to have owned the property for a certain number of days before they'll lend money to a buyer. While there's nothing illegal about an investor purchasing and reselling property in a short period of time, he or she might want to note the type of financing a buyer intends to pursue because it could affect the transaction.
These transactions can be legally complex, and if buyers or sellers have additional legal questions or concerns, they should seek assistance from their personal attorney.
Meredith Caruso is Manager of Member Legal Communications for Florida Realtors
© 2017 Florida Realtors
Flipping property? Legal details can be challenging 

Floridians’ confidence hits 15-year high in March

GAINESVILLE, Fla. – April 4, 2017 – Consumer sentiment among Floridians rose last month to the highest level in 15 years, according to the latest University of Florida (UF) consumer survey.
The reading of 99 in March was the highest since March 2002 and the second-highest since November 2000. The 5.2-point March increase followed a dip in February, which ended the month with a revised reading of 93.8.
All five of the components that make up the index increased.
Current perceptions
Floridians' perception of their personal financial situation now compared with a year ago ticked up four-tenths of a point, from 88.1 to 88.5. Perceptions as to whether it's a good time to buy a major household item such as an appliance rose 3.8 points, from 99.7 to 103.5.
"The increase in these two components shows that current economic conditions improved among Floridians in March," says Hector H. Sandoval, director of the Economic Analysis Program at UF's Bureau of Economic and Business Research. "In particular, women and those under age 60 displayed more optimistic perceptions."
Short-term future expectations
The sub-index measuring Floridians' personal finance expectations a year from now rose 7.8 points from 99.5 to 107.3. Opinions of anticipated U.S. economic conditions over the next year increased 7.2 points, from 92.0 to 99.2.
Similarly, expectations of U.S. economic conditions over the next five years rose 7.2 points, from 89.5 to 96.7.
"Overall, Floridians are far more optimistic in March than the previous month. The gain in March's index came mainly from consumers' future expectations about the economy. Importantly, these views are shared by all Floridians, independent of their demographic characteristics and socioeconomic status," Sandoval says. "These expectations are particularly strong among women and those with an income under $50,000."
U.S. consumer sentiment at the national level also remained positive in March at 96.9, according to the University of Michigan's survey of consumers.
In Florida, consumer sentiment may have been lifted by good economic news. The Florida labor market has continued expansion, adding jobs on a monthly basis for more than six years. The unemployment rate in Florida remained unchanged at 5 percent in February, the most recent figure available. Over the last year, the unemployment rate has remained stable: Between March and December 2016, the unemployment rate was 4.9 percent, and since January the rate has been 5 percent.
According to the U.S. Bureau of Economic Analysis, Florida ranked third out of all states in the country in personal income growth, with a growth rate of 4.9 percent in personal income between 2015 and 2016. The main contributor to this change came from net earnings, which includes wages, salaries and supplements but excludes contributions for government social insurance.
Nationwide, economic activity and the labor market has continued to expand and strengthen, and household spending has risen. As a consequence, last month the Federal Open Market Committee decided to raise the federal funds rate to a target range of 0.75 to 1 percent.
"In general, the economic outlook is very positive and the positive sentiment will aid the economy to expand even further," Sandoval said.
Conducted March 1-30, the UF study reflects the responses of 507 individuals who were reached on cellphones, representing a demographic cross section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2, the highest is 150.
© 2017 Florida Realtors  

Floridians’ confidence hits 15-year high in March

Reverse mortgages: Myths vs. realities

Reverse mortgages: Myths vs. realities

Reverse mortgages: Myths vs. realities

 
STUART – There are a lot of misconceptions surrounding reverse mortgages. I've highlighted six here that seem to come up most often in conversations with clients. I hope these will help when considering whether a reverse mortgage is the right path for you.
Myth No. 1: The lender owns the home
You will retain the title and ownership during the life of the loan, and you can sell your home at any time. The loan will not become due as long as you continue to meet loan obligations such as living in the home, maintaining the home according to Federal Housing Administration (FHA) requirements, and paying property taxes and homeowner's insurance.
Myth No. 2: The home must be free and clear of any existing mortgages
Actually, many borrowers use the reverse mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments.
Myth No. 3: Once loan proceeds are received, you pay taxes on them
Reverse mortgage loan proceeds are tax-free, as it is not considered income. However, it is recommended that you consult your financial adviser and appropriate government agencies for any effect on taxes or government benefits.
Myth No. 4: The borrower is restricted on how to use the loan proceeds
Once any existing mortgage or lien has been paid off, the net loan proceeds from your Home Equity Conversion Mortgage (HECM) loan can be used for any reason.
Many borrowers use it to supplement their retirement income, defer receiving Social Security benefits, pay off debt, pay for medical expenses, remodel their home, or help their adult children. You worked hard for this asset and prudence along with budgeting should be the proper approach to enjoying proceeds received from your HECM loan.
Myth No. 5: Only poor people need reverse mortgages
The perception of the reverse mortgage as an assist for the "poor" borrower is changing. Many affluent senior borrowers with multimillion dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.
Myth No. 6: My children will be responsible to pay off the loan
Reverse mortgages are a non-recourse loan. If your heirs wish to keep the home and the loan balance is more than the home value, they would only have to pay 95 percent of the appraised value to keep the home.
Donna M. Linton is a professional reverse mortgage adviser with six years' experience. She currently works at Sterling Mortgage Services, 100 Albany Ave., Stuart.
© 2017 Journal Media Group, Donna Linton, YourNews contributor  

The Home Office Tax Deduction!!


The Home Office Tax Deduction: One of the Most Misunderstood (and Dangerous) Tax Breaks

 | Feb 24, 2017



According to the latest figures from the Bureau of Labor Statistics, 24% of employed people now do some or all of their work at home. Beyond the obvious benefits of unfettered access to your refrigerator and a dress code of stretchy elastic-waist pants, working at home can save you more than lunch money on National Tax Day, thanks to the home office deduction.
Simply put, the home office deduction allows you to write off part of your home expenses on your business tax return by separating out the costs associated with using your home for personal purposes (making pancakes) and business (answering work email). Yet of all the tax write-offs available, this one is among the most murky and misunderstood.

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Allow us to clear the air for you happy home workers so you can claim your home office tax deduction with confidence.

Who can claim the home office deduction?

To claim the deduction, you must meet two requirements. First, an area of home has to be designated as your principal place of business, and—the clincher—used exclusively for work. Got that?
“This means your couch, exercise room, and kitchen table don’t count,” says Aaron Lesher, a CPA at Hurdlr, a finance management app. Ignore these rules and your chance of being audited can skyrocket.
To be clear, that room you work in that doubles as a guest room when mom comes to town won’t pass muster, even if you spend 40 hours a week there, says Abby Eisenkraft, financial expert and author of “101 Ways to Stay Off the IRS Radar.” So if you really want to do things right, kick mom out of your office and have her sleep on the couch!
While this separation of work and personal use is probably easier if your office is its own separate room, it doesn’t have to be. If, say, your desk is parked in a corner of your bedroom or part an open floor plan, simply measure the space you use for your office, whether or not there are walls.
The key is the area must be used only by you, just for work—not to peck out personal email or pay bills. To make that delineation easier, you can even put up a physical barrier like a partition or shelves.

What if I’m an employee for another company?

Employees of larger companies can also claim the home office deduction. But there’s an additional requirement that the home office must be for the convenience of the employer—for example, if the employer doesn’t have a local office.
“The IRS will look at this closely and request proof, such as a letter from the company,” says Eisenkraft. If you simply prefer to work at home, you can’t take the home office deduction.
“That’s considered for your convenience,” explains Eisenkraft, “not the employer’s.”

How to claim a home office deduction

The IRS offers two ways to calculate this separation—one simple, the other a bit more involved, says Jeff Morris, accounting partner at Nathaniel Jacobson, serving Maryland and Washington, DC.
The simple method: Since 2013, you can claim your deduction by figuring out the square footage of the space in your home that you use for business purposes. Each square foot you use for work is worth $5, and you can claim up to 300 square feet for a maximum claim of $1,500. This new method vastly reduces the paperwork required for taking the deduction, says Morris.
The complicated method: This method works best if the expense of your home business exceeds the simple $1,500 deduction. Calculating this involves tracking all the costs of your home (think maintenance, insurance, repairs, utilities, real estate taxes, etc.) and depreciation (normal wear and tear).
Next, separate and allocate those expenses based on the percentage of the home you use solely for business purposes. So if your office space breaks down to 10% of your home’s total square footage, you can deduct 10% of your home costs—which could add up to a sizable chunk of change. The key to using this deduction is keeping careful records.

Isn’t the home office deduction a red flag for an audit?

In a word: nope. In fact, the IRS created the simplified, square-foot-of-office-space method to take the audit fear out of the home office deduction.
“This might surprise some people, given the fear of an audit that the home office deduction used to strike in the hearts of many taxpayers,” says Morris. But in the age of telecommuting and online behemoths like eBay that started from a home office, the reality is that the deduction is becoming increasingly common, and it doesn’t make a taxpayer any more susceptible to an audit than any other deduction a small-business owner may take.
Still, if you want to make sure you don’t end up in the auditing line, there are things you can do. First off, remember this: “It’s not the home office deduction that flags a return for an audit, but the magnitude of specific claimed expenses that get taxpayers in trouble,” says Morris.
What would a red flag look like? Claiming 2,950 feet out of a 3,000-square-foot home for business use. “Or trying to write off that $25,000 pool renovation.”
In other words, as long as you’re legitimately working at home and aren’t unashamedly trying to con the system, you should be able to claim your home office deduction fair and square.

Margaret Heidenry is a writer living in Brooklyn, NY. Her work has appeared in The New York Times Magazine, Vanity Fair, and Boston Magazine.

Federal wetland rules might be rescinded or changed

Federal wetland rules might be rescinded or changed

 
WASHINGTON (AP) – March 1, 2017 – President Donald Trump has signed an executive order mandating a review of an Obama-era rule aimed at protecting small streams and wetlands from development and pollution, fulfilling a campaign promise while earning the ire of environmental groups.
The order, signed at the White House Tuesday, instructs the Environmental Protection Agency (EPA) and Army Corps of Engineers to review a rule that redefined "waters of the United States" protected under the Clean Water Act to include smaller creeks and wetlands.
The order asks the heads of the agencies to publish a proposed rule rescinding or revising the waters rule for notice and comment – the first step in what is likely to be a years-long administrative review process that many expect to end up at the Supreme Court.
At a White House signing ceremony, the president called the rule, which has never been implemented because of a series of lawsuits, "one of the worst examples of federal regulation" that he said "has truly run amok."
"It's been a disaster," he went on, claiming that the EPA had decided it could regulate "nearly every puddle or every ditch on a farmer's land or any place else that they decide."
Trump had railed against the water rule during his campaign, slamming it as an example of federal overreach. Farmers and landowners have criticized the rule, saying there are already too many government regulations that affect their businesses, and Republicans have been working to thwart it since its inception.
But Democrats have argued that it safeguards drinking water for millions of Americans and clarifies confusion about which streams, tributaries and wetlands should be protected in the wake of decades-long uncertainty despite two Supreme Court rulings.
The president has promised to dramatically scale back regulations that he says are holding back businesses, and has signed several orders aimed at that goal.
Despite the outcry over the rule, it has never taken effect because of lawsuits filed by Republican attorneys general and large agriculture companies. Environmental groups such as the Sierra Club have said they will sue to fight any attempt by the Trump administration to roll back the rule.
Thaddeus Lightfoot, a partner at the international law firm Dorsey & Whitney who has been practicing environmental law for almost 30 years, likened the order to a "paper tweet" that on a practical level will have no immediate impact.
"The only way to unwind it or roll it back or rescind it or modify it," he said, is to go through the lengthy federal rulemaking process laid out in the federal Administrative Procedure Act. He said the process will likely takes months or years, and will likely include further legal action. He expects the Supreme Court to weigh in on the issue during the current session.
Trump was welcomed to the signing ceremony by applause from a group of farmers, home builders, county commissioners and lawmakers he'd invited to the White House for the occasion. He was also joined by newly-confirmed EPA chief, Scott Pruitt.
Pruitt, the former Attorney General of Oklahoma, joined with more than two dozen other states in suing EPA over the water rule. The case is still pending and Pruitt declined to answer questions about whether he would recuse himself during his confirmation hearing, despite protests from Democrats.
Craig Uden, the president of the National Cattlemen's Beef Association, applauded the president's action in a statement, saying the rule represents one of the "largest federal land grabs and private-property infringements in American history."
It "should be taken out behind the barn and put out of its misery," he said.
But former EPA Administrator Gina McCarthy said in a statement that the Trump administration was "putting our nation's health, economy and our national security at increased risk."
Madeleine Foote of the League of Conservation Voters said, "This executive order is about one thing: protecting polluters at the expense of our communities and their access to clean drinking water."
AP Logo Copyright © 2017 The Associated Press, Jill Colvin. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Associated press writer Michael Biesecker contributed to this report.  

How to buy a home when you already own one

How to buy a home when you already own one

 
NEW YORK – Feb. 24, 2017 – You've found the perfect new home for your family, but your current house hasn't sold yet. You can't afford to carry two mortgages, or maybe you were counting on money from your sale to help with the downpayment and closing costs.
Before you let that dream home slip away, consider these strategies to help bridge the transition:
Make an offer that's contingent on the sale of your house
A seller may be persuaded to accept your offer with the caveat that you'll have to sell your house before closing on theirs. You'll strengthen your chances of getting a seller to take a chance on you if you can show that your home is priced properly and has a solid marketing strategy, says real estate broker Dayolin Pratt with Re/Max Advantage Plus in Minnetonka, Minnesota. Successful contingency offers depend on good communication between the real estate agents representing both sides, Pratt adds. It's up to you and your agent to reassure the seller that the closing won't be delayed.
Obviously, in hotter housing markets with potentially multiple bids, it can be harder to get sellers to accept such an offer.
Offer the seller a rent-back option
One way to buy yourself extra time to complete your sale is to offer to buy the new house, then rent it back to the seller after closing, Pratt says. A rent-back agreement is typically for just a month or two. But this arrangement can give sellers extra time to move – or to find a new house of their own – while putting a little money in your pocket and keeping you from having to pay two mortgages at once.
Tap the equity in your current home
If you have a high credit score and considerable equity in your house, you could free up some of the latter with a home equity line of credit. A HELOC lets you use up to 85 percent of your home's value, less the balance remaining on your mortgage, and is fine-tuned based on your credit profile and income. Most HELOCs have a variable interest rate, so it's in your best interest to pay off the loan as soon as your current home sells.
This strategy may let you buy a house before you sell, but it's not a last-minute option. A HELOC requires an appraisal, income verification and a thorough credit check, so it takes time — generally 30 days or more — to qualify, says Tim Beyers, mortgage analyst with American Financing in Aurora, Colorado. If you're thinking of going this route, make sure you run the numbers with an expert upfront, Beyers says.
To qualify for the new loan, a lender will evaluate your current mortgage payment, plus the HELOC payment and your new monthly mortgage payment, to calculate your debt-to-income ratio for the new mortgage approval, Beyers says. If your income is high enough to have a debt-to-income ratio below 40 percent with all those payments and other monthly expenses taken into account, only then should you consider a HELOC, he adds.
"Once you start dipping into your home's equity, that changes the equation when you apply for a new mortgage," he explains. "Taking too much out can hurt your qualification chances on a new mortgage. Don't make an offer, then try to scramble to do the math."
Add a HELOC to your new mortgage
With this strategy, you break up the financing on your new home with a first mortgage for the amount you need, plus a HELOC to make up the difference in your shortfall for a downpayment, says Elise D. Leve, senior mortgage banker at Citizens Bank in New York.
Once you sell your current home, you can pay the HELOC portion off in full and end up with the single mortgage you wanted in the first place, Leve says.


AP Logo Copyright © 2017 The Associated Press, Deborah Kearns. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. This article was provided to The Associated Press by the personal finance website NerdWallet.

Livin' Right Spotlight- November 2016

15 Days
13 Days
18 Days

Choose a Realtor who goes the extra mile for YOU.

Over the last year, Livin' Right's Lead Residential Agent, Kersten Bowman, has sold five properties in under 18 days! She has also been the agent for both sides of a transaction (representing the buyer and the seller) on three of our closings.

Kersten claims, "It is about timing, price point, and hard marketing strategies.  If an agent does not market your property well, buyers will not know it is available to them."

Livin' Right finds pride in marketing your property to the best of our abilities. Through professional photography, social media marketing, and understanding the movement of the real estate industry in our area we are able to quickly push properties off market as individuals and as a team. 

Furthermore, Kersten states, "Representing my clients to the highest of standards is my main goal.  When I work as hard for them as I do when selling my own properties, everything else tends to fall into place." 
BOTH sides!
5 Days
3 Days and BOTH sides!

15 Days
13 Days
18 Days

Choose a Realtor who goes the extra mile for YOU.

Over the last year, Livin' Right's Lead Residential Agent, Kersten Bowman, has sold five properties in under 18 days! She has also been the agent for both sides of a transaction (representing the buyer and the seller) on three of our closings.

Kersten claims, "It is about timing, price point, and hard marketing strategies.  If an agent does not market your property well, buyers will not know it is available to them."

Livin' Right finds pride in marketing your property to the best of our abilities. Through professional photography, social media marketing, and understanding the movement of the real estate industry in our area we are able to quickly push properties off market as individuals and as a team. 

Furthermore, Kersten states, "Representing my clients to the highest of standards is my main goal.  When I work as hard for them as I do when selling my own properties, everything else tends to fall into place." 
BOTH sides!
5 Days
3 Days and BOTH sides!

Shades of gray: The new ‘it’ neutral paint color

Shades of gray: The new ‘it’ neutral paint color

 
CHICAGO – Aug. 24, 2016 – Gray walls are becoming the modern, neutral choice for a home's interior spaces. According to paint experts: "Gray is the new beige."
But you need to find the right gray.
"Although the color gray is commonly associated with cooler, cloudy days, there are both 'cool grays' and 'warm grays,'" paint company Sherwin Williams explains. "Cool grays have more blue undertones, while warm grays are grounded in yellow and brown – similar to 'greige,' a combination of gray and beige."
To find the right gray, painting experts suggest first looking at the flooring, cabinetry, lighting, and wood trim in the home. The undertone of these interior elements should match the undertone of the gray paint homeowners choose for their home. For example, brushed nickel often pairs better with cooler gray paint colors. Brick and gold, on the other hand, tend to pair better with warmer undertones, such as beige.
Gray can also be used to add dimension into a home's space. For example, for more impact, paint the ceiling gray too – but make it a shade two or three lighter than the wall color. The painted ceiling can give a smaller room a more spacious feel. For high ceilings in a large room, select a darker gray paint to make the space feel cozier.
"Whether you choose gray on the walls or on the ceilings, it offers a crisper, cleaner look than beige," the paint company notes. "And because gray paint is offered with many different undertones, it can either be the most neutral hue possible or give dramatic dimension – another great reason to add it to your palette."
Source: "Gray Tones in Your Homes," BUILDER (2016)
© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688
Shades of gray: The new ‘it’ neutral paint color

Areas hit hard by downturn now see highest gains

 
MIAMI – Aug. 18, 2016 – The markets hardest hit by the real estate downturn have been registering the sharpest increases in home prices for more than a year.
A decade after becoming the epicenter of the crash, Miami's property market is seeing the highest price jumps since 2006 – the peak of its last housing boom.
Several critical factors are separating this property rise in South Florida from the last one, however. Condominium buyers are putting up bigger deposits, for example – generally 50 percent of the purchase price, compared to 10 percent to 20 percent deposits during the last buildup.
Banks are also beginning to fund more projects in South Florida, but they're asking developers for a larger financial stake, typically a substantial level of pre-construction sales.
"People are calling this another boom in Miami, but this is different," says Gil Dezer, president of Dezer Development, which is developing the Residences by Armani/Casa project in Miami's Sunny Isles Beach in partnership with Related Group. "Today's buyers have learned from the last boom – and so have developers."
It's not just Miami. The same higher-price trend can be seen in Las Vegas and in parts of Arizona and California. In Phoenix, one of the U.S. cities hit hardest by the real estate crash, home values have risen 29 percent from their previous low point.
Source: Washington Post (DC) (08/18/16) McMullen, Troy
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Areas hit hard by downturn now see highest gains

FHA condo legislation becomes law. Now what?

FHA condo legislation becomes law. Now what?



FHA condo legislation becomes law. Now what?

 
August 15, 2016 — If condos are a large part of your business, you are no doubt anxious for the Housing Opportunity Through Modernization Act (H.R. 3700), signed into law July 29, to take effect. Among other things, this new law requires the Federal Housing Administration (FHA) to relax its financing regulations so more buyers can get FHA financing for condo purchases.
Fewer than 150 of about 23,000 condo projects in Florida are currently certified for FHA loans, according to the Department of Housing and Urban Development (HUD). That's likely to change as the new regulations are implemented — a process that probably will begin in 2017.
"The National Association of Realtors (NAR) will be working with regulators to make sure they pass these new regulations quickly. HUD will have to put out a public notice to implement the condo and federal assistance housing provisions of H.R. 3700, and we hope they do that quickly," says Megan Booth, senior policy representative at NAR.
HUD has 90 days to issue its proposed rule for three provisions of the law dealing with owner-occupancy, transfer fees and commercial space. A public comment period follows, and that could take as much as three months. The final rule for each provision will specify the implementation period.
Owner-occupancy ratios: Currently, 50 percent of condo associations must be owner-occupied for a community to be FHA certified. That will change to 35 percent unless FHA can provide justification for a higher percentage.
Transfer fees: H.R. 3700 forces FHA to stop rejecting condo communities that charge transfer fees when units are sold. Like Fannie Mae and Freddie Mac, FHA will back loans in communities that charge transfer fees to pay for community services such as pool upkeep, trash collection and landscaping.
Flexibility on the amount of commercial space in a condo community. The legislation gives lenders more flexibility in approving FHA condo loans in these kinds of mixed-used communities.
Condo recertifications: For a condo community to be approved to offer FHA financing, it has to be certified and then recertified every two years. This is both time-consuming and expensive. Approval takes about six months. So, a community is going through the recertification process every 18 months.H.R. 3700 requires HUD to make the recertification process substantially easier than the certification process. The plan is that communities would be updating documents rather than resubmitting documents. H.R. 3700 provides no timeline for implementation of this provision.
In addition to condo finance reform, the legislation also makes changes to the Section 8 voucher program for very low-income renters. It streamlines the rental process, making it easier for landlords to take in tenants with Section 8 vouchers, and for these low-income tenants to locate available units. It's unclear when these changes will take effect.
The law also speeds up processing of Rural Housing Service single-family home loans effective immediately.


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