By D.C. Fawcett, Business Building Coach to the Foreclosure Industry

When real estate investors in Florida evaluate their options for securing deals and making profits, there are several things that may come to mind. Whether its owning rental properties, fixing up properties in disrepair, or working short sales, the business of real estate is a proven winner.
 
Where do most Florida investors turn when they seek opportunities in buying foreclosures?  Sure, they might work with a realtor to find bank owned foreclosures. When a property is lost via foreclosure it goes back to the bank and then becomes one of the now thousands of bank owned foreclosures (or REO properties) on the market today. This side of the business is highly lucrative in today’s market.

Another option that is also very relevant to Florida is the short sale, where investors negotiate discounts on properties before they are foreclosed. This can also be highly lucrative and the key to success here is Florida short sale training. Every state is unique and so too should be your training in learning how to successfully complete short sales.

Despite the leads you can generate from foreclosure listings and the opportunities that exist with short sales, I think buying foreclosures can be risky for the investor because, without the proper Florida short sale training, you run the risk of not really knowing what you are doing. Profits can be lost and so too can opportunities from buying foreclosures when you lack the proper Florida specific short sale training you need.

In today’s market, there are indeed unlimited deals to be found within the realm of buying foreclosures. Whether you’re just curious how to make a little extra money with buying foreclosures or really want to pursue a serious business, you owe it to yourself to seize the current opportunity and pursue it. Florida short sale training can help make this happen!

In today’s Florida real estate market, buying foreclosures is as much as part of investing as any other part of the business. Make sure you have Florida short sale training backing you when you invest because the deals are out there. I highly recommend that you commit yourself to Florida short sale training, and your pursuit of buying foreclosures will be more productive and more rewarding. I wish you the very best in success in all of your investing pursuits and in business as a whole.

Technorati Tags: florida short sale courses, Florida Short Sale Training, florida short sales

Delray Beach is a rapidly expanding city in South Florida’s Palm Beach County that boasts award-winning public beaches and upscale dining and shopping. The only Florida city to win the All-America City award twice (connoting credit for constructive citizen cooperation to concur on certain community concerns), Delray Beach residential properties continue to sell quickly when they are priced properly and positioned in profitable parts of town. Downtown Delray is developing without delay, displaying a distinguished diversity of new construction homes and condos. But recently real estate for sale has replaced investor interest and initiated an immense 39% drop in properties sold compared to last year. Homes are sitting on the market for 90- 120 days, vastly varied from the 30 day average just a few months ago. Therefore, rates are regressing, rendering real estate reasonably priced once more, relinquishing ruling power to the buyers.

Regressing real estate rates do not represent a regional repugnance, but rather a national decline in residential real estate rates as supply has surpassed demand. Even as property values wane, Delray Beach continues to build, offering an abundance of new homes for low prices to potential homebuyers who wish to move to the area or use their Delray Beach home as a long tern investments. Local developers have put millions of dollars into building up Atlantic Avenue as a new hot spot for dining, shopping, and nightlife, as well as citywide renovations to promote local economic growth by attracting people to the region. Homes in Delray Beach tend to be younger than the national average (21.7 compared to 27.2 years, respectively) and real estate appreciation is a whopping 25.82% (in contrast to the 13.62 national average). But even with these impressive statistics, Delray Beach real estate remains an affordable alternative to other Florida destinations.

The decline in properties sold mirrors the state and nationwide trend of a softening market, but this lapse in massive appreciation rates is only truly a problem for investors intent on flipping their properties for profit immediately. Such practices are no longer recommended in a softening market, but long term investment is still a viable option as home prices will undoubtedly rise again after buyer interest is renewed. Think of real estate investment like any other short-lived fad; a craze that starts as abruptly as it ends, is reviled for a time as people rebound from the humiliation that only such obsession can warrant, then is brought back for nostalgia by VH1 shows until it is trendy again in a kitschy William Shatner sort of way. Industries operate in cyclical patterns, continuously vacillating so their courses resemble planetary orbits and their relative price indexes are reminiscent of cosine graphs.

Real estate experts are touting the idea that Florida real estate investment is as obsolete as the medieval barber surgeon due to the lapse in exceptional appreciation rates. As they continue to promote investment opportunities in other states, these experts are omitting the real estate market’s chief objective: to provide housing. Industry media has depicted the so-called “collapse” of the Florida real estate market as an economically devastating catastrophe, but this is not necessarily true. Until humanity has degenerated back so far as to revert to its hunter-gatherer past, permanent shelter will be seen as a necessity to human existence, thus the real estate market will endure. And, if the residents do not perform a mass exodus from the state (picture a herd of off-white Cadillacs fleeing Boca Raton at 16-miles-per-hour with their right turn signals on), all signs show that the Florida real estate market will recover from this economic slump and prevail.

And now is an ideal time to invest! Prices are dropping in high quality new developments (like Delray Beach’s The Village at Swinton Square), so formerly unaffordable homes are becoming viable options for those looking for an actual residence or a long term investment opportunity. A discriminating human vision is the only thing that makes a property less attractive because of a price decrease. Viewed objectively and logically, a depreciating market cannot affect Florida’s ambiance or climate.

A high proportion of people who purchase property in the panhandle are retirees in pursuit of a pleasant place to pass the rest of their days. Due to their age, senior citizens are not seeking speedy investment transactions to secure savings as they have selected to stop working and spend their time in leisure activities. Retirees will keep purchasing property in Florida because of its many activities attractive to the elderly and the climate’s therapeutic value.

Florida is also heavily powered by the tourism industry, a market that depends on big-spending vacationers who are just passing through town. Palm Beach County’s individual tourism industry clears $1.5 billion per year, making it one of the most profitable businesses in the area. Generally, travelers stay in hotels, therefore a decline in real estate appreciation will not lessen the appeal of Pirates of the Caribbean, thus local employment in the industry will not falter. Tourist attractions will prevail as long as Americans continue to appreciate roller coasters, beaches, alligators, and shaking hands with mascots.

Latin America immigration is also continuing full throttle. Immigrants are quickly gaining significant buying power, especially in the condo conversions that are appearing throughout the state. Mexicans are leading the charge in Delray Beach, which has become far more diverse in the past fifteen years as the white population has dwindled to a mere 66.5% (according to the Sun-Sentinel). Latin American immigration is accelerating annually, Florida being one of the primary destinations. A depreciating real estate investment market is not going to convince immigrants to take a detour to Vermont. And as the immigration continues, buyer interest grows, thus the recovery of the Florida real estate market.

The Florida real estate market’s “softening” is not an endemic epidemic like the bubonic plague—nor even the West Nile Virus—so purchasing Florida real estate for actual home use or long term investment are still viable options. But unfortunately for now, the manic trend to invest in and flip Florida properties is as dead as the slap bracelet.

Phil Laboon
http://www.articlesbase.com/real-estate-articles/delray-beach-florida-real-estate-on-the-rise-82727.html

A letter of hardship is a statement written by a debtor that main goal is to convince a bank or mortgage institution to agree to a short sale of an asset or property.  A short sale is the sale of an asset or property for less than the value of mortgage or loan.  This sale is a settlement between the debtor and the financial institution that allows the bank to recoup some financial losses associated with bad or defaulted loans.  A short sale also allows the debtor to avoid imminent foreclosure.  In order to apply for these short sales, the debtor must convince the banking institution of his or her inability to repay the loan or debt.  This statement is often made in a letter of hardship.

When writing a letter of hardship, it is important to remember that the primary point of the letter is to convince the financial institution that the debtor, due to certain issues, is not likely to repay the outstanding loan.  If the banking institution is properly convinced that the debtor will default on the outstanding loan or mortgage, then they may decide to agree to a short sale of the property or asset.  A letter of hardship should be detailed and personal.  It should describe the debtor’s current financial situation, listing current income, other loan obligations, and any potential collateral available.  The letter should also attempt to explain why the debtor will likely not be able to repay the loan obligation.  Remember that the individuals who will decide whether or not to issue a short sale are human.  They will be more likely to issue a short sale if the debtor has incurred unforeseen debt or expenses. This unforeseen debt could be related to a death in the family, personal health problems, or any other reason that has led to the unexpected financial stress.  The debtor should be honest in a letter of hardship and stress the exact reasons why he or she has fallen behind on their mortgage or loan payments.

It is estimated that loan officers receive forty to fifty applications for a short sale per a day.  Less than one short sale is approved for every ten applied for.  Oftentimes, a letter of hardship is what separates an approved short sale application from those applications that are denied.  The letter should be truthful and personal.  There are many real estate companies that offer to write a letter of hardship as part of a short sale package. While these packages are often very professional and the experience of qualified real estate agents is helpful and reassuring, a letter of hardship should only be written by the debtor.  This letter should be short, usually under one page.  However, there are no set rules.  A compelling letter of hardship can often run two or even three pages.  The debtor should try to resist the urge to list a set of excuses for his or her current financial situation.  Instead, the debtor should focus on concrete reasons for why they have fallen behind on their mortgage or loan payments.  Acceptable reasons for falling behind may include the death of a wage earner, unexpected health costs, or the loss of a job.  Try to avoid any mention of any unexpected legal fees associated with a criminal defense or personal lawsuit as a reason for the failure to repay a loan or mortgage.  

MisUniversity
http://www.articlesbase.com/business-articles/tips-on-how-to-write-a-short-sale-hardship-letter-720417.html

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Florida is one of the most popular places to vacation, with gorgeous weather year round and things to for people of all ages. Florida ranks only as the 22nd largest state in the nation but because of its unbelievable weather more than 16,000,000 live in Florida which makes it in the top 5 most populated states. Tourists come from all around the world to get a taste of this beautiful place, and with more than 12 international airports it is pretty easy to book a flight according to your schedule. This is why more than 70 million people visit Florida each year, and many like it so much that more than 300,000 move there each year.

Many of these people who move there each year stay in one of the thousands of resorts, hotels, and Florida timeshares. Florida Timeshare Sales have increased dramatically in the past few years and the market has been on the rise. This is because many of the timeshares in Florida are located directly on the beach or near gorgeous landmarks or attractions which makes Florida timeshares more popular than ever. Another reason why Florida timeshare sales have increased is because of how similar staying in a timeshare is to being in your own home. These timeshares give renters a comfortable feeling that they are staying in their own home so it makes renters more able to relax and have a good time while they are on vacation.

One of the most popular attractions that makes the demand for Florida timeshare sales so great is because of abundance of golf courses. There are over 1,000 golf courses in Florida, that are very well maintained, with some of the greenest grass you will ever see. Also, because the weather is naturally very good year round it allows many of these courses to remain open through all 12 months of the year.

Another reason why Florida timeshare sales are very popular right now is because of the over 1,190 miles of coastline, and more and 660 miles of beaches. This allows visitors visit the beach almost whenever they want, and if you don’t wan to go swimming you can try another activity that Florida is known for, fishing. Florida has more than 11,000 miles of rivers and streams this paired with the 660+ miles of beach there are more than enough locations for people to try their hand at fishing. Renters can go freshwater fishing in any of the ponds, lakes or rivers, or get a little wind in their hair by trying saltwater fishing for some of the big name fish such as tuna, swordfish, or blue marlins. Also, if you want to bring your kids but don’t have extra rods, no need to worry there are experts who own their own shops where you can rent gear to use on your fishing expedition.

Charles Joseph
http://www.articlesbase.com/vacation-rentals-articles/florida-timeshare-sales-increasing-as-population-of-florida-increases-747042.html

MYTH: I must stop making my mortgage payments before the bank will approve a short sale.

TRUTH: You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and/or must sell (loss of job, relocation, divorce, etc.). Due to the current market conditions the banks generally understand why the short payoff is being requested – whether you have missed payments or not.

MYTH: If I am doing a short sale I am in foreclosure or pre-foreclosure.

TRUTH: A short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.

MYTH: I have a second mortgage or home equity line so I can not do a short sale on my home.

TRUTH: The majority of people we work with have both a 1st and 2nd or home equity line. In this situation the 1st mortgage generally approves an amount for the 2nd and we negotiate between the two. The 2nd mortgage company is accustomed to taking a much lower payoff.

MYTH: I will receive some money back at closing.

TRUTH: When you sell your property as a short sale you are not entitled to receive money back at closing because there is no equity in your property.

MYTH: The bank will not pay the commission for my real estate agent and/or the costs of listing the property with a real estate agent will be passed on to me.

TRUTH: A real estate agents commission is taken out of the banks proceeds at close of escrow. There should never be an out of pocket expense for a seller who lists their home as a short sale with a real estate agent.

MYTH: Short sale homes are priced lower than other homes in my area.

TRUTH: Short Sales are priced in line with other comparable properties in your area. Your mortgage company will do their own version of an appraisal of the property to make sure they are getting a fair payoff on the property. Length of time on market, condition of the home and how quickly the Seller needs to close are all conditions that affect the price of every listing – short sales included.

MYTH: I have a foreclosure date approaching so there is not enough time to do a short sale.

TRUTH: Because it is generally far more expensive for the bank to foreclosure on your home than to work with us on a short sale we can postpone the sale on your home in most cases while we are marketing and/or negotiating your short sale.

The Steve Horn Team
http://www.articlesbase.com/real-estate-articles/common-short-sale-myths-exposed-714153.html

The State of Florida’s financial situation has never been more serious than it is today.

With a projected budget deficit of $2.3 billion, the State of Florida is one of eight states where a deficit of over $1 billion is expected. The budget shortfall is being blamed on everything from lower collections on documentary stamp taxes from a slumping real estate market to reduced sales taxes on the sale of automobiles. Dramatic reductions in tourism, consumer spending, and corporate income have all led to lower sales and corporate taxes. And in particular, for the first time in decades there are fewer newcomers entering the state.

Florida property taxes are still extremely high. Voters have seen little relief from Amendment 1 passed earlier this year. While taxable home values have come down due to the collapse of the Florida real estate market, this has been more than offset by higher tax rates and an increase in taxes that are not based on the value of the home. The net result is that Floridians still face staggering Florida Property tax bills - even in a depressed real estate market.

Florida homeowners insurance is still expensive and hard to find. Legislation passed in 2007 put much of the risk of a major Florida hurricane on the backs of Florida taxpayers. The Florida Hurricane Catastrophe Fund offered cheap reinsurance to insurance companies in exchange for taking on $12 billion in additional risk. Now the Cat fund says that it doesn’t have the borrowing capacity to meet its obligations - estimating a possible shortfall of up to $15 billion.

The State of Florida was so concerned about the inability of the Cat fund to raise money to cover a major hurricane earlier this year that it paid Warren Buffett’s Berkshire Hathaway Company $224 million. In return, Buffett’s company guaranteed that the state would be able to raise $4 billion in bond debt if a major hurricane produced enough damage to trigger the Cat fund.

The situation at the state run insurance company in Florida - Citizens Property Insurance Corporation isn’t much better. Citizens Property Insurance has some of the highest risk homes in Florida and doesn’t collect enough in premiums for the risk that it takes. It has $433 billion of property exposure on its books with a $4 billion surplus on hand to pay claims.

Policyholders of Citizens face two issues. First there is the risk that Citizens can’t meet its primary claim obligations for lower level storms because of its own trouble raising cash in the bond market. Second, once losses reach a certain level, Citizens will look to the Cat fund for reimbursement after a series of major Florida storms - a fund that just might not have the cash needed by Citizens.

While all of these developments in Florida are serious, there is really nothing new about a government that doesn’t live within its means and takes on obligations that it doesn’t have the cash on hand to meet.

What is new and should send shockwaves across Florida is the fact that the state cannot borrow in today’s bond markets the way it has been able to in the past. In effect, the State of Florida has maxed out its credit card.

Why is it so hard for states like Florida to borrow in the current bond markets?

Issuing bonds used to be easy for state and local governments. The process was straight forward, and very few people paid any attention to it. That’s changed since the failure of the subprime mortgage market.

Despite a very low bond default rate, it is very difficult to attract bond investors these days. Companies that used to insure new bond issues have had their ratings downgraded. That’s made the bond market less liquid and less attractive to investors. And it makes states like Florida have to offer higher payments for interest and principal in order to sell out a bond issue.

With severe revenue shortages and a frozen bond market all Floridians should be demanding that the state keep tightening its belt. That process is already underway. But you should also expect strong resistance to spending cuts from those who believe that there is no such thing as too much government.

These groups will demand that Florida lawmakers increase taxes rather than making additional cuts in spending. Don’t underestimate where this could lead. Many items that are currently exempt from Florida sales tax could suddenly be taxable in this crisis environment. Expanding the sales tax could lead to new taxes on everything from Internet sales to various types of consulting services. All of which would dramatically increase our own cost of living and make it that much harder for Florida to emerge from this recession.

And never underestimate the chance that Florida lawmakers will deal the final death blow to the state - instituting a state income tax.

It is up to all of us to make sure that never happens!

If there is one lesson that all governments need to learn during the current financial crisis it is this - there is nothing wrong with the “pay as you go” system. It will always stand the test of time no matter how shaky the bond markets are.

Michael Letcher
http://www.articlesbase.com/finance-articles/state-of-florida-is-there-any-way-to-avoid-a-financial-collapse-669636.html