Government Assist ‘Boomerang’ Home Buyers

boomarang buyersIn 2007, an area housing counseling center in Tampa, Florida was unable to pay the full salaries of its counselors. One of these counselors was Linda Van Doren. However, instead of leaving, she continued working with the center. The most interesting and yet ironical part of it was that she lost her own home after she agreed to a short sale. In spite of all the mounting challenges, Linda kept her faith in homeownership.

With pride, she said that she actually knew what was doing. She stated that she knew that she was eventually going to buy another home at the right time, and that is precisely what she did. But before she was able to become a proud homeowner again, she had to be a tenant for three years. When she finally was able to buy a new home, she did it with the loan that she got from the Federal Housing Administration (FHA).

But Linda is not alone in this quagmire. Since the beginning of the crash of the housing sector, about 7.2 million homes have been lost by their owners who had to reluctantly settle for foreclosure or short sale. This is based on the information provided by the Black Knight Financial Services.

For many of these former owners, they had to rent homes and become tenants. But it seems that for them, this condition is not going to be a permanent one. Many of them are now steadily and cautiously becoming homeowners again, and that is because there is a government program that has been put in place to ensure precisely that. This government intervention is so efficient that they are now becoming homeowners with a very amazing speed.

According to Matt Weaver, a lender working with the Florida-based PMAC Lending Services, they have seen a lot of boomerang buyers. He stated that as a matter of fact, about 20% of his current clients had either experienced a short sale or a foreclosure in the past. But the good news is that many of them are not able to buy back these homes.

What has made this re-buying possible is a novel program that the FHA launched last summer, the body that acts as the government’s insurer of home loans. To be able to apply for this loan, applicants have to show that they have lost a minimum of 20% of their income for a period not less than six months, and that led to the loss of their homes. They also have to display that they were able to recover from that hardship and then maintained a clean credit for a minimum of one year after that. All these loan packages are fully documented and financial status of all the borrowers before going ahead with the entire transaction.

Tim Ryan of Equity Realty, a top Naples, Florida real estate firm notes that the housing-to-debt ratio is still within the normal range but for those who are neck-deep in debts, they will not be able to avail a mortgage. If you want to benefit, you need to have the normal or correct housing-to-debt ration. For borrowers who have met all the outlined parameters, they become eligible for the regular FHA loans. These loans have low interest rates and they require just 3.5% as the down payment. The FHA is yet to collate the precise figures the number of borrowers who have benefited from the program, it is believed at present that it is only a small fraction of former homeowners.


07 2014

Tips To Buying A Southwest Florida Home

southwest floridaLike so many other things in life, you must be educated about Southwest Florida real estate before jumping in head first. The following article provides you in learning about real estate purchasing.

Be moderate in your approach when considering a purchase of real estate negotiations.Many times people are too aggressive because they are trying to get the best price, and they end up overdoing it and losing it. Be firm in what you want, but let your lawyer and real estate agent negotiate, let your Realtor and lawyer go at the negotiations since they are used to fighting those battles.

Each agent should connect with former clients around the relationship. Hearing again will let them remember of how you helped them when they were selling or buying. Give them your card and let them know that your work is based on referrals, so you would be pleased if they could mention your name to others.

If you are planning to move to Southwest Florida, you should look up information about the neighborhood using resources on the Internet. You can discover a good deal of information about even the smallest Southwest Florida town. Consider the salary margins, unemployment and salary margins before making any purchase to assure that you have a profitable future in that town.

When deciding to purchase a large and commercial piece of Southwest Florida real estate, look for a reliable investment partner.

Even if you don’t currently have any children, if you are planning to have kids in the future, it is a good idea to find out if the area schools are of high quality. For example the community, Vineyards in Naples known for it’s good location on the school district map.

If you are clear and honest in negotiations with the seller, you are sure to reach a selling price that you both feel comfortable with.

You should ask questions about their track record. A reputable Southwest Florida agent will definitely be able to answer all questions thoroughly and professionally.

Sex offender information is publicly available, but that doesn’t mean that someone selling a home is obligated to mention that to you.

Most foreclosed homes in Southwest Florida have sat vacant for a period of time, because they have not been maintained for a very long time. Many foreclosed homes need a brand new HVAC system, and might need a new HVAC system.

The best thing you can do for yourself in purchasing Southwest Florida real estate is devoting time to learning all about the process. While a real estate agent does provide valuable information, there are some decisions that an agent cannot help you with, and ultimately it is your responsibility to decide what is best for you. As such, you can now make decisions with more certainty.


05 2014