News About Properties

Foreclosures put added burden on association-run communities [South Florida]

If you think you’re paying more to live in your condo, townhouse or gated community, consider this: It may get worse before it gets better.

Experts fear that with homes selling slowly, owners who can no longer afford payments may soon abandon them. If that happens, those left behind in communities run by associations must make up the missing share of money to maintain roofs, roads, landscaping and pools.

“We’re seeing a 100 percent increase in the number of files turned over to us [by associations] for lien and foreclosure,” said Gary Poliakoff, whose Fort Lauderdale-based law firm, Becker & Poliakoff, represents 4,200 associations in Florida.

In Broward County, his firm has more than 900 active collection files. The Palm Beach County office has 200 active cases, but those “communities are more upscale so the stresses aren’t as great as quickly as they are compared to Broward, with its higher number of retirement communities,” Poliakoff said.

Buyer Beware These High-Yield Stocks

If you look at the historical returns for mortgage REITs over the past several years–17.5% five-year compound annual total return for the FTSE NAREIT Mortgage REIT Index as of Nov. 30, 2006–you’d think that these investments can’t miss. However, at Morningstar, we believe mortgage REITs bear significant risk, and we’d advise all potential investors to dig deep before taking the plunge.

What Exactly Is a Mortgage REIT?
Generally speaking, a REIT is a company that invests in income-producing real estate assets–at least 75% of total assets–and distributes a minimum of 90% of its income as dividends. In fact, many REITs distribute 100% of income to avoid corporate taxes. Despite not being taxed at the corporate level, the majority of the dividend paid to shareholders is taxed as ordinary income, which is higher than the normal rate for dividend income. To understand the tax consequences of investing in REITs, we would suggest contacting your tax advisor.

Tips on how to keep afloat in an unstable housing market

About three years ago, northern Nevada experienced a boom in the housing market which managed to stabilize about six months ago, leaving some homeowners in a difficult financial situation.

Loan Officer Sonny Lopez of Mortgage America in Reno noticed an increase in the amount of foreclosures in the Reno/Sparks area in 2005. Lopez said he believes the increase in foreclosures in this area is due to “the cost of living going up and the retirement not matching it,” he said, noting that the greatest group affected includes those in their 50s and 60s.

“Most people believe they’ll get caught up and they’ll fall behind within six months,” said Lopez. At this point, an investor comes in and offers the struggling homeowner money to move and pays off their mortgage note, which is the remaining amount owed in the original purchase price of the house.

Developer shelves luxury condo project [South Florida]

Developer decides now is not the time for its luxury condo project.

Faced with continued sluggishness in the high-end condominium market and little reason for short-term optimism, the owner of the land at U.S. 41 and Gulf Stream Avenue downtown has shelved plans for a 17-story luxury residential tower.

Kolter Communities’ decision to suspend its Grande Sarasotan project marks the biggest casualty to date for Southwest Florida’s slumping real estate market.

Though other notable condo towers — including a 15-story high-rise planned for 1740 Main St. and a pair of 16-story towers proposed for the parking lot behind Main Plaza and the Hollywood 20 movie theater — have failed to reach fruition, the Grande Sarasotan represents a higher stratum.

In Briny Breezes, some sad at selling $1 million trailers [South Florida]

Back in the early days, before telephones, air conditioning, television and double-wides, a loudspeaker chronicled many of the joys of tropical life, trailer-park style.

When dolphins frolicked just offshore, the manager’s wife announced the sight on the public-address system. When families returned from Michigan or Ohio towing their 18-foot “tin cans” for another winter of bliss, the PA crackled with the news and the promise of another welcome-back party.

“People would come to help you unpack and get you settled in and stay a spell,” remembers Dorothy McNeice, 79, who first wintered here in 1938. “They were all very friendly and all in the same boat — coming from different states with their families. There were many gatherings. That was the Briny way.”

Today, nearly two weeks after residents of Palm Beach County’s tiniest town voted to sell their 488 mobile-home lots to condo developers for $510 million — making many of them future millionaires — the same culture of neighborliness and spontaneity prevails.

Colorado real estate a house divided

Give him a home in good condition priced below $300,000, and Grand Junction real estate broker Hal Heath claims he can probably sell it within a few hours.

“As soon as I make two phone calls, a sale is done,” said Heath, whose greatest fear is selling a home too quickly and not getting a maximum price.

Matt Rivette, a broker with Pro Realty Inc. in Greeley, has the opposite experience.

He throws cold water in the face of home sellers unwilling to accept declining values and an extended stay on the market.