Building boom in affordable housing underway in South Florida

There’s a quiet building boom taking place in South Florida, but it’s nothing like the mid-decade condo rush that ended in an epic economic bust.

The new towers going up today are not being built on the water for the affluent, but on the chipped sidewalks of gritty neighborhoods for the region’s poorest families.

The 2009 federal stimulus package and other government programs aimed at fixing the housing crisis have helped boost the affordable housing sector, which uses government funds to build rental communities for low-income residents. It’s the only sector of South Florida’s housing market in which demand is outpacing supply, analysts say, and thousands of new units are currently being constructed.

via Building boom in affordable housing underway in South Florida

Homeowners build their ideal Hampton house on Siesta Key

Partners in life for 13 years and now partners in a major house-building project, interior designer Sharon Nizolek and investment banker Guy Della Penna recently finished a beautiful coastal home in Sarasota. It reminds them so much of the shingle-style homes of Newport, Cape Cod, Kennebunkport or the understated mansions in the tony villages of Long Island’s Hamptons, that the homeowners have named their big white Florida waterside dwelling Hampton.

Situated far back from the canopied lane called Peacock near the Siesta Key south bridge, the house is large — 10,207 square feet, not counting outdoor living areas — and it has extraordinary curb appeal because of the landscaping and because it’s nothing like the Mediterranean revival homes sprouting up all over the key.

via Homeowners build their ideal Hampton house on Siesta Key

Underwater borrower should consider less traditional refinancing

Need some advice on dealing with a homeowners association? Is a short sale your best option for unloading your home? Lawyer and real estate consultant Gary M. Singer will answer your housing questions in this space each Friday. To ask Gary a question, click here.

Q: I have a $42,000 mortgage at 8.726%. I want to refinance for a lower rate of around 4%. The property is worth half of the mortgage balance. FICO scores are 714 and 716. Do you know anyone who will refinance my underwater mortgage? – Cindy

A: No – but you may still have options. I think you may be out of luck in finding a new mortgage at any rate. Lenders will want to make sure that the loan that it gives you is fully secured by collateral. Another problem you will have is that it can be difficult to get a loan that small, even if fully secured. But I’d still call the lender and see if it will work with you on a loan modification or internal refinance. You may want to try to do a short refinance, in which your current lender agrees to accept less than it is owed and still lets you keep the house. Then you could get a new loan to refinance it. This is rare, but it does happen. Finally, because of the relatively small loan amount, you may want to look at less traditional refinancing, such as from a family member. Even 4% interest may be a lot more than that rich uncle is getting on his Certificate of Deposit, and an attorney can quickly help you draw up a private mortgage to make this a win-win.

via Ask a real estate pro: Underwater borrower should consider less traditional refinancing.

Orange foreclosure sales: inflated sales prices

Orange is the only Central Florida county handling foreclosure-auction paperwork in a way that can allow sale prices to be artificially inflated, resulting in higher profits for investors while misleading new buyers and lenders.

Officials on Friday were still trying to determine what was in it for the investors, who paid more documentary-stamp taxes on the properties than they were required to, boosting the sale price recorded by the Property Appraiser’s Office.

One motivation could be that inflating the price they paid at auction leaves prospective buyers and their lenders with the impression that they are paying only slightly more for the properties.

via Orange foreclosure sales: inflated sales prices – OrlandoSentinel.com.

Homeowner’s foreclosure case alleging fraud heads to state’s high court

A South Florida homeowner who alleges the mortgage foreclosure action against him was tainted by fraudulent paperwork will have his case reviewed by the Florida Supreme Court, in a closely watched action that could reshape state law.

The 4th District Court of Appeal had asked the state’s high court to decide the case as matter of "great public importance." The Supreme Court agreed to hear the case in an order issued Friday.

Legal experts say the case, Roman Pino vs. The Bank of New York Mellon, could result in changes in foreclosure cases where there is evidence of fraud in the way documents were handled by lenders, mortgage servicers and law firms.

via Homeowner’s foreclosure case alleging fraud heads to state’s high court – South Florida Sun-Sentinel.com.

Canalfront homes at half the ’05 price

Like Bird Key in Sarasota Bay, Country Club Shores on Longboat Key was a planned community. Developed during the 1960s by the Arvida Corp. to provide more homes on the water, it was built on dredged land in five phases.

There are no through streets, so the neighborhood is quiet — an obvious plus to its older residents.

via Canalfront homes at half the ’05 price.