Lyons: It’s a nice home, sure, but still a bad situation

Lyons: It’s a nice home, sure, but still a bad situation

She would rather I not write about her, but Siesta Key real estate agent Judi Berger was polite and forthcoming as I asked nosy questions.

Judging by her professional manner, I’m not too surprised she sold more than $13 million worth of homes last year. She credits long hours, hard work and lots of costly advertising for becoming, as her ads say, “Siesta Key’s top seller in 2009.”

But though she’s bounced back from leaner years that followed the residential market plunge that began in late 2005, my call about a personal financial matter was awkward.

An anonymous letter, possibly from a real estate rival, had urged me to think badly of Berger, because her home is in foreclosure. Berger, the writer suggested, is hypocritically choosing to live there for free, though surely able to make mortgage payments while collecting commissions on all the home sales her ads boast about, right?

Ask a real estate professional: What do I need to consider in buying a condo?

Ask a real estate professional: What do I need to consider in buying a condo?

Q: My husband is trying to convince me to move into a condominium and feels that now would be a good time to get a great deal. Are their any red herrings we should be concerned about with purchasing a new condominium? — Terri

A: Terri, when purchasing a condominium in today’s market, there are a few important things to consider. First, I would see what percentage of homeowners in a given building is current with association fees. If a large percentage is late or not paying, this could cause a large problem down the road for everyone living in the building. Second, it’s important to check and see if the association has reserves. Without them, it may be difficult to get financing for your purchase. Third, I would suggest speaking with the management and see if there are any upcoming assessments to the unit owners. When considering the purchase of a condominium, there is more due diligence necessary compared to purchasing a home, so it’s not something I would rush into.

Q: I am looking to purchase a condominium on Miami Beach through a developer’s closeout and have been told that the unit may not appraise. What happens if it doesn’t? Is this something I should be concerned about? — Monique

A: Yes. In today’s market there is absolutely no reason to overpay for a new property. If the unit you are considering does not appraise, you should either renegotiate with the developer or walk away from the deal. Additionally, it may be difficult to get a loan on a property that does not appraise, which will create even more issues. Although it has been well documented the problem the industry is having with appraisals in general, there is no reason to go against the grain and try to buy something that may be worth less than what you are paying for it.

Barbary Coast – A Foreclosure Crisis Rooted, the Family Says, in Predatory Lending

Barbary Coast – A Foreclosure Crisis Rooted, the Family Says, in Predatory Lending

Giuseppa Bagnarol, 82, was in her final hours in August, dying at home surrounded by the large family she presided over as matriarch.

They gathered to say goodbye at the bucolic Redwood City retreat Mrs. Bagnarol had created — a compound of three homes cascading down a steep hillside where she raised chickens. Some of her children and grandchildren live on the grounds.

But that night an unwanted visitor arrived: a process server delivered papers that ordered Mrs. Bagnarol and her family to get out. The bank had foreclosed on their property, and they were all being evicted.

Emotions exploded. Not now, the family cursed. A sheriff’s deputy was called to keep the peace. Mrs. Bagnarol died a day later.

Condo mortgages could be easier to get under Fannie Mae program

Condo mortgages could be easier to get under Fannie Mae program

Florida condominium loans could be easier to get under a program announced Thursday by government-run mortgage company Fannie Mae.

The company has named a team of six employees to review hundreds of condo projects statewide that may not meet Fannie Mae’s eligibility criteria for financing because of occupancy problems or high delinquency rates on homeowner association dues.

Developments deemed to be stable after the closer look will receive special designations, meaning lenders could deliver mortgage loans in these projects to Fannie Mae.

Chappy Adams, president of Illustrated Properties in Palm Beach County, said many condo buyers today have to pay cash because they can’t get mortgages.

Tough times for commercial real estate

Tough times for commercial real estate

To borrow a biblical expression, it may be easier these days to pass a camel through the eye of a needle than it is to get a commercial real estate loan.

Despite federal bail-out money intended to stimulate lending, loans for investment in office buildings, shopping centers, industrial sites and raw land are increasingly rare, the result of falling values and other factors.

Commercial property owners and mortgage brokers say the lack of capital also stems, in part, from new federal regulations intended to staunch foreclosures and halt the aggressive lending practices of the early 2000s.

“It’s ironic that the federal government put all the stimulus money into banks, while another branch of the government is over-regulating capital reserve requirements on banks,” said Brett Hutchens, chief executive officer of Casto Lifestyle Properties, a Sarasota development firm that owns shopping and lifestyle centers nationwide.

Banks take losses on short sales – Business – MiamiHerald.com

Banks take losses on short sales

Drew Schlosser tried for two years to sell his three-bedroom Punta Gorda waterfront condominium for less than he owed on its two mortgages. The deal only went through last month when Wells Fargo & Co. agreed to take a $165,000 loss on the loans.

Even after he had an offer of $155,000 for the property, it took five months for the San Francisco-based lender to approve the purchase, a so-called short sale, in which the bank accepts less than the balance owed on a property. Schlosser said earlier offers had fallen through as bidders lost faith the bank would take less than the $320,000 in two mortgages.

“It was just kind of a mess,” said Schlosser, 31, a market research company director living in Estero. “You really have to get buyers who are patient.”