5 Foreclosure Myths – Busted!

Four years into the housing crisis, myths about foreclosure still litter the minds of even the smartest of real estate consumers. When it comes to matters as high stakes as your home, confusion can cost you thousands – or even your home. Whether you’re a buyer looking at foreclosures, a homeowner struggling to keep your home or a seller concerned making sure your home can compete with the foreclosed homes on your block, these foreclosure myths are prime for the busting, with no further ado.

Myth #1:  Foreclosure happens fast.

With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice.  According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure.

While the Obama Administration’s Home Affordable Programs haven’t been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families.   Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion.  Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.

To be sure, some see this as a good, others view it as unnecessarily dragging out the overall market’s recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners.  In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.

Myth #2:  Buyers can’t get clear title or title insurance on foreclosed homes.

When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank’s foreclosure documentation processes came fully to light.  At the same time, several of the country’s largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved.  At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments.  Nevertheless, a number of governmental investigations are still in progress.

The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer.  Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers’ interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit.

While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer’s title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing?  Exceedingly slim.

Myth #3:  Buyers should wait for the shadow inventory to be released.

Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their “shadow inventory” – rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further.  For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon – if ever.

The banks’ current modus operandi is that as they sell a home, the replace it with another home in that market – if they sell 50 homes in a town that month, they’ll put another 50 on the next.  So, don’t hold your breath waiting for a fabulous new flood of homes.  Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.

Myth #4:  If you’re looking for a deal, you’re looking for a foreclosure.

Despite what they may say, no buyer’s heart’s fondest desire is to buy a foreclosure.  But almost every buyer dreams of buying a great home – and getting a great deal on it.  Many people think that to get a great value on their home on today’s market, it means they must buy a foreclosure.  As a result, the value and other advantages of buying an individually-owned home on today’s market are frequently overlooked.  Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes.  Many of these sellers are slashing prices in an effort to get them sold – the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction.  Now that’s what I call a sale!

Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home.  You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table.  On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures.  So, don’t underestimate the value of the deal you might be able to get on a non-foreclosed home.  Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.

Myth #5: Having a foreclosure on your credit history means it’ll take years and years before you can buy again.

One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they’ll be able to buy again.  Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase.  Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure.  To do so, though, all your other ducks must be in a row.

Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan – given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home.  You must have clean credit with no derogatory marks like late credit card payments following the foreclosure,  and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure.

Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you’ll be a successful homeowner over the long-term this time around.  The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.

Original Article Source: http://www.trulia.com/blog/taranelson/2010/11/5_more_foreclosure_myths_-_busted

Spotlight on Trinity, Florida…The Nature Coast

Welcome Home to TRINITY!

Some things get better with age, like Trinity…one of the most comprehensive master-planned communities ever in Pasco County!

Over 3500 families have discovered why Trinity is a great place to call home – great shopping, great dining, great location and so much more:

• Highly rated neighborhood schools and day care facility
• Legendary Fox Hollow Golf Club
• Active James P. Gills YMCA of the Suncoast
• Top community parks and unlimited recreation for all ages
• Diverse shopping, from everyday necessities to quaint boutiques
• Popular dining spots and one-of-a-kind family restaurants and cafes
• Exquisite salons and spas
• Renown Trinity Outpatient Center and numerous healthcare offices
• Newest hospital in more than 20 years, the Medical Center of Trinity (2011 opening date)
• Convenient location with East Lake corridor to the west and Suncoast Parkway to the east

Spotlight on New Port Richey, Florida

Located in Western Pasco County, New Port Richey is approximately thirty miles northwest of Greater Tampa and within a few miles to the Gulf of Mexico.

New Port Richey is a pulsating residential community with an attractive historical downtown and Main Street. The city is alive with redevelopment and growth into a broad array of business and retail services. Since its incorporation in the year 1924, the city is most recognized for its cultural heritage and unique riverfront landscape.

Pasco County is ranked as one the fasting growing counties in Florida, according to The St. Petersburg Times.  The City of New Port Richey attracts new residents and visitors at an increasing rate each year based on several factors.  New Port Richey’s geography blends nature, beaches and great shopping with restaurants, culture and business – all with a small-town feel.  Major attractions are nearby.  New Port Richey is rich in history and a town alive with happenings.

Spotlight on Dunedin, Florida

While Dunedin, Florida has a small town image, it is actually a bustling city of 37,000 residents. One of the oldest towns on the West Coast of Florida, it has a wooded and subtropical setting with almost four miles of picturesque waterfront, a relaxed lifestyle, and activities for all likes and ages, making Dunedin a truly delightful place to live or visit.

Dunedin offers something for everyone. A quaint and active downtown, beautiful parks, recreational activities for all ages, history, culture, educational opportunities, a wide range of housing choices, and much more. The Dunedin area enjoys near perfect weather, with an average summer high of 80 degrees and a winter low of 62 degrees. Average rainfall is 50 inches per year with the usual summertime afternoon showers.

Just off the coast of Dunedin are two of the communities’ most unique assets, Honeymoon and Caladesi Islands. Honeymoon Island State Park is less than a five-minute drive from the mainland, and offers a natural getaway for boating, swimming, fishing, picnics, and nature exploration. Caladesi Island State Park, accessible to the public by ferry from Honeymoon Island or by private boat, has consistently been named one of Florida’s top ten beaches and has won the coveted #1 spot for the best beach in America according to Dr. Beach.

The City of Dunedin also has one of the finest municipal marinas on the West Coast of Florida, offering safe harbor for sail and power crafts with dockside conveniences of water and electricity.

Dunedin’s economy is firmly rooted in the service industry, tourism, retail, financial institutions and services, health care, real estate and some light manufacturing.

Delightful Dunedin, with its rich Scottish heritage, is home to the Annual Highland Games and many other community festivals, making it one of the most popular places to live, work and play.

Begin your exploration with a visit to the Dunedin Chamber of Commerce, located at the west end of downtown, 301 Main Street, in its beautiful, historic building, for the information you’ll need to discover Dunedin.

Spotlight on Inverness, Florida

Inverness, Florida …The Heart of Citrus County

The City of Inverness is the largest municipality in the County and continues to grow at a managed pace.  Residents take pride in being the County Seat of Government and becoming the principal hub for special events, culture and activity. Bordered by forests and lakes, natural resources have been protected and managed to provide a wealth of outdoor opportunities for family enjoyment. This is a community with a strong vested interest to respect their history and environment, while positioning themselves for future growth. Inverness, a transformed City of pride, progress, local values and opportunity.

With the Withlacoochee Rails to Trails only blocks from the heart of downtown, it is probably not surprising the City of Inverness is a bicyclers paradise.  Forty six miles of paved recreational trail allows bicyclists and walkers to get their daily dose of activity, while experiencing the natural beauty of areas surrounding the trail.  And, for those who wish to venture off the main trail, they will find easy access to downtown and bike lanes on the main roads to accommodate safe travel.

For the past decade, the City of Inverness has taken the lead to make our town a walkable, bicycle friendly community, giving the downtown area an “extreme makeover”, as well as adding benefits for all who live or work within the city.

Spotlight on Safety Harbor, Florida

At the head of Old Tampa Bay lies the City of Safety Harbor, a secret little hideaway, neighbored by the major cities of Clearwater and Tampa. This quaint community of 7,575 families boasts a famous resort, distinctive shops, award winning restaurants and plenty of family fun. There is certainly something for everyone, from beautiful parks laden with historical significance and nature’s artwork, to cultural venues for the cosmopolitan visitor.

Downtown Safety Harbor sets the mood for the community. With its palm treed thoroughfare, canopied sidewalks and brick lined streets, “Main Street” offers you the opportunity to succumb to your curiosity while perusing through captivating shops, sampling new cuisine and rediscovering a love of art displayed in one of the area’s finest galleries on Main Street.  Begin your exploration with a visit to the Chamber of Commerce. Located at 200 Main Street, this original bank building housed the first Town Hall when Safety Harbor was incorporated in 1917.

You will find history alive throughout Safety Harbor. The world famous Safety Harbor Resort & Spa is a landmark in the community with its historical Espiritu Santo Springs. Since the turn of the century, tourists have been traveling to this area to be rejuvenated by the spring waters. By ferry from Tampa or stagecoach from Clearwater, it was a full days adventure to visit the area. Now visitors fly in from around the world to experience the resort lifestyle.

Spotlight on Palm Harbor, Florida

Palm Harbor was originally called Sutherland, a shortening of Southern Land and Development Company, the group that originally platted the community as Sutherland, Hillsborough County in 1888. The name was changed to Palm Harbor in 1925.

Palm Harbor is roughly 45 minutes from downtown St. Petersburg and Tampa. It is a largely residential community with several concentrations of commerce. Notably, downtown Palm Harbor, north of Tampa Rd. between Alternate Hwy. 19 and Omaha St., hosts many small shops and eateries along with a handful of historic buildings.

U.S. Hwy. 19, a mile or two east of downtown, offers access to higher concentrations of commerce, with an array of national chain restaurants and retailers. One entrance to Innisbrook Resort and Golf Club, a nationally-regarded golf course, is found on U.S. 19.

The historic downtown district of Palm Harbor, has numerous festivals and craft fairs. Old Palm Harbor Main Streets, Inc., a not-for-profit organization, hosts their signature event the first Friday of every month. “Palm Harbor’s First Friday Celebrations” — are a very popular community event for youngsters and adults alike. There are rides and games for the children, with opportunities to dine on food from the many local restaurants, enjoy local artists & crafters displaying and selling their wares.

Annually, the first Sunday in October marks when the “Taste of Palm Harbor” festival is held. The event is presented by the Palm Harbor Junior Women’s Club with the proceeds benefiting their “Making a Difference” grants & scholarships program. The Taste of Palm Harbor traditionally offers live music and the tasting of samples from over 20 local restaurants, many of which make seafood their specialty.

Spotlight on Bradenton Beach

Bradenton Beach is a city on Anna Maria Island in Manatee County, Florida, United States. It is part of the Bradenton–Sarasota–Venice Metropolitan Statistical Area. The city occupies the southern part of Anna Maria Island and is one of three municipalities on the island. The others are Holmes Beach in the center and Anna Maria in the north.

Bradenton Beach is a small, friendly island community that values the civic pride of both permanent and seasonal residents, maintains its Old Florida charm, and respects its bountiful natural resources. History, hospitality and spirit are the hallmarks of this thriving waterfront, offering ease of mobility by land and sea.

Bradenton Beach is a charming and vibrant community located at the southern end of Anna Maria Island. The Island is located at the southern entrance to Tampa Bay on the Gulf of Mexico. They share the island with sister cities of Holmes Beach and Anna Maria City. Access to Anna Maria Island can be achieved from the mainland (Bradenton) via bridges on Cortez Road or Manatee Avenue or from Longboat Key to the south via the bridge over Longboat Pass

Bradenton Beach is blessed with miles of sugar sand beach. Cortez and Coquina beaches on the Gulf side are managed by Manatee County. Cortez Beach lies in northern section of the city, with numerous access points available. Coquina Beach lies at the southern end of the city and has lifeguard supervision. A large parking area is located next to the beach from 5th Street South, with acres of parking found at the Coquina Park at the south end of the island.

On the bay side at Coquina is a small beach that is popular with personal watercraft riders. Public washrooms, a picnic area and snack bar are also found at CoquinaThe city boasts miles of uninterrupted supervised public sugar sand beaches on the Gulf side and calm docking and mooring areas on the mangrove lined bay side.

You can fish from the popular City Pier, which features a full service Café and where bait is available. Inshore and offshore fishing tours are also readily available from local Guides. There are a number of Parks within city limits, including beach front with picnic facilities and public restrooms. There are numerous public accesses to the beach. There are also public boat ramps at the county managed Bay Side Park at the southern tip of the city

Bradenton Beach merchants offer a full slate of goods and services including accommodation of every kind, restaurants, bars, retail outlets, real estate and other professional services. The unique shops of Bridge Street in the city’s central Historic Old Town district are one of kind!

The city is a gem positioned on the sparkling waters of the Gulf of Mexico. Laid back, friendly and open-hearted they welcome visitors and new residents with equal warmth.

Spotlight on Brooksville, Florida

The City of Brooksville, as it is known it today, was settled by four pioneer families: the Howell family which settled the northern part of town; the Jon L. Mays family which settled the eastern part of town; the Hale family on the west; and the Parsons family on the south.

The country life is alive and well in Brooksville, Florida. The small town, located about 50 miles north of Tampa, is nestled amid gently rolling hills and wide-open spaces with the Withlacoochee State Forest as its back yard.

Brooksville was actually founded over 150 years ago. Brick streets, murals, and a smattering of antique shops and boutiques put the “charm” in its charming downtown.

Just down the road you’ll find Weeki Wachee Springs. The older attraction still has the most unusual show in Florida — “mermaids” that perform underwater in the crystal clear springs. The adjacent water park, Buccaneer Bay, is small by Florida standards, but popular with locals.

North of Weeki Wachee and northwest of Brooksville is Homosassa Springs State Wildlife Park where you can see the “real” Florida — showcasing nature. Area activities include sightseeing tours, boat rentals, fishing and snorkeling.

Brooksville is an exceptional place full of character and wonderful views. It’s a living memory of Mayberry – a jewel on a hill away from the bigger built up modern commercialism of cookie-cutter Super stores, chain stores and strip malls. It’s as genuine and as old as our oldest memories of good times the way they used to be – and as relaxing and friendly as you could ever imagine.

Spotlight on Lakewood Ranch, Florida

Lakewood Ranch is located on Florida’s West Coast in Manatee and Sarasota counties and is quick and easy to reach from any number of major airports including those in Sarasota/Bradenton, Tampa, Orlando, Ft. Myers and Naples.

At Lakewood Ranch, the unspoiled beauty and tranquility of the natural world is perfectly integrated with the active lifestyles.

Here, homage is paid to the breathtaking environment that surrounds Lakewood Ranch residents. They are proud to have been designated as the largest green-certified community in the US. Our commitment to remaining green in all aspects of residential and commercial development remains unwavering.

More than 150 miles of trails and sidewalks wind their way through the 3,500 acres set aside as lakes, nature preserves, parks and places to play where residents can enjoy the wonders of their unique surroundings. Half of the land at Lakewood Ranch is set aside as open or recreational space.

Each year Lakewood Ranch hosts great events and festivals that attract people from all over the state.

Arts and Culture take center stage at Lakewood Ranch. Music on Main, Evening Under the Stars, Suncoast Wine Festival and Art at the Ranch are Lakewood Ranch favorites.

Get the most out of life, and getting fit at Lakewood Ranch is fun! The Lakewood Ranch Golf and Country Club’s 11,400 square foot Athletic Center has a variety of ways to work out.

Year-round golf on three courses – King’s Dunes, Cypress Links and Country Club East with their natural setting is challenging and rewarding for every level player.

Lakewood Ranch is a great place to live, work and shop and there’s always something to do.