Central Florida & metro Orlando real estate services

Short sales and double closings – the good, the bad, and the ugly – Part 3

Thu, 01 Oct 2009 16:51:53 -0500

In the first part of this article, I discussed "The Good" Short sales and double closings - the good, the bad, and the ugly - Part 1 things about short sale double closings. In the second part, I discussed the questionably "Bad" things Short sales and double closings - the good, the bad, and the ugly - Part 2 about these type of transactions. Well this last article is the really ugly, possibly criminal stuff. I am not going to re-iterate points I have made in the previous articles. So if you don't understand short sale double closings, then I urge you to go back and re-read the previous articles.

The ugly -

The short sale double closing transaction can get even juicier. I've attended multiple meetings, classes, and seminars over the last year or so where the topic of short sales and double closings came up.

The first time I heard anybody questioning them was in an article by a local real estate attorney about 1 ½ years ago. Then I read about Stewart Title curtailing these transactions. In Fall 2008 I heard it discussed by our local Orlando Regional Realtor Association's attorney at a broker breakfast. Then I heard about it at a small group meeting with the Florida Attorney General's office this Spring. In August I hear about it yet again at the Florida Association of Realtor's convention - both FAR's attorney as well as the State of Florida Division of Real Estate's attorney spent about 30 minutes each discussing the topic. When the State's enforcing officers start discussing a topic repeatedly that typically means it is only a matter of time before criminal crackdowns begin.

The constant theme I heard from all these people is defrauding either the lender or the borrower as part of the transaction. Not only is fraud a violation of state law, but it is a violation of federal banking laws and could possibly fall into mail fraud, wire fraud, and RICO. We are talking major criminal penalties here. It could also result in the lender unwinding the whole short sale transaction and pursuing additional deficiency judgments against the borrowers.

At the FAR convention, the attorneys both stressed on multiple occasions that if the buyer, their Realtor, the title company, or anyone else is trying to convince the lender that the property is worth one amount when they know for a fact that it can immediately sell for higher that this is FRAUD. Especially if there is a higher offer that is already signed and agreed to behind the scenes and waiting for the closing from seller A to buyer B to happen. That does not mean that the second buyer C's name, contact information, price, or terms have to be revealed.

Some so-called gurus will go so far as to instruct you to send the lender low comparable sales or write up a low Broker Price Opinion (BPO) in order to influence the lender. I've even heard some investor-buyers meeting with BPO agents to influence them about the "terrible" condition of the house. Some people will remove the hot water heater or air-conditioner; some will shake a coke can and spray it on the ceiling to look like a roof leak. Some people will intentionally borrow a beat up car and wear shabby clothes when they meet the Realtor performing the BPO in order to somehow influence that person into feeling sorry for all the parties involved.

Certainly I can understand why someone would want to influence the BPO to be a lower price. And if the buyer was planning on buying the home live in it or keep it as a rental, then I don't see any big problem at all. But if the investor is trying to convince the BPO Realtor and/or the short saling lender that the property is worth only $150,000 when they know for a fact that they can immediately sell it for $160,000, then that is most likely fraud if they don't disclose their intent. The fraud is influencing the lender to accept the lower dollar amount via trickery, strategy, or whatever tactics. This is very similar to some of the tactics that were done in the boom times to convince appraisers to over-inflate the value of the property. Well as the State's attorney said, the mortgage fraud law works both ways - on both over-inflated values and under-inflated values.

So here is my advice from everything I have heard, read, or discussed thus far. If an investor wants to do these short sale double closings then they either (1) need to stay far far away from the valuation and BPO process by the lender, or (2) they need to disclose in writing exactly what they are doing. This includes sending the lender a copy of the second contract (even if the C buyer's name and contact info is crossed out).

Since most investors don't want to do #2 (obviously), then stick with #1. Because if you are doing everything in your power to influence the lender that the property is worth a low value and you know for a fact that you can immediately re-sell it for more, YOU ARE COMMITTING FRAUD plain and simple. I am not going to sugarcoat it. Do not attempt to influence the lender as to the property's value on a short sale double closing. Let the lender come up with the value on their own and let the chips fall where they may.

Here is a link to the federal criminal code. In particular check out sections 1006, 1011, 1012, and 1014. The State attorneys at the FAR convention said that these laws are written liberally for a reason. And remember that nearly all 1st mortgage loans right now are either regulated by, insured by, or owned by the federal government (i.e. Fannie Mae, Freddie Mac, VA, FHA, USDA, FDIC, etc.).

In fact I am not quite sure how attempting to buy a property gives you the right to negotiate a short sale agreement between 3^rd parties - the borrower and lender are 3^rd parties. As far as I know in all 50 states, only attorneys are allowed to negotiate contracts and agreements between 3^rd parties. However there are typically 3 exceptions to this law - real estate brokers, mortgage brokers, and certain governmental or non-profit agencies.

Florida Statute 475.01 provides what constitutes acting as a real estate broker.

Florida Statue 494.001 and 494.00296 provide the law regarding mortgage brokers.

And obviously a real estate investor is not a government agency or a non-profit entity.

In Florida practicing law without a license is a 3^rd degree felony. Some investors/buyers will argue that the owner gave them "written permission" to negotiate on their behalf. Sorry, that bird won't fly. An owner cannot sign a paper and make you a licensed attorney. Just like an owner cannot sign a document allowing some unlicensed person to install a roof on their house. Because if that was the case, then every wannabe attorney in town would simply have their clients sign a power of attorney or land trust document and thus avoid the hassle and expense of going to 3 years of law school and passing the bar exam. Duh!

I was still a little skeptical about all this actually being true fraud because I couldn't find anyone who had come flat out and put all this in writing. But then I found this memo from Fannie Mae in July 2009.

If you notice on the Fannie Mae website, they don't talk about disclosure at all. The title of their article is simply "Mortgage Fraud News: July 2009." The whole article discusses how title companies and lenders can detect and avoid a short sale double closing. Read that any way you want. Again, this article is on Fannie Mae's website.

Now that I have scared the hell out of you, I want to make two upbeat and positive points on short sales and double closings.

(1) In September 2009, Florida's largest title insurer The Fund issued a much more liberal"clarification" memo on this topic. Fund short sale memo. The Fund is not requiring that the "true sales price/value" be disclosed to the short saling lender, but they are requiring that the "right to sell for a profit" be disclosed in the contract paperwork. However they are also requiring that "no misrepresentations as to the value or ownership of the property" which again goes back to influencing the lender.

(2) Secondly the Fannie Mae memo does not mention an out and out ban on short sale double closings. If it did then lenders, Fannie, Freddie, and a few others would simply not allow a re-sale the property within 30 days or whatever timeframe after the A to B closing. I do see some lenders like Countrywide/Bank of America actually stating this in their closing instruction letters.

Lastly, I have been asked several times by sellers, Realtors, and investors, about doing A to B to A transactions. Basically doing the short sale and then immediately re-conveying or renting the property back to the original owner or a family member at a discounted price. I won't even go there. Lenders make all parties sign an "Arm's Length Affidavit" at the closing. They know about this type of nonsense. So, enough said about it. Don't do it!

My point in writing this whole series is not to bash any gurus or scare any investor/buyers out of the marketplace. However before you take anyone else's word on doing short sale double closings or any other "creative" technique, you need to make absolutely sure that you are comfortable with what you are doing. Just because a guru or their attorney claims that their way of doing things is perfectly legal doesn't make it so. Plenty of attorneys, real estate brokers, mortgage brokers, and so-called investors have been prosecuted over the years for just about anything you could imagine. In fact just Googling the words "short sale double closing fraud" brings up over 1 Million results.

The good news is that I have yet to hear or read about anyone being prosecuted for any of this. Follow the Fannie Mae memo and the Fund memo to the letter and you should be doing just fine. At least until they change the rules again.

I've said it before, and I will say it again. The whole real estate and mortgage industry is under a giant microscope right now and will be for quite a while into the future. Be very careful where you tread.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida, metro Orlando, and the Space Coast. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available. Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Apopka, Kissimmee, Sanford, Lake Mary, and Deltona.

$8000 Tax credit extension passes U.S. House & Senate

Thu, 05 Nov 2009 15:38:58 -0600

The $8000 tax credit extension has passed the U.S. House & Senate almost unanimously and is headed to the President's desk for a signature.

Now the tax credit will be good for contracts signed no later than April 30, 2010 and closing no later than June 30, 2010. Additionally existing homeowners who have lived in a principal residence for 5 consecutive years out of the last 8 years - these will get a maximum $6500 tax credit.

There are some additional caps on income and some supposedly new anti-fraud measures (ha ha) in place as well.

You can read the full details of this extension at NAR's website.

This is great news for the real estate industry. Not sure how great it is for the national debt though. But I'd rather see the money going to the middle class than to Wall Street zillionaires.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Great real estate deals we sold in October 2009 - Orlando, Kissimmee, Deltona, Altamonte Springs

Tue, 03 Nov 2009 10:48:34 -0600

October was another strong month for home sales. Our office sold 32 properties last month and many more are pending for November. Banks love to dump their REO and short sale inventory during the 4th quarter so that it won't be on their books for the new year. Look at some of these great Central Florida home deals that closed in October 2009.

Fisher Drive Morning Glory Lane Pelican Lane

- Fisher Drive, Deltona, FL 32725. This 3 bed/2 bath/2-car garage home was a true investor special. Bank owned REO needing a bunch of work but what do you expect for this sort of price. It sold for the super cheap price of just $46,000 after just 5 days on the market.

- 1st Avenue, Altamonte Springs, FL 32714. 3 bed/1 bath/1-car garage block home. Located in the coveted Lake Brantley school district in Seminole County. House was a true handyman special, but the bank REO department wanted it sold. Seller let this one go for the low low price of just $27,500.

- Morningside Drive, Orlando, FL 32806. Big 4 bed/3.5 bath pool home. Just steps from Lake Lancaster near Delaney Park in downtown Orlando. Owner was motivated and this was priced to sell. After only 6 weeks on the market it sold for $270,000.

- Morning Glory Lane, Kissimmee, FL 34747. This was a fabulous short sale home in Celebration Florida. 4 bed/2.5 bath/2-car garage with spacious kitchen and modern features. At the top of the market this home sold for over $500K but we negotiated a short sale with the bank at just $340,000. We still have one more Celebration short sale home available. Call for details.

- Pelican Lane, Orlando, FL 32803. 3 bed/2 bath block home near downtown Orlando. Bank owned REO and a great wholesale deal. This Audubon Park home sold for just $105,000.

Our office has a constant stream of new bank owned REOs, foreclosures, short sales, and other investor specials. Make sure to sign up for our weekly hot property email list.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Can't pay your Realtor dues? Keep your Florida real estate license active with our referral brokerage.

Sun, 01 Nov 2009 13:04:14 -0600

Before you let your Florida real estate license go inactive, make sure to check out our real estate referral brokerage Sand Dollar Referrals LLC. We have 2 plans - a "hands off" referral plan and a "hands on" active plan for sales associates that want to sell real estate and keep their license active, but can't afford your local ORRA Realtor dues.

What we provide to our referral associates:

Professional help and advice when you need it.
Centrally located Altamonte Springs office. Free use of our conference room and on staff notary.
Free attendance to all monthly sales meetings of Sand Dollar Realty Group, Inc.
Earn additional income from our affiliations with local title company Brokers Title and the sale of home warranties.
Easy exit agreement. As long as your expenses and splits are paid in full to us, you can give us 7 days notice to cancel the agreement.
Free access to all member MLS's when you come to our office and work directly with one of our Realtors.
Errors & Omissions insurance paid by the brokerage to cover all your transactions.
If you decide that you want to join the local Realtor association and obtain MLS access for yourself, you can switch your license over to our Realtor-brokerage, Sand Dollar Realty Group, Inc., at anytime (subject to broker approval).

What we require of you:

You must have a valid and current Florida real estate license (sales associate or broker associate).
You must pay your DBPR licensing fees and take the continuing education required by law.
You must register your potential customer leads and property deals with us in writing..
But other than that we do not require much else from you. No quotas of any kind. No requirement to list or run all your personal sales through our firm. For the Hands Off Plan just send us your leads, and let us do the work. For the Hands On Plan just work with the broker to sell some properties. Either way when the deal closes, you get paid. How easy is that?

For more details on our commission splits just click over to our website Sand Dollar Referrals LLC . If you are interested in a confidential interview, feel free to contact me anytime.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Haunted House for sale???

Sat, 31 Oct 2009 08:57:42 -0500

Over the years, I've listed a few houses that at least some people considered "haunted." Though I've tried and tried, I've never actually been able to see or feel a ghost in any of these places.

A few years ago, I listed a big 5000 square foot home that sat back a couple hundred feet off the road. The owner was having major renovations done to the home and temporarily moved out of it. I was helping him with overseeing some of the repair work while he was away.

Several of the workers there repeatedly told me that they heard noises, that they heard large crashing sounds in the garage on occasion but nothing had fallen, that doors that they closed at night were wide open the next morning. So I did a little investigation myself. One Friday night after everyone left, I went to the home all by myself. Kind of creepy actually. I called out to the "spirits" to show themselves. Went so far as to actually close every interior door in the house. Nothing ever appeared to me. I came back to the house on Sunday afternoon and low and behold all the doors were still closed. I mentioned all this to the home's owner and he just said that the workers were crazy because he had never seen anything. What a disappointment.

Earlier this spring, I listed a bank REO home. The home was all boarded up, so some of the rooms were pitch black. The bank required me to do a BPO which means I have to take photos of every room. One photo in particular in an upstairs bedroom showed an "orb" in it. You can see that photo below - the "orb is the white circle in the center over the baseboard. Not sure what that thing is. Some people say they are ghosts. Anyway, I came back to inspect the house a few days later and that board nailed to that window had fallen off and was laying on the ground. Now granted these boards were installed by the previous Realtor nearly 3 months earlier and there were 15 other boarded windows in the house and none of them ever fell down during the entire time that I had this house listed. Weird. Luckily that house sold.

My final and weirdest experience was on a rental home that I owned. The home was in foreclosure and filled with trash when I bought it. The lady that sold it to me said that the house was "cursed" and that after 2 years of owning it she was so glad to get rid of it because the house had cold spots in it and made noises at night. Supposedly it "caused the break up of her marriage" and her husband took the kids and went to Miami. She sold the house to me with several dumpsters full of trash left in it. The night after I bought the house, I wanted to go and check out this supposed "curse." I will admit that I did hear a bunch of noises when I was over there. It sounded like the whole house was moving. But it wasn't from ghosts. It was from a rat infestation. 4 dumpster loads of trash later, the house was empty. Still took me a few weeks to kill off a dozen or so huge black rats. I ended up selling that house about a year ago. Nobody that ever rented from me mentioned ghosts or curses, but I did have one more incidence of rodents getting into the house. Who knows for sure?

I'd love to hear other people's "haunted house" experiences. Have a happy and safe Halloween!

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

City of Casselberry Florida proposes new rental regulations and taxes

Sat, 24 Oct 2009 10:50:52 -0500

The City of Casselberry Florida has a new rental regulation and tax on their horizon. The City of Casselberry is planning on increasing revenue by a "very conservative ... $22,000" by tacking on yet another layer of fees and regulations onto the back of rental property owners most of whom are already strapped financially.

Proposed resolution 09-2088 would force owners of rental properties including single-family homes, condos, mobile homes, and apartment buildings to pay an additional tax each and every year for every unit they own in the city limits of Casselberry. Additionally the property owner would be required to provide their contact information to city hall so that code enforcement could more easily get a hold of them in case of a violation.

Now granted, the tax collector can easily get a hold of property owners each and every November when the property taxes come due. And the Seminole County Property Appraiser website already has maintained on a list of owners and addresses for every parcel within the county. But this isn't good enough. The solution is to tighten the noose around rental owners yet again and end up forcing more of them into foreclosure or bankruptcy in a tough economy.

The 1st hearing on this proposed rental regulation ordinance is this Monday, October 26, 2009, at 7:00 p.m. at the Casselberry city commission chambers.

You can read the entire proposed ordinance here.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Will the $8000 tax credit get extended? Washington is undecided.

Wed, 21 Oct 2009 14:24:50 -0500

An interesting debate is going on in Washington. The National Association of Realtors is doing everything it can to get the $8000 tax credit extended beyond the November 30, 2009 deadline.

However, the White House is still undecided. In a recent CNN article, Shaun Donavon, the Secretary of HUD says the statistics aren't in just yet to show whether this tax credit has spurred the economy.

Apparently the IRS is screaming all types of fraud saying that a significant portion of the tax payers filing for the tax credit may have done so fraudulently. Over 107,000 questionable files have been opened by the IRS according to Fox News. To me that's not surprising. Look at all the fraud and "bonuses" that have been paid out as a result of the TARP money in Fall 2008. Everytime the government creates some new handout or incentive there is always lots of fraud that happens.

Personally I still have mixed emotions on extending the deadline on the tax credit. So I haven't contacted my Congressman either way. Seems like nearly 40% of the buyers in my market are paying cash. So while the tax credit has had some impact, it probably hasn't been as much as they are hyping it up to be. However at the same time I know the tax credit has knocked some buyers off the fence which is a good thing.

It will be interesting to see what happens in December if they don't extend the deadline. If you are planning on taking advantage of this, you better get a contract signed quickly because the time is running out fast.

My bet is that like the Cash For Clunkers program, Washington will allow this program to end and not revive or extend it. But who knows for sure.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Keep your Florida real estate license active - no Realtor dues required

Wed, 21 Oct 2009 11:30:56 -0500

That's right. If you are considering not paying your Realtor dues this October 31, you can sign up with our firm Sand Dollar Referrals LLC and still sell property without being a member of the local board of Realtors or the MLS.

We have 2 different plans available.

If all you want to do is refer leads of family and friends to us, we have our "Hands Off" plan where you can simply send us the lead and we will work on it for you. Or one of our Realtors can match up with you and help you buy or sell a home. When the deal closes you get a referral fee.

Or we have the "Hands On" plan where you can do nearly everything that a dues paying Realtor would do except you don't have to join the board or the MLS.

For exact details on how each plan works, visit our website at www.SandDollarReferrals.com . Then give us a call and we can set up a confidential appointment.

Serving all of Central Florida - Orlando, Winter Park, Ocoee, Winter Garden, Apopka, Kissimmee, Altamonte Springs, Lake Mary, Sanford, Oviedo, Deltona, Deland, Daytona Beach, Mount Dora, Clermont, Leesburg, Ocala, Winter Haven, Lakeland, Davenport, Melbourne, Titusville, Cocoa Beach, and more.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Three million pink slips sent to Congress!

Tue, 20 Oct 2009 14:37:58 -0500

Via Simon Conway (Picket Fence Realty):

As I write this at 8am on Tuesday 20 October, 2009, some THREE MILLION pink slips have been sent to members of Congress individually addressed, personalized with senders name and address and delivered to all members of Congress by Fed Ex.

Three million after just THREE WEEKS since the campaign started.

The idea was conceived by Janet Porter of Faith2Action and a WND weekly columnist. "They didn't listen to the Tea Parties and the Town Halls; maybe they'll start listening when they're tripping over boxes of Pink Slips and stacking them from floor to ceiling!" she said

"We need to erect a firewall of pink slips before they vote to take our freedoms, our free enterprise, and our very lives with socialized medicine.".

Of course with 2010 approaching, members of the House in particular are looking towards the election - as usual the top priority! This innovative campaign will hopefully have the effect of reminding exactly who they work for!

If you want to be a part of it, just follow the links provided. It is actually a cheap way of sending a very powerful message due to the economies of scale - and Fed Ex WILL deliver.

More from Janet Porter: "There is a revolution brewing across this country," she said. "People are angry about losing their country and they are ready for action. This campaign is just the latest evidence."

Send your pink slips to Congress now

(Copyright © 2009 By Simon L Conway All Rights Reserved.)

Simon Conway is the two-time winner of the FIVE STAR Best in Client Satisfaction for Real Estate Agents in the Orlando area.

Please give me a call if you have questions about the Central Florida real estate market. You can reach me on 407 876 8200. Also visit my web site at www.simonconway.net or www.move2orlando.net

________________________________________________________________________________________________________

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Do You Tell The Short Sale Lender "Buyer Walked"?

Sun, 18 Oct 2009 17:12:30 -0500

Via Wendy Rulnick "Its Wendy!" Destin Short Sales (Rulnick Realty, Inc.):

Karla Leahy started an interesting discussion on www.ShortSaleSuperstars.com. She asked "Do you inform the short sale lender when you no longer have an offer?"

From what I’ve seen the thought process behind not divulging the buyer walked is:

1. The lender will complete an appraisal or BPO that will speed up the next approval

2. The seller’s pre-qualification may be completed and ready for the next attempt

3. With some lenders, you can sneak in a substitute buyer

Bottom line, it “saves time” for the next buyer, the one you hope closes.

BUT--  IS IT RIGHT TO NOT DISCLOSE THE BUYER WALKED? Why should the short sale system be clogged because you are trying to speed up your next offer? Is it right to allow the lender to continue to work on an approval when there is no longer a contract? Sometimes there is another twist on trying to speed up an approval. “Fake” or “starter” offers are sent in to the lenders to get an appraisal ordered, when the “buyer” has no intention of closing. The “buyer” might even be the real estate agent.

Some of the lenders have a few hundred thousand offers in process. HOW MANY ARE LEGITIMATE OFFERS? The “real” buyers (and the sellers) suffer through longer wait times because others have tried to game the system, "dead" deals are being processed or offers with no hope for approval have been submitted.  If lenders were only processing contracts that could actually close, all short sales would be speeded up, right?

So, I ask "Would YOU call the short sale lender and tell them to stop working on the sale if your buyer walked?"

It's Wendy!

Available Short Sale Agent Training:

The Negotiator Interview $27.00
Short Sale Agent Training Webinars 8 Hours of training and materials for $97.00

Short Sale Listing/Submission Package $27.00 Click for details

www.ShortSaleSuperstars.com FREE

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin FL Real Estate

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

The power of social media

Sat, 17 Oct 2009 09:26:33 -0500

Social media definitely works. During the 2008 election cycle, I was constantly blogging about various amendments and tax issues and got interviewed by several TV stations as a direct result of my social media interactions. The internet is where people get a lot of their news anymore.

Via Jim Lee, Knoxville Tennessee Realtor® (Realty Executives Associates):

Wow, an exciting and interesting thing just happened.

I posted on Twitter a graph I created below showing the Knoxville area home sales month to month this year.

19 minutes later my phone is ringing and the news director for WATE , one of our local TV stations is on the phone saying his boss saw it on Twitter and asking permission to use it (with suitable attribution and a quote from me regarding our market) in a news story they're doing this afternoon about our local market.

I get quite a bit of positive feedback from my Facebook and Twitter activities and that phone call was further proof positive that people take notice of what you post there.

A couple of weeks ago I was in a bakery buying a loaf of bread and the guy behind me asked if I was Jim Lee the Realtor. I replied yes and he said I read your blog all the time. You're the only one in town that publishes the actual sales figures instead of just saying the market is great and it's a good time to buy a house.

My blogging has also resulted in a couple of live interviews on local stations including one time the news team met me at a listing and photographed me showing it to some buyers and then interviewed me in the yard (beside my sign) talking about the local market.

Facebook and Twitter directly led to these interviews and recognition in addition to bringing several listings and buyers to me.

If you're reading this on Active Rain you're likely already blogging but you need to make sure you also have a presnce on Facebook and Twitter; it will lead to business.

Jim Lee, CRS, ABR, GRI, ACRE, NAR Certified e-PRO Trainer
*****************************************************************
Visit my blog: www.KnoxvilleTennesseeRealEstateBlog.com
Realty Executives Associates, Knoxville, Tennessee
See all Knoxville area Realtor listings at: www.KnoxvilleHomeCenter.com
(865) 693-3232, My Personal Toll Free # 1-800-662-2488 ext. 163
mailto:Jim@JimLee.com

Click here to subscribe to my blog and get up to the minute news and reports about real estate in the greater Knoxville, Tennessee area.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Central Florida MLS statistics - metro Orlando & Tampa Florida

Thu, 15 Oct 2009 09:12:41 -0500

I was digging around through some MLS stats yesterday afternoon and put together the following numbers:

Since 7/1/2009 there were: 22,604 residential closings in the 13+ counties that comprise the Mid-Florida MLS. 6,536 were not designated as if they were a distressed sale or not - the MLS started requiring properties to be designated this way on or about September 1.

16,068 were designated as a short sale, bank owned, or neither. Of those 16,068 -- 7,582 (47.2%) were bank owned, 3,524 (21.9%) were short sales, and 4,963 (30.9%) were neither.

Of the 22,604 closings - 9,575 (42.4%) were bought with ALL CASH, 5,511 (24.4%) were bought with FHA or VA mortgages, 6,255 (27.7%) were bought with conventional mortgages, and 1,263 (5.6%) were closed using some other form of creative financing or other financing.

It is surprisng how many cash buyers are out there. It is also surprising how many sales were bank owned compared to the others. Short sales seem to dominate the properties for sale, but are low on the list of closed sales.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Market statistics update September 2009 for Orlando - Altamonte Springs, Lake Mary, Orange & Seminole

Wed, 14 Oct 2009 09:10:25 -0500

The Orlando Regional Realtor Association released their monthly housing statistics for Orange County and Seminole County for the month of September 2009 (area covers Orlando, Altamonte Springs, Lake Mary, Winter Garden, Winter Park, Longwood, etc.). Here is a link to the full housing report.

ORRA Originated Sales

Sept. 2009

5.09%

15,967

4,030

3,858

8,790

857

846

1,014

2,151

Inventory levels dropped slightly from 16,361 in August to 15,967 in September. This continues the decline that started around summertime 2008.

The number of properties currently sale pending is at the highest level ever seen with 8,790 properties under contract. In September 2008, this figure was just 3,256 and in September 2007 it was just 2,012. Big change. However, as of this morning 4,371 of these pending sales were short sales which presently have less than a 1/3 chance of making it to closing. :-(

For the 3rd month in a row, the number of expired and withdrawn listings 1,860 (ones that did not sell and fell off the market) were less than the number of sold listings 2,151. While this number of solds is lower than the June, July, and August numbers it is still very strong considering that the market typically slows down once school starts back up.

The average and median sales prices declined slightly yet again. This is caused by the all the bank owned REOs and the short sales that are driving prices downward. Median price was $125,000 and Average price was $156,400 for September 2009.

The Orlando Sentinel had an article on these figures today if you want to read up on more details. The $8000 tax credit will be expiring in 6 weeks. So it if you want to tap into it, you must do so immediately.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

Central Florida homes are selling briskly with the $8000 tax credit deadline looming

Sun, 11 Oct 2009 09:44:51 -0500

Interesting story in today's Orlando Sentinel. It goes into depth of one man's saga to try and buy a decent home before the $8000 tax credit runs out. After 4 months of looking, the would be buyer gave up because everything he liked either sold with multiple offers or else could not pass FHA financing standards. Now that we are in mid-October, anybody that doesn't put a house under contract immediately is going to struggle to meet the deadline if they are trying to obtain conventional or FHA financing.

The story points out that nearly all of the decent affordable Orlando homes for sale are selling with multiple offers. Even the bank owned REO houses are selling with multiple offers. The ones that don't sell fast are typically condos with exorbitant fees, homes in marginal neighborhoods, or homes with substantial repairs that make them un-financeable in their current condition. Even the short sales seem to sell fairly quickly. However because a short sale can often take 3-4 months to close, buyers that want to take advantage of the $8000 tax credit before it expires on December 1 are gun-shy of trying to make an offer.

It is an interesting saga. And it will be even more interesting to see how the Central Florida home sales are affected when the tax credit does expire.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

A True FHA Story - Cashing an $8017.55 First Time Home Buyer IRS Check

Thu, 08 Oct 2009 15:03:38 -0500

This is a great story. But the most important message to get from the video clip is that the deadline to get a property under contract is looming very near. If you want to buy something, you need to get an offer in immediately because the loan process will take at least 30 days and probably a little bit more.

Via Chris Brown - Florida's #1 FHA Mortgage Broker | Syndicated Mortgage Blogger (www.OrlandoMortgagePro.com):

Watch the Fox 35 Video here.

Andrea Tlumacki was one of the people not afraid to take the plunge... and she has been rewarded for it! With the deadline of the $8000 First Time Home Buyer Tax Credit approaching - it is urgent to develop a plan of execution. Most people are focused on the restriction of closing before the expiration of Nov. 30th. Fair enough... but many are not building a time line in order to establish milestones that one needs to meet if they desire to witness the delivery of an $8000 Treasury check. This is done by finding the advice of both a rock-solid Realtor and a Certified Mortgage Planning Specialist.

Andrea Tlumacki did. Expert real estate advice - proved priceless. Not only was she able to nail down a low mortgage rate of 4.500%, but received unparalleled direction by utilizing "top-agent" experience to get a purchase price that would make an investor envious. In her interview with Andrea, Tracy Jacim states, "time is running out," and the time to delay is over. Many of us are familiar with Student Syndrome - but the need to:

get approved for a mortgage,

identify a dream home, and

go-under-contract

...has a time line of about a week. Sure, things can be closed a somewhat faster in the proper circumstances, but as volume elevates in the weeks ahead for lenders, the length of time it takes to actually close will be increase. In other words... it is important to engage in the Orlando Real Estate process quickly if you hope to benefit from the First-time Home Buyer Tax Credit before it expires.
Chris is Florida's #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and proudly the newest contributor to Lenderama. Chris can be found at Orlando FHA Loans, Chris[at]OrlandoMortgagePro[dot]com, or by calling 407.377.0500 x 210

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida, metro Orlando, and the Space Coast. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available. Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Apopka, Kissimmee, Sanford, Lake Mary, and Deltona.