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In response to the overwhelming amount of requests for marketing and collateral materials for our clients for short sales and foreclosure properties I began to a little deep digging into what is clearly one of the fastest growing segments and designation in the real estate industry of all times.

What did I learn? Most surprisingly, that the current national average statistic is that one in seven homeowners are not currently paying their mortgage. One in seven! What wasn’t surprising to me after more than twenty years in this business is the how so many talented real estate professionals are rising up with a passion to help protect and serve these distressed property owners with a unparalleled compassion.

To learn more about why so many agents are stepping up and stepping into this often challenging, but from what I’ve learned, altogether rewarding niche market, I tapped Alex Charfen, CEO of CDPE, or the Certified Distressed Property Expert program, a designation that has grown to 15,000 agents in just 23 months. I also enlisted the insight of Stacy Spickes of ShortSalesSolutions.biz, an industry expert who, along with her husband Michael, produce training programs across the nation. Look for their new Lifetime Television Series, piloting soon called Solutions for Homeowners Facing Foreclosure.

It was interesting to note that both Alex and Stacy share similar stories. Both fell into the business of short sales with spouses by their sides, as a need to better care for customers who were in need and a way to meet the demands and challenges of a declining market. Alex and his wife introduced CDPE less than two years ago and are currently seeing the demand grow weekly for additional training, tools and practical advice for agents eager to acquire the skills they need to work in this niche.

Stacy and her husband come from the Austin area which, of course, saw the technology boom – and later bust, and grew their training program from that experience of being in the trenches trying to help facilitate options for so many of their clients that found themselves upside down on their mortgages. I asked them both a series of questions to see if I could get some common perspectives to share with agents interested in jumping into this complicated market segment. Here is an excerpt of our conversations:

Question: Why do you believe that mastering the right training and tools are so critical when working with distressed homeowners in today’s market?

Alex Charfen: What we’ve found was that there were a lot of real estate agents out there working without a net or without prior training and skills. What they have to come to realize is that we’re no longer just talking about helping people buy and sell property; we’re dealing with their financial future of these consumers. Agents have to understand that the rules keep changing, and that there are right and wrong ways to help. Even the most well-intentioned agent, if they’re not properly trained can give the wrong message or advice to a consumer and cause long-term financial hurt.

I just read that Bank of America alone is taking 100,000 phone calls a day from homeowners in distress. That tells us that the bandwidth is just too constrained for these lenders to push all the paperwork through. That’s why agents have to really be on their game, and know how to put together the right packages for the right lenders to increase the success rate, not only for themselves, but certainly for that homeowner.

I’ll give you some stats from a survey we did of 9,000 of our CDPE experts. We tracked the time it took to process a short sale before training at 54 days, and after 27 days. That’s a 50% reduction in time it takes to get a short sale approved – and it’s all because you know the language necessary to get it through the lender. It’s no magic bullet – but understanding the process, what the lender is looking for and the language that needs to be spoken.

Stacy Spickes: First of all, these are very specialized transactions. In fact, what we found nationwide when we started developing our training was that the closing ratio for short sales was averaging less than 20%. That’s where you were hearing, and still hear, those horror stories of people still sitting on short sales for 15-18 months. The agents that go through our training program average an 89-91% closing ratio.

Now, we always say there’s nothing magic about it, but what closes that gap and makes that possible is that we know the kind of information a REALTOR needs to know to get the deal closed. I mean there are a lot of agents out there taking these listings and just don’t know what they don’t know. Their hearts are in the right place – they want to help – but unfortunately a lot of people are finding themselves in foreclosure at the hands of a REALTOR who just didn’t know what they didn’t know.

In our programs, we focus on the practical nuts and bolts substantive information agents must have to get the transaction closed and help save that homeowner from foreclosure. Components such as “Short Sale Math,” which is where we show them how to calculate exactly what the lenders have to net on each short sale so they know ahead of time and don’t submit packages that contribute to an already log-jammed system. It’s also important to make sure they itemized checklists so they don’t submit incomplete packages that are certain to sit in limbo indefinitely.

Question: How are your students finding their short sale prospects or better yet, how are these distressed consumers finding them in time?

Alex Charfen: One in seven homeowners are currently not making their mortgage payments, so there are plenty of them out there, it’s a matter of spreading the word and letting people know that there is help. More often than not, consumers don’t even realize that there are very real options available to them, and the fear and anxiety of the situation take over.

Many of our students use direct mail, which has been very effective, and advertising in both newspaper and the community newsletters that you see. Our best advice to agents is to tell them that they absolutely must engage with the people they know. We tell them to talk to their sphere. Let them know that you can help with distressed properties. Plus when you start with your sphere, there is already a built-in trust factor, and that’s critical when you’re talking about people in this situation. Postcards, calls, ads, homeowner seminars are all effective ways of communicating. Even if that person isn’t in trouble, chances are, they know someone who is and it’s a great comfort to know that someone has the ability to help.

When you understand that 70% of the people who lose their home to foreclosure are never listed with an agent you realize that there are just a lot of people who need a lot of answers and not getting them.

Stacy Spickes: Well, in so many regions where of the country you’ll find 50% of the listings are short sales just because they were the hardest hit markets. In other areas, we’re finding new agents are spinning some of their marketing such as utilizing direct mail postcards and choosing neighborhoods that have a higher turnover than normal.

Agent-to-agent referrals are big as well which certainly wasn’t the case three or four years ago, so it’s a reflection of the industry really coming together, which is great to see. It’s a realization by agents ill equipped to deal with the ramifications of giving the wrong advice now aligning themselves with other agents with those who can better handle them and serve the consumer. Two years ago we’d see agents with zero experience trying to put these together with sometimes devastating results for the seller. Now, in the last 18 months we are really seeing agents rise to the occasion and create a powerful referral network.

It’s really not hard to find them, what’s really important is to help them find you so that you can be the advocate they need.

Question: What’s your best advice for agents considering becoming a short sale specialist or Certified Distressed Property Expert?

Alex Charfen: My advice is that you must. When you look at what’s going on in this country, more and more homeowners are not making it and this is an industry trend that is not going to go away. Our courses provide the extensive, hands-on training you need to best service the homeowner and ensure a win-win for everyone involved.

Stacy Spickes: I think 2010 will see a significant emergence of agents who will have to choose this field to survive. Those agents who used to believe this will go away will no longer be able support that belief. I believe that of the now less than 1.4 million REALTORS out there, I would be very surprised if we didn’t see at least 5-10% choose this niche and those that will make it, will do so because they got the training and tools they need to do the best possible job for their customers.

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1) Short Sales are impossible and never get approved. FALSE

TRUTH: Short Sales are more difficult, You need to learn a new process, They are NOT impossible. This is definitely not an impossible process. While there are no guarantees in any transaction, more and more short sales are being approved monthly. However, an agent MUST be educated on the process, or it will be nearly impossible. My success rate is about 99.9%. I don’t take no for an answer but always look for a solution to any problem.

2) Banks are NOT accepting Short Sales; They are waiting on a bailout. FALSE

TRUTH: The reality is that banks have already been bailed out, and are really trying to do anything they can, within reason, to avoid foreclosing on a property. More banks are aggressively pursuing Short Sales and Agents who understand how to process them. It is strictly business, it costs the bank (in most cases) far less to short sell than to foreclose.

3) You must be behind on your mortgage in order to negotiate a short sale. FALSE

TRUTH: At one time this was true, but today, this has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency. If you meet these three requirements and are in a position where you will soon not be able to afford your mortgage, now is the time. Some few lenders still hold on to this rule, but they are few and far between. In fact, most lenders in any circumstance would rather sell short than foreclose.

4) Buyers are not interested in short sales and avoid them. FALSE (mostly)

TRUTH: Some buyers are not interested because of the time it takes, especially with time constraints like the first time homebuyer credit. On the other hand, many agents are getting calls from buyers who say “I only want to look st foreclosures and short sales.” These have become synonymous, not with issues, but with Good Deals.

5) Listing a home as a short sale is an embarrassment. FALSE

TRUTH: Most sellers don’t want the world to know they can’t pay their bills, but according to recent estimates, 1 in 5 homeowners in the US owe more on their house than it is worth. Even wealthy owners have to stop the bleeding somewhere. Most sellers are to be congratulated for admitting they need help, taking action and finding a professional who can work toward a solution.

6) The bank would rather foreclose than bother with a short sale. FALSE FALSE FALSE!!

Truth: This myth started with collection people working for lenders on commission. The reality is that banks do not want to foreclose on property, it costs too much. An average foreclosre can cost the bank up to $40,000 and they still have holding costs, insurance, realtor fees, etc. and still get less than market value. Do the math, which would you do?

7) There is not enough time to negotiate a short sale before a foreclosure. FALSE

TRUTH: This is a myth that hurts homeowners. Many don’t realize that the foreclosure process is lengthy. It can take a year or more, and if an attorney gets involved, it can be stalled far longer. Almost all lenders will stall a foreclosure with a legitimate contract for short sale. So if lis pendens has been filed, no worries, that’s just the beginning. If it is slated for the courthouse steps, hurry up, if there is an offer you may be able to stall.   

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One-of-a-kind, custom built home, situated on a 5 acre lake with panoramic views of Choctawhatchee Bay. This impeccable home and garden is located in Regatta Bay, an award winning, gated, golf course community. The elegance and upgrades are immediately apparent upon entering the front door. The Living Room and the formal dining room feature Brazilian hardwood cherry floors, high ceilings, and gorgeous views from all windows. Behind French doors, is an executive office, featuring marble flooring, cherry built-ins, and stunning sunset views. The Master Bedroom is large and spacious and opens to the lanai offering relaxing views of the pool and lake. The Master Bath has high ceilings, tile flooring, a separate tub and shower, a bidet, double vanity, a very large walk-in closet, and a beautiful lake view. The center point to the home is the spacious kitchen. It has upgraded features galore including: slate flooring, absolutely stunning blue pearl granite countertops, stainless steel appliances, a center island, and a breakfast nook. The kitchen also opens up into a roomy den, perfect for entertaining. A compliment to the kitchen and den, is the French door that opens to a Florida room on the terrace. All the bedrooms are large and feature the gorgeous Brazilian hardwood cherry flooring, spectacular views, and their own full baths. Some of the other incredible features of this home include: a large laundry room with additional storage, a three car garage, a large accessible attic, a large personal sauna, a water purification system, a lanai with pool and Florida room for enclosed outdoor dining, security system with remote cameras and DVR, surround sound speakers throughout the home and lanai, and a spacious circular brick driveway. You can also enjoy the superb landscaping with a delightful English garden, fruit trees, and multi-colored flowers, a perfect place to find peace and serenity. No expense has been spared to make this home a true piece of paradise.

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Do you qualify for a Preferred policy???

1. Flood insurance is available. You can – and should – buy flood insurance. If you live in a participating National Flood Insurance Program (NFIP) community, and there are more than 20,600 nationwide, you can purchase flood insurance from your insurance agent. You can purchase a policy whether or not your property has flooded before. Renters, condominium owners, homeowners, and business owners are all eligible to purchase a policy.

2. Flood insurance is sometimes required, but it should always be considered. Flooding can happen anywhere and at any time, caused by events such as heavy rains, melting snow, tropical storms and hurricanes, and failed protective structures such as levees and dams. Most individuals with a home in a high-risk area are required by law to carry flood insurance. But just because flood insurance is not required does not mean it is not needed. Even if your lender doesn’t require you to carry it, you should ask your agent about flood insurance options to better protect your biggest investment. Without a flood insurance policy, your financial security is at risk.

3. Flood insurance is the most dependable resource to speed recovery. Most homeowners insurance does not cover flooding losses. Only flood insurance covers damage from rising waters. Despite what many might think, Federal disaster assistance is not always available after a flood. Disaster assistance declarations are issued for fewer than half of the flooding events that occur. When such assistance is available, it usually comes in the form of a low-interest loan, which must be paid back with interest.

4. Flood insurance is affordable. Rates are based on a variety of factors, such as the flood zone, date of construction, history of flood claims, elevation of the property, and home improvements made to mitigate future damage. The average flood insurance premium is around $500 per year. If you live in an area of moderate to low flood risk, you may be eligible for a Preferred Risk Policy with rates as low as $119 a year. Flood insurance rates are federally set and will not differ between one insurance company and another.

5. Flood insurance is available for your building and its contents. Individuals typically choose to carry building coverage, contents coverage, or both. However, residents in a lower-risk area may be eligible for a Preferred Risk Policy, which covers both the structure and personal items for a lower cost than a standard policy. A complete summary of the type of buildings and contents covered by flood insurance is available on the FEMA website at http://www.fema.gov/library/viewRecord.do?id=3011.

6. Know your coverage limits, and be fully insured. A maximum of $250,000 of building coverage is available for single-family residential buildings; $250,000 per unit is available for residential condominiums. The limit for contents coverage on all residential buildings is $100,000; contents coverage is also available to renters. Commercial structures can be insured to a limit of $500,000 for the building and $500,000 for the contents. Review your coverage limits to be sure your building, its contents, and any improvements made to your home are adequately insured.

7. The 100-year flood standard – what it really means. The government definition of a floodplain, or high-risk flood zone, is an area with at least a 1-in-100 or 1-percent chance of flooding in any given year. These 1-percent-annual-chance flood events are often called “100-year floods,” but that term can be misleading. The 100-year flood benchmark is a minimum standard used for insurance purposes. While major flood events are not common, they happen, have happened recently, and will happen again.

8. Levee protection comes with risks. Levees, dams, and other flood control structures are designed to protect against a certain level of flooding. In more serious flood events, levees can fail or be overtopped. As levees age, their level of protection can change. When levees are overtopped or fail, the flooding that follows can be catastrophic. Because of these unique risks, if you live near a levee or dam or in an area reliant on other flood control structures, purchasing flood insurance is highly recommended.

9. Filing your claim – what to expect. After a flood event, call your agent or insurance company and ask when to expect an adjuster at your home. Be sure to call your insurance company again if an adjuster hasn’t been assigned within several days of the flooding. Before the adjuster arrives, separate damaged and undamaged items, take photos, make a list of damaged or lost items, and copy the damage estimates prepared by a contractor to give to the adjuster. Once a detailed Proof of Loss statement has been prepared and agreed upon, your claim can be submitted.

10. Stay insured. You can purchase flood insurance at any time. However, there is usually a 30-day waiting period before the policy becomes effective. If you already have a flood insurance policy, remember that your policy needs to be renewed each year.

Brandi Becquer
Assistant Account Manager
Pinnacle Insurance

By Les Christie, staff writer , On Wednesday February 3, 2010, 3:21 pm EST

As terrible as it is to lose your house to foreclosure, at least it’s a relief to put your biggest financial headache behind you, right?

Wrong.

Former homeowners may still be on the hook if there’s a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these “deficiency judgments” are ticking time bombs that can explode years after borrowers lose their homes.

It can even happen to people who got their bank to approve them selling their home for less than it is worth.

Vanessa Corey, for example, short sold her Fredericksburg, Va., home in April 2008. She and her husband built the house in 2004, but setbacks, both personal (divorce) and professional (housing bust), made it impossible for the real estate agent to keep her home. So she negotiated the short sale and thought that was the end of it.

“My understanding was that the deficiency was negotiated away,” she said. “Then, last November, I got a letter from a lawyer telling me I owed my lender $65,000. I had to declare bankruptcy. There was no way I could pay it.”

Many homeowners are now in the same boat. And not just those who took out bigger loans than they could afford or who did so called “liar loans” where they didn’t have to verify their income.

Because of falling home prices, borrowers who always paid their mortgage but who have run into unforeseen circumstances — like unemployment or a job transfer — can no longer sell their homes for what they owe. As a result, they are being forced to short sell or foreclose and are getting caught up in deficiency judgments.

“After the banks foreclose, it’s very common now to have large deficiencies with houses not worth the balances owed,” said Don Lampe, a North Carolina real estate attorney.

Lenders mostly declined comment. Although Corey’s lender, BB&T did indicate it was pursuing more deficiency judgments.

“They follow the rise and fall of foreclosures,” said the spokeswoman, who would not discuss Corey’s account.

Can they come after you?

Whether banks can and will pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there’s a second mortgage or other liens. But if borrowers ignore the possibility of deficiencies, it could haunt them.

“Once they have a judgment, they can pursue you anywhere,” said Richard Zaretsky, a board-certified real estate attorney in West Palm Beach, Fla. “They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail.”

In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms.

Some states, such as California, are “non-recourse” and don’t allow deficiency judgments. But, even there, if the original loan was refinanced, some or all of it may be subject to claims.

Deficiency judgments on short sales and deeds-in-lieu can happen in many more places. In these cases, extinguishing the debt is often a matter of negotiating with the bank.

But even when lenders are willing, many borrowers may not be aware that they have to ask for release. So, if you are pursuing a short sale, be sure your attorney asks the bank to release you from any further obligation.

“People shouldn’t have a false sense of security that a deficiency judgment may not be later sought,” Zaretsky said.

He expects many will be filed over the next few years, based on the fact that banks have sold many of these accounts to collection agencies and other third parties, at discount.

“The parties who bought those notes wouldn’t have paid money for them unless they had the intention of acting,” Zaretsky said.

Ticking time bomb

What can be scary is that the judgments don’t have to be obtained immediately. Lenders or collection agencies may wait until debtors have recovered financially before they swoop in. In Florida, the bank can wait up to five years to file. Once the court grants a judgment, the lender has 20 years there to collect, with interest.

It doesn’t have to be a large amount of debt for a lender or collection agency to come after borrowers. Richard Varno and his wife short sold their Nashville home back in 2004 after he lost his job.

It wasn’t until 2008, when the second lien holder asked him for $25,000, that he realized he still was liable.

“I told them, ‘Hey, you guys released the title,’” he said. “As far as I know, I’m off the hook.”

He wasn’t. Releasing title does not necessarily end the debt. It’s complicated because of variations in state law, but, generally, a mortgage has two parts: a pledge of collateral, represented by the home, and a promise to pay off the loan.

Lenders may release property liens in order to facilitate short sales without releasing borrowers from their obligations to pay under the promissory notes. The secured debt can convert to an unsecured one after the sale.

Zaretsky had one client who was so relieved to have arranged a short sale that he signed every paper his real estate agent shoved at him, even a confession that clearly stated he still owed the debt.

“He had no idea what he was doing,” said Zaretsky. “All the lender had to do was go to court to convert the confession into a deficiency judgment.”

Lenders are also very inconsistent. One of Zaretsky’s short-sale clients was ready, willing and able to pay, but the bank did not even ask; another lender always reserves the right to pursue the deficiency.

Strategic defaults

Sometimes lenders go after borrowers walking away from their homes if they have other assets, according to Florida real estate attorney Larry Tolchinsky.

“Banks are pulling credit reports to see if it’s a strategic default,” he said. “If you’re behind on all your other payments, you’re okay. But if you’re not, they’ll come after you.”

If borrowers have any doubts about their risks, they should seek legal advice. Or, at least, call non-profit organizations such as NeighborWorks for advice. According to Doug Robinson, a NeighborWorks spokesman, its counselors always try to negotiate away deficiencies when they facilitate short sales or deeds-in-lieu.

“We don’t favor any short-sale contracts that leave any deficiency that can be pursued,” he said.

Robinson himself knows what can happen. He paid off a deficiency after his own New Jersey house went through foreclosure 11 years ago.

Fabulous Gulf Front Condo. Each building has one unit per floor. This top floor unit has it all 4 large bedrooms, 3 baths, large open floor plan, full kitchen with breakfast bar, spacious living room with fireplace, dining area, North facing patio with views of the heated pool, large south facing balcony with incredible panoramic Gulf views, elevator, first floor storage room, several owner’s closets including a storage room across from the unit’s entry door, and much more. The Great Room and Master Bedroom boast breathtaking Gulf Views. This unit also features carpeted floors in all the bedrooms and living room and tiled flooring in all the baths, kitchen, and dining area. The first floor storage room has been converted into a heated and cooled bunk room to add a fifth bedroom or office(not included in square footage). This unit is also the only one in the complex that has roll down storm shutters for extra Hurricane protection. Don’t miss this incredible, rarely available unit. This is truly a gem of the Emerald Coast.

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Please pass on to every person. Be careful and secure.

 WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers by Susan Johnson

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States, and will gather information about every person living at each address including name, age, gender, race, and other relevant data.

The big question is – how do you tell the difference between a U.S. Census worker and a con artist?

The BBB offers the following advice:

** If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don’t know into your home.

** Census workers are currently only knocking on doors to verify address information.

Do not give your Social Security number, credit card, or banking information to anyone, even if they claim they need it for the U.S. Census.

REMEMBER, NO MATTER WHAT THEY ASK, YOU REALLY ONLY NEED TO TELL THEM HOW MANY PEOPLE LIVE AT YOUR ADDRESS.

While the Census Bureau might ask for basic financial information, such as a salary range,

YOU DON’T HAVE TO ANSWER ANYTHING AT ALL ABOUT YOUR FINANCIAL SITUATION.

The Census Bureau will not ask for Social Security, bank account, or credit card numbers, nor will employees solicit donations.

Any one asking for that information is NOT with the Census Bureau.

AND REMEMBER, THE CENSUS BUREAU HAS DECIDED NOT TO WORK WITH ACORN ON GATHERING THIS INFORMATION.

No Acorn worker should approach you saying he/she is with the Census Bureau.

Eventually, Census workers may contact you by telephone, mail, or in person at home.

However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.

Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.

PLEASE SHARE THIS INFO WITH FAMILY AND FRIENDS

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Taxpayers who sell their principal residence can pocket — tax-free — as much as $500,000 in profit if they file federal taxes jointly, or $250,000 if they file singly. The property must have been owned and used as their principal residence for any two of the prior five years. Homeowners can shelter the profits on the sale of a home as often as once every two years. If the two-year use and ownership tests are not met, but the home is sold because of special circumstances (i.e., health problem, job loss, etc.), the exclusion is prorated. Otherwise, gains above $500,000 or $250,000 are taxed at current capital gains rates.

NEW RULE #1: The Housing and Economic Recovery Act of 2008 changed the treatment of capital gains from the sale of a home that the owners sometimes used as a principal residence and sometimes used as a second home or rental property. Gains attributable to the period of second home or rental use on or after January 1, 2009 will be taxed at capital gains rates, while gains attributable to principal residence use may be excluded up to the $500,000 or $250,000 limits (providing ownership and use tests are met).

To compute the mixed-use gains tax, divide total days of property use as a second home or rental (“non-qualified” use) by total days the home was owned (from the original purchase date). Then multiply total gain by that ratio to calculate the taxable gain. For example, you sell a home after owning it four years (1,460 days) and using it as a rental property or second home (rather than principal residence) for three months (say, 91 days). Your ratio: 91/1460 = .062. If your total capital gain is $50,000, then your taxable gain is $3,100 ($50,000 x .062 = $3,100).

NEW RULE #2: For sales or exchanges after December 31,2007, surviving spouses now may exclude gains up to $500,000 from a principal residence jointly owned with the deceased spouse, providing the property is sold or exchanged within two years of the spouse’s death and standard ownership and use tests are met. (Previously, to claim up to $500,000, the surviving spouse had to sell or exchange the property within the tax year of the spouse’s death.)

HINT: Homeowners should continue to maintain records of selling and improvement expenses because some states still tax capital gains on home sales. In addition, those expenses can be used to determine your tax basis once you sell or rent the home.

Florida’s foreclosure rescue scams face new spotlight in 2010 rules

 By James Thorner <http://www.tampabay.com/writers/james-thorner> , Times Staff Writer

 Too many Florida foreclosure rescue companies have really been Florida lose-your-house-and-make-us-rich companies.

 It’s getting embarrassing for the Sunshine State. Three weeks ago, the Federal Trade Commission announced lawsuits against six foreclosure prevention operations deemed to be crooked.

Five of them — 83 percent —were in Florida. Most took large fees from desperate homeowners up front, and performed little or no rescue work in return.  That’s supposed to change starting Jan. 1 in the biggest overhaul to the Florida mortgage brokerage business in decades.  The goals are laudable: No more fly-by-night correspondence lenders. No more Twitchy Tim’s Homes R Us. No more ex-convicts renting out shop fronts to advertise their shady services.

These mud-sucking bottom feeders will continue to exist, but the state hopes to pin them in the spotlight of the new regulations.

What do the new lending laws mean for Average Joe Tampa Bay Homeowner? Here are some of the biggest changes:

• With a few exceptions, foreclosure rescue/loan modification shops will be the preserve of licensed mortgage brokers. Lawyers can continue to represent homeowners with banks as long as it’s not a primary business but a sideline of other legal work.

• The new rules reaffirm and strengthen the state’s ban on up-front fees for foreclosure rescue operations. Only when the loan modification is concluded can a mortgage broker collect a fee.  And the deal must adhere to a clear written contract the broker provides upfront.

• The state plans to purge criminals, the unqualified and the uneducated from the ranks of mortgage brokers. The new rules provide for federally approved criminal background checks, credit checks and state testing. You won’t get in the door without a high school diploma. Vaguely defined “moral turpitude” can get you disqualified.  Florida already had much of this in place, but the new rules are tougher.

• Previously unlicensed loan originators will need to get a license — or get out of town. During the housing gold rush in 2004-06, Florida lenders hired thousands of originators. Often the only requirements were a pulse and a pair of shoes. Originators get too much blame for the real estate crash — they were front line grunts without a grip on the purse strings — but they routinely flubbed their duty of sifting the credit-worthy from the deadbeat.

 The rules have been two years in the works. Attorney General Bill McCollum’s office has filed 17 lawsuits against mortgage fraud or foreclosure rescue scams. The Federal Trade Commission’s dramatically named “Operation Stolen Hope” released a partial list questionable Florida operators: Crowder Law Group, Crossland Credit Counseling Corp., Home Assure LLC, First Union Lending, Truman Foreclosure Assistance and Safe Harbour Foundation of Florida.

In the animal kingdom, the proverbial lion preys on the proverbial wounded gazelle. The fact that we even needed the new Jan. 1 rules proves what callous beasts some of us can be.

James Thorner can be reached at (813) 226-3313

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It may have been a fall month, but the Florida real estate market did anything but fall in October, according to stats released by the Florida Association of Realtors, that show the existing single-family home market rose 45 percent and the existing condo market 82 points, as compared to last year.

Locally, sales of existing single-family homes paced the State, gaining 44 percent, just a smidgen off at one point under Florida’s average, while far outpacing it with sales of existing condos exactly doubling at 100 percent.

“Many buyers wait until this time of year to purchase a condo,” explained ECAR president Anita Williams, referring to what is known as “the shoulder season,” a time period typically running September through December.

“The ’shoulder season,’ the time between when summer and snowbird tourists typically flock to visit the Emerald Coast, is often considered ‘the best time of year to purchase for a number of reasons,’” added ECAR president-elect Mary Anne Windes.

These include easier viewing of units that are not booked solid like they are in the summer months, and sellers who are typically more willing to negotiate on price because they have already received the bulk of their rental income for the year. Windes also noted that unit renovations are usually performed at this time of year and many buyers prefer to have them done to their own taste and satisfaction.

The Emerald Coast wasn’t the only area in Northwest Florida to report gains in the market. Panama City and Pensacola also showed increases in sales of existing housing, with condos gaining 88 and 14 percent, and single-family homes, 52 and 11 percent.

There has been some speculation that buyers racing to close transactions before the $8,000 tax credit’s original Nov. 30 deadline may have boosted sales of single-family homes. Now the government has extended this deadline, making first time buyers who purchase homes between Nov. 7, 2009 and April 30, 2010, eligible for the credit, provided they have not owned a home in the past three years.

The U.S. Congress also recently passed a repeat buyers’ tax credit allowing owners who have used the home being sold or vacated as a primary residence for at least five consecutive years of the past eight to be eligible for up to a $6,500 tax credit when they buy a new one.

“On an ironic note,” said Windes, commenting on the recent passage of the tax incentives, “the benefits of home ownership are so prevalent that in the past the National Association of Realtors said the only thing that could make it better is if the government gave away money to buyers when they purchased a home. And now they are.”

However, Windes also noted that the condo market is typically impervious to the sales-boosting effect of the tax-credits.

“Condominiums are typically purchased by investors or higher-income families to be used as a second home, so it’s unlikely that these purchases are attributable to the tax incentive,” said Windes, broker-owner of Real Estate Professionals of Destin.

Even though the market has been on a roll as of late, the pros also agree that it’s in consumers’ best interest to rely on a Realtor for all of their real estate transactions.

In addition to being upheld to a strict code of ethics and readily familiar with properties on the market, “Realtors stay educated to better serve the public,” said Williams, broker-owner of Destin’s The Realty Firm Inc.

This article was contributed to The Log by Emerald Coast Realtors.

Just wanted to share the following good news with you…

Frommer Travel Recognizes the Lifestyle and Natural Beauty of the Florida Panhandle beaches as a “top 12 destination” for 2010

Some people will have already heard of Frommer’s, but for those not in the know, Frommer’s is a guidebook series and one of the bestselling travel guides in America. It all began back in 1957 with the publication of Arthur Frommer’s book, Europe on $5 a Day. Since then, Frommer’s has expanded to include over 350 guidebooks across 14 series, as well as other media including the award winning Frommers.com website which covers over 3,500 destinations.

So, when Frommer’s announced on December 1^st, 2009 that the Florida Panhandle was ranked among its top 12 worldwide destinations for 2010, this was a tremendous recognition, and one that should guarantee a huge boost in tourism to our area in the coming months. Our fabulous area is no stranger to awards of course, but this particular list of fellow contenders is impressive, as we’re up there with Hawaii’s Big Island, Melbourne in Australia, and even Paris, France.  It’s no wonder – Panama City Beach and Florida’s Panhandle boasts picture-perfect beaches, world-class shopping, dining and entertainment, and is more accessible and affordable than ever. We offer a unique vacation destination in that Panama City and the Panhandle of Florida is home to beaches that rival any of the more exotic locales, yet the area is also bursting with family-friendly attractions, cost-effective accommodations, and a down-home attitude.

The “Florida Panhandle Beaches” is the only continental U.S. destination included in Frommer’s list of Top Destinations 2010!

Florida Panhandle Beaches, United States

Like the Rodney Dangerfield of the American Southeast, Florida’s panhandle never gets the respect it deserves. Dubbed the “Redneck Riviera” by dismissive northerners, northwest Florida, in fact, contains some of the most diverse recreation choices along Florida’s drastically under-appreciated Gulf coast, and some of the best options for visitors seeking an affordable family vacation.

From Destin to the west, where you can hire a fishing or sailing charter, to the smattering of National Seashores as you move east, there’s really something for everyone. Seaside’s planned community is so “perfect” it was the setting for the The Truman Show, yet you’ll also find old-school Florida towns with funky shops, tiny hotels, pristine beaches, and the perfect cottage to rent.

“Stunning beaches, nature trails … great restaurants, and a cozy, yet quirky, sense of community.” – Lesley Abravanel, author Frommer’s Florida

Read the full article here.

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Grand Harbor #830

FURNISHED HARBOR FRONT UNIT WITH BOAT SLIP AVAILABLE FOR LONG TERM LEASE… Elegant, pristine and charming are just a few adjectives to describe this 8th floor unit! Furnished by Lovelace Interiors this condo represents spaciousness and comfort with its 2,212 square feet of living space. Richly appointed with granite in the kitchen,spacious breakfast bar for entertaining and tile throughout. Spectacular views through the main living areas floor to ceiling windows, crown molding, raised white paneled doors and closets and abundance of recessed lighting to give that special ambiance. Great surround sound system. The split floor plan allows privacy for your guests and each guest has a private bath. The master bedroom and second bedroom both face the Harbor -one of the most beautiful Harbor’s in the United States! Exit to your enormous balcony and entertain by cooking on the outdoor grill.  Please Contact the owner, C.E. Frazier for more information, (601) 946-5601.

Click here to view additional photos and info

Click here for additional photos and info