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Foreclosures in the US Mostly Down to Pre-Housing Crisis Figures

According to RealtyTrac, foreclosures in the US are now at their lowest levels ever since the great housing mortgage meltdown. However, in US states that practice judicial foreclosure proceedings, the numbers seem to have increased.

In just the third quarter of this year there were about 531,576 properties that filed for foreclosure. This number is down by 11% compared from last year’s numbers. Just this September there was a 7% drop in filings as compared to Augusts’ numbers. This data is down 16% when compared from the same month in the previous year.

Housing Market Rebounding

The decline in foreclosure numbers all across the country is a sure sign that the housing recovery is underway. However, the issue is that not all parts of the country are moving at the same speed. There were some US states that reported an increase in foreclosure numbers due to the fact of the recent robosigning scandal that interrupted the foreclosure process in those states.

Resolution of Robosigning Shows more Accurate Figures

According to RealtyTrac, they have been eagerly awaiting a more accurate return of foreclosure numbers ever since the latter part of 2010. This is due to the fact that the robosigning scandal forced some US states to halt further foreclosure proceedings to give way to an internal investigation of the matter. Robosigning is the fraudulent practice of some mortgage lending companies as well as banks that were fast tracking foreclosures very quickly by forging signatures and falsifying information.

This created a backlog of foreclosures and even a decline in numbers creating a so-called artificial signs of recovery. Industry watchers have been intently watching for the return of real foreclosure figures once the case was settled.

In some US states, particularly those that practice judicial foreclosure proceedings, the numbers have increased tremendously. This is due to the fact that the processes here take longer than usual because the courts are involved and there must be hearings.

States with Best and Worst Declines

US states where foreclosure declines were most prominent include: Georgia, California, Arizona, Michigan, and Texas. Of the 24 US states that practice non-judicial proceedings, there were only four that showed an increase. This was partly due to recent changes in foreclosure laws that required a bigger requirement for banks to foreclosure a property.

On the other hand, New Jersey, which is a judicial foreclosure state, saw its foreclosure numbers increase by as much as four times. Meanwhile, Florida, one of the hardest hit by the sub-prime mess, is at number one nationwide with the most properties that defaulted. Its numbers are twice the national median for foreclosures. The state saw a 24% increase on a year-by-year basis. September saw those numbers worsen as it reported for the eleventh consecutive month high foreclosure numbers.

RealtyTrac further estimated that the average foreclosed property price rose by as much as 12% when compared to the previous month. The average price was pegged at $194,681. Moreover, listings for new properties also were down by 40% when compared to the previous month.

Looking Ahead

It is now being projected that the housing market is on its way to a more realistic recovery. The small gains in the industry are now being complemented by more homebuilder activity, increased demand, and low foreclosed property inventories.

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Foreclosures in The US – Seeing Signs of Recovery

A couple of reports recently released show that foreclosures in the US are dropping, signaling signs that a housing recovery is underway. Millions of properties went to the foreclosure chopping block in the past several years as a direct result of sub-prime loan defaults brought forth by the US housing market collapse. It now seems that the worst of the crisis is over.

California Recovering

California, one of the hardest hit states during the housing market crisis, has indeed seen better days. It looks like those days are slowly coming back as a report from DataQuick Information Systems showed that foreclosure rates in the state were at their lowest since 2007. That number is a 31% reduction for the state and about a 22% reduction in San Bernardino County, one of the worst affected by the crisis.

Reason for the Decline in Foreclosure Numbers

Experts postulate that the decline in foreclosure numbers were largely due to the attitude of banks that are more inclined to favor cooperative short sales. They would go out of their way to make the foreclosed property available for viewing to prospective buyers. In some scenarios, the banks would even give reimbursements to a seller when they are able to close a deal.

New Home Construction Up

Another sign that foreclosures are going out of fashion is the number of new construction. Analysts say that based on their collected data, new home construction is steadily rising since February of this year and is projected to continue that upward climb. They attribute this positive development on the very low mortgage rates offered by the government in order to spur new home investment, home prices becoming less volatile, and a rising shortage of foreclosed properties.

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Find Out about Foreclosures in the US

Real Estate in Las Vegas Nevada -- Exciting Developments

Real estate in Las Vegas Nevada has never seen such robust activity ever since the pre-recession period. Just this past month alone, new property sales and home building permits are at a record high for the state that has seen the worst of the housing crisis.

In Las Vegas valley, there were 591 new property sales based on industry insider’s data. That number is up 46 percent from the previous year. The fly in the ointment is that average home values fell by three percent or $199,743 as compared to $206,480 from just the year before.

Encouraging Numbers

In just the past month, there were about 440 new home permits that were filed. This figure is up by a whopping 75 percent as compared to the same month in the last year. However, the downside is that there might be fewer new permits by next year because there aren’t enough completed or partially completed properties to keep up with the demand.

Mixed Numbers in the Pre-Owned Market

In the pre-owned property market in Las Vegas Nevada, numbers seem to be a bit mixed. There were about 3,544 pre-owned home sales in the month, which is down by about 17 percent when compared to the previous year. However, the good news is that average home prices have gone up by 20 percent to about $129,500

Foreclosure Numbers Down

In the area of home foreclosure, Las Vegas Nevada numbers have been reported to be down from April to June as compared to the first quarter of this year. However, Nevada is still considered to be second just behind the state of Georgia in residential property sales that ended up on the foreclosure chopping block. This was based on a report by industry tracker RealtyTrac.

According to their numbers, there were about 9,657 foreclosed properties that were sold in the state during the 2^nd quarter of 2012. This number is considered down when compared to the 2^nd quarter of last year when the numbers were at a dismal 32.5%

Among the metropolitan areas, Las Vegas is tied for the 5^th biggest in the country with about 45 percent of all residential property sales involve foreclosure.

A lot of real estate observers are looking for the new Nevada law that is scheduled to take effect this month. The new law makes it harder for banks to begin foreclosure proceedings on real estate property owners that have been late with their mortgage payments. This is probably the reason that there are fewer foreclosed properties for sale as struggling homeowners have a new lease on life to save their investment.

On a national level, there has also been a recorded decline in foreclosure numbers. This signals a good sign for the housing market that the worst of the housing crisis is finally over. While it is true that the numbers are not the same throughout the country, the results are still encouraging enough to say that the market is finally headed to a sustainable recovery.

For more details on real estate in Las Vegas Nevada check out: http://www.stevemartel.com

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Real Estate in Las Vegas Nevada suffering from Borrower Fatigue

Realestate in Las Vegas Nevada seems to be suffering from what is called “borrower fatigue.” Many homeowners are basically disregarding legitimate bank offers in order to reduce their mortgage payments. According to real estate attorneys in the state, many property owners have been so accustomed to getting rejected by the banks that they sometimes neglect to read a valid offer when it comes their way.

To Believe or Not to Believe

CB, a property owner from Nevada, did not open her mail for a number of years because it usually meant bad news from the bank. For four years her family tried to get the bank to agree to some kind of loan restructuring in order for her to be able to keep her home. Finally, when the bank agreed to reduce their monthly mortgage obligations by almost half, they still could not believe it. According to CB it gets very confusing at times that it takes a while to internalize her good fortune.

Some of the offers coming from the banks were so extreme that some Nevada homeowners thought that it was some kind of prank made at their expense. A quick call to the lending institution put all their fears to rest.

Scams

While many of the offers from banks are genuine, there are still others out there that prey on desperate property owners trying to find ways to save their investment. Some have gone so far as to copy the official stationary of the well-known banks and then offer price reductions or other perks if the homeowner forwarded some form of money.

Read the Mail

The best advice from the experts is to read your mail carefully. Banks right now have been given more flexibility to negotiate a reduction of the principal as well as offer a restructuring or even a short sale if need be.

For more information on what is happening on Real Estate in Las Vegas Nevada check out: http://www.stevemartel.com

First Time Buyers Face Challenges on Real Estate Investing Florida

Realestate investing Florida seems to be quite a challenge to many first time home buyers in the state. This is because there is an influx of sellers that are coming in to South Florida in order to take advantage of current housing prices, thereby out bidding first-time home property buyers.

The main issues that are going against these newcomers seem to be the lending guidelines that have become more strict since the housing market meltdown. Moreover, savvy investors that offer straight up cash money to purchase property are also another factor that buyers have to deal with.

A Third of Home Buyers

Based on data released by the National Association of Realtors, first time home buyers comprise about a third of the total number of real estate investors nationwide. They make up a significant economic force because not only do their purchases stimulate the housing market, they also stimulate other industries associated with it such as appliances, furniture, and other accouterments. This creates a ripple effect to other US businesses and is not simply advantageous or limited to the housing sector per se.

Even with so many advantages at their disposal, the biggest drawback that home buyers possess is the fact that most of their efforts are only possible with the assistance of financial lenders. If they have to choose between someone that can pay the full price upfront or with a financing offer, sellers most often choose the former as they are able to get instant gratification and no longer have to deal with annoying issues that can come with some lenders.

Where the Offers are coming

Most investors that prefer to pay cash up front are international buyers and corporate entities that view American home properties as a form of investment venture which they can profit from once the real estate cycle begins to come around. They are easier to work with as they have lesser demands when it comes to pre-finalization repairs as compared to FHA lenders. They prefer to purchase and repair later.

For more information on how you can take advantage of Real Estate Investing Florida click here: http://www.stevemartel.com

US Real Estate Investment – Home Builders are Back

US real estate investment has indeed seen better days. Just several years back, the US housing market nearly went under as millions of sub prime loans began to default. Now it seems that US real estate is ready to put all those bad memories behind them.

On a clear day in the foothills of Orange County’s Santa Ana Mountains, a home builder surveys the undeveloped 387 acre property that is just fifty miles south of Los Angeles. This region is going to be developed by one of the country’ biggest luxury home builders. They plan to put up 1780 new homes in a joint venture with other home builders.

Burning Bush

It should not take a burning bush to signify that this is a sign that home builders have gained their footing and are going back to the US real estate market to make new investments. Experts believe that 2012 is clearly proving to be the year to see a sustained recovery.

The Naked Truth

It is no secret that a lot of private real estate builders went under during the height of the housing market disaster. Those that survived the massacre were able to do so by cutting back on new home construction, intense negotiating for the best price from supplies, and doing some renegotiating with land contracts. They were able to use whatever cash they had by purchasing cheap properties and taking part in government projects.

US home builders did so many cut backs in order to stay afloat that there were not enough homes available in order to keep up with the growth in the population. Housing inventory was pretty much in the red in such hard hit states as California, Florida, and Nevada. These places had many home property owners that owe more money to the bank than what their properties were worth and thus did not wanted to sell.

Demand Picking Up

If things keep going as they are, we can clearly see a sustained housing recovery in the coming years. As of now, there is evidence that there is more demand for new properties as the rest of the surplus inventory from foreclosures has begun to dry up. Moreover, there is also increasing demand from overseas international buyers who are looking to take advantage of the current housing prices.

If you want to know more about US real estate investment check out: http://www.stevemartel.com

Florida Real Estate Condos – Market Update

It seems that Florida real estate condos are making a comeback this year. Ever since the housing crisis disaster, real estate in many parts of the state is coming to life again. Fort Lauderdale. Boca Raton, and even pricey South Beach are reporting healthy sales.

The Cycle

The real estate market is a cycle. There are periods of growth accompanied by periods of decline. It is a never-ending circle of events influenced by the economy, immigration, and government policy among others. Back in 2006 when the real estate market reached its peak levels, the prices of Florida real estate condos recorded their best value in 30 years. Demand was high, fueled mostly by sub-prime borrowing. Many people were actually waiting for their chance to purchase a condo of their own. In some areas there was a waiting list. When 2010 came around, most, if not all of those events, were a fable. Most of the people that were lured by the promise of sub-prime loans lost their properties when foreclosure after foreclosure hit the state.

Empty Units

All of a sudden there was an abundance of empty condo units, as their value dwindled with each passing year. By 2011, the market value was already half of what they were during their peak in 2006. Many of the new units and buildings that were recently finished after a year when the market collapsed stood unoccupied. Lack of buyers led to an oversupply of units, which led to more price cuts.

Market Comeback

As of today, many of the prime waterfront properties and condominium units have been sold to foreign buyers, mostly Canadians. Signs of the recovery were first seen in the latter part of 2010, and picked up momentum in 2011 and finally 2012. For people that are keen on looking to get in, there are still a number of units left – mostly from foreclosures that have just gone through. Many experts believe that the state is in the very early stages of recovery. It is estimated that about 49,000 condo units are being constructed to keep up with the increasing demand. The inventory of condos priced under a million dollars is now down to a few units.

If you want to know how you can cash in on the Florida real estate condos visit: http://www.stevemartel.com/workshop 

Florida Real Estate for Canadians – The Bargain Hunting is Still On

For Florida real estatefor Canadians, the search for the perfect property is still out there. There are still a number of properties up for grabs in the Sunshine state. Many of these properties are being sold off as short sales as the tax deadline expires on Dec 31^st this year.

Best Deals are Still Out There

J.W., a Canadian man got the best bargain of his life when he was able to acquire a three-bedroom property just below $120,000. It is a 1700 square foot condo in Fort Myers. What is great about this location is that it is a mere fifteen minutes from the best beaches in the state and a very pleasurable drive from the best that Miami can offer. However, J.W. and his family have no immediate plans of moving into the property. They are part of a growing number of foreign investors that are purchasing large swaths of property in Florida with the intent of renting them out to Americans that could not yet afford to purchase a home of their own. Canadians represent a growing number of foreign real estate investors who have realized that they are in the best position now to purchase a home.

Great Investment Opportunity

The good performance of the Canadian dollar against the US greenback coupled with depressed housing prices and a big demand for renters is fueling the drive for snowbirds to check out the investment options south of the border. It is worthy to note that this is not another get rich quick plan. In fact, many Canadians believe that they are in for the long haul. There are signs that the US real estate market is beginning to recover. However, it may still take a long time before they get back to their pre-crisis levels. At the moment, the bargain hunting is still on for new investors to get in while there are still properties waiting to be had.

For more info on how you can invest in US real estate visit: http://www.stevemartel.com/workshop

Proposed New Visa Category for Canadians Buying US Real Estate

Canadiansbuying US real estate must know that there is a bill filed on the US senate floor. This bill, introduced by Sen. Charles Schumer a Democrat from NY and Mike Lee a Republican from Utah, is called the VISIT-USA Act. If made into law, it will establish a new visa category for foreign purchasers of US real estate called the “homeowner visa.” Foreigners need to make a minimum purchase of 500,000 US dollars in order to qualify.

Beneficial to Canadians

At present, Canadians can enter the United States without any visa requirements but only for a maximum of one hundred and eighty days. If this Bill becomes a law, it would establish a Canadian “retiree visa” that allows Canadians aged 50 and above the privilege of staying in the US and live there for two hundred and forty days each year and can be renewed every three years. The Act will also affect wealthy Chinese investors who want to purchase US real estate giving them more room to be able to do this minus the present visa restrictions.

More Opportunities for Canadians

This means that Canadians wishing to invest in US real estate will have more reasons to do so given the larger time allotment to stay in the country. This could not have come at a better time with the US needing a fresh influx of foreign investment in order to supplement the sluggish economy still reeling from the recent financial and real estate crisis.

The Rules Involved

Canadians need to know that they need to live in the home for at least 180 days a year in order to retain the visa. They also need to comply with disclosure rules regarding their foreign income as well as accounts. Finally, they also must reveal any interest they have in any foreign trusts, corporations, mutual funds, as well as any pension and retirement arrangements.

For more information on how you can invest in US Real Estate check out: http://www.stevemartel.com/workshop 

Opportunities for Fort Lauderdale Real Estate

Fort Lauderdale realestate contains some of the best properties you can find in the state of Florida. Before the housing bust, this market’s values were through the roof. It is no wonder that there are many opportunities for foreigners like Canadians looking to invest in US real estate to snap up a prime property here.

Purchasing is Cheaper than Renting

Based on a recent report, purchasing a home located on Fort Lauderdale real estate is more affordable than renting one. This is based on an analysis of average home prices compared with that of rental prices in Miami. While it is still very much widely expected that home prices in this part of the state will continue to fall until the end of 2012, discovering the perfect real estate property while supply is still high and mortgage rates are at an all time low should be the priority of any real estate investor looking for a place here. It makes more practical sense to purchase real estate property because of the present economic conditions.

Opportunities for Investors

It does not matter if it is your first time purchasing US real estate in Florida; the prices right now on Fort Lauderdale properties are at their lowest values. As a matter of fact, all throughout southern Florida this has been the prevailing trend. There are a number of variables that will affect what the average price of property will be in this area of Florida come next year. It is a definite fact that short sales are dominating many real estate transactions as homeowners hurry up to beat the deadline on the Debt Relief Act set to expire at the end of this year. Likewise, it is also widely accepted that more foreclosed properties will appear, pumping up inventory for existing homes for sale. Purchasing properties that are or near their lowest possible levels is the best way to see your investment grow over time as there is no place left to go but up.

For more on how you can successfully invest in Fort Lauderdale real estate visit: http://www.stevemartel.com/workshop

What’s Happening in Las Vegas Real Estate?

LasVegas real estate was one of the hardest hit by the recent housing market crunch. Literally thousands of homes ended up on the foreclosure chopping block as many Vegas residents found themselves reeling from the effects of the worst housing market disasters since the Great Depression. For Canadians looking to invest in the US real estate market, there is no shortage of properties in the state.

Signs of Improvement

Recently, there have been signs that the real estate market in Las Vegas is showing signs of recovery. Housing prices for properties in southern Nevada have improved for the sixth straight month in July. However, total sales are still below what they were a year ago. This is from data released by the Vegas Association of Realtors.

The Numbers Don’t Lie

The average price of a condominium unit and townhouses in July of this year is $66,500. Compared to the same time a year ago, it is up by 12.7% but just down by 3.6% in June. There are a lot of opportunities for foreign buyers to snap up amazing properties in this entertainment and vacation hub.

The total amount of home sales including condo units and townhouses was 3,572, still lower compared to June, which is pegged at 3,945 and 4,037 when compared to June of 2011. At least 16,944 single unit family properties were listed for sale in July. This data represents a one-tenth of a percent bump compared to June but is still below average compared to the same time a year ago. There are currently 3,758 condominium units and town homes for sale. Those numbers are up by 1.2% but are still low compared to last year’s values.

More Short Sales

It is reported that banks, which now own the vast majority of existing properties, are limiting the number they are putting on the market in order to help drive the current market values up. There are also more people doing short sales in order to get their properties off the market quickly. This is because the Mortgage Forgiveness Debt Relief Act will expire by year’s end. Therefore, any money that a bank considers to write off when allowing a short sale may become taxable income and will put more strain on the finances of the sellers.

For more info on how you can take part in investing in real estate visit: http://www.stevemartel.com/workshop

US Foreclosures – A Step to Invigorate the Property Market

Initial phases of US foreclosures have increased by six percent in the second quarter when compared to statistics from the previous year. Ever since the housing bust of 2006, the bank repossessed millions of homes because property owners were no longer able to afford their mortgage payments. This is the product of the whole sub-prime mess when people with little or no ability to maintain a mortgage were immediately granted home loans.

Boon or Bane for the Market

It depends on what your views are regarding the entire foreclosure process. Of course, during the preliminary phase, the sight of foreclosed signs in US neighborhoods signified that the economy was in a state of depression. It did not help very much that when compared with the Great Depression of 1929, more people today were in worse conditions than they were back then. On the other hand, clearing the back log of available properties is helpful for the housing market on the long term because it can act as a catalyst to speed up the recovery of the US real estate market.

The first phase of the foreclosure process increased by 6% compared from last year. This is the first time since 2009 that an increase of this nature was noted. This can be explained by the fact that most banks during that period found alternative means to dispose of the properties before the final phase of home seizures commenced. These methods included partnering up with the affected homeowner for a short sale wherein properties were sold off for less than what was left on their mortgage.

Current Market Conditions

Based on available data, the US real estate market is now able to withstand some of the pressures that come from weak economic indicators. The only factor that has been restraining the market rebound is the aptly named shadow inventory of properties that have mortgages which are 90 days overdue. While foreclosures that stopped in 2010 due to abuse by banks in the robosigning scandal of falsified paperwork, the settlement amounting to $25 billion is helping provide a boost for the market to move in the right direction.

For more info on how you can profit from investing in the US real estate market 

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What Florida Real Estate for Canadians Need to Know about Earnest Money Deposits

For Florida real estate for Canadians, having the correct knowledge about the laws and guidelines that govern earnest money deposits in Florida is very essential in their real estate investment ventures. If you are purchasing real estate property, it is pretty standard that you need to put down what is called an “earnest money” deposit. This is basically the amount of money that the buyer puts up in order to show genuine interest on the property while still awaiting the final closing details of the purchase agreement. This money is kept until the deal is finalized and is included in the final price as well as any closing costs. However, if the deal does not push through, the money is not released until both the seller as well as the buyer agrees. It is only important for Canadians to know what their rights are under Florida law when it comes to this aspect of the real estate transaction.

Where is the Earnest Money Deposited?

For Canadians purchasing US real estate, it is important to note that the sales contract will determine who actually will hold the earnest money. If we go by industry standards, it is usually the real estate agent of the property seller who will be entrusted to hold on to the earnest money. He or she will put the money in escrow or a trust until such time that the seller and buyer come to terms with the final details of the transaction. An uninterested party to the transaction, usually a title firm, manages this escrow or trust. However, the escrow holder possesses negotiation rights between the involved parties. Under the Florida Administrative Code, a broker is given permission to put escrow funds in an account that earns interest, but only with the expressed written authorization of the people involved in the sale. Real estate brokers are mandated by law to transfer the money quickly upon receipt of deposit from a possible buyer. The broker must deposit these funds into escrow no later than three business days as mandated by the code.

What Happens if there are Conflicts?

If, for some reason, the real estate deal does not push through as mentioned above, both the buyer and seller must give their consent for the money to be released. As a rule, the prospective buyer is the one entitled to refund the amount. However, the seller has the right to keep the funds if the prospective buyer did not comply with the time allotted for the contract terms. If there is a dispute, both seller and buyer may be entitled to the funds. The responsibility falls to the title company to resolve the issue on who should receive the money. Based on Florida law, a seller can proceed to offer the property to other prospective buyers and finish the sale even if there is still an escrow that has not been resolved.

The Florida Statutes

According to Florida Statute 475.25, the broker is instructed to return the escrow money at the agreed upon time or as mandated by law. However, if the broker in good faith suspects that the person receiving it is no longer entitled to the money, he can inform the Florida Real Estate Commission and can request for an order to determine who owns the funds in escrow or seek legal judgment from a Florida court. If it is for arbitration with the authorization of all involved, he can file for a mediation process that needs to be completed within ninety days.

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Florida Real Estate Condos – Market Update

For Canadians interested in investing their hard earned money on Florida realestate condos, there are a few things that they should know about when it comes to closing costs in the state of Florida. The standard closing fees when purchasing a condominium unit include attorney’s fee, commission of the broker, survey, inspection, appraisal, property taxes, and condominium unit association dues. If there are liens or a mortgage on the unit, the seller is also obligated to pay these as well.

Basic Setup of a Florida Condominium Unit

When compared to a single unit family property, condo unit owners do not own the interior of their properties, rather the property is owned as a whole by the condo community residents. These areas of communal ownership includes the land area, amenities such as swimming pools, lobbies, meeting rooms, exercise facilities, as well as the plumbing and electrical wiring as well. Based on the Florida Condominium Act, condominium unit owners need to elect a board of directors whose primary function is to manage the common property. All unit owners must strictly adhere to the rules and regulations set forth by their elected board representatives.

On the Part of the Buyer

Canadians that want to purchase Florida real estate condos need to understand that they have an obligation to pay the prorated share of the taxes of the property as well as all required condominium association dues. It is worthy to note that these property taxes must be paid each November of every year. The seller’s, as well as the buyer’s amount of taxes, depend on what month the closing commences. It is also noteworthy to say that buyers also are obligated to pay for the inspection.

On the Part of the Seller

For the seller, they must first pay off any outstanding mortgage dues before they can sell the property on closing. This money usually comes from the buyer of the property. Before the date of closing, the escrow officer would need to contact the mortgage company that handles the seller’s account, bank, or lender in order to corroborate the remaining amount that needs to be paid off. During the closing period, the seller pays off the rest of the loan before he receives the remaining payment for the property. The seller is also obligated to pay the prorated share of the taxes for the property, condo association dues, real estate transfer taxes, title insurance, commission of the broker, and the deed documentary stamps.

Closing Costs that can be negotiated

It is important for Canadians purchasing Florida real estate condos to know that they are not limited to the sale price of the property as the only parameter for negotiation; they can also bargain for the amount of closing costs. For instance, the seller may opt to pay all of the closing fees provided the buyer pays the full asking price of the property. If a buyer has issues about the facilities within the condo unit which are not part of the common property, the seller could offer to shoulder the inspection fees. While there seems to be a lot of leverage when it comes to who pays the closing costs, it should be emphasized that at the time of closing, each party must have intimate knowledge already on who pays for what aspect of the closing fees. All agreements, contracts, and terms must be properly documented and reviewed by all parties and their respective attorneys before closing is deemed final.

If you want to know more about purchasing Florida real estate condos visit: http://www.stevemartel.com/workshop

Why are there Canadians Buying US Real Estate?

Canadians buying US real estate look at properties not as vacation property, but rather as an investment opportunity. A Canadian man from Montreal, J. Riley, purchased a property in Florida even before he was able to visit the state. The property was a fixer upper. A two bedroom, two bathroom condominium unit located in a Florida suburb, the unit cost $175,000 during the height of the real estate bubble. However, due to the bottoming of real estate prices in recent years, he was able to buy it for only $75,000. All that mattered to him was that the price was right and he just dove in.

Not the Only One

 

J. Riley isn’t the only Canadian man looking to invest their hard earned Canadian dollars south of the border. Based on a recent survey, one out of five Canadians is interested in buying US real estate for personal or investment purposes. US property figures have fallen to about a third of their value since the bubble burst in 2006. In some hard hit foreclosure states like Arizona, Nevada, and Florida, many properties are for sale at rock bottom figures.

Best Time to Buy Property – NOW

Economic data from the United States suggest that now is the perfect time to grab the opportunity to buy US real estate. This is due to the fact that the price to rent ratio vs. the price to own has gone back to its pre-housing bubble price average. Likewise, the mortgage rates in Canada as well as the United States are at their all-time lows. Owning a piece of US real estate property is now more affordable than ever. Once you combine this with a stable Canadian currency, you now have the perfect invest opportunity storm to reap the benefits of real estate.

Price is not the Only Factor

When considering purchasing properties in the US, a savvy real estate investor must not rely on mere price alone as the only determining factor for buying. US real estate properties in sunny Florida are still on the market for a fraction of their values before the bottom dropped out. Just about anyone can find a condo unit at fire sale price values. However, affordable does not always equate to livable. Canadians must look for themselves if the foreclosed property is in a good neighborhood, need only a few repairs, and have access to amenities. This is essential because it will determine the property value once it is sent back to the market.

Work with an Experienced Real Estate Agent

Don’t get caught flat-footed in the complex world of real estate without someone guiding you. Obtain the services of an experienced real estate agent; someone that has years of experience and a level of success known in the real estate industry to help you find the property of your dreams. A realtor can act as your property inspector in order to inform you about the features of different units as well as the pros and cons involved in them.

A realtor can negotiate the price for you. They will also handle all the paperwork necessary for your purchase of the property. They have excellent knowledge on guidelines and other rules governing the purchase of real estate in the state you are interested in.

If you are interested to know more about how you too can invest in US real estate visit http://www.stevemartel.com for more details.

Information on Florida Real Estate Condos

So you bought a condominium unit in Florida, now what? For foreign investors, there are certain regulations that need to be met once you add Florida real estate condos to the list of assets you currently own. The state of Florida is one of the most popular US states for snowbirds that want to bask in the great weather and beautiful beaches. It is also the prime US state for many retiring baby boomers as there is a healthy and active senior citizen community in the region.

Owner Obligations

As a condominium unit owner, one of your obligations is to pay all of the necessary fees and assessments as stipulated by your Florida homeowner’s association. You must keep in mind that Florida real estate condos are within statute 718 of the state law. The most essential aspects are the powers and responsibilities given to the association and your responsibility as a condo owner to adhere to the guidelines.

Your rights

Whether it is Fort Lauderdale real estate condos or South Beach, the condominium unit association should be incorporated as a non-profit or for profit organization. One of your rights is to become a shareholder of the said association as you have evident property ownership. Likewise, the board and its directors also have a financial accountability to all of the unit owners. The condo unit association also must come up with a proposed budget annually. The items that need to be included in the budget should be the operational funds as well as expenses along with cash reserves. Along with this, the condo association needs to provide you with financial statements at the end of the year or within 90 days upon request

Association Authority

In Florida real estate, condo unit associations have inherent powers that they exercise in order to manage and maintain the upkeep of the entire building. They can enter into contracts on behalf of the condo unit owners or file lawsuits. One example is that if a plumbing company hired by the association to do repair work for the building does not fulfill its obligations, they can sue them in court for damages on behalf of the entire condo unit owners.

For Canadians buying US real estate, it is important to note that association members have the right to come in any unit only to do repair work or prevent further damage that can happen to common areas such as roofs, passageways and outer walls. They also can lease or purchase units in the property.

It is important to know the rules and regulations of your condo unit homeowner’s association so as not to get into some trouble with them. Issues that may arise are remodeling the unit that has components not allowed by the association. There are horror stories of unit owners losing their property after a legal battle with a condo unit association that did not bid well on their side.

Beware of some condo unit associations that may charge you with additional condo unit fees for using the available amenities. It is wise to get legal counsel first before avoiding payment if you feel that the association is imposing too high a cost.

For more information on Florida real estate condos visit the link below.

US Foreclosures – Product of the Housing Market Crash

When the US housing Market crashed in 2007, record numbers of US real estate properties defaulted on their mortgage payments resulting in the initiation of US foreclosures. This left millions of Americans without homes as banks struggled to get liquidity back and the US government stepping in to prevent a catastrophic collapse of the US financial system.

Foreclosure Statistics

Based on available data, there were almost three million properties that received foreclosure notices in 2010 alone. These numbers represent a two percent increase from the previous year and would have been much higher if the lending institutions did not receive enough public outcry due to questionable real estate foreclosure practices such as the robosigning scandal that brought about more government oversight on how these proceedings are dealt with.

The Process of Foreclosure

When a homeowner is unable to pay monthly mortgage obligations to the bank, they receive a notice of default. Every US state has their own regulations about how long they have to pay before the bank seizes the property, but it is usually up to ninety days. If the property owner still cannot make their payment, a Notice of Trustee sale is then sent where a court date is docketed for public bidding of the foreclosed property.

Effect on Home Values

The housing market crash brought about a significant decline on home values everywhere from Las Vegas real estate all the way to Fort Lauderdale real estate. Many people saw their long-term investment properties fail. Bloomberg reported a decline of about 33% in home prices from the peak of the market in 2006.

Foreclosure Forecast

Based on analysis done by Bloomberg, it is expected that six million US real estate properties would face foreclosure proceedings by 2013. The reason for this is that they are anticipating about five million bad loans that have yet to enter the foreclosure phase. The only way to stop this catastrophe is for property owners to find some avenue to restructure their mortgage and produce timely payments, or sell them to potential investors but at a fraction of their value.

Areas Hardest Hit

Based on available data collected from 2006 to 2010, the state of Nevada had the highest number of homeowners that have succumbed to foreclosure proceedings. The statistics are pretty grim with one in every eleven filing as of 2010. Nevada is followed by the states of Arizona, Florida, and California.

What This Means for Canadians Buying US Real Estate

For Canadians buying US real estate, the present economic mood in the country is providing lucrative opportunities for investment. The weak dollar combined with a strong Canadian currency along with fire sale prices in many prime US states, means many Canadians can flock south of the border to easily snap up properties that were worth millions of dollars a few years ago but are now at a more competitive price range.

For Canadians looking to take advantage of this unique opportunity in the US, it is recommended that they work closely with an experienced real estate agent in the area they are interested in. It is worthy to note that Canadians looking for US financing could be in for a difficult time because of regulations. It may be easier to get financing in Canada instead.

To know more about US Foreclosures and how you can invest in these properties click on the link below.

Florida real estate for Canadians – An Investment Goldmine

Florida real estate for Canadians as an investment opportunity is one of the most lucrative real estate opportunities in the United States. Florida was the poster state of the bubble years of US real estate. It epitomized what valued property was and it followed the national trend with growth that exceeded that with inflation. From 2000 to 2006, the median price of US real estate property in the state was between $105,000 and $248,000. All that changed a year later when the US housing market collapsed.


This is the prime reason why it is so lucrative for Canadians to invest in prime properties here.  The record number of foreclosures has brought an oversupply of property that exceeded the demand, plunging property values deeper.  You combine this with the weak dollar and a stable Canadian currency, and you have in your hands a golden opportunity to invest in some of the most beautiful pieces of real estate in the country.


Where in Florida to Invest?


Based on data from the Florida board of realtors, the areas hardest hit when the housing bubble burst were locations along the Gulf and Atlantic coasts. Interestingly, these cities also had the highest level of appreciative value during the height of the housing market.  However, areas that are located much more inland did not suffer that much price decline as those mentioned above.


There are also lucrative opportunities at active adult communities.  Because the Housing and Urban Development regulates these communities, it limits the number of people below 55 years of age to live in them.  Sometimes surviving family members want to dissolve the estate and are willing to sell them at really good prices, usually below market value.  These properties can then be used to rent out to other retirees until you can get a return on your investment.


How to Invest?


For Canadians interested in purchasing real estate in Florida, they must first determine what budget they have for the property they intend to purchase.  This is actually done by knowing the debt-to-income ratio.  An ideal number would be 28:36 where 28% is the present mortgage and the rest would be revolving loans or other installment items.  This would at least give a realistic picture of how much they can afford to put into the property, as real estate investment is usually a mid to long-term venture.


It is also wise to get the services of a reputable real estate agent that knows the area and the available listings.  What Florida real estate for Canadians would need to have done is to get their broker to get MLS, or Multiple Listings Service, in order to be able to match the type of property they are interested in.


The State offers a wide variety of options for Florida real estate for Canadians to have the home of their dreams, from small vacation condos to prime beachfront properties that can cost a king’s ransom.  Due to the collapse of the US housing market, getting these properties at an affordable price is already a reality.


If you are interested in what Florida can offer you, check out this link: www.stevemartel.com 

Canadians Buying US Real Estate – A Guide

Canadians buying US real estate accounted for about 23% of international buyers in the past year according to data from the National Association of Realtors.  This makes up the largest chunk of foreign investment into American real estate for the past three years in a row. 

The US Housing Market Crash

The collapse of the US housing market, along with the fall of the dollar and the global financial crisis that ensued, combined to create opportunities for foreign investors like Canadians to invest and profit from the purchase of prime US real estate.  All of a sudden large chunks of prime properties in choice US locations such as Florida, New York, and even Las Vegas real estate became somewhat affordable for the average investor.  The 30% fall in housing prices combined with a stronger Canadian dollar made it very lucrative for Canadians to flock south of the border.

Essential Tips for Canadians Buying US Real Estate

The fact that American demand for property soured due to the credit crunch, a lot of developers and realtors are encouraging Canadians to invest in US real estate.  Many are offering fire-sale prices from foreclosed properties that were once valued at hundreds of thousands of dollars.  However, before you get that checkbook and sign that contract, there are a few things that you need to know.

Check out the Property First

Never buy a piece of property without visiting it in person.  The pictures online may tell a different story once you finally get to see with your own two eyes the property you are interested in.  This is especially true for foreclosed properties classified as fixer-uppers.  Due to the vast amount of US foreclosures, many US properties sit for a year or more without any maintenance at all.   There have also been reports that some disgruntled US homeowners have taken out their anger on the property being seized by the bank and have vandalized some sections in order for it to be unsellable. 

Be sure that you also check the viability of the neighborhood as well as this will have a direct effect on the value of your property should you decide to sell it later on.  Neighborhoods that have higher crime rates and poor schools should be avoided even if the price being offered is really hard to refuse as this can backfire on you in the long term.

Do Proper Tax Planning

It is recommended that you do not stay in the US for more than 121 days if you do not hold US residency status.  The consequence of doing this is that you may have to shell out income taxes not only in the US, but also back home in Canada.  Consult with a tax attorney that specializes in US tax regulations about the options available to you since investing in US real estate may require you to be in the country for long periods.

Do not Downplay Insurance Coverage

For Canadians buying US real estate, it is important to note that insurance plays a major role in your US real estate investment.  Depending on the location of your property, you may require coverage for natural disasters such as hurricanes and flooding. Take into consideration that the premium for these would likely cost more than your average policy.  Ensure that you have the correct liability insurance for your property.  Be sure to consult with a legitimate insurance firm to know your options regarding this.

For more information on how you can invest and profit from US real estate, check out www.stevemartel.com