How to Save Drastically on Your Homeowner's Insurance for Free

Every few days or so I post some information relating to our real estate market. I always hope that the stuff I’m posting has some sort of value to you. However, there are times that I am not really sure. On this post, I’m 100% sure that the information I am telling you will be very valuable to you. The main reason is that it can potentially save you thousands on your home owner’s insurance.

If you have a single family home and have a homeowner’s insurance policy with wind storm protection, you should qualify. Before I get into telling you what you need to do, I’ll give you some real world examples of the savings you may get. My friend’s insurance policy went from approximately $4000 to $800. Another one of my friends, who also had an insurance policy that
cost close to $4000, got reduced to $2000. One other person that I know had has insurance policy go from $2100 to just a little bit over $1000. Unfortunately another person that I know wasn’t able to save anything.

So how do you get these savings? There is a little known government program called, My Safe Florida Home. The website, www.MySafeFloridaHome.com, has all the information. Once you go to the website, click on I WANT TO APPLY FOR A WIND INSPECTION. The wind inspection is free. Just fill out the form. Once your home is inspected, you will receive an inspection report that you will show to your insurance company. The report will have recommendations on work you can do to your house that will make it more hurricane proof. You can do nothing and show the report to your insurance company or do the work and get a bigger discount from the insurance company. The friend I mentioned about earlier whose insurance went down to $800 DIDN’T make any improvements. He just showed the form to his insurance company.

If you feel more comfortable speaking to someone on the phone rather than using the internet, you can call 1-866-513-MSFH (6734) and wait for the part that mentions about the free wind inspection.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

The Changing Home Equity Loan

Only a year ago, it was incredibly easy for anyone with half decent credit to get a home equity loan on 100% or more of the equity that they had in their home. Today things have changed tremendously. Banks aren't loaning anything close to the 100% equity in the past, the loans are a lot harder to qualify for, and the default rates on these home equity loans have gone up over 700%. For more details on today's changing home equity loan, please click on the link below to view an article from the Miami Herald.

The Changing Home Equity Loan

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Fighting Back Against Identity Theft

Nearly nine million Americans have their identities stolen per year. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn’t make—or until you’re contacted by a debt collector.

Unfortunately, I am all too familiar with identity theft. In my case, I was pretty lucky compared to most others whose identity was stolen. In three separate cases within eight years, someone charged thousands of dollars on my debit card and once on my credit card. Once the person was purchasing something in Europe, once in New York, and once in Orlando. So it's really hard to figure out where the thief gets the information.

The Federal Trade Commission (FTC) has a website that shows you how to avoid identity theft and also what to do in case your identity was stolen. Click on the link below to enter their site.

FTC Identity Theft Website

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

More Information on Short Sales

Below is some more information on short sales. The story is from MSN and gives you a real good idea about short sales through out the country.

More Information on Short Sales

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Another Way to Sell Your Home Quickly

It is no secret that the real estate market is a lot slower now than it was a couple of years ago. Homes are taking much longer to sell, if they sell at all. I often get asked by home seller's if I know of any other ways, besides the standard ones, to help sell a home quickly. There definitely is one that I have used many times in the past that has been very successful.

Attracting buyers is always the name of the game in any market. That’s why using a special financing program works so well. Basically it’s an interest-rate buy-down program with built-in marketing support that is designed to attract more buyers by making seller's properties more affordable. So what does that mean? The seller is offering a special low interest rate for potential buyers. Because the home is advertised that way, it opens more doors for the seller's Realtor to establish relationships with buyers seeking a bargain.

In short, using a special financing program is a great way for home sellers to sell their homes quickly. It attracts more buyers because it reduces the buyer's monthly mortgage payment and differentiates the seller's property from other homes on the market. There are some complexities to it, so I would only recommend using someone experienced in this type of marketing.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Top 10 Seller Short Sale Questions and Answers

Short sales are becoming more and more prevalent in our real estate market. For those of you that aren't sure what a short sale is, a short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. Each short sale case is different and determined on a case by case basis by the seller's lender.

Below is an article by Tim and Julie Harris, founders of Harris Real Estate University, on the top ten seller short sale questions and answers.

Number 10
I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score...is a short sale right for me?

Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9
If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?

The mortgage insurance is not there for your protection, just the mortgage lender's.

Number 8
Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?

No. Technically speaking there is no such thing as being "Short Sale Approved." The actual approval only happens with an accepted offer.

Number 7
I just missed a payment and I know I will miss more...how long does the foreclosure process take and is there time to do a short sale?

The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California it's taking six plus months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.

Number 6
Will I still have to pay property taxes if I do a short sale?

Property taxes will always have to be paid as part of any accepted short sale. Whether it's you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5
I owe more than my home is worth and I can't make the payment. Do I have to somehow qualify for a short sale?

The simple answer is NO. If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.

Number 4
Do I have to pay income taxes...I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me...the seller...is this true?

It WAS true, now it's not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3
How does the Realtors commission get paid?

The bank will pay the commission along with all the other usual closing costs.

Number 2
Do I have to miss a payment to do a Short Sale?

No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?

No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holders.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

890 Lives Could Be Saved

According to the National Fire Protection Association, an estimated 890 lives could be saved each year if all homes had working smoke alarms. So, please take a moment to change the battery in your smoke detector.

Then we can all enjoy the summer.

All the Best,
Amit

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com