What to Do After a Car Accident

This post on my blog has nothing to do with real estate, but I thought it would be beneficial for all of us. A friend of mine sent me this story on what to do after a car accident. Even though most of us have a good deal of common sense, when an accident occurs, sometimes we are shaken and don't think the same way. Please read the story below, and I would strongly suggest printing it and keeping it in your car's glove box just in case.

What to Do After a Car Accident

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

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

Most Cost Effective Improvement to Your Home

With today's declining real estate market, I often get asked by sellers the following question - What is the most cost effective improvement to their homes? Basically the least expensive thing to do to their homes to get the most in return from buyers. The greatest "bang for the buck" has always been to paint the home. It should be in a neutral color so it won't turn off any potential buyers. The link below is to a story that has many painting tips from the pros. It is definitely worth spending three to five minutes to read it.

Painting Tips Story

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

New Good Faith Estimate Form

When home buyers are comparison shopping different lenders (mortgage brokers, credit unions, banks, etc) for their mortgage, their potential lenders will give them something called a "good faith estimate" form. The idea behind the form, to help the buyers comparison shop different lenders with the terms of the financing, was very good, but in reality, the form was very difficult to understand. The US Department of Housing and Urban Development proposed a new borrower-friendly Good Faith Estimate. An article from Inman News (below) goes into further detail about it.

New Good Faith Estimate Form Article

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

South Florida Home Prices Fall Again

Below is a quick update on the South Florida real estate market in an article in the Miami Herald today. Please click on the link below to read the story.

South Florida Home Prices Fall Again

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

More Foreclosure Tips

Here are some more foreclosure tips that I saw in the Sun Sentinel. Please read their story below.

What to do if you're put on notice?

If a lender puts you on notice -
Homeowners have many options after a lender has filed a foreclosure notice. Foreclosure specialists advise:

*Don't ignore mail from your lender; stay in touch even after a foreclosure notice has been filed. Most lenders would rather work out options than foreclose on a home.

*Beware of foreclosure companies calling themselves "mortgage consultants" or "foreclosure services" promising to save your credit or pay the closing costs. Be wary of deals that take over ownership of your home.If you turn to a foreclosure rescue firm, be aware such companies do not need a state license to operate in Florida unless the business is selling or buying properties.

*Never transfer your property deed or title to a rescue firm. Never sign a contract under pressure and without legal advice. Do not pay your mortgage payments to someone other than your lender.

For more information
Contact the Department of Housing and Urban Development to request an approved housing counseling agency: 800-569-4287 or hud.gov.

For legal help, contact the National Association of Consumer Advocates at 202-452-1989 or go to naca.net; the Florida Bar floridabar.org.

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

How Do I Save My Home?

How do I save my home? It seems like I get asked this question a million times now days. Unfortunately because of many different reasons - a change in the adjustable rate on your mortgage, the economy, loss of job, the depreciating real estate market, etc - people are losing their houses at record paces. In fact, I read a couple of weeks ago in our South Florida real estate market, that for every home sold, there are six foreclosures. Ok so enough of the bad news. What can someone do to save their home?

The US Department of Housing and Urban Development (HUD) has a website that tells homeowners what they can do to save their homes. Please click on the link below to read the information.

How Do I Save My Home?

All the Best,
Amit

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

Is Your Landlord Paying His Mortgage?

Landlords have always asked potential tenants about their financial situation. But with today's changing real estate market in South Florida, tenants are advised to do the same with their potential landlords.

I read a really good article in the Miami Herald about this. Please click on the link below for the story.

Is Your Landlord Paying His Mortgage?

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

What Really Matters?

What really matters? That's something many people, including myself, lose focus on lots of times. A friend of mine the other day was kind enough to send me something that quickly put everything into perspective. Although I had seen it before, it was just as powerful as the first time I saw it. If you have a few minutes to spare, please click on the video below. I hope it has the same impact on you as it had on me.

What Really Matters? (video)

Thanks,
Amit

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