Florida Home Buyers and Investors Blog

Well, I guess we never really get what we want, but something is better than nothing.  The First Time buyer incentive was modified from a $7500 interest free loan to $8000 tax credit!  Pretty good deal!

We were fighting for $15,000, but I guess everyone has to give back something.

I can't wait to hear what is instore for the Housing Recovery.  We are seeing home owners on the edge, just waiting for relief.  I doubt they will get what they want either, but the banks definitely need to be more flexible with homeowners when reworking their mortgages.  Short-Sales are not the solution.

It appears banks are trying to get non paying owners paying again, by lowering the rate, increasing term, and putting all the missed payments on the end of the loan.  These band-aids are temporary.  Getting someone performing again when they are $200,000 upside down is good for the bank, bad for the owner.

Honestly, they are better off walking away.  On a $200,000 home, it will take 8-10 years at 8% compounded appreciation to make up the loss.  Doubtful.

Until we flush out the bad loans that were sold up until 2007, we will continue to see price pressure on existing homes.  I expect 2011

On a brighter note, prices in some areas are to the point where renters can afford to purchase and the PITI is equal to the existing rent. These potential homebuyers are dipping their toes in the market and picking up great deals.

Investors are flooding the area buying everything that brings in 8%+ returns.  Generally these are low priced condos in B/C neighborhoods.  With financing difficult to obtain on Condos, only CASH buyers are able to snap up these steals.

The market has shifted and you all need to be aware of what's happening as it happens.