Tina Marie's Blog Site

The Article Below is a Great Insight of what is happening in our Florida Market with Foreclosures and how the banks are handling these foreclosures. This is the time for investors to be buying up these foreclosures and renting them out. Call me to discuss this further and how to invest your money in the real estate market.

Tina Marie Eloian, CCIM “Your Commercial & Land Specialist” (813-997-4321 Direct)

….State may expedite Florida foreclosures

OVIEDO, Fla. – Oct. 11, 2011 – Retirees Neil and Marilyn Strawbridge haven't made a mortgage payment so far this year, and yet Bank of America has not sent them even a foreclosure notice. With foreclosures taking an average of 21 months to get through the court system in Florida – longer than in almost any other state – the couple could presumably continue forgoing payments and still stay for years in the three-bedroom, waterfront home with pool that they bought a quarter century ago. "I no longer have any problem not making payments," said 72-year-old Neil Strawbridge, who had never missed making at least partial payments until last December, when Bank of America rejected his request to permanently lower his monthly payment. His lawyer, Justin Clark, has advised the couple to try protecting their credit by selling the house before the bank files for foreclosure and seizes it. But Neil Strawbridge, who was diagnosed with Parkinson's disease in 1995, said he could see himself and his wife simply staying put until the day comes when they are forced to leave. Florida is among 26 states that require banks to file foreclosures through the court system, a process that takes an average of 728 days to complete, according to Lender Processing Services. In states where foreclosures aren't routinely handled by the courts, a foreclosure takes an average of 550 days to process, from default notice to repossession, the research firm reported recently. Pressured by the Florida Bankers Association, state lawmakers are now grappling with the lingering court process. Legislators are considering proposals that would divert non-contested foreclosures from the courts, allowing banks to handle them in much the same way they repossess cars. If such a measure became law, it would likely affect houses entering foreclosure after June 2012. State Sen. David Simmons, R-Altamonte Springs, said that, while the foreclosure process needs to be expedited, Florida homeowners shouldn't lose their day in court – if they want it." A non-judicial foreclosure remedy doesn't solve an immediate problem for us. ... We need to focus on courts cleaning out the backlog sooner," said Simmons, a member of the Senate Judiciary Committee. The immediate problem, as Simmons said, includes not only the 22,000 Floridians who received a foreclosure-related legal filing in July alone, according to the research company RealtyTrac Inc.

It also includes homeowners like the Strawbridges who haven't received a foreclosure notice but who have been sitting tight without making payments for months and months. "I've talked to some judges who believe foreclosures are not being filed because banks don't want to pay association fees – they don't want the property yet because they can't liquidate it fast enough," he said. "We don't want to be too quick to condemn the judicial system. The delays are, in fact, partially due to lenders not wanting to have the property on their real estate rolls."

Ripping off the bandage

No one tracks the number of homeowners who have stopped paying their mortgages but are able to continue living in their houses without drawing a foreclosure notice from their lender.

But one of the main reasons the foreclosure process has slowed in Florida and elsewhere is because banks temporarily stopped adding cases to the court system about a year ago and pulled many others from the system when it became apparent that documents in some cases had been lost or illegally signed.

Banks have also been criticized for agreeing to short-term, trial mortgage modifications for customers, only to later refuse to grant any kind of long-term solution for the strapped homeowners, many of whom are living in houses now worth half what they paid for them just a few years ago.

With foreclosures taking almost a half-year longer in Florida than in states that don't require a court process, the Sunshine State has fallen behind California in recovering from the nationwide housing slump in part because the West Coast state doesn't funnel foreclosures through its courtrooms, said Mark Fleming, chief economist for CoreLogic Inc., a California-based analytical company. "Ripping the Band-Aid off quickly helps house prices stabilize and rebound better than ripping it off slowly," said Fleming, though he added that a longer foreclosure process might give local markets more time to recover and a better chance of absorbing houses that revert to bank ownership.

Planning next move

In Oviedo's Twin Rivers community, the grass surrounding the Strawbridges' home is thick and green. A small sign shows a lawn-treatment company fertilized it. Even though they aren't making loan payments, the couple still tries to maintain the house. They started having trouble making their

$2,298 mortgage payments, the result of a refinanced loan, when Neil Strawbridge retired two years ago from his job managing a coffee service. Their income further eroded when Marilyn, 61, cut her hours as a nursing aid about a year ago to get her degree as nurse practitioner from Seminole State College. They handled the $1,194 payments that Bank of America agreed to as part of a four-month trial, but the giant lender refused to extend the offer. The couple like the suburban feel of the Oviedo/Winter Springs area and say that, if and when they lose their home, they will likely move into a smaller, modular house nearby, which will cost them about $40,000 of their cash savings. Sitting on his pool lanai, Neil Strawbridge said he and his wife grew tired of wrangling with the bank over the loan modification. "We

decided we just couldn't do this anymore," he said. Clark, the Strawbridge's lawyer, says the majority of the clients he sees in the couple's situation have not made a mortgage payment in 18 months." Most people come in after at least a year of trying to deal with the bank," he said, at which point "they're either homicidal or suicidal."

Short selling

Clark said he's not convinced the foreclosure process would speed up if the Legislature diverts mortgage-default cases from state courts.And until the state changes the process, he added, homeowners must time their exit strategy so that they save some of the money they would have been putting toward mortgage payments without getting dinged by a foreclosure on their credit report, which can haunt a consumer's credit history for as much as seven years.

Clark advises such homeowners to try selling their houses as short sales – for less money than the mortgage balance – which ultimately requires their lender's cooperation. The Strawbridges, for instance, owe about $200,000 on their home and think it could possibly sell now for about $120,000.

The short-sale process in Florida is faster than the foreclosure process, taking about 410 days on average to close from the time a property's lender files the first foreclosure notice, according to RealtyTrac.Even at that pace, the Strawbridges could stay in their home without making payments for another year or more. But first they have to get a foreclosure notice.

Despite the havoc that the past year wreaked on office rents and occupancies, the combination of limited supply growth and expected stabilization in the labor markets foreshadows a relatively quick return to positive rent growth.

This forecast implies that although the sales market for office properties has remained slow, a pickup in transaction volume and prices may occur swiftly.

After the office market peaked in 2007, the bubble deflated slowly through 2008 before the downturn gathered steam after the fall of Lehman Brothers.

Office properties took the brunt of the recession last year, with rents falling at record rates. Effective rents cratered by 8.9% in 2009, the largest decline on record in almost 30 years of Reis history.

Hidden amidst the devastation were signs that office occupancies were faring better than other property sectors. While multifamily and retail vacancies were hitting highs unseen in two decades or more, the national office vacancy rate was 17% at the end of 2009, the highest level since 2004.

Underlying factors

While previous downturns were characterized by massive overbuilding, office inventory growth was relatively constrained from 2004 to 2008 for a variety of reasons.

Due to a spike in construction costs from 2004 to 2006 and tepid rent growth that really didn’t begin accelerating until 2005, developers were far more interested in building residential units amid a housing boom.

As a result, an average of approximately 50 million sq. ft. of office space came on line annually from 2004 to 2008, less than half of the annual completions from 1999 to 2003.

The second reason office occupancies are holding up is that leases have yet to roll over. The typical multifamily lease expires in 12 months, whereas the average lease term for office space spans anywhere from four to seven years.

Naysayers will argue that the rollover risk is still high. Five-year office leases up for renewal in 2010 are generating lower rents than a few years ago. However, there is growing evidence that as the economy recovers, rents may indeed post tepid but positive growth by 2011.

If this comes to pass, two years spent in negative territory in 2009 and 2010 pales by comparison to the negative rent growth that office buildings endured from 2001 to 2004.

Ecology of space

One data point that Reis tracks carefully is the percentage of properties able to post increases on a quarter-by-quarter basis, and which properties are compelled to lower rents instead. Consider the line graph below illustrating the percentage of properties in New York City that lowered asking rents in a given quarter.

After the dot-com meltdown and terrorist attacks on the World Trade Center in the early 2000s, the percentage of properties that lowered rents spiked from around 8% to over 50%.

By comparison the situation is much worse in today’s downturn, with financial services at the epicenter of the aftermath of Lehman’s collapse. The percentage of properties that lowered rents spiked from around 8% to 86% in the fourth quarter of 2009.

There still is room for rents to fall, so much so that Reis expects office rents in Washington, D.C. to be higher than rent levels in New York by the end of the year.

Signs of a turnaround

The big question is whether we will see a downward trend in this line graph in the next few quarters. Recent national labor market figures are heartening, with the unemployment rate holding steady at slightly under 10%.

Despite the ire that banks receive because of their bonus payouts, Wall Street has begun to hire again, and job loss figures for New York City were not as bad as expected.

Unexpected events can derail this recovery, and economic growth is expected to be fragile for the near term, but as more positive news emerges we may be on track to seeing rents grow as early as next year.

If this is the case, transaction volume and prices may pick up quickly to capitalize on the next upswing.

Victor Calanog is director of research for New York-based research firm Reis Inc. His monthly column delivers up-to-date assessments and expert analysis of real estate fundamentals

Sometimes it is hard to continue in this market without looking back and saying to yourself... why didn't I know better or why didn't I sell when I was offered $3.5 million for my parcel of land... and now a certified appraiser from the bank and my commercial specialist and my aunt and my uncle... even my own son is telling me it isn't at that value anymore.

How am I suppose to respond to... It is only worth what someone will pay for it!" and I ask... what the h--- does that mean?

Well, first let's take a step back and analyze the whole picture.

Yes, you were once offered a significant amount of money for a property that you own. And Yes, I mean NO you did not sell it. Ok, Let's move on.

Now we are in the present. You own a parcel of land or a building that you would like to sell. We need to look at the entire picture.

What do you owe on the parcel? What is the current value of the parcel? Is it income producing or a vacant parcel of land? What can we do in the meantime to increase income, lower debt, lower real estate taxes (if possible) and re-examine our loan with the bank? If there is not a loan due and this is a cash out deal, let’s evaluate what you can do with the cash at the market value. Does it make sense to sell at the present market or to hold on to the parcel and wait for the market to go up slightly? Yes- the market will go up eventually. But it will be at a snail pace.

Forget what happened 5 years ago! Okay- Let me Say that Again! FORGET WHAT HAPPENED 5 YEARS AGO. We are in the present and moving forward toward an even greater future than 5 years ago.

The Prices that we saw… the inflation that we encountered… Yes, that will happen again- in approximately ???? years from now. We are on the Longest Roller Coaster Ride of your life. Enjoy it.

Get yourself back in the Present and be prepared for what is happening now. Focus on what you can do Now to improve your income for the future.

You need to concentrate what is currently at hand and play your cards accordingly. The Market has changed dramatically in the commercial market and is still changing. We have not seen the lowest of numbers in sales and we have not seen an upward price adjustment. Banks are now coming due with adjustable mortgages and balloons. It is still a Buyer’s market. There are many great deals in the commercial market. Seller’s are being creative, holding paper, lease options and so forth.

I will help you with all your real estate endeavors. It takes an investor to understand how to invest properly. That is where I come into the picture. To help you analyze your property- whether we sell, lease, exchange into another property. There are many ways to be Extremely Creative in the current environment. Let me Help you find what is right for your portfolio.

Sincerely,
Tina Marie

Blog for 10-29-09

Sitting at the newly opened Joffrey’s Coffee in Historic Ybor City in Centro Ybor, I am having a fabulous Café Mocha with a freshly made Cuban Egg Sandwich. This is one of the toughest markets that Tampian's have seen in quite awhile, but we always have time for a coffee. Joffrey’s Coffee, located in Centro Ybor is less than 1 week new and is doing a wonderful business.

The tourists, employees of Ybor, Residents of Ybor and just plain folk like me love to know that the closed Starbucks location is now a Vibrant and very Open Location Home to Joffrey’s Coffee. The owners, Jessica and Gladys, had a dream and made that dream Come True. Even in this tough economy!

That is my advice to all of you… Don’t let this economy get you down. If you have a dream, do what it takes to make it happen. Put a business plan together along with a financial analysis of what it is going to take to go into business and allow yourself enough money for renovations, inventory, employees pay and money to pay rent for at least 12 months. Most Landlords like to see a healthy bank account, good credit reports and financial statements.

However, Landlords are happy to have new inspired businesses. Landlords are willing to work with new owners of these businesses! DO NOT let this economy get you down. Be positive and keep plugging away until you get to where you want to go… and don’t stop there.

Look to the future. Think of ways to make your business better. Think of ways to be pro-active and ways to expand or create a future franchise or ownership of more franchises down the road.

The future is Yours! Take it now!

In regards to Joffrey’s Coffee… I helped them find this Excellent location in the Heart of the Historic District of Ybor City located in Centro Ybor, assisted with all negotiations and created a great relationship between Landlord and Tenant! The entire Transaction was smooth, easy and Joffrey’s had an easy and very welcoming “soft” opening this past week. The Grand Opening is yet to come… most likely just after Guavaween this coming weekend.

On a Business note, if you are seeking a location to put your business, whether for an office user or opening a new business or an existing franchise, I can help you on all levels.

Call to set up an appointment to discuss how to get moving to your new Location! 813-935-9600

Tina Marie Eloian  10-29-09

04-20-2009

The upside of Florida real estate:

15 market positives

Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.

1. Great prices. Statewide, home prices have fallen about 20 percent in the past year. FAR statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade. In 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)

2. The time is right. Home sales volumes are rising again – a signal that the market recovery may be underway. In third quarter 2008, statewide sales of existing single-family homes were up 5 percent compared to the same period last year, according to FAR statistics.

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.

4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2008 includes a $7,500 tax credit for first-time buyers on a home purchased between April 9, 2008, and July 1, 2009. President Obama’s 2009 economic stimulus package promises to enable programs that will assist homeowners. Talk to a local mortgage lender about state and federal incentive programs.

6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010, economists forecast that Florida will be the third-most-populated state in the country. Florida has been one of the 10-fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to Census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.

7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a favorite retirement destination.

9. A diverse economy. Florida’s economy, like that of the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force in South and Central Florida. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.

10. Investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the fourth quarter 2008 survey, the investment outlook for various types of Florida properties declined from the third quarter of 2008, although it is noted that the investment outlook remains higher than it was at times in 2006 and 2007. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in,” said director Dr. Wayne Archer, when referencing the 2008 third quarter results.

11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth.

12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal self-esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.

14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.