Coastal Flooding to Increase -- New Coastal Flood Construction Code in Florida



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It seems that the most vulnerable state to coastal flooding is Florida by far. But Louisiana, California, New York and New Jersey are also particularly vulnerable and actually the entire American coastline is at some degree of risk, according to Rising Sea Levels a Growing Risk to Coastal U.S., Study Says | NYTimes. Here in Florida

roughly half of the nation’s at-risk population [is] living near the coast on the porous, low-lying limestone shelf that constitutes much of that state....If the pace of the rise accelerates as much as expected, researchers found, coastal flooding at levels that were once exceedingly rare could become an every-few-years occurrence by the middle of this century.

So therefore it is no surprise that in low-lying areas the Florida building code has seen a wide-ranging revision as of March 15th, according to South Florida bracing for strict new coastal flood construction rules | Miami Herald.

This will apply in most coastal zones along South Florida, with a corresponding increase in the cost of construction. The stricter rules apply to new construction as well as extensive renovations that comprise more than 50 percent of a structure’s value.

Home construction in those “Coastal A Zones,’’ as the new high-hazard areas would be known, would also be affected, though to a lesser extent than commercial buildings. Home builders would have to sink pilings into the ground to support the structure and swimming pools, and the first habitable floor of new homes in those low-lying areas would have to be elevated a foot or more higher than current rules require. Foundations and ground-floor walls would also have to be designed for resistance to “hydrodynamic forces’’ — the pressure generated by wave action and rising waters due to storm surge, building officials say. 

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Posted by Ricki for at Thursday, March 15, 2012 Labels: , ,

Canceled Debt -- The Lender May Forgive, But Not the IRS



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Even if the lender forgives past debts, they do not escape the notice of the IRS. Gone, but not forgotten: Canceled debt | Florida Realtors cautions that "debts that were canceled or forgiven are considered taxable income – something many taxpayers don’t realize until they receive a 1099-C tax from their lenders."

And, while tempting, the worst thing someone can do is ignore it, since the IRS gets a copy of the same 1099-C which it uses to check the tax return.

According to Florida Realtors, you qualify for an exemption from taxes on forgiven debt if:
You filed for bankruptcy. Debts discharged in bankruptcy aren’t taxable.

You were insolvent. If your debts exceeded your assets when the debt was forgiven, some or all of the debt reported on 1099-C is exempt from taxes.
Here's a link to Tax Topic 431 - Canceled Debt – Is it Taxable or Not | IRS. Even if you usually do your own taxes, consulting with an accountant in this situation may be the wisest move.

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Posted by Ricki for at Tuesday, March 13, 2012 Labels: , ,

Florida Bill HB 21 -- Accelerating Foreclosures


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As you know, Florida is one of the states hit the hardest by the mortgage crisis. Any recovery is basically on hold here, since it takes on average two years to move a foreclosure through Florida’s backlogged court system, consisting of 368,000 cases--a quarter of the country’s foreclosures.

Our lawmakers here in Florida now are crafting bills to accelerate the resolution of local foreclosures and thus the recovery. The challenge is to create conditions conducive to a housing recovery while still protecting the rights of struggling homeowners.

Their solution is a Florida bill known as HB 21. From Florida lawmakers consider accelerating foreclosures | Washington Post:

Among other elements, the bill empowers any lien holder — including condominium associations and homeowners associations as well as banks — to seek expedited foreclosures, including on properties that are deemed abandoned. It would require banks to provide accurate and complete information to courts at the beginning of the foreclosure process, rather than piecemeal filings that often occur throughout the course of each case.

In addition, the legislation would shorten the time — from five years to one — in which banks could sue delinquent borrowers for the difference between how much they owed on a property and what it sold for at a foreclosure sale.
Read article.

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Posted by Ricki for at Tuesday, March 06, 2012 Labels: , ,

What's Trending in Remodeling Improvements To Attract Buyers


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Many homeowners are staying put due to market forces and home equity issues. Instead of selling, they are choosing to upgrade for now. Realty Times | Remodeling Improvements That Entice Buyers describes which remodeling projects help to add value and will entice buyers in the future.

Aging in Place. With the tough economic times, more short sales and foreclosures, extended families are combining homes and reducing their cost of living by residing together in one larger house. The National Association of Home Builders found that 62 percent of builders in a survey were working on home projects that were helping families "age in place". Included in these types of remodels are placing a bedroom on the entry-level of a home, wider doorways that would accommodate a wheelchair, and overall modifications for the elderly including reducing steps outside and inside.

Savvy Kitchen. The great rooms that bring the kitchen and the eating areas together are still popular. More space is preferred so families can have room to sit and spend time together over a meal even if that means having less space to actually prepare the food. Cabinets and shelving are being customized to suit the homeowners' needs and many are favoring pantries or utility rooms. Kitchens are taking on the look of a chef's cooking space with open shelving and islands to help homeowners be able to quickly prepare meals and still mingle with guests and family.

Totally Wired. Fast-placed, busy buyers who often work from home will find smart homes that are wired and built to handle all the high-technology needs a huge plus when it comes time to market and sell their homes. Another plus is having space-saving workstations in the home. Remodeled homes that feature floor-to-ceiling bookcases and wiring for home offices are increasingly becoming the norm in many homes.

Outdoor Living. This continues to be a popular trend to bring the outside in. Making the most of living spaces, even those in the garage and outside, is a huge benefit. Homeowners are capitalizing on all possible livable space by creating outdoor living rooms complete with wiring for entertainment, cooking, and relaxing. Outdoor furniture is also being featured inside as well as outside the home, blending the line between the two.

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Posted by Ricki for at Friday, March 02, 2012 Labels: , , ,

Measure A Home's Worth by Its Value to the Owner



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Board-certified real estate attorney Gary M. Singer answers housing questions in Sun-Sentinel's House Keys. As he so aptly explains, there are many ways to gauge the value of a home:

Q: I have an underwater mortgage. My wife and kids really like the house and neighborhood, but all my friends wonder why I continue to pay on a loan that’s worth more than the house. Should I stop making payments and try for a short sale? – Ralph

A: I don’t know why you would do either. The simple truth is that your home’s current market value should have little bearing on what it's worth to you. Owning a home is so much more than a business transaction. Before you decide what to do with your property, you have to ask yourself what is driving your decision. Do you need to move now? Is the neighborhood unsafe? Is it in a bad school district? Does your next-door neighbor snore REALLY loud?

If you like where you live, can afford your payments and aren’t being forced to relocate, then it doesn’t really matter if your home is underwater. I have seen far too many people blow their credit, be subject to a foreclosure lawsuit and lose many nights of sleep before realizing that maybe they should keep their home after all. So my advice is that if you like where you live and can afford your payments, focus on the positive things in life, such as playing with your kids in your backyard or talking to your neighbors over the back-yard fence about the Giants’ big win. A lot of people got into this mortgage mess because they unsuspectingly followed their friends’ lead in buying a house they did not like or could not afford because they “didn’t want to miss out.” Don’t make another mistake now by giving up on a home you love.

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Posted by Ricki for at Tuesday, February 28, 2012 Labels: , ,

March 1 is Deadline for Homestead Exemption Applications --Property Appraiser Contacts




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Reminder: all 2011 resident Florida buyers must contact their county property appraiser's office before March 1 to claim the homestead property tax exemption. The local contacts are below or click on  FL Dept Rev - Property Appraiser Contacts. 

Martin County Property Appraiser
1111 SE Federal Hwy., Suite 330
Stuart, FL 34994
E-mail: info@pa.martin.fl.us
772-288-5608
772-221-1346 FAX

St. Lucie County Property Appraiser
2300 Virginia Ave, Rm 107
Ft. Pierce, FL 34983
E-mail: pruittk@paslc.org
772-462-1000
772-462-1055 FAX

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Posted by Ricki for at Thursday, February 23, 2012 Labels: ,

NAR Annual Profile of Home Buyers and Sellers




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Our real estate trade group, the National Association of REALTORS® (NAR) annually surveys home buyers and sellers to garner information on demographics, housing characteristics and the experience of consumers in the housing market. Buyers and sellers also share information on the role that real estate professionals play in home sales transactions. 

Some interesting tidbits via Tenure in the Home and Motivation for Selling:

  • The typical seller tenure in home from 2001 to 2008 was 6 years. In 2009, the median years the seller stayed in the home edged up to 7 years. In 2011, the typical seller sold their home after owning it after 9 years.
  • Sellers who owned their home for 11 to 15 years, rose from a low of only 10 percent of sellers in 2006 to a high of 18 percent of sellers in 2011.
  • The motivations behind selling a home have also changed in recent years. The top reason sellers sold their home in the latest profile was for a job relocation, tied with the home sellers home was too small—accounting for 17 percent of home sellers.
  • Five years ago, the number one reason was the home was too small at 19 percent, but job relocation barely was on the radar at just 9 percent of home sellers.
  • Among home sellers aged 45 to 54, job relocation out paces reasons to move substantially with 29 percent of home sellers in this age group moving for a job.
  • Moving to avoid possibly foreclosure has increased from less than one percent in 2006 to 8 percent of sellers in the 2011 Profile.


For more information on the Profile of Home Buyers and Sellers, click on the link or go to: http://www.realtor.org/topics/homebuyers_sellers_profile

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Posted by Ricki for at Tuesday, February 21, 2012 Labels: , ,

Homes Styles 2012 -- What's In and What's Out


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What's hot and not in home styles this year | Yahoo! Real Estate has the scoop on home styles for 2012.
Stephen Melman, director of economic services at the National Association of Home Builders said that houses shrank about 10 percent from their 2,500 square foot peak in 2007, and are expected “to get smaller and more efficient” with open floor plans, master bedrooms on the first floor and dining rooms distinguished only by a chandelier or architectural detail.

One-story ranch homes, post World War II suburbia’s signature easy style, are slowly regaining favor, thanks to first time buyers with tiny tots and aging baby boomers seeking accessibility.

Craftsman style homes, popular before World War II, are also enjoying a revival, said Gary D. Cannella, an architect in Bohemia, N.Y. “It’s the style not the size.” Adaptable to sizable abodes or small bungalows, these one or one and a half story homes boast low-pitched rooflines, tapered columns, oversized eaves, gables and the front porches “that everyone wants and no one sits on.”

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Posted by Ricki for at Tuesday, February 14, 2012 Labels: ,

Banks Now Approving Short Sales to Avoid Foreclosures Cutting Down on Lost Time and Money



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It's no secret that banks have been delaying and even blocking short sales (the house is sold for less than the mortgage debt) over the past few years in favor of foreclosures. That now seems to be changing, as lenders are realizing that strategy is not cost effective for them.

Apparently lenders can often afford to forgive debt and still make a profit because they purchased the loan from another bank at a discount. And approving a sale for less than is owed on the home can cut a year or more off the process of removing a distressed property from their books. From Banks Pay Homeowners to Avoid Foreclosures | Bloomberg:

Banks are nudging potential sellers by pre-approving deals, streamlining the closing process, forgoing their right to pursue unpaid debt and in some cases providing large cash incentives, said Bill Fricke, senior credit officer for Moody’s Investors Service in New York.

Losses for lenders are about 15 percent lower on the sales than on foreclosures, which can take years to complete while taxes and legal, maintenance and other costs accumulate, according to Moody’s. The deals accounted for 33 percent of financially distressed transactions in November, up from 24 percent a year earlier, said CoreLogic Inc., a Santa Ana, California-based real estate information company.

Check out Banks Pay Homeowners to Avoid Foreclosures | Bloomberg for a breakdown of the strategies of the major banks such as JPMorgan, Citigroup, Bank of America and Wells Fargo. What the mortgage settlement means to you | CNNMoney will answer most, if not all, of the questions pertaining to the effect of the settlement on the public.

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Posted by Ricki for at Thursday, February 09, 2012 Labels: , , , ,

Housing Bubble Hit Homeowners in their 30's the Hardest -- Homeownership Rate by Age


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Back in 2000, a normal housing year without a "bubble", 67 percent of Americans were homeowners. Relaxed credit conditions then accelerated home buying beyond the prior norm, pushing the ownership rate up  to 69 percent.

After the bubble burst, the ownership rate dropped down to the current 66 percent. According to Homeowners by Age| Lawrence Yun, Chief Economist and Senior Vice President of Research at NAR, the hardest hit were homeowners in their 30's.

Not all age groups had similar experiences throughout this cycle. The very young were mildly impacted. The very old did not on average feel any pain – at least according to the statistics, though no doubt there were some retirees who painfully lost a home to a foreclosure.

The big impact was felt among people in their 30’s, who have much the same homeownership rate today as back in 2000, well before the bubble. It is also this group where there is potential for re-entering into the homeownership market in the near future.


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Posted by Ricki for at Tuesday, February 07, 2012 Labels: , ,

County Administrator Says State of Martin is Sound



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Things are apparently looking up for Martin County. County Administrator Taryn Kryzda gave an optomistic "State of the County" address this week. County administrator: State of Martin is now 'solid' | TCPalm.com reports that the county commissioners had reduced their budget by more than $65 million since 2008 due to the recession.

"The state of Martin County is sound and we, as a nation, are beginning to recover from the recession," Kryzda told an audience of about 60 people in the commission chamber.

"We have seen improvement. Our debt has gone down. We are adding to our revenues. Our workforce is sound. Real estate values appear to be stable," Kryzda said. "The state of Martin County is sound."

Kryzda highlighted several ongoing building projects that have provided construction jobs, including the Veterans Memorial Bridge, the C-44 Reservoir and stormwater treatment area and the Sailfish Splash Waterpark. The water park will also employ 130 people when it opens in the spring, Kryzda said.

The county administrator also pointed out several accomplishments by the county government in 2011.

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Posted by Ricki for at Thursday, January 26, 2012 Labels: , ,

Forgiven Short Sale and Foreclosure Debt Becomes Taxable in 2013



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For homeowners who have an "underwater" home, owing more on their mortgage than they can fetch in the open market, the time to make the hard decision is approaching. According to Florida Realtors, they may owe federal income taxes in 2013 if they conduct a short sale and/or a foreclosure after this year. For 2012, homeowners can still go through a short sale or foreclosure without tax consequences, given the lender officially releases the debt by signing off in writing before until Dec. 31, 2012.

So if a house sold $50,000 short of what is owed on the mortgage, then the selling homeowners will owe federal income taxes on that $50,000. Homeowners would owe $12,500 if they’re in the 25 percent bracket; $7,500 if in the 15 percent tax section.

The Mortgage Debt Relief Act of 2007 “generally allows taxpayers to exclude income from the discharge of debt on their principal residence,” according to the Internal Revenue Service. “Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.”

Up to $2 million of forgiven debt can be forgiven this year, $1 million if married and filing separately, according to the IRS.

Possible exceptions:

Homeowners declaring bankruptcy could escape paying income taxes on any cancellation of debt income if the debt is forgiven in the bankruptcy even if the debtor is solvent, said Nick Jovanovich, a board-certified tax attorney in Fort Lauderdale, Fla.

Or homeowners might not have to pay income taxes on any cancellation of debt income to the extent that they are insolvent immediately before the cancellation – that is, their debts exceed the value of their assets, Jovanovich added.

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Posted by Ricki for at Tuesday, January 24, 2012 Labels: , ,
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