The Morningside Miami district

is an integral part of Miami history. The recent history of this neighborhood has seen the homes for sale constantly improve in quality as the neighborhood has undergone a complete renovation. Today, this neighborhood is one of the city’s most desirable and a popular choice for those looking for an upscale home in an interesting neighborhood. Morningside is located east of Biscayne Boulevard in one of Miami’s most historically-important areas.

Morningside Miami real estate

was originally known by the moniker “Bay Shore”. During the mid-1900’s, this neighborhood was very fashionable and one of the best places to live in the city. The 1960’s and 1970’s, however, brought economic uncertainty followed by a downturn. During the same period, people were interested in living farther away from the city, as well, which caused the neighborhood to suffer hard times for a period. However, changing sensibilities and different desires on the part of homeowners gradually led to the complete rebirth of this neighborhood which has not only reached its former glory but has actually surpassed it.

Homes for sale in Morningside

go quickly and the area is very much in fashion. It offers close proximity to all the conveniences of the city with an exclusive feel and lifestyle. As much as the mid to late 20th Century saw people wanting to move away from the city, recent years have seen a trend toward homeowners wanting to be closer both for economic and personal reasons. Morningside allows that sort of convenience while being removed enough that one need not have to put up with the noise and rush of the city itself.

Morningside is the home

of some very well-known people and, overall, the area tends to be one characterized by luxury homes and a wealthy lifestyle. The neighborhood is set on the water and offers excellent views, a pleasant environment and the sky is not blocked out by a crowd of tall buildings, making it perfect for those who want a more open feeling. It is located in the area of Miami known as the Upper Eastside, the location of other exclusive living areas including many that represent the renaissance of urban neighborhoods to their halcyon days of the past. For those who need to be close to the city but who want to live in a real neighborhood with a safe and comfortable feel, Morningside is an excellent choice.

mortgage rates are at a new low

Encouraging news came today from Freddy Mac – mortgage rates are at a new low

If you are buying and in need of a mortgage, you can get the cheapest rate today. The reason for this is the European debt, which could be troublesome in the eyes of Wall Street investors.

“Mortgage rates fell to their lowest level of the year this week as yields on U.S. government securities fell”, Freddie Mac said Thursday. “Fixed mortgage rates tend to follow the yield of 10-year Treasury notes.”

Treasury yields sank after Germany’s move this week to curtail certain kinds of short-selling spooked investors, who shifted money from risky European debt to safer U.S. securities.

A side effect of the lower Treasury rates was lower mortgage rates.

The average rate on a 30-year fixed rate mortgage dipped to 4.84 percent from 4.93 percent a week earlier, Freddie Mac said. It was the lowest level since mid-December, when rates averaged 4.81 percent.

“The timing is fortuitous,” said Greg McBride, a senior financial analyst at Bankrate.com, “because home shoppers who rushed to sign their purchase contracts in late April to capture the tax credit are locking in their mortgage rates now.”

New buyers were offered a credit worth up to $8,000, while current owners who bought and moved into another home could get one for up to $6,500. To receive them, buyers had to have a signed offer by April 30 and must close by the end of June.

Economists expected home sales to flag after the credit expired, but lower rates could help offset the falloff.

Pava Leyrer, president of Heritage National Mortgage in Michigan, hasn’t seen buyer interest wane yet. “Rates are helping them buy more,” she said.

However, strict credit requirements and negative home equity threaten to sideline borrowers hoping to refinance out of unaffordable loans. Refinancing activity isn’t as robust as last year, when rates dipped below 5 percent.

“Everyone who could get in already got in,” said Marc Demetriou of Residential Home Funding in Bloomingdale, N.J. The remaining borrowers may not be able to refinance under the stricter credit standards or don’t have enough home equity to get approved. Mortgage delinquencies hit a record high in the first quarter, according to an industry report this week.

Could rates fall further? Yes, but that would likely be the result of further deterioration in the global economy. “Yeah, mortgage rates would drop further, but you may not have a job to qualify,” Bankrate’s McBride said.

Among other types of mortgages in Freddie Mac’s survey, the average rate on a 15-year fixed-rate mortgage was 4.24 percent this week, down from 4.3 percent. Rates on five-year, adjustable-rate mortgages averaged 3.91 percent, down from 3.95 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4 percent from 4.02 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 of a point for 30-year and 15-year loans, and 0.6 of a point for 5-year and 1-year loans.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Current Mortgage Rates

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What is a Short Sale and how does it works?

A Short Sale is when real estate is sold and the lender (bank) is willing to accept a discount on a mortgage to avoid a possible foreclosure.

Here is an example of how a short sale works. A homeowner, who is facing foreclosure, has an existing first mortgage of $400,000. A buyer writes an offer to theseller for $300,000 and the lender accepts this offer as a full payment for the loan. Why would lenders (banks) be willing to take such a discount? There are a few reasons. Banks are not in the real estate business and therefore do not like to have excess inventory and/or bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. In addition, lenders (banks) know they could lose a lot more money if the property goes to auction. There are many fees involved if the property goes to auction plus the time it takes to do it. They would be better off taking the discount beforehand and be finished with the transaction in the shortest period of time.

Currently, foreclosures are at an all time high in US, which creates more opportunities for buyers. Sunny Realty presents a list of Short Sale Condos in Miami and Fort Lauderdale, as well as list of Foreclosure Condos in Miami and Fort Lauderdale.

Most lenders will accept a short sale for the reasons mentioned above, however, you may come across one or two lenders who will not discount. If the numbers work out for the lender they will do it.

It is best to do a short sale when the property is in the pre-foreclosure state. There are two stages within pre-foreclosure. The first stage being those individuals who are behind on payments and the second stage are those who are behind on payments with a notice of default. In order for this to work properly and for you to successfully complete a short sale, you must find homeowners who are in the second stage of pre-foreclosure or more than 3 payments behind on their mortgage. Once the notice of default has been recorded, banks become motivated as well, so you are more likely to get a discount. Until that time, is less likely that a bankwill discount a mortgage. Why would they? The homeowners still have time to cure the loan and make up the back payments.

It does not matter what type of house or the condition it's in, many mortgages can be discounted. The best properties to perform a short sale on are the houses that need lots of work and repairs because lenders will give you a bigger discount if they see they are "don't wanters". Properties that are over leveraged are also prime candidates. Most rookie investors who see a house over leveraged with an upside-down mortgage may think there is no hope for this property. On the other hand, this is a sweet deal to the savvy investor. Properties with large 2nd mortgages are also treated as gold because the 2nd mortgage is wiped out at the foreclosure auction. Lenders with a 2nd and 3rd mortgage position would rather have something than nothing.

How Short Sales work:
Short Sales are one of the most effective techniques for discounting loans in real estate. Short sales create huge investment opportunities and are a must if you want to be competitive in this market.

There is a certain process for calling the bank when you're doing short sales. Banks can usually tell if you've never done this before. When you call the bank, you never want to tell them you are an investor. This one of the biggest mistakes rookies make and will almost always result in the lender not accepting short sales. Therefore, when you call the lender to request the short sale packet, you can either tell them you are the buyer or you represent the homeowner. Sometimes they may ask if you are a real estate attorney. Just restate what you told them before. Then you'll want to request the "short sales packet" or "workout packet". When the packet arrives it will explain exactly what you need to make this short sales deal successful.

The lender will usually request a hardship letter. A hardship letter is telling the lender why the homeowners are not making their mortgage payments. Sometimes they will request bank statements, pay stubs, income statements, and so on. Be prepared to send them everything they ask for because if you don't it will not be accepted. They will almost always ask for a HUD-1 and a real estate purchase and sales agreement. Do not waste any time! Send everything the lender asks for as soon as possible. It usually takes 3 to 4 weeks to get an answer back from the lender, so you can't afford to wait. If the auction is approaching, you can ask to extend the auction which in most cases they will, if they know it is a legitimate offer.

Next in the short sales process is the BPO. This stands for Broker's Price Opinion. Basically a Miami real estate agent will come out and give their opinion on what the house is worth. The key to short sales is the BPO. You want to try everything you can to influence the BPO to come in as low as you can. The lower the better. It takes a few times to get good at this, but once you do, I guarantee you will try to get short sales on every real estate foreclosure you encounter. You will also receive larger profits when you invest in a more expensive home. This is because you are able to get bigger discounts from the lender on properties over $500,000. The great thing about this is that it will cost you about the same no matter what the property is worth.

In real estate, a short sale is a sale that happens when the outstanding loan against a property is greater than the market value of the property itself. A short sale represents a solution for a homeowner who cannot pay his mortgage and wants to walk away from the property without seriously blemishing his credit and financial profile through a foreclosure or bankruptcy declaration. Not all banks will consider the short sale, but many will. You will need a willing lender/bank and buyer to complete a short sale.

The short sale deal can be a creative way to save your credit and avoid declaring bankruptcy. Be sure you talk to a lawyer, a competent lender, as well as an accountant to verify the details of short selling with particular reference to your situation.

About Short Sale
Value. Confirm the value of the property by having a Miami real estate agent perform a Comparative Market Analysis (CMA). Costs associated with sale of property. Figure out what you will spend on selling the property. Total up advertising costs, any broker fees/commissions you may incur, as well as the closing costs for the deal. Ask your mortgage broker about the fees associated with closing. Be sure to include any legal fees in your calculations. Total loan value. Total up all loans against the property. Do the math. Subtract the total amount of money owed against the property from the expected earnings of the sale. The number remaining represents the "short" of the short sale. The lender will factor this number into consideration when deciding whether or not a short sale is appropriate. Legal assistance. You may want to consider hiring a lawyer or having a family friend who is in the legal profession assist you with the deal. This article can give you a general idea about the short sale, but cannot substitute for legal advice. Accountant. It is a good idea to get an accountant's input on the short sale before you proceed. There are tax implications in the short sale, just as in any real estate transaction. You need to know exactly what you will owe before getting into a short sale scenario. Find a buyer. In order to do a short sale, you'll need to come up with a buyer to pay off the amount of money your lender will accept. The new buyer will not assume your mortgage, rather, the sale of the property will result in you paying off the mortgage directly and the buyer having his own new mortgage on the property. Contact lenders. It is now time to get a lender involved with the deal. Indicate to him that you are interested in a short sale, and share the information on your specific property with him. Depending on what percent of the estimated value you offer the bank, the lender may accept your deal or not. It can be difficult to find a lender with the authority to accept a discounted amount for the loan payoff, so do not think the first broker you call will jump on the case. Proving insolvency. You must prove that you are incapable of paying off the entire mortgage and/or staying current with payments month to month. The lender will perform another mortgage application process to discover if you are, in fact, incapable of the financial responsibility you agreed to when you got the original mortgage. If the root of your financial woes occurred before you received your first mortgage, the lender may have a case against you for fraud, so beware. Sell the property. Once your lender has okayed the deal and you have a buyer, you are free to sell the property. The lender will want to see a contract between the seller and the buyer indicating that the sales price less the settlement costs is the exact amount of payment that the bank will be receiving from the seller. The bank wants to be sure that you (the seller) are not pocketing extra money off the deal. Benefits for the lender. Lenders and banks routinely put properties into foreclosure in order to get their money back in a situation where the borrower defaults. A short sale may be an attractive alternative to the lender in some cases. In a short sale, the lender does not have to deal with some of the unpleasantries of a foreclosure, including the eviction process, attorney's fees, costs associated with the resale of the property, damage to the property, and all the delays that are likely to occur in the process. Even though the bank is getting less money, they are getting it "now." Benefits for the buyer. The buyer gets a property at a discount. Benefits for the seller. The benefit to the seller is that he walks away from the deal without having to declare bankruptcy or having to go into foreclosure. His credit report will not be as negatively affected by this deal as well.

Short Sale Option Explained
The so-called "short sale" of a home can be a viable alternative to foreclosure and will become more prevalent as millions of adjustable-rate mortgages reset over the next 18 months.

Short sales are an agreement between the lender and the property owner that allows a home to be sold for less than the amount owed. The lender makes the final decision in approving a short sale. Potential buyers need to understand a short sale transaction before entering any purchase contract. While a buyer and seller may agree on the price, it's up to the lender to accept that price or not. It's a potential option based on the value of the property, the underlying fundamentals of what is owed and the anticipated marketing time. The lender has predetermined guidelines for the minimum amount they will take in the loan sale. When the sale proceeds do not satisfy the remaining balance, the after-sale balance may be forgiven. The credit is then reported as satisfied for "less than full" amount.

Though short sales have been around for a long time, they have come to prominence lately because of the unprecedented increase in foreclosures. While short sales are by no means a slam dunk, lenders are more willing to negotiate with borrowers today who are in default on their mortgage payments. Indicators show that in many areas, many of the short sales are investor-owned. What the lender wants upfront is a hardship letter from the seller, a contract between a buyer and seller and an estimated settlement statement. The lender may counteroffer and you continue to negotiate. Remember, the last thing a lender wants to do is foreclose on a home. If a lender forecloses on a home, it has to clean it up, paint it, replace the carpet, list it on the market, pay a broker's commission and other closing costs as well as maintain the property while it sits waiting for a buyer.

Many lenders are not prepared and not accustomed to short sales and that can be a challenge for real estate agents and their clients. Realtors need to build a relationship with the bank on a short sale, when possible, they should provide them with as much data as possible on the house and the market. A short sale can benefit everyone involved in the transaction; financially troubled homeowners save the embarrassment and marred credit associated with a foreclosure. Investors and entry-level buyers have the opportunity to buy a home below market value. Lenders avoid the hassle and expense of seizing a home and putting it up for auction.

Short sales can occur before a home goes to foreclosure or during the foreclosure process. Remember, lenders are not looking to bail out borrowers who simply overextended themselves during the recent real estate boom. In most cases, a lender will only consider a short sale if a borrower has clearly suffered a serious financial hardship that directly caused him or her to default on the mortgage. Short sales are a common practice within the mortgage industry and are determined on a case-by-case basis. While banks still realize large losses on short sales, there are some benefits, including the elimination of foreclosure attorney fees and costs, the marketing costs should the property go to REO and any potential risk of damage or deterioration due to prolonged vacancy.

So far this year, 731,244 pre-foreclosures have been filed nationwide, Sacramento, California based Foreclosures.com reported. That translates to nearly 1 out of every 100 households in trouble with their mortgages.

A record $50 billion in adjustable-rate mortgages are poised to reset to higher rates this fall, according to Credit Suisse Group. The number of borrowers whose mortgage payments jump in October, November and December will be the second-highest ever for a quarter.

As far as short sales, those will continue to grow as folks with little or no equity realize they can't hold on. Despite the current mortgage credit crunch, which is most pronounced in subprime borrowing, there remains significant favorable financial support for home buyers, especially in the FHA and VA and prime conventional conforming mortgage markets.

Short Sale Fundamentals

What is a Short Sale?

A Short Sale is a sale of real property where the net proceeds from the sale are insufficient to satisfy the total of all mortgages/liens encumbering the property and where the seller does not contribute sufficient funds to satisfy said liens.

It would be prudent for a seller to obtain legal, credit and tax advice before committing to a short sale. Potential short sellers are advised that any action other than full payment of the mortgage note may result in serious negative credit and possibly tax consequences.

What are the basic steps involved in a Short Sale?

• The fair market value of the property is less than the total of all mortgages and liens.
• The seller is experiencing a valid hardship that makes it impossible or impractical to keep the property.
• The seller is willing to cooperate with a real estate broker in order to effectuate the short sale.
• The lender is willing to consider a short sale.
• The property is listed with a licensed real estate broker and advertised in the local Multiple Listing Service (“MLS”).
• A buyer makes an offer that is accepted by the seller.
• The lender is provided with a short sale package consisting of certain information and documentation.
• The lender approves the short sale and the transaction closes with no proceeds to the seller.

What are the details of each step in the Short Sale process?

• The fair market value of the property is less than the total of all mortgages and liens. The lender will need to be convinced that there is no possibility that the property will sell for a price high enough to satisfy all of the mortgages and liens outstanding. Since buyers typically treat short sales as distressed properties, they usually yield prices below that of non-distressed properties.
  
  
• The seller is experiencing a valid hardship that makes it impossible or impractical to keep the property. What is a valid hardship? Most lenders consider issues such as unemployment, reduction of income, job transfer, illness, death of a homeowner and natural disasters to be valid hardships. A decline in the value of a home is not a valid hardship.
  
  
• The seller is willing to cooperate with a real estate broker in order to effectuate the short sale. The seller must be willing to provide certain financial information in a timely manner for delivery to the lender.
  
  
• The lender is willing to consider a short sale. The lender’s loss mitigation department is contacted in order to determine whether a short sale is feasible. Additionally, a list of required documents is obtained from the lender. Should there be more than one mortgage, additional lenders will need to be contacted.
  
  
• The property is listed with a licensed real estate broker and advertised in the local Multiple Listing Service (“MLS”). Ideally, the list price should be based on the fair market value of the property, not the unpaid balance of the mortgage. The price should be adjusted if there is insufficient interest from available buyers. The property should be aggressively marketed and listed in the local MLS.
  
  
• A buyer makes an offer that is accepted by the seller. The buyer should be preapproved by a lender or be able to provide proof of funds to complete the transaction. The terms of the offer should not include any unusual contingencies or requests for credits to the buyer for repairs or closing costs. Once the offer is signed by both parties, the property is “in contract” and is contingent upon the lender’s approval.
  
• The lender is provided with a short sale package consisting of certain information and documentation. A typical package consists of the following:
  
  
  • Fully executed purchase contract.
  • Real estate listing agreement.
  • Buyer’s preapproval letter or evidence of funds to close, such as a bank statement.
  • Preliminary HUD-1 Settlement Statement showing the net proceeds to the lender.
  • Hardship letter describing the seller’s circumstances and why the lender should accept the short sale.
  • Seller’s personal financial statement.
  • Federal income tax returns for the last two years.
  • Completed IRS Form 4506-T, “Request for Transcript of Tax Return.”
  • Paystubs covering the last 30 days.
  • Year-to-Date Income Statement /Profit and Loss Statement if self-employed.
  • Bank statements covering the last two months.
  • Comparative market analysis (CMA) with supporting sales data.
    
    

Once the short sale package is submitted, the loss mitigation department should be contacted on a regular basis to ensure that the process is moving forward. If the lender requests any additional information, it should be delivered promptly, otherwise the process may be delayed.

• The lender approves the short sale and the transaction closes with no proceeds to the seller. The lender may:
  
  
  • Not respond to the offer. If this occurs, contact the loss mitigation department and inquire as to why there was no response.
    
    
  • Deny the offer and demand a higher amount of net proceeds or not indicate what amount would be acceptable. If a specific net amount is not specified, contact the lender’s negotiator and attempt to obtain this information. The lender may ask for the seller to contribute to any shortfall or to sign a promissory note as a condition of approving the short sale. If the seller is unable or unwilling to agree to the lender’s demands, the buyer may choose to pay the additional sums requested by the lender or simply terminate the purchase agreement.
    
    
  • If the lender approves the offer, a payoff letter will be issued stating that the lender will accept a minimum amount of net proceeds no later than a certain date. Should the estimate of net proceeds shown on the preliminary HUD-1 Settlement Statement be inaccurate, the lender may demand that the seller and/or buyer pay the excess amounts in question. After the closing is complete, follow up to ensure that the lender issues a satisfaction of mortgage and that foreclosure proceedings, if any, have been set aside.

Attorneys’ Loss Mitigation Group, LLC is a firm that specializes in facilitating and negotiating short sales. Should you have further questions regarding short sales, please call us at 305.446.1621 or email us at almg@live.com.

Renting In Miami

When renting a apartment in Miami it is like no other place in the US. There is definite steps you will have to take in order to find the right place to rent in Miami. The first step in deciding where in Miami you want to reside for example there is South Beach, Miami Beach, South Pointe, Fisher Island, Venetian Causeway, Brickell, Biscayne Corridor, Design District, Downtown, Coconut Grove, Coral Gables and Upper East Side (Bayside, Morningside and Belle Meade), Sunny Isles, Aventura, Normandy Beach, Golden Beach, so there are a lot to chose from.

Once you have decided what area suits your needs, you have to tell the agent some vital information in order not to waste  each other's  time viewing pointless properties. The first criteria any agent needs to know is your price range. This is important in renting an apartment, condo or house because it narrows down the options. Just as important is the number of bedrooms and bathrooms needed when renting a condo or renting any residential property. One factor in renting in Miami is let the agent know upfront if you have pet(s), because a lot of landlords and building have restriction. This will be a huge waste of time if you finally find a place, then realize that pets are not allowed or yours is too big! If you are planning on renting in Miami for awhile then don't own a lot of pets! It will make finding a place very difficult, wait until buy a home in Miami.

Just remember, the more information you let your agent know about renting a luxury apartment, luxury home or luxury condo in Miami the better. Once you have found the Miami rental you want, then the next step is to make a formal offer. This consist of writing a "contract to lease" and writing a deposit check to your agent's brokerage firm. If accepted, this deposit will be held in escrow until you take occupancy of your newly leased property. The deposit will be allocated to your first month's rent. The remaining move-in cost should be paid directly to the landlord.

The next step is the actual lease. This is composed by the listing agent because the listing agent wants the terms amicable for the owner. It is the perspective tenants responsibility to review the lease, the agent can not give legal advise. The tenant will need to understand the lease or find an attorney to explain it. Once executed the next step, (if renting a condo) would be to submit an application to the association. This is important because if the tenant is denied by the association the agreement is terminated and deposit is returned to perspective tenant.

The landlord will pay all commissions due to the Realtor for finding you your Miami rental. It is important to conduct a walk-thru before taking possession, to point-out any damages or issues to the landlord so the tenant will not be held responsible.