Gulf Coast Associates' Blog: Around Florida

I wanted to follow up on our previous post on Short Sales and the Florida Foreclosure Rescue Fraud Law. In it, I referenced the following situation:

...One of these individuals recently made an interesting observation regarding "short sale" listing prices and fraud on the public. If you notice in Attorney General McCollum's statement above, "...ascertains that the fair market value of the home is less than the loan amount...", this particular complaint might just carry some weight. Specifically, the complaint is about the practice (at least in our area) of some agents listing "short sales" at values they know the lender will not accept. How do they know this you say? Well, because in many instances, they are appending a very recent appraisal to the… Read Full Post

According to a letter sent to the Florida Association of Realtors (FAR) by Attorney General Bill McCollum, the new Foreclosure Rescue Fraud Prevention Act does not prohibit Florida real estate agents from being involved in a short sale, as long as the only compensation they seek for their services is the commission on the sale.

The new law, which took effect Oct. 1, 2008, is designed to help protect homeowners who are facing the possibility of foreclosure from individuals who would seek to prey on them. FAR had asked the AG's office for an advisory explanation because many individuals were interpreting the new law's guidelines as putting real estate agents at risk for fines for being involved in a short sale transaction. According to McCollum, "as long as…

Read Full Post

Under the Neighborhood Stabilization Program enacted as part of the Foreclosure Prevention Act of 2008, 48 local and state governments in Florida will receive U.S. Department of Housing and Urban Development (HUD) funding specifically for foreclosure relief.

The program is designed to provide local governments with a source of funding to respond to rising foreclosures and declining property values. Florida was allocated $541 million, which includes $91 million to the Department of Community Affairs and $450 million for 48 local governments.

Eligible uses for the programs funds include:

• Buying foreclosed properties.
• Demolishing or rehabilitating abandoned properties.
• Offering down payment and closing cost assistance to low-to-moderate…

Read Full Post

It looks like wind storm homeowner's insurance costs may become more expensive for some Florida homeowners come next year. Citizens Property Insurance Corp. officials announced this past Tuesday they will require some 350,000 wind-only customers within the state to reapply for coverage beginning February 1, 2009.

Citizens is the state's insurance company of last resort and has become the largest insurer in Florida covering some 1.2 million customers. The company cited two reasons for the changes. One, they are modernizing their wind only policies and integrating everyone with that type of coverage into their new internet based computer system; and, two, they want to ensure that these homes are insured up to their true replacement cost values.

A synopsis…

Read Full Post

According to a recent study by Development Counselors International (DCI), Florida ranked fourth in the nation among states with the best business climates. Executives responding to the survey cited three factors as the most important in their decision making process for choosing specific locations: a strong labor market, low operating costs and a pro-business climate.

Texas ranked first in the survey, followed by North Carolina, Georgia and then Florida and Tennessee tied for fourth. Nevada rounded out the top five. DCI said its survey, conducted every three years, was sent to a random selection of 3,591 U.S. companies with annual revenue of at least $25 million. Not surprisingly, California was viewed as the state with the least favorable business…

Read Full Post

Governor Charlie Crist signed the property insurance reform "Homeowners' Bill of Rights" into law yesterday. It offers a number of protections and upgrades for Florida homeowners. In his letter issued to the public, Gov. Crist said "the bill contains many important consumer protections that will help keep insurance costs more affordable for Florida's homeowners."

The law goes into effect July 1, 2008, and makes the following changes:

• Extends the rate freeze for Citizens Property Insurance Corporation, the state's insurer of last resort, to January 2010.
• Allows single-family residential homes and condominiums with a replacement value of up to $2 million into the Citizens insurance pool.
• Requires Citizens' policyholders of property located…

Read Full Post

Just a reminder, only two days remain for Florida homeowners to apply for a homestead exemption and for 2007 homebuyers to apply for the new property tax portability provision passed in the Constitutional amendment voted into law on January 29th.

To receive these benefits, residents must take action prior to March 1, 2008. Please pass this information on to your neighbors, friends and family.

Increased Homestead Exemption

Floridians who live in their homes as permanent residents are “homesteaded,” which grants them certain tax benefits. However, homestead status is not automatic. New homeowners must declare themselves to be homesteaders by March 1 of each year to their local property tax appraiser.

A major benefit of declaring a homestead is the…

Read Full Post

It appears some of Florida's largest insurer carriers tried to use loopholes in the new insurance law to bypass the requirement that they pass on reinsurance savings to homeowners from the state- backed financial safety net fund. And, that's just one of the conclusions many lawmakers came to Tuesday after two days of Senate hearings on compliance with the law passed last year to help deal with Florida's ongoing property insurance crisis. Insurance executives were called to testify under oath why their companies didn't reduce premiums after changes in the new law gave them access to cheaper state backed storm reinsurance coverage and mandated they pass the savings on to consumers.

The hearings were just the latest battle in a long feud between state…

Read Full Post