Florida Real Estate Blog

Short Refinance Option Now Available from FHA

WASHINGTON – Sept. 8, 2010 – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development (HUD) now provides a new refinancing option for underwater borrowers. Originally announced in March, the enhancement of a Federal Housing Administration (FHA) refinance program offers non-FHA borrowers the opportunity to qualify for a new FHA-insured mortgage. To qualify, the homeowner must be current on his existing mortgage and lien holders must agree to write off at least 10 percent of the unpaid principal balance.

The FHA Short Refinance option is targeted to people who owe more on their mortgage than their home is worth because the local market saw large declines in home values. The Obama Administration hopes the change, as well as other programs that have been put in place, will help up to 4 million struggling homeowners through the end of 2012.

Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must also qualify under standard FHA underwriting requirements. The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10 percent of their unpaid principal balance. In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent, and a combined loan-to-value ratio no greater than 115 percent.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.

For more information on FHA Short Refinance option, read FHA’s mortgagee letter: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

Reprinted with permission. Florida Realtors®. All rights reserved.

The 44th Annual San Antonio, Florida Rattlesnake Festival to Occur on October 16 & 17, 2010

Now that autumn is coming fast, it is time to remind you that the 44th Annual San Antonio Rattlesnake Festival will take place on October 16th and 17th of 2010. San Antonio, Florida just to the north of Tampa and a couple of miles east of Interstate 75 in the hills of Pasco County on State Road 52.

This is a very popular and unique event. Something you are not likely to see in Cleveland, Peoria, or Boston. Of course the festival encompasses more than rattlesnakes. There is plenty for the whole family to enjoy. Some of the events this year are:

• Snake Show
• World of Reptiles Show
• Custom Car Show
• Arts & Crafts for Show & Sale
• Food (you name it and they have got it!)
• Live Music Throughout the Day
• Wild West Show
• Show & Shine 4 X 4 Show
• Educational Wildlife Exhibits
• Petting Farm
• Western Wear Contest
• Culinary Cooking Contest
• Pony Rides
• Free Children's Games
• and More!

Best of all admission to the festival and parking are FREE! Though some shows and activities have admission fees. Click on the website below for more information.

For lots more information you can visit the Rattlesnake Festival's official webpage at: http://www.rattlesnakefestival.com You will also find ticket information and a map at this site, as well as photos of past festivals. You can also call the organizers at: 352-588-4444

 

Take advantage of this wonderful chance to get out and enjoy our great autumn weather and take part in this unique event in beautiful San Antonio, Florida!

Home Buyer Tax Credit was Claimed by Nearly 65,000 Florida Residents

WASHINGTON – Sept. 7, 2010 – A report by the Government Accountability Office finds that Florida ranked third in the number of first-time buyers who qualified for one of the three IRS tax credits, with 64,879 buyers making the claim. The study includes all three credits authorized by Congress.

In dollars and cents, that means Florida residents received $455,565,365 offered under the Housing, Recovery and Assistance acts.

Still, the amount pales compared to No. 1 ranked California that had almost 117,000 claims and over $814 million returned to residents. Texas, which ranked No. 2, saw almost 100,000 claims and over $680 million in federal money. Nationwide, Americans collected about $23.5 billion and submitted 3.32 million claims, which is about $1.5 billion higher than original estimates.

Congress had passed three different versions of the credit to help stimulate the housing market.

• The Housing Act version provided a refundable tax credit, equal to 10 percent of the purchase price of a home, up to a maximum of $7,500. Taxpayers must repay the credit.

• The Recovery Act version provided a refundable tax credit equal to 10 percent of the purchase price up to a maximum of $8,000 with a waiver of the repayment provision.

• The Assistance Act version extended the timeframe in which homebuyers could claim the credit to April 30, 2010, and included several modifications, such as allowing certain long-term homeowners purchasing new homes to claim a tax credit up to $6,500.

According to the National Association of Realtors, the tax credit had a strong impact on home sales, and the last version’s expiration led to a significant drop in July home sale numbers.

Reprinted with permission. Florida Realtors®. All rights reserved.

Be Sure to Maintain Your Exterior Circuit Breaker Boxes to Prevent Costly Repairs or Injuries

As many of my readers know, I work in Zephyrhills, and we have many mobile home subdivisions, most of which are occupied by retirees. However, we have quite a few that have residents of all ages.

One thing that most of these will have in common is the fact that behind the home is where the electrical lines often run. Usually underground, but sometimes with wires from poles. But, unlike conventional homes where the meter and main breaker box are attached to the home, with these mobiles, the meter and breaker box are usually on a short pole or support behind the mobiles. In a typical park they will be placed in groups of 4 with each one serving a home in each corner. It is at this box that most homeowners can cut the power to their entire home.

On conventional homes, these boxes are often attached right to the structure which can offer some protection from the elements. However, sitting on a pole out in the open behind a mobile home, these other boxes can really take a beating from the elements. They are sturdy and can take a beating, but like the great pyramids of Egypt, eventually, the rain, sun, temperature changes, wind, etc take their toll.

Most home buyers will have a professional inspection done before they close on a purchase. On a recent inspection, Stephen Brown of Accuchek Home Inspection Service here in Zephyrhills found such a problem. As you can see from his pictures to the left, there was severe corrosion on the breaker box. So much so that a child could have reached inside and possibly have been electrocuted. And once the integrity of the metal is compromised, the destruction only accelerates. Of course, the buyer wanted the box replaced and the seller, a very nice and reasonable person, agreed to take care of it.

In our area, the cost to repair these boxes can run between $500 and $600, and require the use of a licensed electrician. How much cheaper it would have been if the box had been inspected from time-to-time by a professional, and a coat of protective paint applied. A lot cheaper than the replacement cost I bet. Good maintenance is the key!

This is the third time I have seen this occur. On one home I warned the owner, and he caught the problem early, and I noticed that he had indeed painted the box to protect it.

Since you are dealing with electricity here, and to examine the interior of the box a panel will likely need to be removed, I recommend that you either have a professional home inspector or a licensed electrician do the removal of the inner protective plate to check for damage. Checking inside is important since these boxes are not water-tight and if water sits and sits on the lower interior of the box it can only hasten the corrosion that can take place. So a coat of paint on the lower interior may also be necessary. The electrician or inspector can best advise you on what needs to be done.

So be observant of your exterior electrical boxes, and have them checked regularly. If you see rust on the outside of the box in any location, that should be a warning to get things checked out. Remember, a coat of metal paint is hundreds of dollars less than replacing the entire box. It can also diminish the possibility that someone could be seriously injured or killed. To the left you can see the new box the owner bought. Trust me. Paint is a lot cheaper!

If you wish to contact me call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You can also visit my webpage at: www.jelwell.century21bnr.com

If you would like to speak with Stephen Brown of Accuchek Home Inspection Service, feel free to call him at: 813-783-2662. He is certified by the American Society of Home Inspectors (ASHI) and can be a great resource for you.

Reporting Code Enforcement Violations in Pasco County, Florida

A couple of weeks ago I was stopped at a traffic light at the corner of State Road 54 and Dean Dairy Road. There were 18+ push-in signs and signs tacked to telephone poles advertising homes for rent, yard sales, people buying diabetic test strips, short sale help, etc. 18! What an ugly mess. They obscured the views of many people who need to make turns there. Dangerous to say the least.

So I went to the county website and found that it was as easy as can be to report a violation of an ordinance, like the county's sign ordinance. In must a matter of a few days, the corner was completely devoid of all of the illegal signs. Kudos to them for their rapid and efficient work!

Of course you can also report other violations as well. Your neighbor's overgrown lawn, garbage accumulations, dead animals in the road, Just click on the following link: Report Code Violations in Pasco County  You will see a list of items that cover about anything you could need to report.

They will ask you to register before filing your complaint, but I suppose that just makes sense. Would not be reasonable for someone in Polk or Lake County to make a code violation report. So they just ask you for basic information that confirms your residency.

So use this if you need it. I had one set of sellers whose neighbors had built a target range on their land, even though this was not legal on a lot of less than 10 acres. Kind of makes sense if you are going to fire off AK47's, right? In any case, the county took care of the matter. The ordinances are in place to protect you and the value of your properties.

As a side note, before you make changes to your own homes, be sure that they comply with the county ordinances. Your pygmy goats on a 1/4 acre lot may get their walking papers. So  check out things ahead of time so YOU do not become the subject of a code violation.

Do keep in mind that if you live in one of the incorporated areas of the county, like Dade City, San Antonio, and Zephyrhills, you will likely need to speak with their code enforcement departments since I believe that they are separate from the county's and will likely have variations on their codes.

If you need more information, call John Elwell at CENTURY 21 Bill Nye Realty, Inc. 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

You can also visit my webpage at: www.jelwell.century21bnr.com

Florida's Population Starts Growing Again!

GAINESVILLE, Fla. – After declining for the first time since the end of World War II, Florida’s population grew once again last year, a hopeful yet tentative sign that the worst of the recession may have passed, according to the latest preliminary population estimates from the University of Florida (UF).

Stan Smith, director of UF’s Bureau of Economic and Business Research, estimates that Florida added a modest 21,000 residents between 2009 and 2010, but that follows a population decline greater than 56,000 between 2008 and 2009.

“Even though the state turned it around, it still represents the smallest population increase since the 1940s and does not make up for last year’s loss,” Smith said. “Florida’s population growth continues to be very, very slow by historical standards.”

Florida grew by more than 125,000 residents in every year from 1950 to 2008. It’s estimated that Florida added 21,285 residents during the past year, with its total population increasing from 18,750,483 on April 1, 2009, to 18,771,768 on April 1, 2010, Smith says. The previous year it lost an estimated 56,736 residents.

“Two years ago, the economy was deteriorating rapidly, while over the past year there have been some signs that it is leveling off or even improving slightly,” he says. “I think that’s the reason we’re seeing a small increase in population. Although technically the recession has ended, the economy continues to be in bad shape, particularly in terms of its ability to create jobs. There have been some jobs added in the last few months, but unemployment is still very high and job growth is very weak.”

Slightly more counties lost rather than added population, but the split was fairly even. In percentage terms, both increases and decreases in counties’ populations were generally very small, with no dramatic changes.

“At the state level, foreign immigration continues to be relatively strong, and the state also continues to have substantially more births than deaths, which are really the drivers of Florida’s growth in the last year,” Smith says.

The largest population gains were in some of the biggest counties. Miami-Dade led by adding an estimated 8,253 residents, followed by Hillsborough, 6,353, and Broward, 5,834. “Because they’re the largest counties, they have fairly sizeable numbers of births,” Smith says. “They also receive a substantial number of foreign immigrants.”

The county with the biggest percentage increase was Lafayette, which grew by 5.2 percent, but that change was largely attributed to the addition of state prison inmates. There was no pattern to which counties lost population, which were spread throughout the state and include both large urban counties and small rural counties.

The largest population decline was in Seminole County, which lost 3,659 residents, followed by Pinellas, 3,119, and Volusia, 2,055. In percentage terms, the county with the biggest decline was Glades, followed by Jackson and Holmes.

With a quick economic turnaround unlikely at either the state or national level, Smith expects Florida’s population to continue to grow slowly during the next year or two. But within the next 10 to 20 years, the state’s annual population growth could be as high as 250,000.

“From 2003 to 2006, Florida’s population grew by more than 400,000 per year, and in the previous three decades increases averaged about 300,000 per year, although there were certainly ups and downs from year to year,” he says.

Last year’s population decline, a result of the economic slump, was the first since 1946, when military personnel left the state at the end of World War II.

“If the economy recovers sooner than people expect, we would expect faster growth,” Smith says. “If it recovers less rapidly or even slips back into recession, we would expect that growth will continue to be very slow and possibly even be negative again.”

Between 2000 and 2010, the counties that grew the most in absolute numbers were Miami-Dade, Orange and Hillsborough. Flagler had the highest growth rate, 90.4 percent, followed by Sumter, 82.6 percent, Osceola, 59.8 percent, St. Johns, 50.6 percent, and Wakulla, 41.7 percent.

The population figures are interim estimates that will be replaced by numbers from the 2010 census when they become available early next year.

Reprinted with permission. Florida Realtors®. All rights reserved.

10 Tips for Hiring a Home Remodeling Contractor

YORK, Pa., – Sept. 3, 2010 – An uptick in homeowners are opting to remodel to increase a potential sales price or just upgrade their living space. According to StateofLife.com, remodelers should keep the following in mind:

Tip No. 1: Does your contractor have proof of insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can’t do this – stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use – those individuals should have active insurance cards faxed or mailed to you as well.

Tip No. 2: Check references and see photos
Ask for at least three references with two for the same type of project you’re planning – and call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you’re planning a bathroom remodel, you may want to check with another contractor.

Tip No. 3: Does your contractor take debit or credit cards?
Besides your ability to earn a few points, bonus miles or cash back, credit card acceptance is a good sign that a contractor is financially savvy and has a bank behind his business. Even many small, one-man shops take cards if they have a good relationship with their business bank or credit union.

Tip No. 4: Manners and appearance
If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? The way a contractor treats his tools is a direct connection to how he’ll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home.

Tip No. 5: Clean up policy
If your improvement is a multi-day project, will the contractor clean up at the end of every day or will he leave the dust, wood chips and other mess lying there for day No. 2?

Tip No. 6: Will the contractor put it in writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not – walk away immediately. Many homeowners have been duped by contractors who verbally say what’s included, but, in the middle of the job, require extra money to finish, effectively holding the owner hostage with an uncompleted home project.

Tip No. 7: Availability
Can the contractor get the job done in your timeline rather than his timeline? On the flip side, if you can’t find a good contractor that’s willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.

Tip No. 8: The use of subcontractors
Does your contractor do everything himself or will he subcontract work? For example, if remodeling a bathroom, you may need a plumber, electrician and carpenter. It’s okay if the contractor subcontracts work out to these specific trades – it shows he wants the work done right – and it’s standard practice for the contractor to mark up the services to earn a profit. To save money, owners can subcontract the work themselves, but managing a total project brings its own challenges.

Tip No. 9: Quoting and billing procedure
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example, most contractors will charge a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? Clarify that with your contractor upfront. Also: What is the payment or billing policy? If money is required upfront, go back to No. 1 and No. 2 above to make sure you have the contractor’s references checked and have a copy of his contractor’s insurance.

Tip No. 10: Did your contractor get the permits?
Ask your contractor to take care of the permits. Although permits cost money, the inspection process also protects you from poor workmanship and makes sure everything is being built to code.

Reprinted with permission. Florida Realtors®. All rights reserved.

Still Average Mortgage Interest Rates Inch Lower!!

Today, 9/2/10,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.32% (4.36% in the southeast), down from 4.36% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.83%, down from 3.86% last week. A year ago the 30 year rate was 5.08%. These rates are incredible. I am surprised that buyers are not taking advantage of them. Over the years they will save lucky homeowners tens of thousands of dollars. Even monthly payments will show a difference and people will qualify for much more expensive homes when rates are low. If you would like to see how the rates have fallen since the start of 2010, you can download a chart by clicking on the following link: Download Average Mortgage Interest Rates since Jan. 2010

Again it appears that the lack of any inflationary fears are helping to keep interest rates down. Although to me, the level they have reached is hard to grasp. They are now sooooo low! The Federal Reserve Chairman voiced these exact sentiments. But you know, at some point inflation will rev up and that will mean the days of low interest rates will end. Also, look at the quote below which indicates that prices may be stablizing as many us have seen in our markets, and that is often the forerunner of increases in prices. Again, they are very low levels which will not last forever.

Freddie Mac's Deputy Chief Economist said:

"House prices, however, appear to be firming. Home prices rose 2.3 percent between the first and second quarter of this year, reaching the highest level since the fourth quarter of 2008, according to the S&P/ Case Shiller(R) National Home Price Index. In addition, 15 metropolitan areas in the 20-City Composite Index experienced annual house price growth in June, compared to 13 in May and 11 in April."

There is talk of reviving the Home Buyer Tax Credit that existed last year and up until June of this year. But I hear less and less of it now. Who knows? With elections coming up anything is possible.

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

Some Good News - Pending Home Sales Rise in July 2010

 
WASHINGTON – Sept. 2, 2010 – Following a sharp drop in the months immediately after expiration of the homebuyer tax credit, pending home sales have modestly risen, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June; it’s 19.1 percent below July 2009 when it was 98.1. Pending sales data reflects contracts and not closings, which normally occur with a lag time of one or two months.

“Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” says Lawrence Yun, NAR chief economist. “But the recovery looks to be a long process. Homebuyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”

On the other hand, homes have not been this affordable in recent memory. “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy,” says Yun. “The loan underwriting standards are tighter, but homebuyers can improve their chances of getting a loan by staying well within their budget.”

The PHSI in the Northeast rose 6.3 percent to 62.5 in July and is 21.1 percent below a year ago.

In the Midwest the index increased 4.1 percent to 66.7 and is 25.7 percent below July 2009.

Pending home sales in the South rose 1.2 percent to an index of 86.3, and are 15.6 percent lower than a year ago.

In the West, the index jumped 11.6 percent to 95.0 and is 17.6 percent below July 2009.

The national index had fallen 29.9 percent in May and another 2.8 percent in June.

Reprinted with permission. Florida Realtors®. All rights reserved.

Three Atlantic Storms - No Threats to Florida, Yet!

As you can see in the image to the left there are three storms out in the Atlantic Ocean heading toward parts of the US. Hurricane Earl, Tropical Storm Fiona, and Tropical Storm Gaston.

At this time, neither of the first two seems to be heading for Florida, but instead look like they will head for a more northerly route.  Click on the left image below to see Hurricane Earl's projected trajectory and the one on the right to see the proposed path of Fiona.

Gaston is still very faraway, so who knows where it will end up. Worth keeping an eye on it.

So far we have had a pretty quiet hurricane season with no major storms making landfall. We do seem to be getting more rain than we normally do, but this very much resembles the weather patterns that took place all the time up until the late 1980's when a VERY long dry spell took place. So these nice showers are very welcome and have helped cut down on wildfires.

Much of my information comes from the National Hurricane Center. They follow tropical depressions, tropical storms, and hurricanes from birth to death. It can be a useful site to visit. If you would like to try it out, click on the following link: http://www.nhc.noaa.gov I suggest you "bookmark it" or "make it a Favorite" for future reference if you live in an area that can be affected by tropical storms or hurricanes. You will find it interesting and helpful to track the path of each storm.

You can also find out how to prepare for hurricanes and other disasters at the following state site: http://www.floridadisaster.org/  Do not wait until a storm is upon us to prepare your home and family. Hopefully we will make it through 2010 with no major storms paying us a visit, but you never know. Better safe than sorry!

I invite you to visit my webpage at: http://www.jelwell.century21bnr.com/ where you will find links to many interesting sites dealing with real estate. You are always welcome there.

I can also be contacted via e-mail at: jelwell1@tampabay.rr.com or by phone at: 813-783-4444

Florida Supreme Court Takes Amendment 3 off the November 2010 Ballot

TALLAHASSEE, Fla. – Sept. 1, 2010 – Amendment 3 is off the November ballot. The proposed constitutional change would have offered qualified homebuyers who had not owned a home in eight years a property tax reduction in their first year that progressively declined over time.

If passed, the amendment would have also benefited commercial interests by reducing the cap on yearly taxable value increases of commercial and non-homestead properties to 5 percent, down from a 10 percent yearly cap now in place.

The Tallahassee judge that removed Amendment 3 from the ballot did so because he found the wording misleading. To qualify for the property tax reduction, homebuyers had to make the purchase after Jan. 1, 2010, a fact not included in the wording voters would read in the ballot box. The judge feared some voters would approve the amendment erroneously, thinking that they would receive the new property tax break. By agreeing with the lower court decision, the Florida Supreme Court finalizes the removal.

“We are, of course, disappointed that the courts removed Amendment 3 from the November ballot,” says John Sebree, Florida Realtors vice president of public policy. “However, we do see an opportunity in this. The Florida Legislature clearly favors a yearly cap on property taxes for commercial real estate, as well as a break for first-time homeowners.”

Sebree says Florida Realtors will turn to lawmakers again in the 2011 session of the Florida Legislature, and believes there is a good chance of getting a stronger amendment on a future ballot.

In addition, the Supreme Court struck down two other proposed amendments to the Florida Constitution, Amendment 7 and Amendment 9. Amendment 7 was an attempt to add additional standards to redistricting. Amendment 9 was the “health care freedom” amendment that would have banned a mandate that individuals purchase health insurance.

The court allowed two redistricting amendments to remain on the ballot, Amendment 5 and Amendment 6.

Reprinted with permission. Florida Realtors®. All rights reserved.

John's September 2010 Real Estate Newsletter is Available for Viewing Now

My September 2010 Real Estate Newsletter is now available for download as a PDF (Adobe Acrobat) file. Just click on the following link: Download Septembert 2010 Newsletter. I hope that you will find this month's articles interesting and helpful.

If you would like to receive these newsletters automatically in the future each month, just send me an e-mail and let me know. I would be glad to add you to my e-mailing list. You can e-mail me at: jelwell1@tampabay.rr.com or call me at: 813-783-4444

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Non-Owner Occupied Homes Could Have Insurance Issues

Several years ago I had the home to the right as one of my listings. The owner had an ill spouse and had to move rapidly to another state. His daughter came to help him, and they were able to get a private plane to take his wife to their new home. Movers emptied the residence. Nothing was left inside.

The home sat vacant for quite a while since the real estate boom was over. It did finally sell, but during that time I was always worried about whether or not the owner's homeowners policy would or would not cover it. As far as I knew, his insurance company thought he and his wife were still occupying the home. I asked a few agents here, and got some very iffy answers. Luckily, nothing happened and the new owners got coverage.

Here is the problem, when you buy a home and get insurance coverage, they will ask you if you will be occupying the property and base their premiums partly on that fact. If you have a mortgage your bank will require coverage on the home. If not, you should still get a policy to protect this important investment.

Now for that problem I mentioned. If you decide to sell the home and move before the property has sold, it will be sitting vacant for at least a while. In today's market, now more than ever. That means there could be more risk of vandalism, weather damage, broken pipes, fires, etc. If there is damage, you put in a claim, and the insurance company finds out the home was empty, that could be a problem. Maybe a big one. We all know the belief that insurance companies love to collect premiums, but hate to pay out for claims. So when the company investigator comes to see about the fire that took place, for example, and the neighbors or the fire report tell him that the place was empty, what will the company do? I do not know for sure, but if it were me, I would prefer not to have to find out.

The same could occur if the insurer thinks you are living in the home, but instead you are renting it out. They might think a "fast one" has been pulled on them. Homeowners might take better care of the home than tenants would in their minds. Therefore, creating more risk for the insurance people. It pays to be truthful to the companies when you are insuring your properties.

It is a good idea to speak with your insurance agent if you are not going to be occupying the home to make sure that you will continue to have coverage while the home is vacant or leased out. At least you can then make an informed decision. The new policies could cost you more, but that is better than losing a valuable asset due to a slip-up or oversight on your part. Your insurance agent should be able to guide and advise you.

On a side note, do be aware that in Florida when hurricanes are approaching our state, insurance companies will stop writing new policies until the danger has passed. Be sure that before you close on your home purchase that you have adequate coverage. Your bank will require it if you are financing your purchase. Our current contract forms even have language to cover this contingency.

Another thing is flood insurance. This is not automatically included in your homeowners policy. You have to purchase it separately, and there is a waiting period so it will not go into effect immediately. If your home is located in a designated flood zone your lender will likely require coverage. If you are paying cash, the choice to accept or not accept the risk of flooding is yours. Even if you are not in a flood zone you can get flood insurance at a better rates, just in case. Keep in mind that sometimes, even non-flood zones do get flooded. Usually the rates are pretty low in these "low risk" areas. See your insurance agent for detailed information.

John Elwell - REALTOR at CENTURY 21 Bill Nye Realty, Inc. Tel: 813-783-4444 or e-mail at: jelwell1@tampabay.rr.com

When Hurricanes Approach, Insurers Stop Writing New Policies

MIAMI – Aug. 31, 2010 – If Hurricane Earl flirts with the Florida coast, many property insurers will stop writing new policies. That, in turn, impacts homebuyers who need insurance to finalize their mortgage. Without insurance, they can’t get mortgage money; and without mortgage money, they can’t close.

Insurers have in-house rules about issuing new policies. For example, Florida’s property insurer, Citizens Property Insurance, stops writing policies in a wide area if a hurricane threatens. Some insurers rely on the National Weather Service to issue a storm watch or warning. If that happens, they stop writing policies in the potentially impacted areas.

In all cases, a homebuyer heading to closing while a hurricane threatens should contact his or her property insurance carrier to determine that company’s rules.

Reprinted with permission. Florida Realtors®. All rights reserved.

Note from John Elwell: Even our current approved Florida contracts contain a clause that allows a buyer to delay the closing date if insurers stop writing new policies due to an approaching storm. See your contract for more information. Even if you are not getting a mortgage and therefore do not HAVE TO HAVE insurance coverage, do you really want to close on the sale without insurance and a hurricane on its way??? Think about it!

Some Condos, Villas, Townhomes, and Houses For Sale in Zephyrhills, FL as of August 30, 2010

If you are looking for your place under the Florida sun, Zephyrhills could be just the spot that you are searching for. Remember, winter is coming!

To assist you, I am attaching an updated Adobe PDF file to this post that shows some of the single-family houses, villas, condos, and townhomes that are currently available for purchase here as of August 30, 2010. All you have to do is click on the following link to download the pages that you can view and/or print: Download Single Family, Villas, Condos, Etc as of 8-30-10

They are listed from lowest price to highest. If you just want to see them on your computer, increase the view to 100% at the top of the screen so you can see them better. If you want to print them, hit PRINT, and they should print up "full-page view" automatically.

These homes are just a few of the listings from our own CENTURY 21 Bill Nye Realty, Inc. inventory and I can also send you others that are currently for sale. Not only that, but I can also e-mail you listings from other real estate companies via our Multiple Listing Service (MLS). Just let me know what your housing requirements are. I can even set up an auto-notification system so you will get immediate messages when a new listing comes on the market that meets your needs! Convenient, right??

Do keep in mind that some or many of these homes could be in registered 55+ Housing subdivisions. To check this out, you can visit the State of Florida's 55+ registry page. Just click on the following link for a list of such subdivisions/parks from the state site: http://fchr.state.fl.us/housing_directory/search/Pasco/County  If in doubt, ask me, and I will get the information for you.

If you would like to contact me about these or any other homes, you can call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You can also contact me if you have a property that you would like to sell. As you can see, I use the internet a lot and that is crucial when selling a home today!

You are also welcome to visit my main webpage at: http://www.jelwell.century21bnr.com/