{"id":3405,"date":"2010-07-05T11:58:11","date_gmt":"2010-07-05T16:58:11","guid":{"rendered":"https:\/\/turnberryonthegreen.com\/?p=3405"},"modified":"2020-02-17T05:00:54","modified_gmt":"2020-02-17T05:00:54","slug":"homebuyer-tax-credit","status":"publish","type":"post","link":"https:\/\/turnberryonthegreen.com\/?p=3405","title":{"rendered":"Foreclosure"},"content":{"rendered":"

Homebuyer tax credit<\/span><\/h3>\n

The Senate passed HR 5623, which extends the mandatory closing date to qualify for the homebuyer tax credit. The contract deadline does not change – homebuyers must have a contract signed by April 30, 2010 (an exception for active duty military) – but the previous closing deadline of June 30, 2010, has been extended to Sept. 30, 2010. The National Association of Realtors estimates that the approved bill will benefit more than 14,000 deals in Florida.<\/p>\n

<\/p>\n

Florida has second-longest foreclosure process<\/strong><\/h3>\n

TALLAHASSEE, Fla. \u2013 Jan. 5, 2011 \u2013 Once a homeowner falls into foreclosure, the eviction doesn\u2019t happen right away \u2013 in fact, it may take years before delinquent borrowers finally have to turn over their keys.Data by LPS Applied Analytics shows that New York holds the longest average in the nation \u2013 mortgage loans in the foreclosure process in New York have been delinquent for 600 days on average. Loans in foreclosure in Florida, New Jersey Hawaii, and Maine have been delinquent for an average of more than 500 days. Close behind, California and Nevada\u2019s home loans have been delinquent for 461 and 427 days. Meanwhile, Nebraska and Wyoming were found to be the two speediest states \u2014 loans in the foreclosure process are delinquent by an average of 358 days.<\/p>\n

What\u2019s causing the long wait? Some states that use a judicial process have backlogged courts.<\/p>\n

Florida, which has some of the highest numbers of foreclosures in the country, has had to set up separate courts and bring in retired judges to help handle the skyrocketing foreclosure cases. Government officials and agencies also cause foreclosure delays through temporary moratoriums, mandatory mediation sessions, and loan modification or assistance programs, experts say. Plus, mortgage servicers may even cause delays, not wanting to take on the legal and financial responsibilities of owning any more homes. \u201cIt\u2019s hard to get the (investors) who own the notes excited about spending more money to execute a foreclosure. Ironically, the longer these things take, the more it costs.\u201d Source: \u201cForeclosure Process Moves at Snail\u2019s Pace,\u201d The Oakland Tribune (Jan. 2, 2011)<\/p>\n

<\/p>\n

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Investors are collecting rent but skipping out on their own association fees.<\/strong><\/h3>\n

To beat the bad economy, many South Florida investor-owners of homes and condominiums are collecting rent from tenants but skipping out on their own association fees.
\nDoing so sets off a vicious financial cycle. Associations must slash services and raise fees for owners who do pay to make up lost revenue from investors not paying their fair share. But a recent South Florida court decision makes it far easier for community associations to get their hands on that money, particularly when it involves multiple deadbeat investors.<\/p>\n

A Miami-Dade County judge in March ruled that associations can file a single \u201cblanket\u201d receivership order to go after multiple unit owners and their rent payments to cover past due fees.<\/p>\n

Associations are not only able to siphon rent payments to cover overdue fees, but in some cases up to a year\u2019s worth of payments in advance. And already associations are lining up to take advantage.<\/p>\n

Until now, receivership laws that rely on court-approved professionals to act as bill collectors were used on a one-unit-at-a-time basis. But they were rarely tapped by associations because they were costly to file \u2014 upward of $2,500 in filing and attorney fees.<\/p>\n

\u201cIn this upside-down market, some investors are trying to recoup as much money as they can for as long as they can,\u201d said David Arnold, a founding partner with Association Law Group, which represents The Oaks and approximately 200 associations across Florida.
\n\u201cTo do that, they stop paying their mortgage and maintenance fees while collecting rent. They bleed associations for as long as they can.\u201d<\/p>\n

Of 61 units in The Oaks Association (at Miami Gardens, North Miami Beach), about half are in foreclosure and owned by rent-collecting investors. Some have not made a payment to the association in two years. Typically, they pocket about $1,200 a month from each tenant but fail to pay about $250 a month in association. In turn, the association has had to raise fees for those owners who do pay. The Oaks should have been collecting $11,000 in maintenance fees each month, but scraped by on about $3,000 per month.<\/p>\n

The results have been devastating.<\/p>\n

\u201cAt some points this association has been in arrears with every vendor and has been within a day or two of having the electricity and water shut off,\u201d Lopez said. \u201cThe garbage has been cut twice.\u201d<\/p>\n

Since the blanket receivership order, Lopez said four investors in foreclosure have started paying.<\/p>\n

These receivership laws are only being used to collect rent from tenants whose landlords have stopped paying maintenance fees while under foreclosure by the association. And the association itself does not go into receivership; individual owners do.<\/p>\n

Arnold said the phenomenon was not as widespread as it is today when the real estate market was strong and investors were making big profits.<\/p>\n

\u201cToday this is applicable to nearly every association in Florida,\u201d
\nArnold said. \u201cAnd the financial impact is tremendous on every association when just one or two unit owners are doing this.\u201d<\/p>\n

Other associations are following The Oaks\u2019 legal lead. \u201cWe have 10 fillings on the behalf of other associations in the hopper now,\u201d Arnold said.<\/p>\n

That includes The Villas at Tuscany Condominium Association in Sunrise, which has 234 units. \u201cAbout 24 are in foreclosure and another 30 are delinquent, and a majority of those are owned by investors who we know are collecting rent but not paying us and leaving us to struggle,\u201d said association secretary Kristen Torrado. \u201cThat\u2019s why we have to look at this receivership option.\u201d<\/p>\n<\/div>\n

\n
\n
Gregori Arzoumanov<\/span><\/h6>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Homebuyer tax credit The Senate passed HR 5623, which extends the mandatory closing date to qualify for the homebuyer tax credit. The contract deadline does not change – homebuyers must […]<\/p>\n","protected":false},"author":2,"featured_media":14388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[97],"tags":[],"class_list":["post-3405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/posts\/3405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3405"}],"version-history":[{"count":10,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/posts\/3405\/revisions"}],"predecessor-version":[{"id":14567,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/posts\/3405\/revisions\/14567"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=\/wp\/v2\/media\/14388"}],"wp:attachment":[{"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/turnberryonthegreen.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}