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Florida gets $418 million for distressed homeowners
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www.BuyMiami.netFlorida was awarded $418 million of federal stimulus spending on Friday to help homeowners who are unemployed or who owe more on their mortgages than their homes are worth.
Treasury officials disclosed the funding for Florida and four other states hit hardest by unemployment and the housing foreclosure crisis.
Homeowners in South Florida are eagerly awaiting details of this program, which was announced by President Obama last month.
The awards come from a $1.5-billion Innovation Fund for the Hardest Hit Housing Markets.
Florida will get $418 million, California $700 million, Michigan $155 million, Arizona $125 million and Nevada $103 million.
The Florida Housing Finance Corporation, which will handle the program in the Sunshine State, must submit a plan to Treasury by April 16 to say how it intends to help the unemployed and “underwater” homeowners. The plan must be approved by federal officials.
That’s when consumers will get a better idea of who will qualify, what form the aid will take and how to apply for it.
Treasury officials also released guidelines telling state agencies how they might use their allotments. Options include:
--Modifying mortgages or giving lenders an incentive to forgive a portion of loans to make payments affordable.
--Paying down part of a mortgage to make it possible to modify the rest of it.
--Making it easier to complete “short sales,” in which homes are sold for less than the mortgage.
--Allowing owners to give up their deeds to avoid foreclosure.
--Aiding unemployed borrowers to help them avoid foreclosure.
--Giving incentives to lenders to reduce or modify second liens on mortgages.
The program must be limited to those who owe no more than $729,750. State agencies may choose to target low- and moderate-income borrowers.
More specific information will come from the Florida Housing Finance Corp., a state-funded agency, which promises to provide updates for consumers on its website: FloridaHousing.org.
Source: http://weblogs.sun-sentinel.com/news/politics/dcblog/2010/03/florida_gets_418_million_for_d_1.html
South Florida pending home sales on the rise
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www.BuyMiami.net Pending home sales in South Florida increased in February amid a glut of cheap homes and condos. National sales slipped due to weather woes.
Pending home sales in Miami-Dade and Broward counties were up in February, as low prices and a tax credit for first-time home buyers appeared to drive sales.
In Miami-Dade, the number of people who agreed to purchase a home in February was up 9 percent versus January at 9,164 homes and condos. Compared to year-ago levels, the number of pending home sales was up 61 percent, the Realtor Association of Greater Miami and the Beaches reported Thursday.
In Broward County, pending home sales increased 4.7 percent versus January to 7,791 homes. Compared to last year, pending sales in Broward were up 62 percent.
Pending sales are recorded when a contract has been signed but the transaction has yet to close.
Most pending sales close in one or two months, making the data a good barometer of future sales.
One factor that may be driving the figure is the growing number of condominiums and townhomes priced under $250,000.
According to Condo Vultures, a Bal Harbour-based consultancy, 53 percent of all townhomes and condos for resale in Miami-Dade are priced under $250,000. For Broward that figure is 65 percent; and in Palm Beach County the number is 51 percent.
``Residential real estate prices have tumbled significantly since the peak of the market in the fourth quarter of 2005,'' Peter Zalewski, a principal at Condo Vultures, said in a press release.
``The challenge for many buyers is the under-$250,000 properties are increasingly located west of Interstate 95 in the suburban areas of South Florida.
``Prices east of Interstate 95 in the coastal areas have continuously crept up as buyers have associated the proximity of water with quality,'' he said.
National figures for pending home sales, which run one month behind the local data, fell sharply in January, a sign that demand for housing is sinking this winter as stormy weather slams Eastern states.
Record snowstorms in January and February had many Americans shoveling sidewalks and driveways instead of combing through listings for open houses. Partly as a result, an index that tracks sales agreement showed a 7.6 percent drop from December to a seasonally adjusted January reading of 90.4, the National Association of Realtors said Thursday.
It was the lowest reading since last April and a disappointment to economists, who had expected it would rise to 97.6.
The weakness, however, was not confined to the wintry Northeast. The biggest month-to-month drop was in the West, where sales fell 13 percent. Sales fell almost 9 percent in the Northeast and Midwest and 2 percent in the South.
The weather isn't the only culprit, wrote Jennifer Lee, an economist with BMO Capital Markets. ``The impact of government incentives . . . appears to be running out of steam, which is, frankly, a scary thought,'' she wrote.
Source: http://www.miamiherald.com/2010/03/05/1513489/pending-home-sales-on-the-rise.html
BY JIM WYSS
jwyss@MiamiHerald.com
Labels: 2010/03/05/1513489/pending-home-sales-on-the-rise
Florida's population pops back up
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www.BuyMiami.netLast year Florida's population declined by 57,000 residents, the first such drop in residency in the state since the troops went back up north after World War II. Pundits predicted that Florida’s powerful growth engine had, like many of its citizens, gone into retirement. Time Magazine dubbed Florida, “the sunset state.”
But, after living through a season of sub-zero temperatures, approximately 40% of that number, about 23,000 people, realized that there is a very good reason that Florida is nicknamed, “the sunshine state,” and they filed back in.
Florida’s previous annual average population growth averaged about 300,000 people per year since the late 1940s. During the housing boom from 2003-2006, numbers of those moving in surged to almost 400,000 per year. Compared to these historic migrational highs, the 23,000 new arrivals are a drop in the population bucket. Nonetheless, that relatively small influx shows that Florida still retains its allure for those seeking residence in a year-round climate of comfort.
The Bureau of Economic and Business Research suggests that gains in Florida’s population are not likely to reach their former, high averages until 2014 -2015. This may be an indicator that the decline in Florida’s economy is slowing. However, the slower growth rate also indicates that Florida’s economic growth can no longer rely solely on the impetus provided by an influx of new residents.
According to Sean Smith, Director of the Institute for Economic Competitiveness (IEC), this surprising pop in population is likely to produce a multiplier effect. Historically, areas that have attracted rapid growth will attract businesses and job seekers.
However, no matter how attractive its climate, Florida is not likely to experience larger leaps in population growth until two significant events occur: first, the state must find a way to generate more jobs; second, the nation’s real estate malaise must improve to the point where retirees in the other 49 states can sell their homes so they can move to Florida. According to the IEC, and to Warren Buffet’s recent statements, that is not expected to occur until next year.
Despite this year’s rate of marginal growth, Florida’s population is expected to reach 25 million people by 2035, which is an increase of 25% over its current figure of approximately 20 million residents.
During the last decade, according to the U. S. Census Bureau ,Florida’s Flagler County, gained the distinction of being the fastest growing county in the county based on percentage of population growth. Unfortunately, along with that growth rate, the county is now faced with the dubious honor of having an unemployment rate of 16.9%, far higher than the 11.7% for the rest of Florida. Nonetheless, Flagler’s growth rate is predicted at 109% over the next 30 years, surpassed only by Sumter County’s population expectation of 111% growth.
Perhaps more startling than the predictions of population growth are these thoughts about condominiums from the consulting company, Metrostudy. This firm tells the Palm Beach Post that the population growth that sweeps into Florida by the middle of this decade will not only fill the current glut of vacant condos in South Florida, but will create in a new wave of condo building before 2020.
Source: http://www.huliq.com/1/91818/floridas-population-pops-back
Written by Marc Jablon. Marc is a real estate analyst based in Florida and is with Realty Associates.
marcjablon@yahoo.com / 561-213-6139
www.MarcJablonHomes.com
Miami-Dade ruling shows banks may be fined for delays in condo foreclosure sales
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www.BuyMiami.net Can Florida banks be held financially accountable for purposely delaying condo bank foreclosure sales? A new South Florida circuit court ruling says yes.
Amid a growing clamor for Florida banks to bear more of the financial burden caused by widespread condo foreclosures, the Miami-Dade Circuit Court case settled last week shows an example of associations turning more often to courts for relief from revenue losses tied to the state's condo crisis. And it could pave the way for other South Florida condo associations faced with stalled foreclosures caused by lenders.
The King Cole Condominium Association in Miami Beach filed a motion against Deutch Bank National Trust Company, alleging it purposely stalled the foreclosure sale of a particular unit.
The unit owner has been behind in association payments for about three years, court documents show, and the unit was in foreclosure limbo for two of those years, in large part because of bank problems or inaction.
Why would a financial institution want to slow condo foreclosure sales?
To avoid paying its share of association fees as required by law, say critics such as David Cohen, the president of the King Cole, a community of 285 condos.
"It's not exclusively the bank delays that caused our situation," Cohen said. "Sometimes it is court delays, and sometimes the delays are caused by unit owners. But this ruling could help us with delays caused purposely by banks."
Miami-Dade Circuit Court Judge William Thomas sanctioned Deutch Bank for not sending a representative to a foreclosure sale as required by an earlier court judgment, a move that automatically cancels a sale date, and for not publishing a public notice in a local newspaper in time for another foreclosure sale date, again causing the sale cancellation.
Although Deutch did not offer explanations in court for the delays, its attorney argued that Florida courts are not allowed to force banks to pay condo association fees. Another recent ruling by the 3rd District Court of Appeals in Florida held that a bank could not be ordered to pay monthly maintenance fees before obtaining title to a unit.
Thomas' ruling, however, sanctioned Deutch for improper conduct related to the foreclosure case. The bank was ordered to pay about $7,300 in sanctions to the association and $2,000 to cover its legal fees.
"Thomas' order is not a precedent," meaning that other judges don't have to follow it, said community association attorney Jed Frankel, who represented the King Cole association. "But sanctions like those imposed in this case can be a useful tool to judges facing similar purposeful delays by banks."
Legal experts say such rulings often serve as guidelines for cases that follow.
As a part of the condo crisis, some banks delay foreclosures to avoid having to pay their shares of association assessments as required by law, Frankel said.
Florida limits a bank's responsibility to a mandated cap, the amount that a bank owes an association when it takes title of a condo via foreclosure.
For condo associations, the cap is six months of past-due assessments or 1 percent of the mortgage amount, whichever amount is less.
For a condo unit with regular monthly assessments of $200, a bank could owe as much as $1,200 of past-due assessments to be due within 30 days of the bank taking title of the unit.
For homeowner associations, the cap is 12 months of past-due assessments or 1 percent of the mortgage amount, whichever is less.
Source: http://www.sun-sentinel.com/business/realestate/condos/fl-bank-sanction-vasquez-0303-20100302,0,3399447.column
Daniel Vasquez can be reached at condocolumn@SunSentinel.com or 954-356-4219 or 561-243-6686. His condo column appears every Wednesday in the Business section and at SunSentinel.com/condos. Check out Daniel's Condos & HOAs blog for news, information and tips related to life in community associations at sunsentinel.com/condoblog You also can read his consumer column every Monday in Your Money and at SunSentinel.com/vasquez
Fannie Mae Asks U.S. Treasury for $15 Billion More in Aid
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www.BuyMiami.netFannie Mae, the mortgage finance giant, reported a 2009 annual loss of $74.4 billion as the U.S. commercial and residential mortgage market continues to lag the rest of the economy in emerging from crisis.
The Washington, D.C.-based company was put under federal conservatorship with its sister company Freddie Mac in 2008 after the firm suffered deep losses due to crisis in the real estate market.
Last Friday, Fannie Mae asked the U.S. Treasury for $15.3 billion in additional funding.
Fannie Mae disclosed total non-performing loans, or loans that are in default, of $216.5 billion as of Dec. 31, 2009, up from $119 billion at the end of 2008. The losses suffered in the latest quarter were mostly caused by such loans in default.
"We expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury," Fannie Mae told Reuters.
In a statement, the company reiterated its mission in sustainable home-ownership for Americans. "We continue to work closely with our industry partners and the government to reach every borrower we can and to address rising foreclosures," Fannie Mae CEO Mike Williams said in a statement. "Our overriding objective is keeping people in their homes whenever possible."
Source: http://www.theepochtimes.com/n2/content/view/30504/
Lennar and Starwood Land Ventures Completes Strategic Deal on Prime Homesites Across Florida
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www.BuyMiami.net Major deal for key parcels shows new growth opportunities in current market
MIAMI, Feb. 25 /PRNewswire-FirstCall/ -- Lennar Corporation (NYSE: LEN and LEN.B) – In a deal between one of the nation's largest homebuilders and one of the nation's premier real estate investment firms, Lennar Corporation announced today that it has closed a deal with Starwood Land Ventures LLC to acquire or option more than 2,700 homesites in 38 communities across Florida. These land holdings constitute one of the most desirable real estate portfolios to come to market in years.
The homesites are part of the extensive Florida holdings formerly held by TOUSA Inc. that Starwood acquired at auction in late January. The Florida homesites are located in first-time homebuyer, master planned, active adult and premier golf course communities in the Tampa, Orlando, Jacksonville and Southeast Florida markets where Miami-based Lennar plans to build single-family homes, townhomes and garden villas priced from the low $100,000s.
"We are very pleased to work with Starwood on this transaction and we view this deal as a major step forward for Lennar's growth in the State of Florida," said Fred Rothman, Regional President for Lennar. "These new communities will complement our existing operations. We have great designs and floor plans in place for each of the communities and our team is ready to build beautiful new homes at great prices that will appeal to savvy buyers."
Mike Moser, East Region President of Bradenton-based Starwood, said "Starwood chose Lennar as its preferred Florida homebuilder because of Lennar's proven track record for performance and quality."
"Lennar is one of the nation's premier homebuilders and we trusted their ability to help us maximize our return on investment," Moser said. "Lennar's geographic diversity and depth of operations throughout Florida was aligned perfectly with the portfolio we purchased in the bankruptcy auction."
Jim Bavouset, Lennar's Regional Vice President for Acquisitions, said "Lennar was pleased to work with Starwood on the transaction as their position and expertise in the residential real-estate market had made the firm one of Florida's most prominent real estate investors."
"Lennar's unwavering commitment to the State of Florida is enhanced by Starwood's market-changing acquisition," Bavouset said. "We are excited to continue to grow our business in Florida and look forward to a long relationship between all the Starwood and Lennar associates whose hard work brought this transaction together."
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides primarily mortgage financing, title insurance and closing services for both buyers of the Company's homes and others. Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, www.lennar.com.
Starwood Land Ventures, LLC is a Bradenton, FL, based residential real estate investment firm focused on land acquisition, development and financing nationwide. The firm is primarily funded by an affiliate of Greenwich, Conn. based Starwood Capital Group Global, a privately held international real estate investment firm founded in 1991. Starwood Land partners with builders, developers, lenders and landholders and provides creative solutions to recapitalize assets with both debt and equity. The firm also purchases debt and specializes in the acquisition, entitlement and development of large, master-planned communities, which may include mixed-use components. Through its platform of partnerships with leading development firms across the country, Starwood Land and its experienced team aim to be the capital partners of choice to land owners, developers and builders. For more information about Starwood Land, visit www.starwoodland.com.
Starwood Capital Group is a private, U.S.-based investment firm with a core focus on global real estate. Since the group's inception in 1991, the firm, through its various funds has invested more than $6 billion of equity capital, representing $21 billion in assets. Starwood currently has approximately $13 billion of assets under management. Starwood maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C., London, Mumbai and Tokyo. Starwood has invested in nearly every class of real estate on a global basis including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets. Starwood and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets. For more information about Starwood Capital Group, visit www.starwoodcapital.com.
Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2009. We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.
Source: http://www.prnewswire.com/news-releases/lennar-and-starwood-land-ventures-completes-strategic-deal-on-prime-homesites-across-florida-85403472.html
Tips for first-time homebuyers
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www.BuyMiami.net Time is running out for potential homebuyers to take advantage of the First-Time Homebuyer Tax Credit.
So we solicited tips from five experts in the field to help potential homebuyers navigate what can be a complicated market.
Real estate agentRole: The Internet can be a great tool for a potential homebuyer, but Willinette Cohen, a Realtor with Prudential J.R. Carucci Real Estate Inc., said it is helpful to work with a real estate agent.
Tip 1: Cohen recommended that potential homebuyers work with lenders to become pre-qualified. “It makes your offer a stronger offer,” she said.
Tip 2: “I would always ask to see a property disclosure.”
The disclosure will list all attributes the real estate agent knows about the house.
“As a Realtor, there’s nothing that we’re aware of that we would not tell a potential buyer,” she said.
Banker/lenderRole: “There are still avenues for financing,” Judy Rowlands, a senior mortgage consultant with First Niagara, assures first-time homebuyers.
But lenders have become more conservative. Rowlands said she looks for applicants with credit scores of 680 or better, an employment history of at least two years and savings.
Tip 1: When applying for pre-approval, potential homebuyers should ask about their loans, Rowlands said, such as if there is a penalty for prepaying principal on the loan.
Tip 2: Rowlands said potential buyers should also ask about programs that may be available to them. First Niagara, for example, has a First Home Club open to first-time buyers who make less than $52,240 annually.
LawyerRole: A purchaser’s attorney is essentially an advocate for the buyer going into the closing, said William Calli Jr., an attorney with Calli, Calli & Cully.
Tip 1: Not hiring an attorney could save you some money in the short run, said Calli, but if problems arise in the closing process, it could cost more to fix the problems later.
Tip 2: The main misconception is assuming the lawyer representing the bank is representing the buyer as well, Calli said.
Home inspectorRole: Don Archer, a home inspector with Advanced Home Inspection Service, said the role of the home inspector is to educate potential homeowners. A basic inspection typically evaluates structural integrity, as well as the electrical, plumbing and heating systems.
Tip 1: Most often, Archer said, problems found by a home inspector will not need to be immediately addressed, but occasionally a serious issue is discovered.
Tip 2: Having a home inspection is optional, but Archer said the report is valuable. “I think it’s very important to have the education to pass on to our clients – what is normal wear and tear and what may need to be improved,” Archer said.
Tax adviserRole: Filing for the credit is something homeowners can do on their own, but Peter Brown, a tax adviser with H&R Block, said, “You might want to have somebody walk you through it.”
Tip 1: New homeowners don’t have to wait to take advantage of their credit, Brown said. “They can file an amendment against their 2009 taxes and get the credit now.”
Tip 2: Brown suggested new homeowners invest at least $4,500 of the credit back into the house in green updates. The first $4,500 in environmentally friendly improvements can be deducted from the 2010 taxes.
About the Tax CreditTo apply for the First-Time Homebuyer Tax Credit, a binding contract must be entered into on or before April 30, 2010, and the closing must take place before June 1.
To qualify, a single homeowner must make less than $125,000 a year and homeowners filing jointly must make less than $150,000 annually. The purchase price of the home cannot exceed $800,000.
The credit allows first-time homeowners – those who have not owned a principal residence for the past three years – to claim 10 percent of the purchase price, up to $8,000.
Additionally, on Nov. 7, 2009, the First-Time Homebuyer Tax Credit was expanded to include a tax credit for 10 percent of the purchase price of the home – up to $6,500 – for homeowners who have lived in their homes continuously for five out of the previous eight years.
Source: http://www.uticaod.com/business/x1487806368/Tips-for-first-time-homebuyers
By LISA KAPPS
Observer-Dispatch
For more information about the First-Time Homebuyer Tax Credit, visit www.federalhousingtaxcredit.com.
Veteran Consultant Cautions Banks' Dumping Foreclosed Condos Are Ruining Downtown Miami Real Estate Market
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www.BuyMiami.netMIAMI, FL) -- Jack Studnicky, an internationally known real estate consultant, lecturer, trainer and workout specialist for 50 years, warns the current dumping of financially distressed residential condominiums in the Greater Miami axis, could damage the development and financing in the luxury condo market for years to come.
In a specially prepared White Paper, he states:
"There are some great deals on condominiums in downtown Miami right now. Some banks holding foreclosed condos in luxury high rise buildings along Biscayne Bay from the Rickenbacker Causeway north are offering door buster prices.
"These 'below cost' of construction prices are great for homebuyers who seek an amenity rich, knockout-view lifestyle. But the fire sale prices banks are setting now will play a critical role in the decline of the downtown real estate market.
"This downward spiral may be so steep; it could take years for the market to come back strong enough represent the actual cost of building the condos.
"To stop the downward trend, banks need to draw a line in the sand on pricing.
History repeats itself
"I've seen the Brickell Avenue effect, the pressure to sell below cost, when I entered the business of marketing foreclosed condos. In the 1970s, Chase Trust gave me an opportunity to blow out 175 Maryland beachfront condos.
Brickell Avenue skyline
"I had to hustle because with winter approaching, the selling season was nearing a close. In less than six weeks I sold every unit.
"The bank was thrilled. I had a pocket full of gold and my phone was ringing off the hook with requests from other financial institutions to help them dump their foreclosed properties.
"But the downside of the blowout pricing was drastic. It took more than a decade for that market to recover.
"Homeowners who purchased their condos when they were priced above the cost of construction saw their home values plummet.
"New development became stagnant because the market was saturated with underpriced homes.
"Economic reality dictated that no developer would start any new building in the area while existing condos were selling below construction costs. Loan officers would not lend under those conditions, so commercial banking became anemic.
Why the giveaway?
"Downtown Miami condominium supply and demand is way out of balance. Supply is high while normal demand is non-existent.
"This is facilitating panic selling. On top of that, real estate agents are more than happy to support any bank's lowball pricing.
Rickenbacker Causeway
"These agents, understandably, want a commission check now, not next holiday season.
"Fire sale pricing is encouraging bulk buyers to swoop in like vultures to snap up blocks of condos. These latest flippers are also going for the quick buck.
"The great deals in downtown condos are attracting Latin American buyers who are purchasing for a home away from home.
"They realize this is an excellent time to obtain a second home in the U.S. capital of Central and South America. But there's not enough of them to create a seller's market.
"The continued panic selling and bulk buying will result in the stagnation of future financing and development of Miami's luxury condo market.
"Banks holding boatloads of foreclosed Miami condos need to take a deep breath and stand firm on realistic pricing, which should be at least cost of replacement.
"There is no need to comply with an archaic and misdirected appraisal process as these bargain hunters are paying cash."
Jack Studnicky has been a member of the Institute of Residential Marketing since 1988. As a spokesperson for the National Association of Home Builders, (NAHB), he has testified before Congress and appeared on national TV.
Studnicky has provided training and lectured at most of the major home builder conventions in America. He has been published or written about in many of the top newspapers and trade publications in the United States.
In his career to date, Studnicky has directed the sales of over $2 billion dollars worth of residential real estate. He is an industry-acknowledged REO Specialist and has completed over 50 successful workouts.
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-miami-condo-sales-brickell-avenue-condo-sales-jack-studnicky-miami-condo-foreclosures-chase-trust-institute-of-residential-marketing-2072.php
Obama sets aside more money for underwater home owners
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www.BuyMiami.netSouth Florida homeowners who lost their jobs or owe more than their property is worth could be in line for a big new dose of federal housing aid.
President Barack Obama on Friday unleashed $1.5 billion to help homeowners in Florida and other states hit hardest by unemployment and a flood of foreclosures.
"It's going to allow lenders to help homeowners who are underwater," Obama said, referring to those whose houses are worth less than their mortgages. "And it will help folks who've taken out a second mortgage modify their loans."
The announcement raised hopes that the aid could be used to help homeowners avoid foreclosure by making payments affordable.
Four of every 10 owners of single-family homes with a mortgage in South Florida owe more than the property is worth, according to Zillow.com, a real estate research firm based in Seattle.
While Florida's property values have plunged, the unemployment rate statewide has soared to nearly 12 percent.
State officials were delighted by the unexpected burst of federal spending and began devising plans to apply for it.
"The exciting thing about it is that we are looking at actual help, real money on the street, for a fair number of people who are in a difficult situation," said Cecka Rose Green, spokeswoman for the Florida Housing Finance Corp.
The money will not flow for weeks or months, however.
The Treasury Department will decide over the next two weeks how to dole out the $1.5 billion among Florida and at least four other states – California, Nevada, Michigan and Arizona. State housing agencies will then submit plans for how to use it to meet local needs.
The Florida Housing Finance Corp., a state-funded group, cannot refinance loans, Green said, but may be able to bring in other agencies and partners to help homeowners.
Some analysts foresee short-term loans at no interest or low interest or deferred payments to help unemployed Floridians keep their homes until they find jobs.
"It could be used to pay off second loans so that whoever holds the first mortgage can refinance it," said Mike Larson, a housing analyst with Weiss Research in Jupiter.
"This is an add-on program targeted at those states where the crisis is most acute, and Florida is at the top of the list," Larson said. "It's not some huge game-changer, but another way to help."
Source: http://articles.sun-sentinel.com/2010-02-19/business/fl-obama-housing-help-20100219_1_florida-housing-finance-corp-obama-sets-federal-housing-aid
William E. Gibson can be reached at Wgibson@SunSentinel.com or 202-824-8256.
