The 2011 Florida legislative session ended late last night and the Florida real estate market scored some impressive victories as everything was said and done.

Here’s a synopsis of some of the more important real estate changes:

Tax relief for non-homesteaded owners and first-time buyers – Voters in 2012 will get a chance to adopt HJR 381 which will reduce the yearly assessment cap on non-homestead property from 10% to 5%. It would also give anyone who hasn’t had a homestead exemption in Florida for three years a property tax discount of 50% of the home’s assessed value, not to exceed the median home price in that county. This additional first-time homestead owner exemption phases out for the property owner over five years while their Save Our Homes is phasing in. The measure also allows the Florida Legislature to prohibit assessment increases when property values fall. Currently, the Legislature does not have the power to prevent local governments from “recapturing” the tax revenues that Save Our Homes shields during a rising real estate market.

Continue Reading Florida Real Estate: 2011 Legislative Update

Tags: Florida, legislature, new laws, real estate

The government sponsored GSEs Fannie Mae and Freddie Mac have announced new standard guidelines for Loan Servicers to follow during the foreclosure process.

Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco said “by the end of 2011, foreclosures under Fannie Mae and Freddie Mac must follow the same procedures and Loan Servicers under Fannie and Freddie will be rewarded if they perform well and punished if they do not.” In addition, the GSEs hope the new guideline will help minimize taxpayer losses by ensuring that (Fannie and Freddie) loans are serviced more efficiently and fairly.

Under the new guidelines:

• Loan servicers cannot work with homeowners on their loans while simultaneously moving forward with a foreclosure, called a “dual track” by FHFA.

Continue Reading Fannie and Freddie Announce Foreclosure Guidelines

Tags: Florida, foreclosures, mortgages, real estate, sellers

According to a couple of articles I read in the Sunday papers this morning, the IRS has released additional guidance for homeowners that have negotiated a loan modification or short sale and need to understand how to deal with their canceled mortgage debt.

Here’s a breakdown of the key points in their latest guidance:

• First and foremost, the debt canceled by your lender must have been used by you to “to buy, build or substantially improve your main principal residence.”
• Second, you cannot deduct forgiveness on debt for second homes, investment properties, or seasonal properties you occupy for less than 6 months a year.
• Third, refinanced debt that was used for non-qualifying purposes – tuition, a new car, paying off credit card debt, etc., does not qualify.

Continue Reading IRS Guidance for Forgiven Mortgage Debt

Tags: foreclosures, IRS, mortgages, taxes

Back in January of last year, HUD announced it was waiving its rule of prohibiting the 90 day waiting period for obtaining an FHA mortgage on a flipped property. The change was originally intended to temporarily help boost the sagging housing market and was set to expire on January 31, 2011.

On Friday of last week, FHA Commissioner David Stevens extended the “anti-flipping rule” waiver through January 31, 2011, and said the move was based on HUD’s intention to help “accelerate the re-sale of foreclosed upon homes in neighborhoods struggling to overcome the possibility of property abandonment and blight.”

Continue Reading FHA Extends 90 Day Property Flipper Waiver

Tags: FHA, HUD, mortgages, real estate

A rule change proposal from the Consumer Product Safety Commission would look at pools and spas in short-term rentals, including those in single-family homes, and consider them public facilities bound by the U.S. Virginia Graeme Baker Pool and Spa Safety Act.

The new proposed definition would define public accommodations facility as “an inn, hotel, motel, or other place of lodging, including, but not limited to, rental units rented on a bi-weekly or weekly basis.”

While other requirements will also apply, the Act specifically mandates safety rules for drain covers and will supersede any weaker state laws governing pool safety.

To read the complete Virginia Graeme Baker Pool and Spa Safety Act (PDF format), go to: www.cpsc.gov/pssa.pdf

Continue Reading Pool Safety Rules May Apply To Short-Term Rentals

Tags: Florida, living, real estate