The days of building your dream home from the ground up appear to be in jeopardy.

 Lending institutions have become increasingly wary of issuing residential construction loans, even to qualified buyers, as defaults and outstanding loans continue to pile up.

About a sixth of all construction loans were outstanding or on the brink at the end of June, according to bank reports filed with the Federal Deposit Insurance Corporation.

The construction lending delinquency rate rose to 18.2 percent in the third quarter of 2009, nearing the peak of the 2001 recession when the rate hit 19.2 percent, according to a recent Bloomberg story.

Commercial
Construction home loans  are inflicting most of the damage on lenders. But real estate construction loans continue to be a losing proposition for scores of banks. For example, the City National Bank of West Virginia recently announced that its toxic assets mostly consisted of residential construction loans at The Greenbrier Resort.

Instead, banks are increasingly focusing on loans solely for purchasing and refinancing homes. Some have even abandoned residential construction loans all together — both JP Morgan Chase and Citi Mortgage shut down their programs this year.

In other words, the lending pool has thinned considerably for families looking to buy land and build from scratch. Combine that with a considerably tighter credit environment and suddenly the all-American concept of “building your dream home” is on the verge of disappearing.

“These families are not in the same bracket of the builders that have over built subdivisions,” Rick Gomez, owner of San Diego-based Nationwide Construction Loans, said in a recent news release. “These are the families that just want to build the American dream on their own land.

Despite the growing caution, there are still lenders out there willing to take on residential construction loans in this climate. Prospective homeowners looking to secure a  residential home loan need to prepare for a potentially turbulent search

To boost their chances of obtaining a loan today, buyers should be prepared on a few key fronts:

Know the story
Construction loans are the epitome of the “story loan.” The lender wants to consider the project background and the prospective borrower’s story before making a decision. If you don’t have a solid, well-crafted story behind the intended purchase, find one

Scour the Internet
Don’t be afraid to include online sources while shopping for lenders. But, as with any potential lender, be sure to investigate their track record and history of working with construction loans.

Check the Credit
It’s shocking how many prospective borrowers fail to reconcile errors and inconsistencies on their credit reports. About one in four credit reports has an error significant enough to quash a loan. This is especially crucial in this current market.

Congratulations to Justin Shirley & Shirley International Realty, as he represented buyers of Ritz Carlton Beach Residence Penthouse Unit# 1207 on Lido Key, Sarasota, FL.. The asking price for this condo was $3,500,000, & Shirley International Realty successfully negotiated a “Fully Furnished” purchase price of $2,850,000 for his clients. The purchase closed 12/31/2009. This represents a valueable purchase in Ritz-Carlton’s 5-Star development. Below are Marketing Details of the Condo:

1300 Benjamin Franklin, #1207
Sarasota, Fl 34236
4,530 Square-Feet

“Penthouse in the SKY” Managed by the Ritz-Carlton.  Truly a “one of a kind” design! From the moment that you park in your private garage, step into your private elevator that opens into your private lobby, you will be mesmerized with the magnificent ever-changing Gulf of  Mexico, spectacular sunsets and captivating bay and city views. Three bedrooms, family room, and  office 4530 sq. ft. with  10’8″ ceiling heights (except where dropped). Kitchen with  luxurious custom cabinets, granite countertops, Stainless steel  appliances, breakfast bar.  This is a word class ocean-side residence complete with the security of a private gated entrance, in house concierge service, heated Pool, Spa, and a summer kitchen on your private terrace.   The Beach Residence shares the same privileged location as the Ritz-Carlton Members Beach Club conveniently accessed by a covered walkway.  The Beach Residence is only a short distance from Sarasota’s quaint downtown area, cultural and entertaining venues, restaurants, shopping and within walking distance of famous St. Armands Circle.

For  Questions or Interest in Purchase of Luxury Condos in Sarasota, Fl, Contact Justin Shirley @ 941-448-4872

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Fla.: Existing home, condo sales up in November

ORLANDO – Dec. 22, 2009 – Florida’s existing home sales rose in November, marking 15 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.

Existing home sales rose 61 percent last month with a total of 14,026 homes sold statewide compared to 8,694 homes sold in November 2008, according to Florida Realtors. Statewide sales of existing condos increased 111 percent last month compared to November 2008’s sales figure.

For the second month in a row, all of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in November. A majority of the state’s MSAs have reported increased sales for 17 consecutive months.

“The extended and expanded federal homebuyer tax credit will continue the positive momentum of the housing sector’s recovery – people will want to take advantage of this incredible, not-to-be-missed opportunity to buy a home of their own in Florida,” says 2009 Florida Realtors President Cynthia Shelton, CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando.

“For 15 months now, statewide sales of existing single-family homes in Florida have increased each month compared to the year-ago figures,” Shelton says. “The continued, gradual absorption of housing inventory will help stabilize home prices. National research notes that housing affordability is at its peak and the highest on record: Along with still-low mortgage rates, it means that the buying power of a typical family has never been better.”

Florida’s median sales price for existing homes last month was $139,000; a year ago, it was $158,200 for a 12 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in October 2009 was $173,100, down 6.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $297,500 in October; in Massachusetts, it was $287,000; in Maryland, it was $250,210; and in New York, it was $209,900.

According to NAR’s latest industry outlook, home sales are experiencing a pendulum upswing. “Keep in mind that housing had been underperforming over most of the past year,” said NAR Chief Economist Lawrence Yun. “The tax credit is helping unleash pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future. In the second half of 2010, if home values show consistent stabilization or even a modest increase, then home sales could register normal healthy levels.”

In Florida’s year-to-year comparison for condos, 4,889 units sold statewide last month compared to 2,320 units in November 2008 for an increase of 111 percent. The statewide existing condo median sales price last month was $104,400; in November 2008 it was $131,400 for a 21 percent decrease. The national median existing condo price was $172,900 in October 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.88 percent last month, a significant drop from the average rate of 6.09 percent in November 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s smaller markets, the Tallahassee MSA reported a total of 174 homes sold in November compared to 100 homes a year earlier for a 74 percent increase. The market’s existing home median sales price last month was $162,000; a year ago it was $170,00 for a 5 percent decrease. A total of 5 condos sold in the MSA in November, up 150 percent over the 2 units sold in November 2008. The existing condo median price last month was $110,000; a year earlier, it was $95,000 for an increase of 16 percent.

© 2009 Florida Realtors®

1771 Ringling Blvd.
Unit # 1008
Sarasota, FL 34236

$409,000
2 Bedroom, 2 Bath
1,483 Square-Feet

Most Valueable Condo For Sale in Sought-After Rivo @ Ringling! Not a Short Sale or Foreclosure *10th Floor Unit offering Expansive SouthWest Views of Marina, Sarasota Bay, & Downtown Sarasota SKyline! 2 Bedroom, 2 Bath Unit, with Den/Office * Upgraded Throughout * Spacious Floor Plan, Perfectly Maintained * Upgraded Wood Cabinets * Granite Countertops * Stainless Steel Appliances * Sliding Glass Doors Leading to Spacious Lanai & Views of Bay & Downtown Sarasota * His & Her Sinks in Master Bathroom * Garden Tub & Walk-in Shower * Walk-In Closets * Perfect for Young Professional, Second Homebuyer, Retiree, or Anyone Looking to Enjoy the Amenities of Downtown Sarasota * Tenant Currently in Place that Keeps Unit in Immaculate Condition * Great Investment Property as Tenant Would Like to Stay, Generating Immediate Cash Flow on Your Investment * Make this Luxury Condo Your Second Home or Primary Residence * Residents Love this Building * Contemporary Decor & Urban Sophistication * State-of-the Art Fitness Center * Heated Swimming Pool Overlooking City * Located in the Heart of Downtown Sarasota * Owners Lender Will Allow Assumable Mortgage, so Purchase with NO MONEY DOWN * 100% Financing! A Rare Opportunity, & Priced to Sell Quickly * Condo Shows Like a Model* PRICED TO SELL * Call Today!

For Showings Contact Justin Shirley @ 941-448-4872

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156 Blvd. of the Presidents
Sarasota, FL 34236

$525,000
3 Bedroom, 2 Bath
1,804 Square-Feet

Live on St. Armands, Walk to Shops & Dining, Walk to Beach.. Be Part of the Ambiance in this World-Renowned Location! Minutes to Downtown * Charming 3 Bedroom, 2 Bath Home with Pool * Wood Beamed, Cathedral Ceilings * Spacious Living Area * Cozy Up to Wood Burning Fireplace in Family Room * Tile Throughout * Fully Furnished * Plantation Shutters Throughout * Pavered-Lanai Surrounding Pool * Fenced Backyard Ensures Privacy * Tropical Landscaping, Manicured Beautifully * No Deed Restrictions * Home Has High Pride of Ownership & Maintained Very Well * Property Generates $4,000-6,000/Month in Rental Value * Owner Casually Generated $22,000 in Rental Income 2009 * Great Investment * Home is Perfect 2nd Home, Rental Property, or Primary Residence * Own in the Heart of Highly Desirable St. Armands Circle, Offering Epicurean Delights Tantalizing Taste Buds with Award-Winning Cuisine * Lounge in the Atmosphere, Savor the Delicacies Created by Master Chefs, Indulge in the Vintage Wines and Libations * This Cozy Home Puts You There, & Qualifies as Super Investment * Easy to Show * Call Today!

For Showings, Contact Justin @ 941-448-4872

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(Foreclosures Fall.. And Florida Looks like this.. Life is Good & Getting Better)

Foreclosure filings fall 8% in November

WASHINGTON (AP) – Dec. 10, 2009 – The number of homeowners on the brink of foreclosure fell in November, the fourth straight monthly decline, as mortgage companies evaluated whether borrowers were eligible for help.

Nearly 307,000 households, or one in every 417 homes, received a foreclosure-related notice in November, down 8 percent from a month earlier, RealtyTrac Inc. said Thursday. Banks repossessed about 77,000 homes last month, down slightly from October.

Millions of borrowers are still being evaluated for the Obama administration’s foreclosure prevention effort. States are also trying to delay the foreclosure process, temporarily lowering foreclosure numbers.

But the foreclosure crisis is likely to get worse before it gets better.

“We don’t really believe the underlying problems have been resolved,” said Rick Sharga, senior vice president at the Irvine, Calif.-based foreclosure listing service. Many borrowers, he said, “simply aren’t going to qualify” for help.

Foreclosure filings were still up 18 percent from a year ago, and a new wave is expected next year as unemployment remains high and borrowers fall out of loan modification programs.

Nevada posted the nation’s highest foreclosure rate, followed by Florida, California, Arizona and Idaho. Rounding out the top 10 were Michigan, Illinois, Utah, Maryland and New Jersey.

Among cities, Merced, Calif. had the highest rate, with one in 83 homes receiving a foreclosure filing. It was followed by fellow California cities Stockton and Modesto, and Cape-Coral-Fort Myers, Fla.

Las Vegas, which had been No. 1 on that list for four-straight months, fell to No. 5. Nevada recently adopted a program that requires mediation before banks can seize a property.

Nationwide, a report Wednesday showed only about 10,000 homeowners received permanent loan modifications this fall under the Obama administration’s mortgage relief plan, more evidence of serious failings in the government’s effort.

Elizabeth Warren, chair of a watchdog panel, told reporters that the program is “not working” and that it had failed to make a dent in the record level of foreclosures. More than 14 percent of homeowners with a mortgage are either late on their payments or in foreclosure, and that number is expected to keep rising as unemployment remains stubbornly high.

The Treasury Department is expected to release updated figures Thursday, but data through October showed that fewer than 5 percent of homeowners who completed the trial periods had their mortgage payments permanently lowered to more affordable levels.

Under the program, eligible borrowers who are behind or at risk of default can have their mortgage interest rate reduced to as low as 2 percent for five years. They are given temporary modifications, which are supposed to become permanent after borrowers make three payments on time and complete the required paperwork, including proof of income and a hardship letter.

Copyright © 2009 The Associated Press, Alan Zibel, AP real estate writer

WASHINGTON (AP) – Dec. 16, 2009 – Construction of new homes, helped by better weather, rebounded in the U.S. in November following a setback in the previous month.

The gain is a hopeful sign that the housing recovery is continuing, a development viewed as critical to lifting the overall economy out of recession.

The Commerce Department says construction of new homes and apartments rose 8.9 percent in November to a seasonally adjusted annual rate of 574,000 units. The gain represented strength in all areas of the country although the increase was slightly lower than economists had expected.

Applications for new building permits were also up, rising 6 percent to an annual rate of 584,000 units, a stronger showing than economists predicted.

Copyright © 2009 The Associated Press, Martin Crutsinger

Justin Shirley
CEO
Shirley International Realty
941.448.4872
www.JustinShirley.com

CNL occupies two towers that flank Orlando City Hall downtown.

Orlando-based CNL Financial Group and Sydney’s Macquarie Group have joined forces for the first time to establish a new global REIT, CNL Macquarie Global Growth Trust Inc., which will pursue opportunities in just about every sector of commercial real estate in various areas around the world. The partners can afford to think big, as the proposed total offering for the REIT is $1.5 billion.

CNL going on a global buying spree

ORLANDO, Fla. – Oct. 27, 2009 – CNL Macquarie Global Growth Trust Inc. announced its first public offering of $1.5 billion common shares for a new real-estate investment trust, with CNL Financial Group of Orlando serving as managing dealer.

The move marks the first partnership between the CNL group and the Australian-based Macquarie Capital Funds, an affiliate of Macquarie Group Limited, which has more than $189 billion of global assets.

Unlike traditional income-driven trusts, the product announced Thursday is growth-oriented rather than income driven, said a spokesman for CNL. The focus will be on acquiring commercial office, retail, industrial and multifamily properties that may “require repositioning or redevelopment” and that may face financial deadlines or be in markets with growth potential, according to a statement released by CNL on Thursday morning.

As much as 30 percent of those assets are likely to be outside of the United States.

University of Central Florida real estate Professor Randy Anderson said the strategy of pursuing well-placed assets for less than replacement costs is the correct move at this time.

“Right now it’s really important to buy right and buy when the assets are depressed,” Anderson said.

It’s key, he added, to be well-funded with a long view of staying with a property seven to 10 years instead of looking to sell in two or three years.

“You can’t be a musical-chair kind of investor,” he said.

Another consideration is going with an experienced team of investors who know to steer away bargain properties that don’t make sense in the long run, he added. CNL has had an “uncanny” ability to buy those strategic assets when the properties are out of favor, Anderson said.

Founded in Orlando in 1973, CNL Financial group has formed or acquired companies with more than $23 billion in assets, including hotel, retail, restaurant, and senior housing. Macquarie Group Limited, with headquarters in Sydney, was founded in 1969 and operates in more than 70 office locations in 26 countries.

Copyright © 2009 The Orlando Sentinel, Fla., Mary Shanklin. Distributed by McClatchy-Tribune Information Services.

WASHINGTON (AP) – Oct. 27, 2009 – Top Democrats in the Senate are pressing a plan that would extend a popular tax credit for first-time homebuyers but gradually phase it out over the course of next year.

The proposal, by Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., would extend the $8,000 tax credit – which expires Nov. 30 – through March 31. Its value would drop by $2,000 for each of the subsequent three quarters of 2010.

The plan, which could face a vote in the Senate this week, appears aimed at countering a far more generous $17 billion bipartisan plan that would extend the $8,000 credit through June 30, 2010, boost the income cap for eligibility and open the credit to all buyers, rather than first-timers.

Senators are maneuvering to add the homebuyer tax credit extension to legislation to extend unemployment benefits by up to 20 weeks. That bill faces a key test vote on Tuesday.

Supporters say the tax credit has helped revive the housing market and say that if it’s cut off as scheduled at the end of next month, home sales could drop off.

Reid sought to schedule a vote on the competing measures on Monday but was blocked by top Senate Republican Mitch McConnell of Kentucky, who is demanding votes on unrelated GOP proposals.

One such proposal would require people receiving unemployment insurance to be processed through the E-Verify program to prove legal immigration status and would require all federal contractors to use E-Verify. E-Verify is an Internet-based system that employers use to check on the immigration status of new hires.

The Democratic plan also would extend the ability of money-losing businesses to claim refunds on taxes paid during profitable times up to four years ago. All businesses could take advantage of the credit; when passed in February it was limited to smaller companies with annual revenues of $15 million or less.

The provision is especially popular with homebuilders who made huge profits in the housing boom but are struggling today. Critics say it’s a giveaway to some of the very companies that helped build up the housing bubble years ago.

Copyright © 2009 The Associated Press, Andrew Taylor, Associated Press writer

1800 Ben Franklin Dr., #402
$1,670,000
3,964 Square-Feet

SELLER AUCTION @ The Beach Residences on Lido Key, Managed by Ritz Carlton * Offering Sought After Luxury & 5-Star Service to All Residents * This is the BEST Value in Entire Building @ $421/ft2 * This Unit is Being Offered $600,000 Below Fair Market Value * Being Sold Fully Furnished, with Complete Appliance Package * Expansive Floor Plan @ 3,964ft2 * Great Investment as Unit Rents for $12,000/Month in Season, & $10,000/Month out of Season * Gulf & Beach Views From Spacious Terrace, Family Room, & Master Suites * Oversized Tile, Laid on Diagonal, Throughout Living Areas * Private Elevator * Family Room with Wet Bar *  Granite Countertops in Gourmet Kitchen with Top-of-the-Line Cabinetry & Fixtures * Floor Plan Offers 2 Master Suites, Office/Den, & Guest Bedroom * Beach Residence Amenities Include: Valet Service, On-Site Maid Services, Resort-style Pool, State of the Art Fitness, Billiards Room, Full Spa, Social Room, Theatre with Stadium Seating, & Restaurant * Property will be auctioned December 5, 2009 at 2PM CENRAL TIME, Please call for details * This is not a “Bank Auction”, but a “Seller Auction” * Best Value in Beach Residence! Ready to Close Quick

For Private Showings & More Information Contact 941-448-4872

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