Updates on the FHA loan – the local Tampa mortgage market and more – The Duncan Duo Radio Show

    Hear the Podcast at http://www.970wfla.com/cc-common/podcast/single_page.html?podcast=duncanduo&selected_podcast=3-11-12_DD_1331479919_32298.mp3

    Good morning Tampa Bay. Happy Sunday. It’s been a few weeks since we have been live

    here on the Duncan Duo real estate show, but we are here live to answer your questions.

    I have been out of town the last couple of weekends at a real estate conferences and

    learning more and some of it I will talk about today learning more about the real estate

    industry, new ideas and technologies to continue helping our clients we are here to

    answer your questions live. I have Nate Davis with Plant City Mortgages today and

    we are going to talk about the local mortgage market as well as some new initiatives

    that are coming out regarding some of the refinance programs. We are here to answer

    your questions live. You can call us in Hillsborough — 990 9352 and Pinellas  461

    9352 and then toll free — 1 800 969 9352 whether your questions are about buying

    a home, selling a home, investing, financing, mortgages, luxury homes, whatever,

    short sales, whatever your questions, as long as its real estate related, we would love

    the opportunity to help you. So again you can call us at Hillsborough — 990 9352 and


    Pinellas  461 9352 and then toll free — 1 800 969 9352 and again we are live on the

    show today and we would love the opportunity to help you here on the Duncan Duo

    show. So Nate, I hear you are older yesterday..


    NATE DAVIS: yes, I am definitely getting older and am running short of time to get started on the

    boy band: 


    ANDREW DUNCAN: you know, we are going to start that right now.. HAPPY BIRTHDAY TO YOU..

    HAPPY BIRTHDAY… OK I won’t continue that live, everybody would turn off the radio if I

    continue with that. Happy birthday.


    NATE DAVIS:   Thank you very much.


    ANDREW DUNCAN:   Your boy band


    NATE DAVIS:   Yeah. You know.. You know.. Need to get with that.. I am getting too old for that you

    know.. I am looking at a place already.. So better go ahead and get started.


    ANDREW DUNCAN:   Yeah that would be an interesting segment here on the Duncan Duo show .. Our

    boy band segments so.. Anyway, couple of things I want to talk about with you Nate,

    first for those borrowers out there looking at FHA loans, it sounds like FHA is going to

    be increasing the fees that buyers pay on their mortgages, I think that’s something our

    audience needs to know a little bit about. So if you want to touch on that for a minute,

    you know just kind of hit the bullet points of what those changes are going to entail, what

    the costs are going to change for the people that are looking to buy using an FHA loan.


    NATE DAVIS:   All right basically, you know, when you get an FHA loan it’s actually….. it’s a

    government insured product and FHA collects money to insure those loans in two forms.

    They get upfront mortgage insurance premium, which is a fixed amount, currently  1

    percent of the loan amount, which is automatically financed in your loan. If you need a

    hundred grand loan, you actually get a loan for a hundred and one thousand and that

    1 grand is going out to the department of HUD For FHA mortgage insurance. Additionally


    they have a monthly mortgage insurance plan, which they tack onto your loan. Which is

    currently calculated, if you are doing a thirty year fixed rate, it’s 1.15 percent of that loan

    amount. Now they are going to be increasing these figures. I believe for case numbers,

    which is a number that gets identified to you and the property you are considering

    effective April 1st. If I am not mistaken here. I will have to double check my guidelines



    ANDREW DUNCAN:   Yeah it’s April 1st.


    NATE DAVIS:   So if you are looking for a home, and you are under contract, whoever’s doing

    your loan, they need to be pulling these case numbers prior to that day, because if not,

    then it’s going to make it more expensive for you. So on that they are going to increase

    not only the upfront mortgage insurance premium but also the monthly making it more

    expensive for that loan product in general. I don’t know the reasoning behind that,

    obviously they are suffering some losses


    ANDREW DUNCAN:   The default rates.


    NATE DAVIS:   The default rates and the problem is that their system in general is set up to encourage,

    not encourage, but it’s setup to basically dis-incentivize the folks who have the credit.

    Because if you can do a five percent down conventional loan, you are better off. For

    example, the monthly mortgage insurance factor, if you have a good credit on the 5

    percent down conventional loan, I believe it’s like .67.


    ANDREW DUNCAN:   By half


    NATE DAVIS:   The factor currently is at 1.15 and that’s going up. Which is you take a good credit

    borrowers and turn them away, and FHA will just continue to attract folks who are more

    inclined to have default. It’s just going to, mark my words, in a couple more years, this

    will happen again and if it makes in that format.


    ANDREW DUNCAN:   I think one thing that people do need to pay attention to those of you out there you

    know looking for homes, out there working with a realtor, or thinking about buying one

    in the near future, if you can find and identify the property before April 1st, and you are

    using an FHA loan, you need to get into a contract. You are going to save yourself

    a significant amount of money upfront, and then monthly money. Secondarily, on top of

    that, it’s important to know that it’s not just about interest rate. It’s not about rate. The

    different loan programs.. You guys are doing a great job of really getting down to the

    consumer and saying .. OK… Which loan product is right for you, based on your situation

    and hey maybe you come up with a one and half percent more down payment money,

    but you save an extra one percentage point on fees and costs.


    NATE DAVIS:   And talking about people, you know, you’d never of course, no one would just go

    buy a house before this date just for the sake of doing it, but for better negotiations, and

    you are two or three grand off that price, you can actually get the seller to reduce the


    costs by that two or three grand, but if you get under contract after that April 1st Date,

    you ultimately pay more, then if you just paid them extra money, got into contract got

    your case number pulled, taking the less expensive FHA loan.


    ANDREW DUNCAN:   No, and we talk about that a lot, because sometimes I think the consumer gets

    so focused on paying attention to the price, that they forget about the cost of money,

    and you know even though rates are low, they still fluctuate, so I have seen people

    negotiating over $500 or a $1000. And take a week to get through that process of going

    back and forth to the seller and then the rate goes up a quarter point, they just lost what

    they thought they gained.


    NATE DAVIS:   Yeah, you know people have a tendency to focus on price of home and not focus on

    interest rates too. A classic example is taking back on this FHA

    Loan, FHA loans are typically lower for rates, then on a conventional loan. However, the

    mortgage insurance FHA loan requires specifically double what you would pay.


    ANDREW DUNCAN:   So the rate is slightly higher then conventional loans


    NATE DAVIS:   So on the conventional loans, you are absolutely right.


    ANDREW DUNCAN:   You are listening to the Duncan Duo real estate show, if you have got a real estate

    question, we would love to answer it. Hillsborough — 990 9352 and Pinellas 461 9352.

    All the phone numbers end in 9352 or WFLA. Toll free — 1 800 969 9352

    So there’s a new program that the government is pushing and they converted its first

    foreclosure to a rental property and you know uncle Sam is in discussions to offer a nearly

    2500 distressed properties at 8 locations to invest so if you want to buy them in bulk

    and rent them out for set number of years. The national association of realtors

    had extended some advice to the government kind of making sure that they don’t hand

    a sweet heart deals and they don’t open themselves up here, but I think there’s some

    benefit to this, but there’s also some risks, one of the things I like about it is that when

    those foreclosure sales go on as individual sales they pull down the values and the

    challenge with dealing with everything is that the banks have been delaying foreclosures

    and the legal process because they know that if they unleashed this massive amount

    of inventory, it’s going to bring prices down, which is further going to inhibit their ability

    to  loan. So this kind of skirts that so they don’t go on the market, they don’t

    have an individual price attached to them or so they are less likely to impact banks ability

    to loan as well as appraisals with prices coming in lower. And again the key is they are

    making investors rent them. They are putting stuff in, title restrictions where they have

    to rent them for certain period of time and the row mark is very healthy. It’s competitive.

    so that side of it has some volatility. It’s just a matter how they determine who buys the

    property and what price point they buy them for, so there’s a lot of things still coming

    up about this program that I think are things to pay attention to, but there are certainly

    some good parts.. They have got over two hundred and fifty thousand foreclosed homes

    owned by Fannie Mae. And it sounds like only 1 percent are going to be part of this pilot


    program, but nonetheless Its still something to pay attention to as the market starts to

    recover and Nate what do you think about an idea where the government is selling bulk

    properties to investors to rent them. What are your thoughts about it.


    NATE DAVIS:   I am always a firm believer in just letting the market take its course I mean I am

    sure there’s some benefits here and there, but ultimately, you know, is this the role of

    the government, is this , whenever the constitution was written, was intended for the

    government to be manipulating the housing market, whether it is going to help or not, I

    like the idea of just letting it be. I think ultimately it would work itself out if you do that.


    ANDREW DUNCAN:   And I think that’s a political climate of late, you got people who are on one side of the

    fence say get involved, get your hands in there and help fix it and you got another crew

    of people on the other side of the fence, to say leave it alone. Let the market take its own



    NATE DAVIS:   I think it will get fixed, it will just get fixed in a less expensive manner if you just allow

    it to occur I believe.


    ANDREW DUNCAN:   Yeah. I understand:   So we have got Chris from Tampa online.. Looks like Chris

    wants know if he wants to get the FHA loan at the new rate. How can we help you



    Chris. Hey, I am going to be a first time home buyer this year, my girlfriend julie and I are

    looking for a house for ourselves and I picked up a price range and one of my people

    in my office said, I got an FHA loan and you only get 3 percent down. And I took a sort

    of a more down, but you were saying about the rate increases, is 5 percent is what is

    required for a standard loan?


    ANDREW DUNCAN:   Yeah, as long as you are buying a single family home or townhome product, if you are looking at

    condos, they are a little more challenging with qualifying for loan, but yeah, conventional

    loan, you can qualify for 5 percent down.


    NATE DAVIS:   And you would be better off financially if you did the 5 percent down verses the

    FHA loan and also something else to keep in mind is that while people refer to these

    FHA loans as first time home buyer loan, when actuality is that you don’t have to be a

    first time home buyer at all. You could own 4 homes and buy another home with an FHA

    loan. It’s just that every first time home buyer has a high percentage to use that loan

    because of the lower down payment. And it’s actually not 3 percent. It’s 3.5 percent. So

    if you can come up within extra 1.5 percent down payment, provided the credit and debt

    didn’t come in and check out for the conventional loans, which conventional loans are

    more stringent then FHA loans, but you know if you are strong, then there is no reason

    you shouldn’t go that route.


    ANDREW DUNCAN:   Because again your upfront cost almost will exceed the down payment cost, just

    because the increase after April 1 of the mortgage insurance premium.


    NATE DAVIS:   Absolutely.


    Chris. Alright, I have got about a 650 credit score, I called lendingtree because of

    the ads and stuff, it’s the numbers that I think qualify with my debt credit income ratio,

    because I have only one loan and it’s a federally backed loan ……

    NATE DAVIS:   If you are on the 650 score, you will need to go the FHA route, the reason being

    is that on the conventional loans, that’s where it does make a difference, the guy that

    has a 700 versus 720, 740 it’s a more of a higher credit score scale toward they do want

    the upper echelons. It’s not so much the loans, that want the upper echelons with these

    mortgage companies, they typically like to see the higher scores, so in your case, the

    decision may be made for you where even though you may be financially better, due to

    the score alone, you need to go the FHA route.


    ANDREW DUNCAN:   And obviously we are on the show today and Nate is a mortgage lender and I

    can’t recommend him enough., if you are out there thinking about getting a mortgage

    with another company, get a second opinion, it doesn’t cost you anything to have

    another person look at it and I can tell you, we sold almost 300 homes last year and I

    can’t tell you how many times Nate looked at somebody’s scenario and saved them a

    boat load of money and frustration so I certainly obviously Nate being on the

    show and encourage you to get a second opinion with him, but more than anything get

    multiple opinions about your lending situation. To make sure you are making the right

    decision, sometimes, when you are dealing with a national company without a local

    presence, sometimes the local business can offer some things and get creative with you.


    Chris. We are still way early in this. I left my phone number with the call center. You are

    welcome to call me.


    NATE DAVIS:   Chris, one thing I would tell you, If you are early on on in the process, based on what

    you are telling me about the score being low,


    ANDREW DUNCAN:   He might be able to improve it.


    NATE DAVIS:   Absolutely. If you were to go ahead open a credit card or two and keep the balances

    at or below 10 percent of the limit of the new card amounts, by the time you have a

    home selected, you could very well be in that 700 range.


    Chris. I already got one credit card. And I am already and they told me that this what

    you need to do if you want to kick that up 20,30, 40 points. I am already working in that



    NATE DAVIS:   Very good.


    ANDREW DUNCAN:   Awesome. Appreciate your call. Thanks Chris.


    Chris. Alright. Take it easy.


    ANDREW DUNCAN:   So again you are listening to the Duncan Duo real estate show. You can call us with

    your questions Hillsborough — 990 9352 and Pinellas 461 9352. And toll free 1 800 969

    9352. We will talk here after the break.. About foreclosures, how long you have to wait to

    get a loan, some refinancing programs through USDA, housing affordability at its record

    highest after a quick break here on the Duncan Duo show.


    ANDREW DUNCAN:   We are back here on the Duncan Duo show taking questions live and we have Eric

    waiting patiently on line one. He’s got a question on bankruptcy and buying a home

    afterwards. How can we help you Eric?


    Eric. Hey how are you doing guys?


    ANDREW DUNCAN:   Doing good.


    Eric. Hey, I am calling as I recently filed bankruptcy to get rid of two toxic properties. I

    was just wondering, looking to get back into the market to buy another home. Is there

    anything I can do to qualify for a loan or do I have to wait for two or three years to be

    able to.


    NATE DAVIS:   If you had a bankruptcy and there was real estate included, then that is treated as if

    it was a foreclosure with regards to waiting period. So after a time, if you say, man I had

    a bankruptcy and I saw on the website, that, there are different websites to say you only

    need to wait two years, well that changes if there was real estate included. Because it

    defaults to treating it as if it was a foreclosure which takes a longer time period to pass.

    So in your case you are going to be, depending on the loan program that you are looking

    at, as little as three years and as much as seven years, depending on what program you

    go and again, government programs such as FHA is the one that allows you to wait the

    least amount of time, after a negative, such as a foreclosure bankruptcy or short sale. If

    you go the conventional route, they would make you wait longer.


    ANDREW DUNCAN:   Another option for you Eric, and we see clients doing this depending on their certain

    financial situations, you know portfolio loans from small local banks are a possibility too or

    a hard money loan, which is a money someone loaning you, just an individual person or small

    investment company that loans you the money at a higher rate then the market generally

    bears. So there are some other options to get a loan but it’s going to require a little more

    creativity on your part.


    NATE DAVIS:   If you have a large down payment, then you might be able to get a small community

    bank to loan you their money, in other words, all these lenders that you hear on TV,

    and including our company as well, they all do Fannie Mae, Freddie back, back loans,

    FHA loans, standard loan products, and those loan products. They don’t care what

    your scenario is, they basically just say, look, if this person does or does not fit in the

    box, whatever it is, it is what it is so, you can come to me and say, Nate I want to buy a

    home for two hundred grand and put down a hundred thousand on down payment, I had


    a bankruptcy last year, the answer is still going to be a NO. You take the scenario to a

    small community bank, who doesn’t do Fannie Mae, Freddie mac, back loans, they can do

    it, but their rates will be higher.


    Eric. Ok. Are there any pitfalls I should be looking for if I am going hard money route?


    ANDREW DUNCAN:   I think there’s a couple. One is you know finding out the financial integrity of the

    company and their experience as a hard money lender and that would probably be

    one and two is you know shop around:   There are more than one. See who will give

    you the best rate and term and then last but not the least, a lot of times people in these

    situations will find family members or friends to loan them money, just be really cautious

    about that, if you go that path, consult an attorney, have them look over the documents.

    You know again, friends and family unfortunately don’t somehow mesh with business

    and if you went that path and found somebody you knew would loan you the money, just

    be really cautious about that.


    Eric. Ok, I appreciate that information guys.


    ANDREW DUNCAN:   Thanks appreciate it Eric. So again you are listening to the Duncan Duo real

    estate show and you know I wanted to Thank Eric because literally that was one of the

    subjects, we were going to get to on this show today. You know what happens when you

    have a foreclosure, how long to wait to get a loan, so I can rip that up and cross that off

    of the list that we have to get to today. So Chris in Hillsborough is waiting patiently on

    line 6 with us. He is under water on investment property loan, but we have got break, we

    are up against a break here, in just less then a minute, so I am going to wait to take his

    call, I wanted to talk real quick about USDA. Looks like they are also running a program

    to help thousands of row home owners, similar to what we heard with Fannie and Freddie,

    and the other HARP program, USDA is also announcing a program where they are going

    to allow people to refinance when they are under water. In other words, refinance to you

    reduce the amount owed, you know in some instances parts of this program sounds

    like they may be willing to reduce principal, but I think the main point is reducing interest



    NATE DAVIS:   USDA is a Loan program just how FHA is. And is currently not an outfit for them to

    refinance if they are upside down, so it’s probably a lot for the guys who have a USDA

    loan now, do a refinance.


    ANDREW DUNCAN:   So if you bought and you may not know if you have a USDA loan, but if you bought

    and used a 100 percent financing in Riverview, Valrico, Fishhawk, Wesley chapel,

    or parts of Pasco county that program may qualify for you, so we will be back to take

    Chris’s call about his situation after a quick news break here on the Duncan Duo show.


    ANDREW DUNCAN:   We are back here on the Duncan Duo show, and yes we are not selling houses with

    rats in them, thank you Hal Lamb, appreciate that, but nonetheless we are here , we have

    Chris on the toll free line, waiting patiently , Chris, sounds like you have got an issue with


    investment property loan, you are curious if the banks will negotiate with you.


    Chris. Yeah that’s correct. so high level, with round numbers, I have got a property

    for a $150000. I put $50000 down, I financed a $100000 at 7.5percent. And I have

    been paying for about five or six years, so I have probably paid about 50/60 thousand

    dollars into the loan, but as you know that’s all interest payment anyway, so the value

    of the house is 60,000 and I am wondering, first of all obviously it’s a no brainier, I need

    a refinance and that’s the bare minimum and I have no other options like strategic

    foreclosures, foreclosures and short sale, but I don’t wanna do that for that will take a hit

    on my credit. I have a high credit score, close to 800 and ultimately my question is, could

    I negotiate with my present lender and share with them what I just shared with you and

    say I owe you a hundred, but can we settle it for $75000 and either I will pay this thing

    off or refinance and borrow 75000 somewhere else.


    ANDREW DUNCAN:   The first thing you want to do is to find out what type of loan that you have, there

    are some programs out there to help, for example, the HARP program, is now out and

    available, and most people don’t realize this but actually, it does apply to investor

    homes as well. So you can go to website plannedcitymortgages.com. There is a an yes

    in the end, says plannedcitymortgages.com, there’s a little button that say no equity

    refinancing, you can click on it and it will take you to all the links that you will need to

    search your property address, and determine if you do have a funny may or Freddie

    Mac backed loan. If you do there’s some options available, to you to refinance that loan

    to today’s lower rates, despite having a no equity on the home.

    So that’s one option available to you, as far as, will your lender work with you, to do

    anything about the write downs, that’s completely their decision, there’s nothing that

    regulates or mandates that, at the end of the day, you know, they loaned money to you,

    you agreed to pay them back at a certain rate of interest, and that’s about it. Anything

    beyond that would be up to their goodwill and just a sign of goodwill


    ANDREW DUNCAN:   And also from experience Chris. Your situation does not sound generally like its in

    the box that they want to see to help, so I mean, they spend most of their energy and

    effort helping, and again whether it is right or wrong, I’m not to say, but, they spend

    most of their energy and effort helping people that are behind on the mortgage, that are in

    default, that are in foreclosure, that already have been hit with credit damage, those are

    generally the people that they are more likely to help. That’s not to say you cannot get

    a modification and get a principal write down, it’s just a lot more complicated to pull off,

    with being an investment property and with you being current in your financial shape.


    Chris. Right. And I want to do the right thing, but at the same time, it’s a business



    ANDREW DUNCAN:   Right


    Chris. And I want to live up to my obligation. I get all that, but ….


    ANDREW DUNCAN:   The other thing you can do is, you can certainly talk to an attorney and he will work

    with you – like Yenser & Boss – and we have one on our show once a month, and they do a lot of work

    with banks in these types of situations. They might be able to work with you on your

    behalf, and see if the bank you know, sometimes having an attorney involved will get the

    bank to pay a little more attention, but most of the banks attention is generally spent on

    the people that are in default and whose homes are in foreclosure and that sort of thing.


    NATE DAVIS:   I suspect too, based on where you are at, you took out a 30 year loan when you

    started this, is that correct?


    Chris. Yes.


    NATE DAVIS:   I can without even seeing the numbers, I can pretty much tell you, if you are eligible

    for this HARP loan, you are going to take your loan down to a 15 year payment, and

    your payment will probably, either stay flat or decrease over what you are doing now.


    ANDREW DUNCAN:   You could cut your lenght of payment in half and keep the payment close to what it

    is now, or of course if you need the cash flow, then you can refi and do a thirty and get

    your payment down a lot lower.


    NATE DAVIS:   And you are in a position sounds like, it’s a 40 grand spread between value and

    Worth that and while that’s a lot of money in the grand scheme of themes, by the time

    you go that fifteen year mortgage and start hammering it down, values are coming up a

    little bit, it’s really you know, it’s not that much of a spread, in the grand scheme of things

    and we talked to people who have lived upside down with three hundred and fifty grand .


    ANDREW DUNCAN:   I had a seven hundred grand this week.


    NATE DAVIS:   Where are your, that’s when you have to really challenge your ethics and say where

    am I at . You know these are crazy numbers.


    Chris. Exactly. So that’s PlantCityMortgages.com?


    ANDREW DUNCAN:   Yes sir. PlantCityMortgages.com


    NATE DAVIS:   And at the end there is a link in the middle that says no equity refinance and you

    can click on that and it explains all the programs that allow home buyers to refinance in spite of having no equity and also allow you to look at your loan to see if you do have a

    Fannie Mae or a Freddie Mac back loan as well.


    Chris. Alright. Very good.


    ANDREW DUNCAN:   Thanks Chris. Appreciate your call. So again that kind of ties into what I was going

    to talk about next in 2012,the year of the short sale. Well it doesn’t sound like its right

    for his situation. There are a lot of people who are looking at it as look at it as its not

    going to get to a point especially when you are talking $40000 is one thing, when you


    are talking people, there are hundred, two hundred, three hundred, four hundred, five

    hundred thousand dollars in the hole. They don’t see the end in sight for getting back

    to the value of where it is what they owe, so a lot of people are really looking at that

    and I think, the banks have finally, i mean they finally have gotten it. You know, least

    moderately reasonable in terms of response times and challenges you have to get

    through the process. I mean we have had a couple who recently approved and pre-

    approved, you know Bank of America, and Citi have programs where they would actually

    pre-approve it. Well not just them, but those are the ones we had experience recently.

    All the banks that we were trying to go to programs where they are pre-approving them

    and then secondarily, if they don’t pre-approve, we are going to hear pretty quick. I

    think they are finally starting to realize its a business decision and it makes more sense

    for them to do it this way and I mean they are having some of the programs out there

    where they are offering incentive, financial incentives, they are not even required to be

    people’s primary homes. I mean they are doing it, even on investment properties. So if

    you are behind on your mortgages, certainly something to look at, This year is definitely

    I think the real estate sales world, the year of the short sale, it’s just everything is kind of

    converging, pointing to that direction, with the 1099 deficiency that goes away at the end

    of this year, with the banks getting creative, offering incentives, it’s just this is going to be

    the year, where the banks have realized how bad debt that this corp systems and it’s a

    better financial decision for them.


    NATE DAVIS:   Absolutely it’s better, and if there’s something that’s out of control and they are not

    able to pay their mortgage and yeah that’s what it is, the quicker they go through that

    process, the better off they are going to be. Because these waiting periods to get back

    into the game are not that long.


    ANDREW DUNCAN:   Well, not only that but, it’s also better for the economy. It’s better for your

    neighborhood. To have a house to short sale, sells for a better price generally then if it

    does if you were to foreclosure. so the banks know that, and they need to loan money

    to make money. If they let the prices just get hammered down by foreclosure after

    foreclosure, it inhibits their ability to sell the new construction house down street you

    know Joe blow wants to get the normal property.


    NATE DAVIS:   At no means are we saying that hey, walk away from your other obligations. It’s just

    going to drop down. What I was saying was that we are talking about the cases where


    ANDREW DUNCAN:   Where you need help.


    NATE DAVIS:   Where you need help. For example, the cases where the lenders like to loan on in

    the event that someone had a prior of short sell. I am going to say,

    we are going to short sale in some of the years, here’s your money again,


    ANDREW DUNCAN:   Right,


    NATE DAVIS:   You are going to have to understand the scenario. Did you lose your job? Was it


    divorce, did you have a medical condition, things like that are reason for things to occur.

    Was it a strategic default.


    ANDREW DUNCAN:   I think the key to understanding what we are saying is that if you are out there and

    in a tough spot and you are not opening up your mail , and you are just kind of ignoring

    your situation, talk to somebody, think about looking at this as an option. Banks are

    offering financial incentives to do a short sale because it makes sense for them in a lot

    of scenarios. They don’t want your home to get foreclosed. We don’t like it. I don’t think

    anyone wants your home to go to foreclosure. So don’t just stick your head in the sand

    and pay attention, ask some questions and see if you can find help.


    NATE DAVIS:   Yeah and if for no other reason at all, when you go to foreclosure, they are going

    to put a judgment against you for the deficiency balance. . When you do a short sale,

    there’s a very high probability to waive that and additionally if you have a foreclosure

    versus a short sale the waiver would be substantially longer.


    ANDREW DUNCAN:   So Housing affordability index is at its record high. It’s no secret that again the

    housing affordability is so much affordable it’s ever been. Because the prices have

    dropped and because interest rates are so low. So you know people who are out there

    renting, that are afraid of buying a home, you will be surprised how much money you can

    save. You may need a little bit of money down, to buy versus renting, it’s so remarkable.


    NATE DAVIS:   Or depending on the area, we got two loans going on right now for people who are

    currently in part of complexes that fits 0 down scenario, one of them is the USDA loan.

    They literally need nothing. Not one dollar. And the other one is a Va buyer, . Something.

    Nothing. Both are saving. One saving a 120 and the other ones like a 150 a month off

    the rent.


    ANDREW DUNCAN:   That adds up. Plus not only that. Then they are going to get some tax reductions,

    they are also going to get the appreciation when the market does recover, and folks, it’s

    going to recover. I mean I can look at it now and tell you what we are past the worst part

    of the real estate market in Tampa Bay.


    NATE DAVIS:   Absolutely


    ANDREW DUNCAN:   You know we are seeing multiple offers, we are seeing hundred and fifty thousand

    dollar homes getting listed and under contract with you know umpteen offers in a week.

    So it’s a sign that the demands back. The market is recovering. So nonetheless if you

    are out there and you are renting and have good credit, really take a look at buying. It’s a

    great opportunity to set yourself up for the the future. Rates aren’t going to get lower.


    NATE DAVIS:   The other thing too really look at is second homes there are a lot of folks out there

    kind of been waiting around or maybe they feel like they are not at that point in life, do

    consider a second home, but I will tell you, I don’t consider myself for that point, but I

    have been eyeballing the second homes. Because its a historic evel where it’s not just


    the price. The price is at a historically low as well, it its the rates. It’s a perfect crosshairs.

    Because rates can go up and make all this more expensive. But if you got rates low and

    prices of homes low, it’s a perfect storm.


    ANDREW DUNCAN:   And its hard to not look at it as in the business because we have not seen it this

    affordable and we know what it takes to build the house. We know the construction

    cost of it, those aren’t getting cheaper, you know so nonetheless, speaking aside of

    waterfront condos disappearing from the Tampa Bays market. In other words, they are

    selling, I think one of the things, that we talked about our company, one of the benefits

    of aligning with RE/MAX, when we opened our office was , their international presence

    and we are really seeing you know the rest of the world take notice that Tampa Bay’s

    on sale. So it seems like anything that’s waterfront, condo, waterfront home right now,

    flying off the shelf that’s priced well. And not just from people locally, a lot of these sales

    are happening form people from Canada, Europe, we have people Yugoslavia last week

    and I mean all around the world that say wow.. Look at these prices, and just jumping in.

    And what’s happening is this surge of buyers is creating bidding wars. And people don’t

    believe it. I mean I had a seller who sat down with me and put their home on the market.

    They didn’t believe me when I told them that we would get a bidding war, and then when.

    We did, they were wow.. This is real. it’s because we are in these unique phenomena

    where our market isn’t. We are not Kansas city, Missouri, we are Tampa Florida.

    Nothing against Kansas city, but they are varied destinations, , so we have got the whole

    world looking to buy property here so, our inventory saturation rates are especially on you

    know waterfront property, are very much in favor


    NATE DAVIS:   The economy is not going to push away the sunshine and the beaches. It is just not

    and something in some areas, where we have one major employer that goes away, that

    can destitute the area, but our area, is just got the natural


    ANDREW DUNCAN:   Our economy, it doesn’t matter with what’s happening with our economy, if the guy

    from Europe or you know Belgium or Sweden or France is got millions of dollars and

    wants to go and buy some vacation homes. We had a guy about 6 months ago from

    Japan, who is a billionaire, came in and bought like, I want to say it was almost like 20

    properties. All priced above five hundred thousand dollars in cash for family members

    so I think the key to understanding what’s going on when you hear things, it’s like that

    about hey look, we are having a shortage of inventory and price points and waterfronts

    or condos, it’s not what’s going on just locally, it’s the international pricing that’s

    happening and that’s something that you know where our company is really focused on.

    Penetrating and marketing the listings too.


    So again you are listening to the Duncan Duo real estate show here on 970WFLA. We

    will be back to wrap the show to talk about the HARP refinancing program as well as the

    top questions to ask to a real estate agent after a quick break here on the Duncan Duo



    ANDREW DUNCAN:   So we are back here for wrapping up the show with Nate Davis from

    Plant City Mortgages and I got top questions to ask a real estate agent and if you are

    thinking about hiring a real estate agent to sell your home or buy a home, these are top

    questions prepared by aol real estate. I have monitored and got their Facebook and

    tweeter feeds among all this which I thought was pretty good.

    First question is:

    how long you have been a real estate agent, so again the professional experience

    matters, so you want to know what their credentials are

    do you sell homes part or full time. Imagine calling up somebody and saying, hey look,

    I want you to be my attorney, and they tell you , oh you know what, I work at Walmart

    you know 30 hours a week and am an attorney part time. You know would you really

    consciously hire that person as your attorney. I think you should think about the same

    thing while hiring your real estate agent. You want somebody full-time, Otherwise what

    happens is that when that ideal property hits the market, or when the buyer expresses

    interest in the property, how quickly you get back to them, can be the difference between

    a sale and you finding your dream home and no sale for your home that you are selling.

    So you want to make sure that they are full time agents. I think that’s highly important.

    Again because their ability to communicate with you, their ability to find out opportunities

    in the market.

    What training do you have. You can ask for industry designations, what kind of

    experience they have, their pedigree, their sales background, how many homes have

    you sold in the past month or quarter or year. And then ask them to prove it. The real

    estate world, I can’t tell you how often I talk to agents, who are like I sold seven million

    homes in the last year, you know if somebody has sales statistics, they would tell you

    the sold number of homes and ask for proof, today the brokers metrics, there are always

    different things people can pull to show how many homes they have sold. So ask

    them if they are telling you they have sold 6 homes in the neighborhood, say show

    me. You know, because again the statistics are readily available today they can have

    spreadsheets and all that kind of stuff.

    What’s the average days on market for your listings is another good question. You want

    to know how long it takes them to sell their homes. And again the thing to keep in mind

    is you are also measuring them on other variable things that they can’t control. So if

    they list a lot of short sales, and their average time on the market is a little longer, give

    them a little bit of a break , because they have sold homes that they can’t control you

    know part of that process and the same thing goes for foreclosures, if they list a lot of

    foreclosures, those homes fly off the shelf. Our average right now for non short sales is

    38 days so again the market average is about a 110 but you certainly want to ask them

    these questions. How long does it take for them to sell a home on an average, you know

    whether they are talking about retail sale, short sale or foreclosure sale, and I am certainly

    talking about retail sales, because on the short sale side of things, we can’t really control

    it. Well, we can to a certain extent, but, there’s a lot of things out of our control, titles

    and liens and that sort of thing. What we would do to mark it on my home is to show

    you , do your due diligence too, if they tell you they do these certain kind of marketing,


    go online look it up. If they have listings on realtor.com or videos; look and see if they

    do videos on you tube, look at the stuff that they have done for other listings as kind of

    a footprint. If you go onto their website and you google them and you don’t find listings

    that they are advertising and marketing that’s another thing to think about and then how

    do they keep me informed, how do they communicate with you, again, you want to know,

    or you want to ask for, certain types of communications, maybe you want to be called

    every so often, maybe you like email, let them know your preference on that. Mortgage

    refinancing is kicking off right now, that will be a whole lot of topic yeah…

    We got the Harp starting to kick in and then we will talk a little bit about that on our next

    weeks show. Nate’s going to join us with Aaron Davis the owner of Hillsborough title to

    talk a little bit more about HARP. And some of things that he started to see because you

    don’t have enough time on today’s show. But the next weeks show with Aaron Davis with

    Hillsborough title and Nate as well, we are mostly going to talk about fees and costs,

    what does it cost to sell a home, what does it cost to buy a home, what are the general

    fess to breakdown and things like that.

    NATE DAVIS:   One thing real quick that’s exciting about HARP though is that this week, the

    software is going to be rolled out, and available to allow third party originators to use

    HARP programs and currently only some existing services can do it for people and they

    have been utilizing that to their advantage because they don’t have to be competitive.

    So people think, oh thats a competitive lender, think they are going to be getting the best

    deal. No they are not, now all the competition comes in, downs rates, better off.


    ANDREW DUNCAN:   That’s a great opportunity and we will talk some more about that next

    week and if you are looking to refinance your program through HARP, go to

    PlantCityMortgages.com, give Nate a call.

    And as always we hand take a list of the

    best bargains in real estate in the Tampa bay area, go to tampabaysmokingdeals.com, list

    of foreclosures, short sales, waterfront homes, some of the best bargains in the Tampa

    bay area, you also have the ability to search the entire MLS on that website. Again it’s


    We will be here next week to talk about the local real estate

    market, have a great rest of your Sunday.