Noone is talking about this problem yet!!! Ouch!

What problem could be left in the Real Estate industry one must ask? What about payment option payments or negative am loans? That's right...noone has seen those reset yet. But the day is coming soon! Remember the appreciation so pay less than interest and it's applied to principle? That is the next big bust.

Luckily this wasn't pushed nearly as much as the ARM deals here in Panama City Beach Condo market..but it did happen none the less. Read below for more specifics, but it's kindof interesting and could be very dangerous for lenders!

Fitch Predicts Higher Rates Leading to More Defaults Because so many holders of pay-option loans have elected to make only minimum monthly payments in the last 24 months, credit rating service Fitch Ratings predicted Tuesday that a larger than expected group of home loans will reset in 2009 and 2010.Pay-option loans, also known as option adjustable-rate mortgages, let borrowers make a lower payment but can result in the unpaid portion being added to the principal balance.The firm expects that $29 billion in loans will be recast to higher monthly payments by the end of next year while about $67 billion in loans will reset in 2010. The firm estimates that these loans will cost the typical borrower an additional $1,053 per month. Many of these borrowers will end up owing more on their homes than the home is worth."The combined impact of payment shock, negative amortization, declining home prices and restricted availability of mortgage credit may leave many option ARMs' borrowers unwilling to continue paying their mortgage," Group Managing Director and U.S. RMBS group head Huxley Somerville said in a statement.Source: The Associated Press (09/02/2008)

What to do? Let us help you identify some of these options and the short sales that are soon to follow today. Simply fill out our online form at www.Panama-City-Beach-Florida-Condominiums.com and we can email you listing as they hit the market. Be the first to know about the Panama City Beach Condo short sale market before anyone else is aware!

Also visit us online to search the entire Emerald Coast at www.RandBCoastalRealEstate.com today!

Things Getting Back On Track

Loans Workouts ahve new hope. We must take each day at a time, but we continue to track these trends at www.InvestSmarter.com Help us see what is happening on a daily basis and keep us in the loop. The Panama City Beach Condo market continues to have outstanding results to people that are looking at trends and finding units that pay for themselves. It is so important to stay on top of the market and know you numbers!

Alliance Says It Has Increased Loan Workouts Hope

Now, an alliance of lenders under pressure by regulators to curb home foreclosures, announced Wednesday that workouts had increased to 522,000 in the second quarter up from 482,996 in the first.For the first time, more than half of the workouts were contractual changes to subprime loans, Hope Now said. These kinds of modifications are viewed as a better solution than simply extending the payment over a longer period of time.The total number of foreclosures prevented by mortgage servicers since July 2007 has risen to approximately 1.9 million, the alliance said.Source: Reuters News (07/30/2008)

For more information on Real Estate in Panama City Beach or for sales on Panama City Beach Condos please visit www.Panama-City-Beach-Florida-Condominiums.com for more information and always feel free to visit our corporate site with Destin and Panama City Beach listings at www.RandBCoastalRealEstate.com. Let us help you make a solid investment decission in Florida's ever changing real estate market.

Everyone is Behind...Even HELOC payments are late!

Wow!! We know the economy is in a pinch when even the Equity Line payments are falling past due. This is not a good sign for what is to come. Some people unfortunately have been living off of their equity lines and now they are all out of cash. We published an article on www.InvestSmarter.com about the best way to use the equity in your home. Now there are two problems, people have extended themselves too much and the value has gone down. so now what? See below for a few interesting points on the HELOC issue.

Also take some time to read through www.Panama-City-Beach-Florida-Real-Estate.com to see other examples and the disucssion forum of how to work around the issues relating to Panama City Beach and Panama City Florida Real Estate.

Home Equity Delinquencies Hit 11-Year High The number of borrowers more than 30 days behind on their home equity lines of credit hit the highest level seen in more than a decade, reports the American Bankers Association. The first-quarter 2008 data suggests that the economic pain being felt by homeowners is spilling over into a segment of consumer credit that usually is highly resilient in down cycles. That is because, at the risk of losing the roof over their heads, consumers who are financially pinched tend to pay their mortgages and home equity loans before car notes and credit cards, explains Naroff Economic Advisors President Joel Naroff. "That people are now having trouble making payments on home-equity lines is a clear sign of the extent of the pressure on the household budgets," he said in an article published by USA Today. Source: USA Today, Anna Bahney (07/03/08)

So now what do we do? It's time to call in the debt consolidation people and/or find some financial guidance from a professional. Don't let this ruin your credit long term. It can be frustrating, but there are options out there!!!

The condo market is seeing some similar issues and the Panama City Beach Condo market is no different. There is a list of things to consider at www.Panama-City-Beach-Florida-Condominiums.com and take some time to look at comparable properties in the area.

Let us know if we can be of any assistance today!!!

Tighter Lending Makes it even harder....

Ok...when is it going to end? Just today we were barely scraping by to get a wonderful gulf front condo to close. That's right...lending is getting tighter and tighter. It's enough to drive us all crazy right! Well, it's everywhere. Take a look at the article below that sheds a little more light on what we are seeing. We are continuing to get people to upload their stories to www.InvestSmarter.com so we can share information with one another. Let us know what you are seeing about things like this:

Daily Real Estate News June 23, 2008

Tighter Lending Stalls Housing Recovery

Rising foreclosures and tightening credit standards are making it more difficult for the housing market to recover from the current downturn than it has been for the market to rebound from previous slowdowns, according to a Harvard University study."Historically, housing markets recover only after the economy has entered a recession and a combination of falling mortgage interest rates and house prices have improved housing affordability," Nicolas P. Retsinas, director of the Joint Center for Housing Studies at Harvard, said in a statement."It will take longer this time to rebound given the unusually high levels of foreclosures and constrained credit markets," he said. "The slump in housing markets has not yet run its full course."The center predicted that income growth over the next 10 years would be constrained, reducing demand for homes. Much of employment growth will be in part-time and low-wage positions, the study said."The somber conclusion is that if the economy slips into recession or job losses keep racking up, household growth and homeownership demand could fall even more," the center said in the release.Source: Reuters News, Lynn Adler (06/23/2008)

For more information on condos for sale in Panama City and Panama City Beach Florida visit www.panama-city-beach-florida-condominiums.com for what's hot in this ever changing market!

Panama City Beach Condo Blog Launched and New Tax Credit for Buyers

The Panama City Beach Condo market keeps us all on our toes and wondering about what the future might hold. There are so many options and such diversity in price points it can be a little overwhelming. That being said, there are valuable resources for analyzing condominiums in Panama City Beach these days. The most important aspect of any business decision, yes real estate should be considered a business decision, is open communication and knowledge of the property type. We have set up this Panama City Beach Condo blog to hopefully take care of one part of that point and keep communication open and follow with what is going on in this ever changing market. One new piece of information is the new Tax Credit that Congress thinks will get buyers "Off the Fence." We think a little differently, but welcome everyone's comments when it comes to this new proposal:

Daily Real Estate News June 6, 2008

Tax Credit Would Get Buyers Off Fence

A temporary tax credit would be the best incentive to move hesitant home buyers into the market, the NATIONAL ASSOCIATION OF REALTORS® told Congress on Thursday. NAR said the tactic has been successful before; A 1975 temporary tax credit helped to “clear an over-supply of newly constructed homes during an economic downturn.”“We urge Congress to move quickly to conference and final passage of this tax incentive,” said Jim Helsel, NAR treasurer and a partner in RSR, REALTORS®, in Lemoyne, Penn. “Failure to act quickly could further stall the housing market, hurting many of our members, who are predominantly small businesses owners and self-employed individuals.” Testifying for NAR before the House Committee on Small Business, Helsel said there are “three critical features for an optimal home buyer tax credit.”

The credit should apply to all residential real estate — not solely foreclosed properties.

It should be temporary and only apply for a short period of time.

It should provide higher income limits than those the House has imposed, particularly for single individuals. “If these measures are put in place, many individuals who are sitting on the fence will take steps to buy a home. This would not only help homeowners, buyers and sellers, but also it could expand activity as individuals furnish, paint and improve their homes. This would help boost the nation’s economy,” Helsel said.NAR also discussed the importance of updating the “passive loss” rules that were enacted in 1986 to bring small investors back to real estate. The passive loss rules were not indexed for inflation, making the tax incentive irrelevant in most cases, Helsel said.— NAR

Now this could potentially apply to condominiums also, it really will completely be determined on how it is written and how lenders view condominiums not only in the Panama City Beach Condo market, but across the nation. For more information or your feedback please help us help everyone keep communication lines open on the Panama City Beach Condo front!