Source: FEMA Releases Rate Overview for Flood Insurance Risk 2.0
FEMA Releases Rate Overview for Flood Insurance Risk 2.0
FEMA did not release a tool to answer the question on most Fla. homeowners’ minds:
Remove the appraisal contingency from the FAR BAR As Is Contract
As of November 1 2021 the new version (6) of the FAR BAR As-Is is in effect and the financing paragraph changed ALLOT. We are now back to the way it once was which is to say that, for the financing section, the appraisal MUST be completed within the Loan Approval Period.
OK, so here’s a question I never thought I would be asked. Can I have Contract subject to Loan Approval (so NOT cash) and remove the appraisal language?
Short answer is YES, but it’s VERY risky. Both parties can agree to strike that language from the financing paragraph and that would remove the ‘out’ for the Buyer should the Property fail to appraise. So, the Buyer is approved BUT the house is NOT because it did not appraise. THIS IS VERY RISKY AND ALMOST SURE TO CAUSE A FIGHT OVER RELEASE OF ANY ESCROW FUNDS. This is the new version of the appraisal language…
Or, one could use language similar to something like this ASSUMING that the loan product allows for the Buyer to ‘make up the difference’ on the Loan:Value.
“Should any appraisal of the Property (ordered either by the lender for the Buyer, by the Buyer themselves or any others) indicate that the value of the Property is less than the Purchase Price then the Buyer will proceed as if the appraised value of the Property is equal to or in excess of the Purchase Price.” And, again of course, the Lender must be OK with this. Be aware that this is NOT standard language and should be drafted by a lawyer to protect both parties.
So, if the Property fails to appraise BEFORE Loan Approval is given and the application fails to meet underwriting guidelines because of this, AND ONLY THIS, then the application could be denied by the Lender (they can do whatever they want) BUT the Buyer (IMO) could NOT withdraw from the Contract without penalty. Section 8(b)(1) was satisfied and 8(b)(2) was struck in this instance. That’s way too risky for most folks.
Read THIS POST to see why a Buyer would want a separate addendum to the Contract for an appraisal
Feb 2021 Housing Sales in Jupiter and Palm Beach Gardens
The housing sales numbers for Jupiter and Palm Beach Gardens tell a story that we all know. Sales are brisk and we now have just under 2 months supply at the current absorption rates.
RE Q&A: Be Careful with Divorces, Deeds and Mortgages
Source: RE Q&A: Be Careful with Divorces, Deeds and Mortgages
RE Q&A: Be Careful with Divorces, Deeds and Mortgages
A husband signed the rental-property deeds over to his ex-wife, but the mortgage is still in both of their names. How does he get those switched over to her?
FORT LAUDERDALE, Fla. – Question: As part of my recent divorce settlement, I signed deeds to my ex-wife for two rental properties. However, the mortgages are still in my name, making me legally responsible for the properties. What is the easiest way to transfer ownership legally and place the properties in her name? – Paul
Answer: You already transferred ownership of the two properties to your ex-wife when you signed the deeds. Unfortunately, you are still on the hook for the mortgage loans.
You are in the unenviable position of owing money for properties you no longer own. Your ex-wife is now the owner, but if she does not make the monthly mortgage payment, the lender will try to collect from you.
When you take out a mortgage loan, you are signing two contracts. The first is the “promissory note,” and it is your agreement to repay the money you borrowed. This document is the “loan.”
The other form is the “mortgage,” which places a lien on your property, allowing the lender to foreclose and sell the property, with the proceeds from the sale going toward your debt.
If you fail to make your monthly payments or break one of the other terms of this arrangement, such as not keeping insurance on the property or paying the property tax, your lender can sue you individually, foreclose the property, or both.
However, because you no longer own these properties, you do not get the rent payments, and if your ex-wife decides to use the money for something else, the properties may eventually be foreclosed – but you still will be on the hook for the loans. This will damage your credit and leave you responsible for any deficiency between the amount owed on the loan and the property’s value.
Your mortgage lender was not part of your divorce and does not have to transfer the loan to your ex-wife just because she now owns the properties. While you can ask it to do so, it is very unlikely since the bank is better off having both the properties and your good credit as collateral to make sure it gets paid back.
Your situation is why many divorcing couples sell their investment properties if the spouse receiving the property cannot take out a new loan in just their name. Depending on what your divorce judgment says on this issue, you may need to go back to the court to add appropriate protections.
© 2021 Sun Sentinel (Fort Lauderdale, Fla.). Distributed by Tribune Content Agency, LLC
1201 Merlot Drive Palm Beach Gardens, FL 33410
1201 Merlot Drive Palm Beach Gardens, FL 33410 in Evergrene
Rarely available floorplan on a corner preserve lot. 4 bedrooms, 5 baths plus a den, incredible space and layout! Wood floors, crown molding, built ins, central vacuum, double ovens, gas and stainless appliances. Private guest suite on second floor, open floor plan, upgrades galore, master suite on first floor overlooking decorative salt water pool that is fully screened in with large covered outside patio with custom wood ceiling and wired for sound!
#Evergrene
Does glass block require a hurricane panel over it?
This came up today. The MLS listing stated…”full impact windows and doors” but when the inspector got there he said that he could not give the house a mitigation credit for hurricane protection because the glass block needed panels over it. Does it?
First, if the house (and presumably the glass block in question) was built after the 2001 Florida Building code (POST March 2002 permit) was adopted then the house is assumed to be code compliant in terms of the wind storm protection. If there are no shutters there then the glass block should NOT require them ASSUMING that all the other windows and doors DID require some form of impact protection, given the location of the house.
Next, if the glass block itself, lets say in a bathroom remodel, was installed with a building permit issued under the 2001 (or later) FBC then you can assume that, as above, if there are no shutters in place then no shutters are required as, similar to above, if they were required then the building inspector would have seen to it that they were installed.
Finally, it IS possible to use glass block to fill in an opening in a wall and IF (that’s the BIG if) it was properly constructed (as in with an FBC approved block and detailed just like it is shown on the FBC Notice of Approval) then one would NOT need to have hurricane panels to protect it. The block itself must be approved for use in either the High Velocity Hurricane Zone (Miami-Dade and Broward counties) or with a Florida Building Code Notice of Acceptance for use elsewhere in Florida. THE BIG QUESTION IN THIS IS: THE BLOCK MUST HAVE BEEN INSTALLED IN ACCORDANCE WITH THE APPLICABLE NOTICE OF APPROVAL. It’s not just that the right block was used but that it was properly installed. And Without a permit it can be difficult to know that IF right block was used and/or that it was properly installed. I will note here that as a practical matter I checked the glass block sold at the Home Depot near me which is made by a company called Seves and their Nubio, Clarity and Endura product lines are approved for “Miami Dade” or High Velocity Hurricane Zone use and these require a label. The others lines are NOT rated for small or large impact but are FBC approved for the wind loads. Thus, for the latter, the block would again need to be properly installed to take the prescribed wind load and these WOULD require an approved shutter to take the prescribed impact loading.
If you are reading this trying to decide if you need to put plywood up over glass block then I would advise that if you are not certain and the time and material allows for it then better safe than sorry.
For those in cyber space who say glass block is the same as block, Concrete Masonry Unit (CMU) please read:
FBC 1626.1
All parts or systems of a building or structure envelope such as, but not limited, to exterior walls, roof, outside doors, skylights, glazing and glass block shall meet impact test criteria or be protected with an external protection device that meets the impact test criteria. Test procedures to determine resistance to wind-borne debris of wall cladding, outside doors, skylights, glazing, glass block, shutters and any other external protection devices shall be performed in accordance with this section.
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