Yesterday, the Florida Legislature passed property tax reform and a proposed amendment will appear on the January ballot. The amendment offers moderate relief for homeowners and slight relief for commercial property, but it does not go as far as an earlier House proposal. To become law, the proposal must still receive 60 percent of the votes in the Jan. 29, 2008, election.

While the plan has many pros and cons there are provisions to provide property tax relief to not only primary residences, but also second home owners and business owners.  This is something that our seasonal and vacation population has been needing for many years.

The new plan has the following provisions:

• Portability of the Save Our Homes Exemption Dollars: Homesteaders could take up to $500,000 of Save Our Homes protections to a new home purchase. Those who downsize would take a pro-rated portion of their tax protections.  This applies to all property taxes.  This will allow people who live in Homesteaded properties the ability to move and no longer be trapped in their current homes due to the fear of tax reassessment.

• Double Homestead Exemption: Homesteaders get a second $25,000 exemption on the assessed value on the value of their homes over $50,000 giving homesteaded property owners a $50,000 exemption on their property taxes.  This measure doesn’t apply to school taxes.

• Tangible Personal Property Tax Exemption: Businesses get a break on the taxes they pay on equipment. This would apply to all property taxes.

• Assessment Cap for Non-Homestead Property: Property assessments could increase no more than 10 percent each year on non-homestead property.  This is a tremendous victory for second home owners, real estate investors and business owners.  While it is 7 percent higher than a Non-Homestead Property this is the first benefit of its kind in Florida history.

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Please contact me, Dan Forbes, a call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com and my blog The Real Estate ZOO.

Mortgage Fraud Series #2

I am writing a series of posts about mortgage fraud and how we can protect ourselves from it. Fraud thrives in two kinds of market. The first is a hot market when prices are rising fast. Scammers find it easy to inflate appraisals and strip properties of equity.  The second is a declining market, where sellers are frightened.  Scammers play on these sellers, sometimes drawing them into a mortgage fraud scheme.

The Phantom Buyer 

By increasing numbers, people are receiving notices of default on their mortgage. However they are alleging they did not purchase or mortgage the subject property. In many cases it is revealed that the identity and credit score, of the person was assumed by another.  They have fallen into the Phantom Buyer scheme.

These transactions often take one of two forms:

1. Seller creates a phantom buyer.  In this scenario the Seller will inflate the value of the property and will offer an accomplice a sum of money to impersonate a person with good credit. They enter into a bogus contract and close at the inflated price.

Sometimes a mortgage broker is involved. The broker may use the identity and credit of a real person whose offer on another property did not close. 

2. Third party creates a phantom buyer. In this scenario a Seller is offering a property for sale and a buyer offers to pay more than asking price if settlement includes payments for unperformed services or unrecorded mortgages. The Buyer takes title in the name of an individual with good credit. The Seller doesn’t realize he has been involved in a scheme to defraud the lender.

Most Phantom Buyer schemes do not happen in transactions involving a Realtor. However, in today’s world, Realtors may never meet the Buyer face to face.  Transactions can be conducted by email or overnight packages. Therefore, it is important that Realtors KNOW their Buyers and Sellers.  Otherwise the Realtor may find himself/herself drawn unwittingly into the scheme.

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Please contact me, Dan Forbes, a call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com and my blog The Real Estate ZOO.

When Scrully Blotnick, Ph.D. psychologist decided to track the lives of people who wanted to become wealthy in 1960, he set up a study to track 1,500 people. They were put into two categories: Category A said they would pursue money first in their life and then do what they REALLY wanted to do later. 1,245 of the 1500 people went into that group.  Category B, was made up of the remaining 255 people.  They said they would pursue their passion first, and trust that the money would follow.What happened?

Twenty years later, there were 101 millionaires from the entire group.  Only one came from Group A, the group who pursued money first. The remaining 100 millionaires all came from group B, the group who decided to pursue their passions first and trust that the money would follow.

So, where is your focus — on money or passion?

It was discovered that truly wealthy people find their work involving, absorbing, and enthralling.

Think about that. Check yourself on those qualities:

• To what extend do you truly care about your work or some work that you long to do?
• To what extend do you love it, value it, and recognize it as something significant that you do?
• To what degree do you enjoy it? Do you view it passionately?
• What have you come to enjoy about it?
• How have you learned that enjoyment?

You may not agree with this yet.  That’s OK.  But imagine for a moment that the way to true wealth is to simply fall in love with what you do?

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Please contact me, Dan Forbes, a call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com and my blog The Real Estate ZOO.

Mortgage Fraud Series #1

Bradenton Buyers and Sellers must be careful about falling into a senario that perpetuates mortgage fraud.  I am writing a series of posts about various mortgage fraud scams.

Foreclosure Rescue Scam
One common type of fraud being committed today is regarding Foreclosure Rescue. Some unscrupulous individuals are taking advantage of desperate sellers facing foreclosure steal any equity in the borrower’s property.

A “white knight” will contact desperate homeowners whose mortgages are in foreclosure.  The homeowner is usually presented with an offer to refinance their home at a reduced interest rate or extended payment period.  The homeowner will sign papers they believe will lead to a refinance.  The documents are actually a conveyance of the property.  The scammer will try to market the home for sale before the foreclosure is complete or obtain a second mortgage by misrepresenting the value of the property.  In this type of fraud the individuals committing the fraud will usually obtain the signatures of the homeowner and produce the documents at closing.

If you are a homeowner facing possible foreclosure you need to know that when a Notice of Default is filed in the public records you will be contacted by many people.  Some are investors looking for a good deal. Some are foreclosure rescue businesses that prey on those in trouble.  Some want you to pay them money in order for them to help you. DON’T FALL FOR IT.

If someone approaches you and offers you a deal that seems too good to be true it probably is.  Speak with your attorney.  Call an experienced Realtor.  By all means, ask for advice.

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Please contact me, Dan Forbes, a call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com and my blog The Real Estate ZOO.

This is Hank Fishkind’s projection for the U.S. Economy. He is a noted Economist in Florida. 

According to Hank, our housing market has bottomed and better days are ahead.

Please give me a call if you have questions abour our Bradenton real estate market. You can reach me, Dan Forbes, at 941-746-0505 or toll free 877-646-8326. Also visit my web site at BradentonFloridaRealEstate.Com and my blog at The Real Estate ZOO.