Something new is coming within the bank-owned/foreclosure world.

According to an article in the Miami Herald on 3/7/10, a reverse foreclosure can force the banks to pay association maintenance fees when unit owners don't.

A reverse foreclosure happens when the association files its own foreclosure notice and takes title - this happens after the unit owner stops paying maintenance fees.  The association cannot sell the unit because the bank is in first position.  The association then goes back to court, renounces its claim on the property and asks the judge to give the title back to the bank. The bank then has to pay the fees.

Under existing laws and statutes, banks cannot be forced to pay more than 12 months of past-due homeowner association fees or 1 percent of the overall mortgage amount...whichever is less. For condominium's, the cap is 6 month's worth of fees.

The deadline to qualify for a tax credit is approaching soon. Buyers need to have a fully executed purchase and sale agreement by April 30th, 2010 and close by June 30th, 2010 in order to qualify for the tax credit.

Real Estate sales have increased in Miami in part due to the approaching deadline. More buyers are out shopping and competition is heating up in several areas of the county.

Be prepared when house-hunting...have your mortgage approval in hand and be ready to be one of many buyers.

I've had several listings recently where the situation is a multiple offer scenario...one property brought in 16 bids.

Be ready with a strong deposit and strong approval letter.

Consult with your tax advisor to make sure you qualify for the tax credit.

In Miami-Dade County, pending sales increased 9% for the month of February compared to January. Units going under contract went from 8,388 in January to 9,164 in February. Sales have increased a total of 61% from one year ago.

Pending home sale contracts are contracts that have been signed by a buyer and seller but have not yet closed. 

The tax credit which expires later this year, and better pricing have driven many buyers out shopping.

This information was provided by the Realtor Association of Greater Miami and the Beaches.