03/11/2013 Florida Realtors News

Daily Briefing: Monday, March 11, 2013 TODAY'S TOP STORIES Courts unfairly blamed for long Fla. foreclosures? Banks dawdle in foreclosure court TALLAHASSEE, Fla. – March 11, 2013 – Banks are the biggest barriers to speeding the foreclosure process in Florida because they let cases linger in the courts and continue to present flawed documents, the state courts administrator told a Senate subcommittee this week. Lisa Goodner’s presentation, which included findings from the recently formed Foreclosure Initiative Workgroup, comes as Palm Beach County foreclosure attorneys scramble to respond to new local rules meant to hasten the rate of home repossessions. Today is the first deadline in an administrative order issued last month requiring lenders and mortgage servicers to submit paperwork on aging Palm Beach County cases before potentially facing a court-forced trial date. About 14,780 Palm Beach County foreclosures filed between 2007 and 2010 remain unresolved. There were more than 31,000 total pending cases as of the end of January. The state has a backlog of 366,250 foreclosure cases and expects 680,000 more to be filed in the next three years, Goodner said. “There doesn’t seem to be any motivation on the part of the plaintiffs (banks and mortgage servicers) to move the cases forward, and, as you can imagine, there is no motivation on the part of the (homeowners) to move the cases,” Goodner told the Senate appropriations subcommittee on criminal and civil justice. “The other challenges we have are paperwork problems.” For example, foreclosure defense attorney Michael Wasylik said he has a 2011 case in which the mortgage changed hands several times and the bank’s documents contradict each other on who now owns the loan. In another case, he has evidence from the bank of mortgage payments that go back to 2007, but the mortgage was taken out in 2005. “If the plaintiff does their job right, the longest a foreclosure case should take is a year,” Wasylik said. The Foreclosure Initiative Workgroup, which was created in early January by the state’s Trial Court Budget Commission, is scheduled to release a report soon. But one conclusion, Goodner revealed, is that the courts’ ultimate goal should be to bring foreclosure cases in compliance with state time standards to complete a case. Those standards are 12 months for non-jury trials and 18 months for jury trials. To do that, Goodner is asking for $9.9 million in additional money per year through 2016 to increase the use of technology and the number of case managers. She also suggested using magistrates in addition to senior judges to handle foreclosure cases. Goodner said the money could come from $200 million lawmakers took from Florida’s share of the National Mortgage Settlement. Florida’s courts already got $5 million from the settlement, which became available Feb. 1. About $1.3 million was divided among the 20 circuit courts. The remainder will be used to help automate court records so judges can look at electronic filings instead of sorting through stacks of papers. “First and foremost, everything is about due process, but judges also have an obligation to move cases to completion,” Goodner said. Guy Cecala, publisher of the trade magazine Inside Mortgage Finance, said banks are “gun shy” about handling foreclosures after settling complaints with federal regulators and attorneys general last year for tens of billions of dollars. “Their feeling is, when in doubt, move slow because you are less likely to make mistakes or more likely to catch mistakes,” Cecala said. “Banks aren’t 100 percent confident they’ve resolved all the paperwork problems.” Lenders contacted for this story either did not respond by deadline or had no comment. How the courts will manage speedier foreclosures is still unknown. Today’s deadline requires banks with cases filed in 2007 or earlier to provide documents to the court. For foreclosures pending 36 months or more, the court will schedule blocks of trial time, pushing both sides to present their case unless a judge agrees to a delay. Wasylik said he had seven foreclosure trials in all of 2012. This year, he’ll top that number by April. And with judges setting trial dates without consulting attorneys, he already has several scheduled at the same time in different counties. “I’m seeing the tip of the iceberg,” Wasylik said. Source: Palm Beach County Clerk & Comptroller © 2013 The Palm Beach Post (West Palm Beach, Fla.), Kimberly Miller. Distributed by MCT Information Services EPA fails to revise lead standards EPA fails to revise lead standards WASHINGTON – March 11, 2013 – The Environmental Protection Agency has no current plans to revise key hazard standards that protect children from lead poisoning, despite calls for action from the agency’s own scientific advisers. The result is that children will continue to be exposed to lead particles in house dust and yard soil at levels that can cause reduced intelligence, attention disorders and other health problems, because the EPA’s standards – set in 2001 – give a false sense of safety, scientists and child health advocates said. “It’s outrageous we aren’t acting on what we know,” said Howard Mielke, a Tulane University soil contamination expert. A year ago, the EPA’s Children’s Health Protection Advisory Committee called for the agency’s “immediate and urgent attention” to several recommendations on lead poisoning issues, including revising lead dust standards. Yet any change in the EPA’s lead standard for house dust, which is under agency review because of a 2009 citizen petition, appears to be years away and would likely face opposition from the home renovation and real estate industries, which have raised concerns in the past about increased costs, EPA records indicate. The EPA told USA TODAY that no action is currently being taken to revise the soil hazard standard – which allows five times more lead in play areas than what modeling by the state of California shows is needed to protect children from losing 1 I.Q. point. “EPA has a longstanding commitment to reducing childhood lead poisoning,” the agency said in a statement, calling the existing soil standard effective. The EPA’s standards for dust and soil are widely used as safety benchmarks when older homes are inspected for lead paint residue and when yards and playgrounds have their soil tested for contamination. “They matter to consumers as a right-to-know issue: If you’re told your home is safe and in fact it’s not,” said Rebecca Morley of the National Center for Healthy Housing. In the 12 years since the EPA set its standards, research has shown even tiny amounts of lead harm children. Last May, the Centers for Disease Control and Prevention revised its 1991 standard for lead in a child’s blood, cutting by half the amount that should trigger health actions. Contaminated dust and soil – which children ingest by putting dirty hands and toys in their mouths – are important sources of exposure. The National Association of Realtors’ Sara Wiskerchen said existing rules have already been “very successful” at reducing lead poisoning. Copyright USA TODAY 2013 Home is where the tax breaks are: 7 tips Home is where the tax breaks are: 7 tips WASHINGTON – March 11, 2013 – While economists and investors can debate whether buying a home is still part of the American dream, it’s undeniable that the tax code remains highly favorable to people who own instead of rent. Whether you were a first-time buyer, a longtime homeowner who refinanced or a seller, there are a host of important deductions available. The easiest way for a family to get more than just the standard deduction is to claim tax breaks related to a house. Charitable deductions or a smattering of health care costs might not get you above the $5,950 deduction for individuals or the $11,900 mark for married couples. But a few of these big-time breaks in housing can push you over the top and result in a much bigger refund. The downside is no more simple tax returns since you’ll have to itemize. But the money you’ll get back makes it worthwhile. Here are seven important tax tips for homeowners: • Mortgage interest is your best friend. Taxpayers collectively get roughly $100 billion annually in mortgage interest breaks. If you bought a home or refinanced in the last few years, the savings are even more significant, as more than half your monthly payment goes toward interest. • Mortgage insurance is still deductible. There were fears that the deduction for personal mortgage insurance would fall victim to fiscal fights in Washington. However, Congress left it in place. That’s a huge boon to lower-income homeowners who often can’t afford a big down payment and must pay private mortgage insurance until they have at least 20 percent equity in their homes. • Taxes are tax deductible. It sounds odd and is frequently overlooked, but homeowners can deduct their local and state property taxes on federal tax returns. There also may be special property tax benefits for lower-income homeowners based on your state or municipality of residence, so look into further breaks specific to your community. • Qualified renovations count. Fixing a leaky faucet or putting crown molding in the living room is not tax deductible. But there are a number of items in the tax code that allow for tax breaks and credits. A host of items covered under residential energy efficiency can provide tax relief, including new solar panels or certain water heaters. There are also deductions available for home office improvements, as well as for medically necessary changes, such as an entry ramp or a handicap-accessible bathtub. • Unqualified renovations can count later. While that addition might not be “necessary,” the expense could be an important part of reducing your tax burden when you sell. This is especially noteworthy in hot real estate markets or for homeowners sitting on big property appreciation. The IRS allows you only $250,000 of tax-free profit when you sell a primary residence, but you can deduct any renovations that boosted your home’s value from any total profit to get under that threshold. Find those receipts if you’re sitting on a big profit and planning to sell. • Claim selling costs. If you sold a home in the past year, costs including title insurance, advertising and real estate broker fees can be claimed. You can claim certain repairs to reduce capital gains on the sale, presuming they were made within 90 days of sale and clearly for the intent of marketing the property. • Don’t forget moving expenses. If you bought a home in 2012, there’s a chance you did so because of a job-related move. If this is the case, you may be able to deduct some expenses, provided you have the receipts. You must have moved 50 miles or more, and the reasons for your move can’t be personal. NOW YOU KNOW Florida Realtors CRSP-12 to get update In late March, CRSP-13 replaces CRSP-12, but changes are minimal. Text will remain the same, but formatting has been adjusted and alphabet letters added to addenda. AROUND FLORIDA Orlando: Big real-estate projects slow to get back on track Polk County: Buyers scramble as distressed home sales tighten South Florida: Buyers frustrated by limited inventory as selling season looms