Dade County Florida and specifically the city of Miami and the surrounding area is one one of the most difficult places in the United States to be a mortgage banker. The reason: banks and underwriters are well versed in the amount of mortgage fraud that has been generated from this area in years passed and still goes on today.
Straw buyers, fake appraisals, shady title agents, people with a very common name stealing another's identity are all reasons why banks and lending institutions have their guard up when they see a file coming in from Dade County Florida.
Probably as recently as three years ago I had a fairly healthly list of lending sources who would not even look at a borrower or a property from Dade County.
Nowadays the environment has improved as far as this is concerned but be prepared to be "put through the ringer" a little bit if you are purchasing a home in Miami, Florida.
Life Goes On
Fortunately for realtors many buyers in Miami and Dade County are cash buyers. Many home buyers are substantial international buyers coming in from South America, Europe or even Australia and they have learned about the international reputation that Miami holds. Taking into account the shrinking dollar and the glamorous night life that the city creates, many realtors are approached with these types of borrowers who are prepared to put the cash down. Consequently, there is a healthy real estate market going on in and around Miami, Florida.
Miami still has one of the highest foreclosure rates in the country so this means leads to a lot of investors coming in to scoop up a deal. According to a recent article in the Miami Herald,
Miami-Dade foreclosures are still on the rise:
Miami-Dade County’s foreclosure rate continued to increase in January, rising to 19.1 percent, according to data released Wednesday by research firm CoreLogic.
The rate is up about 1.8 percentage points from January 2010, when 17.2 percent of outstanding mortgages were in foreclosure.
About 27.3 percent of outstanding mortgages in Miami-Dade were at least 90 days overdue in January, down slightly from 0.1 percentage points from January 2010.
Miami-Dade’s foreclosure rate was five times higher than the national foreclosure rate of 3.6 percent. Florida’s January foreclosure rate was 12.4 percent.
This is especially bad if you are thinking about purchasing a condo. Lenders already require 30-35% down on a conventional mortgage for a condominium and if there is a high foreclosure rate within a community, that means that the remaining home owners will be stuck paying a higher portion of the monthly homeowners association dues. (Keep that in mind to check the health and budget of the association you are buying into)
When obtaining a Mortgage in Miami keep in mind that the county is divided into roughly four areas North, South, East and West.
Downtown Miami is home to the central business district.
East over the causeways and you are on Miami Beach. An area made up of palatial homes, high-rise condo's, art deco architecture,beautiful hotel's and the hot-spot of South Beach.
The most southern side of Miami includes the cities of Key Biscayne, Brickell, Coconut Grove, South Miami, Coral Gables, Kendall, Palmetto and Cutler Ridge.
On the western side of Miami is traditionally referred to as Little Havana which is also referred to as West Flagler. As you travel north a bit, we come upon the area's of Opa Locka, Hialeah, Aventura and North Miami.
Miami is actually an amazing place with so many fun things to do.I have listed a few below. Prices are expensive like any city but it is an excellent place to purchase a second home to enjoy the near perfect climate, especially in the months from October through April.
South Beach is the ultimate Miami hot spot. From shopping to partying, this area of Miami Beach is well-known for being a trendy locale. The beaches are amazing. The people are beautiful and are from all over the world. It is no wonder that the Superbowl seems to be played here once every three or four years because the scene is amazing. When you are done with a week of beach and night life, you leave refreshed
The Miami Zoo is fast becoming one of the best zoos in the nation. Its climate allows it to keep a wide variety of animals from Asia, Australia and Africa like no other zoo in the country. One of the first free-range zoos in the country, the exhibits are entirely cageless. Animals are grouped according to their geographic territory and animals that live together peacefully in the wild are placed in exhibits together.
The Miami Seaquarium is located right in the middle of the tourist area, on the causeway between downtown Miami and Key Biscayne. It's a fabulous stop where you can witness an outdoor aquarium experience that's only possible in our tropical climate. Be sure to budget enough time to spend at least half a day there!
The Sony Ericson Tennis Tournament. Being a tennis player, I love this event which many describe as the fifth largest tennis event in the world behind the grand slams. Located on Key Biscayne, it is one of the players favorite stops (for obvious reasons). It is much more open and friendly than say the US Open in New York. Spectators can walk around and view bits and pieces of several matches on the grounds or they can go into the giant stadium court to see a main event.
The Miami Musuem of Science - Like all major cities Miami has an excellent museum for the whole family complete with planetarium and lazer light show
The Florida Keys National Marine Sanctuary is vibrant with color and life as you snorkel around in the living coral reefs in very clear beautiful south Miami water. John Pennekamp is located in Key Largo which is south of Miami but not really much of a drive. Suddenly you are in the Keys and it is a whole different world. ..
Monkey Jungle in southern Miami-Dade County is a truly unique park. While homo sapiens walk through carefully constructed wire pathways, many species of primates scamper above your head, swing through trees and interact with each other in ways difficult to observe in captivity. Keep your eyes open; you never know who's hanging around!
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