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Europeans turn their eyes to Florida

From Global Edge

By Global Edge, Wednesday, October 14, 2009.

Editor's note: This item is republished with permission from Global Edge Marketing Ltd. The original post can be viewed here.

The Herald Tribune, which this week ran a feature on the rise of international buyers purchasing in Florida, found that Western European buyers accounted for 38 percent of the total number of foreigner purchasers in the Sunshine State, with the British the largest segment.

Although there has been strong interest from Europeans over the past 18 months, it was almost impossible for foreign nationals to get U.S. mortgages at the start of Florida's financial crisis, says Patricia Tan, international sales director at Prudential Palms Realty in Sarasota. "But now large lenders like Bank of America are back in the market, even if they do have more stringent documentation requirements than in the past."

Europeans are increasingly attracted to the U.S. by the low property prices induced by the mortgage crisis and the weak dollar. Relaxation of credit restrictions should fuel the market further.

Florida remains the top state for international transactions, tallying nearly one in four of all international sales in the United States in 2008.

Copyright © 2009 Global Edge Marketing Ltd.

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Submitted by Joseph Sloboda on October 15, 2009 - 7:01am.

I have been providing financing to foreign nationals in South Florida for a little more than 10yrs and my how things have changed in this time. When we started it was very difficult, then it became almost too easy and now we are back at difficult.

Yes - while Europeans and South Americans (especially Venezuelans) are increasingly buying properties in South Florida the availability of credit to these buyers is significantly difficult to obtain. There are a limited # of banks that will even entertain a foreign national buyers and then when you have a lender that will underwrite a NRA file then you have to be sure of what you are getting.

The big banks like BOA, Citi and others are either pulling out al together or they are charging up to 4 points up front to get rates like 7.5% - additionally you need to make sure you NRA buyer is prepared to put 35% - 40% down payment.

Our office is working with several Regional Banks and Community Banks in South Florida that are providing very competitive rates and terms provided the borrower is willing to have that minimum 35% down payment and in most cases will be required to open an account with a depository relationship.

These deals CAN be done, but by no means are they easy. Make sure your loan officer or mortgage broker is experienced in this field.

Joe Sloboda
HG Mortgage

 
Submitted by KEITH GIORDANO on October 15, 2009 - 8:03am.

Mr. Sloboda is correct, the number of lenders has dwindled as has the number of brokers. Bank of America just announced they are pulling out of foreign nationals altogether 10/1. Although these are better performing loans than the US, they are increasingly nervous about lending to anyone. The credit reference letter system didnt work as anyone's nephew can do those letters up. We have had an increase in the number requesting a real credit report from us along with more pertinent data from their home country. WE DO A FULL CREDIT REPORT.

Keith Giordano
International Reporting & Co., Inc.
www.intlreporting.com

 
Submitted by Gloria Singer on October 29, 2009 - 5:47pm.

How true this is! I have worked with several Western European buyers in the previous years and now with the ongoing decline in the Boca Raton real estate market is even more appealing to our overseas buyers. Some things will never change in South Florida, however. The climate and the beauty.

Gloria Singer
Realtor
Lang Realty
4400 N Federal Hwy
Boca Raton, FL 33431
Office: 561.447.0666 x1919
Fax: 561.447.4435
Cell:561.866.7584
http://www.bocaexpert.com

 
Submitted by bendjamin stokson on November 6, 2009 - 3:47am.

The credit reference letter system didnt work as anyone's nephew can do those letters up. We have had an increase in the number requesting a real credit report from us along with more pertinent data from their home country. WE DO A FULL CREDIT REPORT.