The Daily Soak - August 27

Bather's Note: The Daily Soak will return September 5.

Tighter Lending Guidelines Putting the Brakes on Recovery

It seems like only yesterday when the no-income verification, no-doc, interest only, 1 year adjustable rate mortgage was all the rage. Those days are officially over, and if you have any doubts, just ask anyone trying to buy a house today. Many middle class buyers, who are finally well positioned to take advantage of more affordable housing, are being left on the sidelines. Lenders are demanding much larger down payments and verifiable proof of income. One South Florida realtor says, "Europeans, wealthy Northeasterners and the wealthy locals who have the cash can buy. The average working class here, they are left out.'' The Miami condos with the highest foreclosure rates in areas like Brickell and Biscayne offer the best bargains, but banks are requiring deposits of 30-40% in many of those buildings. Interested buyers in hard-hit areas should get familiar with a new term/fee in the lender lexicon: Adverse Market Premium.

Locals Foreclosing, Dutch Moving In: Worlds Collide in Orlando

Disney World, It's A Small World, Sea World...Orlando leads the U.S. in world-themed destinations where foreign tourists, singing children and even sea creatures live in perfect harmony. That same vibe doesn't exactly spill over to Orlando neighborhoods according to one Dutch reporter. The political editor for Radio Netherlands Worldwide reports on the bizarre dynamic emerging in some subdivisions where middle class American citizens are losing their homes to foreclosure and middle class Dutch tourists are snatching up the same homes at fire sale prices. One Dutch buyer sums up the experience, "We looked at 80 houses in three days, all in one resort. When you do that, you see lots of human suffering. You see from a distance that people aren't doing well, and I really didn't like that. You feel like a vulture circling overhead. That was the not so nice side of it."


Advice to Obama: Bring Some Bagels to the Condo

From Berlin to Denver, Democratic presidential candidate Barack Obama has been addressing throngs of adoring admirers this summer. But in sharp contrast, Obama messengers have apparently received a less-than-enthusiastic reception in the South Florida Jewish community. Florida state Senator Nan Rich says Obama surrogates "have been shocked by the hostility they have encountered at condominiums in her area aimed at their candidate." And Senate Minority Leader Steve Geller says he has been "nearly chased out" of some of these same South Florida condos. Both politicians made the comments during a roundtable discussion on the Jewish vote during the Democratic National Convention. Searching for solutions, one Florida Representative offered the following game plan for Barry, "He needs to come down and have bagels and cream cheese in the condos and he will be fine."