The Daily Soak - September 15

Southwest Florida One of Nation's Bottom 5 Job Markets

Three years ago when the housing boom was in full swing, jobs were abundant in cities like Naples and Fort Myers. Homebuilding, real estate sales, mortgage lending, pool construction, hurricane shutter installation...basically anything related to homes and condos was in high demand. But once the housing frenzy dried up, so did the job market. And a new nationwide ranking shows just how non-diversified the Southwest Florida market really is. A Naples News editorial contrasts the nation's best job markets with the local labor status quo: "A look at the biggest winners shows they tend to be close to universities, technology and research. That workplace strength drives those area’s housing markets, while in our area we look to housing itself to be the driver."


As Foreclosure Rate Slows, Some Contractors Going Back To Work

The RealtyTrac data released last week showed Florida falling from the second-highest foreclosure rate in the nation to the fourth-highest. That's been good news for some contractors and construction companies in Northeast Florida. Stucco company owner Malcolm Willis sees signs of a turnaround, "The last sixty days, it's really picked up. We've been very busy. I'm seeing a lot of building going on around town. I think the market is starting to change. I'm getting calls from a lot of people trying to close on homes and get stuff fixed." Ted Walker of SEDA Construction Company is overseeing construction of a 500-home community in St. John's County and says SEDA is selling 25-35 homes per month. "It's down from our heyday, but these are very good numbers," Walker said, "It's good business."


Cape Coral Couple Face Prison Time for Mortgage Fraud Scheme

New Yorker Ronald Luczak did time a decade ago for his role in a stock-trading scam, but 30 months in prison apparently wasn't enough to change his ways. The ex-con relocated to Cape Coral in 2005 and along with his wife opened Cape Coral Equity and Development Group. Apparently "Equity and Development" was a euphemism for "Mortgage Fraud and Phony Appraisals." Last week in court, Luczak confessed to buying homes at one price, having them appraised at an inflated value and pocketing the difference as "assignment fees." The scheme involved at least 37 properties and $27 million in home loans. The Luczak's received help from a colorful cast of characters in both New Jersey and Cape Coral including several "straw buyers," a former Cape Coral police officer turned Florida realtor and a loan processor who pleaded guilty to wire fraud.