If you are borrowing the money from a lender, avoid PMI at all costs. Private Mortgage Insurance is required if you have less than 20% deposit to put down. It protects the lender against foreclosure action and the premium is added to your monthly total. Not all lenders require this insurance so it is well worth shopping around to see if you can avoid this extra expense. After all, it doesn’t cover you, it covers your lender!

As soon as your offer is accepted, get your homeowners insurance. Then make sure those who need to know about it get to hear. Delays in getting this insurance sorted delays completions and annoys everybody.

Get your prospective purchase checked for termites and damage. It will cost you some dollars, but will be well worth it for the peace of mind alone. Ensure that any damages that you have agreed the seller carry out is in writing and included in the contract. That way they can’t wriggle out of any obligations.

As an addition to the above, get any agreements or promises between you and the seller down in writing. Anything written is worth much more than a verbal agreement, and will save any issues later on.

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A short sale is when you are selling a property whose end value isn’t going to pay off the money that is owed on it.  That money could be the loan, taxes, or any other fees.  As a seller you either have to agree with your lender to either forego the outstanding balance or make your own arrangements to pay of the excess.

This kind of property sale should only really be considered as a last resort.  If you cannot raise the money, reconfigure your loan to a more affordable rate, or the FHASecure plan can’t help, then you may have no choice.  As with any big decisions it is advisable to seek professional advise before proceeding with anything like this.

To get a short sale approved, your lender must agree to it.  The criteria for getting one approved varies by lender and that will have to be discussed between you.  To get approval you must demonstrate four things.  The first is financial hardship.  You have to demonstrate that you cannot continue with the payments, and will need to prove your case with bank and salary statements.  The second is deciding the property value.  You again, will need to prove that the property is worth less than you owe.  You will need to get a realtor to provide you a quotation and a comparative market analysis, which you will have to pay for.  The bank may also want a second opinion and send their own evaluator round.  You may also have to foot the bill for this.

If your lender agrees to all this, then you must also submit any buyer offer to them to approve.  Everyone who has a financial interest in the property must approve the buyer before you can proceed with the sale.

The process of approving a short sale may take a few weeks.  Your preparations, and presenting all of the required documentation will speed things up a lot, but there is a lot of stages and approvals in this procedure so you certainly won’t get an instant answer!

Selling short is only something to consider as a last resort, but is still an option if you cannot pay off your loan by traditional means.  As has been said before, take professional advise before doing anything drastic, as there may be another way.

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Buying a property in Naples could be a good investment for the foreign buyer.  As the dollar value has decreased compared to other currencies, it may be a good time to invest compared to a couple of years ago.  Not only is the dollar down, but so are the property prices.

Foreign buyers, same as US citizens, will be subject to various state and county taxes at the time of purchase, annual taxes based on the value of the property, and on any value gains when the property is sold.

Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), requires that an amount equal to 10% of the selling price be withheld from a foreign seller of real estate. This amount is withheld to cover the potential taxes on the gain, but the 10% withheld can be much higher than the actual amount of tax due. The foreign seller will then need to file for a tax refund to collect the excess amount of taxes withheld. Some advance paperwork filings can reduced the amount withheld, the wait for the refund and other hassles. I recommend that shortly after the original purchase of real estate, a foreign buyer talk with an accountant, get a tax id number, and be prepare for the future. Eventually a foreign buyer will end up selling, so it is best to plan in advance.

Foreign buyers are also eligible to defer the tax on gains when they sell, by doing a ‘1031 exchange’. A 1031 exchange may be available when you sell an investment property held for over one year, and then purchase another within a specific time frame. It permits the profit from the property sold to be deferred from taxes, until a future date that the new property is eventually sold. Very specific rules need to be followed, but several companies are available to help coordinate the 1031 exchanges for a fee.

Most real estate agents can offer services for the international buyer and for a fee can take care of all the extra paperwork for you.