Ok, so which parent ticked off their School Board Representative to have their subdivision excluded from redistricting? And why does the Cobb County School Board continue to ignore parent and separate their children within the neighborhood?
Vinings Estates at East Gate parents say redistrict their homes into Nickajack Elementary or they'll put their children in Private Schools or move to another school district besides Harmony Leland (already over capacity). See: Proposed South Cobb School Reditsricting Map
Source: http://southcobb.patch.com/articles/parents-considering-moves-to-east-cobb-private-school-if-redistricting-plan-approved
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, December 23, 2011
Thursday, December 8, 2011
Cobb County School System Attendance Zone Maps
Here's where you can find the Cobb County School System Feeder Maps:
http://www.cobbk12.org/centraloffice/Planning/
Attendance Zone Maps - http://www.cobbk12.org/centraloffice/planning/zonemaps.aspx
Phase 3 of South Cobb's new Elementary Feeder Maps:
http://www.cobbk12.org/centraloffice/Planning/2011Redistricting/
http://www.cobbk12.org/centraloffice/Planning/Redistricting%20Round%203/DraftPlanMapR3.pdf
...for the new Smyrna and Clarkdale Elementary Schools.
Note: MDJ article on new school attendance and public meetings - http://mdjonline.com/view/full_story/16695920/article-Families-ask-to-attend-new-school-in-Smyrna?instance=secondary_story_left_column
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
http://www.cobbk12.org/centraloffice/Planning/
Attendance Zone Maps - http://www.cobbk12.org/centraloffice/planning/zonemaps.aspx
Phase 3 of South Cobb's new Elementary Feeder Maps:
http://www.cobbk12.org/centraloffice/Planning/2011Redistricting/
http://www.cobbk12.org/centraloffice/Planning/Redistricting%20Round%203/DraftPlanMapR3.pdf
...for the new Smyrna and Clarkdale Elementary Schools.
Note: MDJ article on new school attendance and public meetings - http://mdjonline.com/view/full_story/16695920/article-Families-ask-to-attend-new-school-in-Smyrna?instance=secondary_story_left_column
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, November 21, 2011
HUD HOME Program - Efficient use of your taxpayer money?
HOME is the largest Federal block grant to State and local governments (about $2 billion annual distribution) designed exclusively to create affordable housing for low-income households.
It's a partnership with local nonprofit groups-to fund a wide range of efforts that build, buy, and/or rehabilitate affordable housing for rent or home ownership or provide direct rental assistance to low-income people.
Source: http://nhl.gov/offices/cpd/affordablehousing/programs/home/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
It's a partnership with local nonprofit groups-to fund a wide range of efforts that build, buy, and/or rehabilitate affordable housing for rent or home ownership or provide direct rental assistance to low-income people.
Source: http://nhl.gov/offices/cpd/affordablehousing/programs/home/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, November 16, 2011
Mortgage rates v. 10 yr. treasury yields - any relationship?
Short answer - YES!
Source: http://www.mortgagenewsdaily.com/consumer_rates/228272.aspx
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://www.mortgagenewsdaily.com/consumer_rates/228272.aspx
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, November 7, 2011
Isakson & Boxer real estate refinance proposal - end of times?
...maybe for Senator Isakson who teams with a liberal Senator such as Boxer on anything, it can't be good - can it?
Refinancing a mortgage saves money for the borrower at the expense of the original investors - private, labor unions, school teacher pensions, public employee pensions, your own pensions, CDO/MBS investments, etc,. Someone takes a hit on any refinancing by lower interest rate, less amount to be paid back, or lose the investment return entirely. And it's a simple process when only one investor/institution owns the note - that one entity can decide on whether or not to lower the interest rate and retain the investment vehicle, or lose it to someone else. That's probably about 20% of all mortgage loans these days, but 80% are commingled with 2 or more investor-owners of vehicle.
These senators' proposal tries to eliminate risk based fees (in other words, their investments are baked by US taxpayers and they don't need to pay for risk) and allow people who are paying "as promised" get a lower interest rate if they owe more than the home is worth.
Source http://mdjonline.com/view/full_story/16305418/article-The-Economy---Obama-wise-to-tag-onto-Isakson-proposals?instance=lead_story_left_column
Source: http://mercatus.org/expert_commentary/boxer-isakson-refinancing-plan-banks
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Refinancing a mortgage saves money for the borrower at the expense of the original investors - private, labor unions, school teacher pensions, public employee pensions, your own pensions, CDO/MBS investments, etc,. Someone takes a hit on any refinancing by lower interest rate, less amount to be paid back, or lose the investment return entirely. And it's a simple process when only one investor/institution owns the note - that one entity can decide on whether or not to lower the interest rate and retain the investment vehicle, or lose it to someone else. That's probably about 20% of all mortgage loans these days, but 80% are commingled with 2 or more investor-owners of vehicle.
These senators' proposal tries to eliminate risk based fees (in other words, their investments are baked by US taxpayers and they don't need to pay for risk) and allow people who are paying "as promised" get a lower interest rate if they owe more than the home is worth.
Source http://mdjonline.com/view/full_story/16305418/article-The-Economy---Obama-wise-to-tag-onto-Isakson-proposals?instance=lead_story_left_column
Source: http://mercatus.org/expert_commentary/boxer-isakson-refinancing-plan-banks
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, November 2, 2011
Was your home foreclosed on between 1/1/2009 and 12/31/2010?
You can seek help until 4-30-2012.
The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (federal bank regulators) have required an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations, or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy.
To qualify, your mortgage loan would need to meet the initial eligibility criteria:
Source: http://www.independentforeclosurereview.com/
Source: http://www.washingtonpost.com/business/economy/4-million-borrowers-eligible-for-foreclosure-review/2011/11/01/gIQAG6KadM_story.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (federal bank regulators) have required an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations, or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy.
To qualify, your mortgage loan would need to meet the initial eligibility criteria:
- Your mortgage loan was serviced by one of the participating mortgage servicers.
- Your mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
- The property was your primary residence.
If your mortgage loan meets the initial eligibility criteria and you have questions, need a form by mail, or need help completing the form you have received in the mail, call 1-888-952-9105, Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET.
Source: http://www.independentforeclosurereview.com/
Source: http://www.washingtonpost.com/business/economy/4-million-borrowers-eligible-for-foreclosure-review/2011/11/01/gIQAG6KadM_story.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, October 25, 2011
President Obama's latest plan to refinance underwater mortgages - coming soon?
Here are some answers, but more program affecting the interest rates on (only those loans owned by Freddie Mac or Fannie Mae will be eligible) details will be out on 11-15-2011 and loans available as early as 12-1-2011?
http://www.google.com/hostednews/ap/article/ALeqM5jj-W6cU10ZTbXRoAPK23Ikk0Et0A?docId=cf2fde584ac54589b9dce05464a2e436
Is your loan owned by Fannie Mae or Freddie Mac? Check these websites to verify if your mortgage is owned by Fannie or Freddie - freddiemac.com/mymortgage; Fannie's is at fanniemae.com/loanlookup.
Other recent comments from FHFA Director Edward Demarco - possibly raising the 125% LTV limit on refinance - FHFA's DeMarco Releases Statement on Potential HARP Changes => http://www.mortgagenewsdaily.com/09092011_fhfa_statement.asp
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
http://www.google.com/hostednews/ap/article/ALeqM5jj-W6cU10ZTbXRoAPK23Ikk0Et0A?docId=cf2fde584ac54589b9dce05464a2e436
Is your loan owned by Fannie Mae or Freddie Mac? Check these websites to verify if your mortgage is owned by Fannie or Freddie - freddiemac.com/mymortgage; Fannie's is at fanniemae.com/loanlookup.
Other recent comments from FHFA Director Edward Demarco - possibly raising the 125% LTV limit on refinance - FHFA's DeMarco Releases Statement on Potential HARP Changes => http://www.mortgagenewsdaily.com/09092011_fhfa_statement.asp
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, October 19, 2011
Property taxes rise due to foreign investment?
One benefit for local municipalities in Florida, Arizona and other states where foreign investors have swooped in to capture real estate is the increased property taxes.
Usually, primary resident homes are eligible for several homestead exemptions (or reductions in property taxes) including a relatively large discount on taxes for older residents. However, if foreigners buy real estate, they may be ineligible to apply for those exemptions. But the lower US property taxes, compared with other countries, is still a deal.
A side question I have is: "Do the rules for foreign ownership specifically exclude foreign residents from using normal and age related homestead exemptions, some of which may result in a 67% reduction of property taxes?" It all depends - if the rules are not clear, and it's the only property the foreigner owns in the US, would they still be eligible to claim the homestead exemption? How would they prove if they lived there >6 months otherwise to claim residence?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Usually, primary resident homes are eligible for several homestead exemptions (or reductions in property taxes) including a relatively large discount on taxes for older residents. However, if foreigners buy real estate, they may be ineligible to apply for those exemptions. But the lower US property taxes, compared with other countries, is still a deal.
A side question I have is: "Do the rules for foreign ownership specifically exclude foreign residents from using normal and age related homestead exemptions, some of which may result in a 67% reduction of property taxes?" It all depends - if the rules are not clear, and it's the only property the foreigner owns in the US, would they still be eligible to claim the homestead exemption? How would they prove if they lived there >6 months otherwise to claim residence?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, October 18, 2011
Why do banks sell your mortgage loan?
Quick answer: To make money on the sale of the loan and relend the proceeds to make another loan and repeat the cycle....over, and over, and over....again!
Note: (See The Golden Rule - Those with the Gold make the Rules!)
Source: http://www.creditinfocenter.com/mortgage/sellloans.shtml
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Note: (See The Golden Rule - Those with the Gold make the Rules!)
Source: http://www.creditinfocenter.com/mortgage/sellloans.shtml
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, October 11, 2011
Real Estate Legal News
This blog post will be updated with other appraisal related news from time to time.
The US Supreme Court will hear a case in 2012 related to RESPA (Real Estate Settlement Procedures Act) regarding improper lender fees involving discount fees charged without associated reduction in interest rates. Source: http://therealdeal.com/newyork/articles/the-us-supreme-court-will-rule-on-illegal-mortgage-fees-in-lawsuit-against-quicken-loans
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
The US Supreme Court will hear a case in 2012 related to RESPA (Real Estate Settlement Procedures Act) regarding improper lender fees involving discount fees charged without associated reduction in interest rates. Source: http://therealdeal.com/newyork/articles/the-us-supreme-court-will-rule-on-illegal-mortgage-fees-in-lawsuit-against-quicken-loans
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, September 27, 2011
Real Estate Facts and Figures
I will update this post from time to time - stay tuned for more news.
10-14-2011: About 70-85% of residential mortgage transactions in 2011 were refinances. This means fewer normal resales (since the Sellers have to compete with foreclosures) and more people taking advantage of much lower interest rates. Be sure to read through this article - it provides other information like normal length of time to break even on your additional closing costs, etc,.Source: http://www.bloomberg.com/news/2011-10-14/refinancing-chills-demand-for-u-s-home-purchases-amid-economic-squeeze-.html
9-27-2011: 1/5 of all homeowners with a mortgage owes more than home is worth and $7 Trillion of homeowner's equity was lost in this down market since 2007. Source: WSJ 9-24/25-2011.
1-11-2011: About 10.8 million (about 22.5% of total) homeowners in the US owe more than their home is valued.
Fannie Mae and Freddie Mac guarantee about 50% of the $10.6 Trillion in home loans outstanding.
95% of all mortgages are owned by the US Government in some form through Fannie Mae, Freddie Mac, FHA or other means (up from 45% in 2005).
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
10-14-2011: About 70-85% of residential mortgage transactions in 2011 were refinances. This means fewer normal resales (since the Sellers have to compete with foreclosures) and more people taking advantage of much lower interest rates. Be sure to read through this article - it provides other information like normal length of time to break even on your additional closing costs, etc,.Source: http://www.bloomberg.com/news/2011-10-14/refinancing-chills-demand-for-u-s-home-purchases-amid-economic-squeeze-.html
9-27-2011: 1/5 of all homeowners with a mortgage owes more than home is worth and $7 Trillion of homeowner's equity was lost in this down market since 2007. Source: WSJ 9-24/25-2011.
1-11-2011: About 10.8 million (about 22.5% of total) homeowners in the US owe more than their home is valued.
Fannie Mae and Freddie Mac guarantee about 50% of the $10.6 Trillion in home loans outstanding.
95% of all mortgages are owned by the US Government in some form through Fannie Mae, Freddie Mac, FHA or other means (up from 45% in 2005).
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, September 21, 2011
Homeowner's Associations - HOAs Liens
Some HOA's are getting tough and charging fees - filing liens against the home which need to be paid on or before closing to sell your property
Source: http://online.wsj.com/article/SB10001424052748704281504576327693591415736.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://online.wsj.com/article/SB10001424052748704281504576327693591415736.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, September 19, 2011
FHA’s Energy Efficient Mortgage (EEM)
FHA’s Energy Efficient Mortgage (EEM) relies on a type of home energy audit that uses the Home Energy Ratings System tool (HERS). Lenders and homeowners can find auditors who are trained to use the HERS tool.
Energy Raters and Auditors are professionals trained and certified in energy efficiency, combustion safety and building analysis.
Be sure to visit FHA’s EEM Home page for more information about its EEM program: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/eemhome The EEM Home page provides number of resources, including: a sample EEM worksheet, which helps lenders calculate the maximum EEM loan amount, and a Cross Reference Tips sheet, which consolidates many of the EEM rules by category.
For technical support on Energy Efficient Mortgages, or any other FHA program, please contact the FHA Resource Center at: www.hud.gov/answers You can also get email technical support at: answers@hud.gov
Source: http://www.resnet.us/trade/find-raters-auditors
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Energy Raters and Auditors are professionals trained and certified in energy efficiency, combustion safety and building analysis.
EEM Notice For FHA Partners:
FHA’s Energy Efficient Mortgage (EEM) relies on a type of home energy audit that uses the Home Energy Ratings System tool (HERS). Lenders and homeowners can find auditors who are trained to use the HERS tool from the following web page: http://www.resnet.us/trade/find-raters-auditors
Some states provide rebates that are tied to certain audit/auditor requirements, which may be different from FHA’s requirements. Requirements set by rebate providers do not replace FHA’s EEM requirement for a HERS audit that is conducted by a qualified home energy rater. Please check the information from rebate providers for their specific rebate requirements.
Some states provide rebates that are tied to certain audit/auditor requirements, which may be different from FHA’s requirements. Requirements set by rebate providers do not replace FHA’s EEM requirement for a HERS audit that is conducted by a qualified home energy rater. Please check the information from rebate providers for their specific rebate requirements.
Be sure to visit FHA’s EEM Home page for more information about its EEM program: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/eemhome The EEM Home page provides number of resources, including: a sample EEM worksheet, which helps lenders calculate the maximum EEM loan amount, and a Cross Reference Tips sheet, which consolidates many of the EEM rules by category.
For technical support on Energy Efficient Mortgages, or any other FHA program, please contact the FHA Resource Center at: www.hud.gov/answers You can also get email technical support at: answers@hud.gov
Source: http://www.resnet.us/trade/find-raters-auditors
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, September 15, 2011
HOA Liens and other things you need to know
The Georgia Property Owners’ Association Act passed in 1994 is becoming a popular choice to adopt among HOAs.
Apparently, once adopted, one of the applicable provisions is that the HOA no longer needs to file separate liens against the property in the public records. So lien searches don't discover these and the HOA avoids the lien filing fee too?
Also, a provision makes the HOA dues joint and severability liable which is fancy legalese saying "if prior owner don't pay, new owner does"...Gotcha baby!
Another provision may allow an HOA to live on in perpetuity and not expire a lonely death...
Source: http://www.nhhoa.org/documents/GA_POA_44-3-220.pdf
Source: http://www.ecademy.com/node.php?id=161266
Source: http://www.wncwlaw.com/services/community_associations/poa.cfm
Link to the Georgia Law: http://www1.legis.ga.gov/legis/2003_04/fulltext/hb208.htm
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Apparently, once adopted, one of the applicable provisions is that the HOA no longer needs to file separate liens against the property in the public records. So lien searches don't discover these and the HOA avoids the lien filing fee too?
Also, a provision makes the HOA dues joint and severability liable which is fancy legalese saying "if prior owner don't pay, new owner does"...Gotcha baby!
Another provision may allow an HOA to live on in perpetuity and not expire a lonely death...
Source: http://www.nhhoa.org/documents/GA_POA_44-3-220.pdf
Source: http://www.ecademy.com/node.php?id=161266
Source: http://www.wncwlaw.com/services/community_associations/poa.cfm
Link to the Georgia Law: http://www1.legis.ga.gov/legis/2003_04/fulltext/hb208.htm
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, September 13, 2011
FHA Energy Efficiency Mortgage (EEM) Program
The FHA Energy Efficiency Mortgage (EEM) program allows a borrower to finance up to 100% of the expense of a cost-effective “energy package” based on analysis and recommendations by a qualified, third-party home energy rater. The energy improvements are installed after the loan closes. Total dollar amount of improvements aren't clear upfront (maybe $5-20K, depending on price of home), but limited by guidelines for lenders at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/eem/eemlette
Standards for completing of the HERS audit, and for the auditors eligible to conduct a HERS audit, are most commonly established by either:
Individual US state requirements must be satisfied when completing an EEM transaction in states with specific requirements governing the scope of the energy analysis/rating or the qualifications or licensing of the energy auditor/rater. In states with certification and licensing requirements for energy raters, it is recommended that lenders request the HERS rater license number or evidence of certification, when underwriting an EEM.
Please be sure to visit the EEM Website Home page which provides a number of resources including: (1) a sample EEM worksheet, which helps lenders calculate the maximum EEM loan amount, and (2) a Cross Reference Tips sheet, which consolidates many of the EEM rules by category.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.The required home energy audit must be conducted using a tool known as the Home Energy Rating Systems (HERS).
Standards for completing of the HERS audit, and for the auditors eligible to conduct a HERS audit, are most commonly established by either:
- US State agencies having authority to prescribe specific requirements and standards for residential energy ratings and rater qualifications, or;
- The national Residential Energy Services Network (RESNET), a non-profit organization founded by the National Association of State Energy Officials and Energy Rated Homes of America, has set standards for energy efficiency assessments in the U.S..
Individual US state requirements must be satisfied when completing an EEM transaction in states with specific requirements governing the scope of the energy analysis/rating or the qualifications or licensing of the energy auditor/rater. In states with certification and licensing requirements for energy raters, it is recommended that lenders request the HERS rater license number or evidence of certification, when underwriting an EEM.
Tuesday, September 6, 2011
Buyer Representation for Commercial Real Estate
If you are looking for someone to help you find and contract for commercial space/property, you probably will get several personal references of agents, or you may just drive around like the Buyers of residential real estate do until you find a property and contact the listing agent - then what?
Just as in residential real estate, this approach may be too late and tie the hands of the agent you ultimately obtain to help protect your rights.
I am not a member of either of these two groups, but saw an article in the Atlanta Business Chronicle about them dated March 18-24, 2011 (Page 2B). It talked about finding the right representative that fits your needs and niche of what you're looking for in commercial office, retail, warehouse or professional space regarding the acquisition/leasing, use, and disposition of what you need.
How is your representative protecting you with clauses for things in the future like bankruptcy, expansion, contraction,or forces beyond your control?
If you are looking for buyer representation as buyers or tenants in commercial real estate, you may want to contact someone in the International Tenant Representative Alliance (ITRA). (http://www.itraglobal.com/)
Another professional trade organization following a set of standards that assists you when evaluating your commercial property acquisition, use and disposal needs is the Counselors of Real Estate (CRE). (http://www.cre.org/ )
You can also try to contact a professional commercial real estate agent through the National Association of Realtors (NAR). (http://www.realtor.org/commercial)
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Just as in residential real estate, this approach may be too late and tie the hands of the agent you ultimately obtain to help protect your rights.
I am not a member of either of these two groups, but saw an article in the Atlanta Business Chronicle about them dated March 18-24, 2011 (Page 2B). It talked about finding the right representative that fits your needs and niche of what you're looking for in commercial office, retail, warehouse or professional space regarding the acquisition/leasing, use, and disposition of what you need.
How is your representative protecting you with clauses for things in the future like bankruptcy, expansion, contraction,or forces beyond your control?
If you are looking for buyer representation as buyers or tenants in commercial real estate, you may want to contact someone in the International Tenant Representative Alliance (ITRA). (http://www.itraglobal.com/)
Another professional trade organization following a set of standards that assists you when evaluating your commercial property acquisition, use and disposal needs is the Counselors of Real Estate (CRE). (http://www.cre.org/ )
You can also try to contact a professional commercial real estate agent through the National Association of Realtors (NAR). (http://www.realtor.org/commercial)
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, September 1, 2011
Who needs to pay Property taxes and homeowner's insurance?
This is a good question: Do you, or your bank, need to escrow for annual property taxes and homeowners insurance?
And what happens if these bills don't get paid? Can you lose your home through a property tax sale or fire/storm damage? And what your lender loses (the amount of loan balance) is not covered by other types of insurance such as title or mortgage insurance?
Source: http://www.washingtonpost.com/realestate/do-you-have-to-escrow-for-taxes/2011/08/08/gIQAGntyfJ_story.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
And what happens if these bills don't get paid? Can you lose your home through a property tax sale or fire/storm damage? And what your lender loses (the amount of loan balance) is not covered by other types of insurance such as title or mortgage insurance?
Source: http://www.washingtonpost.com/realestate/do-you-have-to-escrow-for-taxes/2011/08/08/gIQAGntyfJ_story.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, August 31, 2011
Maintenance of Foreclosures and Bringing up to Code
This blog post in the source below has some teeth and some issues.
On one hand, some of the properties require more maintenance than just mowing the grass.
On the other hand, if banks/investors will be required to bring the homes up to code, it may mean the homes must be up to code when loans are created or when refinanced or periodically during the life of a loan.
Either alternative will require more money and therefore should either drive loan costs higher or restrict the creation of loans to those properties that would pass a complete county code inspection.
Note: I heard through the grapevine of a large mega bank (that recently got a $5 billion cash infusion), is known to know all local codes and never does anything more than what the code requires, even if it's the right thing to do to fix something unsafe in the eyes of the neighborhood.
Source: http://blog.heartland.org/2011/08/sweet-vacant-home-chicago/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
On one hand, some of the properties require more maintenance than just mowing the grass.
On the other hand, if banks/investors will be required to bring the homes up to code, it may mean the homes must be up to code when loans are created or when refinanced or periodically during the life of a loan.
Either alternative will require more money and therefore should either drive loan costs higher or restrict the creation of loans to those properties that would pass a complete county code inspection.
Note: I heard through the grapevine of a large mega bank (that recently got a $5 billion cash infusion), is known to know all local codes and never does anything more than what the code requires, even if it's the right thing to do to fix something unsafe in the eyes of the neighborhood.
Source: http://blog.heartland.org/2011/08/sweet-vacant-home-chicago/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, August 26, 2011
Property tax bill v. HUD-1 - Who owes the extra taxes?
Hey home buyer!
If you purchased a home in the past year or so, your property taxes for the home were probably prorated between you and the home seller. The amount collected with be recorded on the HUD-1 Settlement Statement HUD-1 Settlement Statement you received at closing.
Also, probably both you and the Seller signed something at closing that if the property taxes were different, that the additional amount would be prorated between the two parties: Buyer & Seller.
Once you calculate the difference, the next step is to contact the Seller and request a prorated share of the higher taxes. Go back to your closing paperwork and find the name and new address of the Seller. If you don't have it, you may contact the closing attorney where you settled the transaction and they may help by providing the Seller's new contact information.
Be sure to write a nice letter with proper documentation and support (i.e., this year's tax bill and page of the HUD-1 indicating amount of property tax collected from both the Buyer and Seller to calculate percentage owed by each party). Or multiply the difference between what property tax was collected and what was paid by a ratio of the number of days Seller occupied home divided by 365 days.
I don't know the statute of limitations on how far back you can go to collect the prorated share, or if anyone has done so besides one of my previous clients.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
If you purchased a home in the past year or so, your property taxes for the home were probably prorated between you and the home seller. The amount collected with be recorded on the HUD-1 Settlement Statement HUD-1 Settlement Statement you received at closing.
Also, probably both you and the Seller signed something at closing that if the property taxes were different, that the additional amount would be prorated between the two parties: Buyer & Seller.
Once you calculate the difference, the next step is to contact the Seller and request a prorated share of the higher taxes. Go back to your closing paperwork and find the name and new address of the Seller. If you don't have it, you may contact the closing attorney where you settled the transaction and they may help by providing the Seller's new contact information.
Be sure to write a nice letter with proper documentation and support (i.e., this year's tax bill and page of the HUD-1 indicating amount of property tax collected from both the Buyer and Seller to calculate percentage owed by each party). Or multiply the difference between what property tax was collected and what was paid by a ratio of the number of days Seller occupied home divided by 365 days.
I don't know the statute of limitations on how far back you can go to collect the prorated share, or if anyone has done so besides one of my previous clients.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, August 24, 2011
FHA takes action against 240 Mortgage Lenders
http://www.dsnews.com/articles/fha-announces-sanctions-against-240-lenders-2011-07-29
The Housing and Urban Development (HUD) Department of the US Government (created through legislative action to stimulate ad control US housing - see the many executive positions and roles of HUD - http://portal.hud.gov/hudportal/HUD?src=/about/secretary/powersec) has a Mortgagee Board to oversee the implementation and administration of HUD rules for FHA approved lenders.
See the list and types of administrative actions taken by the HUD Mortgagee Review Board against the lenders at this HUD document in Federal Register:
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
The Housing and Urban Development (HUD) Department of the US Government (created through legislative action to stimulate ad control US housing - see the many executive positions and roles of HUD - http://portal.hud.gov/hudportal/HUD?src=/about/secretary/powersec) has a Mortgagee Board to oversee the implementation and administration of HUD rules for FHA approved lenders.
See the list and types of administrative actions taken by the HUD Mortgagee Review Board against the lenders at this HUD document in Federal Register:
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, August 22, 2011
FBI Report on Mortgage Fraud - Not over yet, or ever?
Some of the key findings of the report are...
(1) 2009, 2010, and probably 2011 and beyond - mortgage fraud is growing
(2) many professionals are involved - not necessarily one faction or another..."licensed/registered and non-licensed/registered mortgage brokers, lenders, appraisers, underwriters, accountants, real estate agents, settlement attorneys, land developers, investors, builders, bank account representatives, and trust account representatives" involving all facets and types of real estate transactions.
(3) top states for known or suspected mortgage fraud activity during 2010 were California, Florida, New York, Illinois, Nevada, Arizona, Michigan, Texas, Georgia, Maryland, and New Jersey.
Note: Deeper into report, I read that about 3.6 million residential mortgage loans were delinquent in 2010.
Source: http://www.fbi.gov/stats-services/publications/mortgage-fraud-2010/2010-mortgage-fraud-report
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
(1) 2009, 2010, and probably 2011 and beyond - mortgage fraud is growing
(2) many professionals are involved - not necessarily one faction or another..."licensed/registered and non-licensed/registered mortgage brokers, lenders, appraisers, underwriters, accountants, real estate agents, settlement attorneys, land developers, investors, builders, bank account representatives, and trust account representatives" involving all facets and types of real estate transactions.
(3) top states for known or suspected mortgage fraud activity during 2010 were California, Florida, New York, Illinois, Nevada, Arizona, Michigan, Texas, Georgia, Maryland, and New Jersey.
Note: Deeper into report, I read that about 3.6 million residential mortgage loans were delinquent in 2010.
Source: http://www.fbi.gov/stats-services/publications/mortgage-fraud-2010/2010-mortgage-fraud-report
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, August 16, 2011
Short sales
============================================
Update 3-3-2012: List of ways Sellers can interfere with short sale transactions includes getting behind on mortgage payments and not cooperating with your lender. Check many of the ways here: http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2012/03/ask_a_real_estate_pro_how_not_1.html
============================================
Update: 2-18-2012: US Senate Bill (S.2120) and House Bill (HR 1498) proposed to require decision from lenders within 75 days whether or not they will approve a short sale.
Source: http://www.prweb.com/releases/2012/2/prweb9191026.htm
============================================
I think most people have an idea of the definition of short sale (i.e., selling a property for less than the amount of the loan(s) payoff).
An interesting side note to short sales is that many lenders are paying" sellers to sell their home under a short sale or just leave their homes, but in good shape.
Source 1: http://www.dsnews.com/articles/major-lenders-offering-perks-on-short-sales-2011-07-28
Source 2: http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2011/06/chase_borrowers_getting_cash_t_1.html
I'm not an agent who lists or negotiates the settlement of short sale properties between banks and borrowers, nor did I sleep in a Holiday Inn recently, but aside from the SAFE Act of 2008 (which outlines licensing requirements of loan originators and others in the mortgage industry more qualified to discuss loan modifications), I have seen and read some expectations:
Here are the IRS' Ten Facts for Mortgage Debt Forgiveness on what is normally taxable income - forgiveness of mortgage debt - http://www.irs.gov/newsroom/article/0,,id=205004,00.html
Here are some potential things to expect to produce, create, or see when running numbers or negotiating with the bank...
1.) preliminary net sheet - shows what the homeowners' may receive upon the sale of property, net of any outstanding debts and other fees ---- usually zero these days!
2.) hardship letter - succinctly describes facts surrounding homeowners' situation and addresses why they are forced to pursue short sales,
3.) proof of income and assets - facts disclosing your finances and assets to prove the homeowners can't afford to meet their mortgage payments or payment of the loan, and
4.) bank statements/financial records - show deposits and withdrawals homeowners have made using their bank accounts and disclosure of financial assets. (i.e., Can the afford and just don't want to pay?)
Source: http://www.stockmarketsreview.com/realestate/2011/06/30/real-estate-short-sales/%20
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Update 3-3-2012: List of ways Sellers can interfere with short sale transactions includes getting behind on mortgage payments and not cooperating with your lender. Check many of the ways here: http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2012/03/ask_a_real_estate_pro_how_not_1.html
============================================
Update: 2-18-2012: US Senate Bill (S.2120) and House Bill (HR 1498) proposed to require decision from lenders within 75 days whether or not they will approve a short sale.
Source: http://www.prweb.com/releases/2012/2/prweb9191026.htm
============================================
I think most people have an idea of the definition of short sale (i.e., selling a property for less than the amount of the loan(s) payoff).
An interesting side note to short sales is that many lenders are paying" sellers to sell their home under a short sale or just leave their homes, but in good shape.
Source 1: http://www.dsnews.com/articles/major-lenders-offering-perks-on-short-sales-2011-07-28
Source 2: http://weblogs.sun-sentinel.com/business/realestate/housekeys/blog/2011/06/chase_borrowers_getting_cash_t_1.html
I'm not an agent who lists or negotiates the settlement of short sale properties between banks and borrowers, nor did I sleep in a Holiday Inn recently, but aside from the SAFE Act of 2008 (which outlines licensing requirements of loan originators and others in the mortgage industry more qualified to discuss loan modifications), I have seen and read some expectations:
Here are the IRS' Ten Facts for Mortgage Debt Forgiveness on what is normally taxable income - forgiveness of mortgage debt - http://www.irs.gov/newsroom/article/0,,id=205004,00.html
Here are some potential things to expect to produce, create, or see when running numbers or negotiating with the bank...
1.) preliminary net sheet - shows what the homeowners' may receive upon the sale of property, net of any outstanding debts and other fees ---- usually zero these days!
2.) hardship letter - succinctly describes facts surrounding homeowners' situation and addresses why they are forced to pursue short sales,
3.) proof of income and assets - facts disclosing your finances and assets to prove the homeowners can't afford to meet their mortgage payments or payment of the loan, and
4.) bank statements/financial records - show deposits and withdrawals homeowners have made using their bank accounts and disclosure of financial assets. (i.e., Can the afford and just don't want to pay?)
Source: http://www.stockmarketsreview.com/realestate/2011/06/30/real-estate-short-sales/%20
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, August 3, 2011
Home Affordable Foreclosure Alternatives (HAFA)
Less than $10 million of the proposed $4 Billion has been dispersed to help homeowners compete >8,500 short sales in the first year and is expected to end in December 2012...maybe sooner if not any more help.
Are lenders cooperating? Do they have to? It depends on who owns the mortgage and if that investor wants to cut their profit or take the asset and try and sell it.
Source: http://realestate.bryanellis.com/4910/hafa-still-lagging-ineffective/
Explanation of the program: http://www.freddiemac.com/singlefamily/service/hafa.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Are lenders cooperating? Do they have to? It depends on who owns the mortgage and if that investor wants to cut their profit or take the asset and try and sell it.
Source: http://realestate.bryanellis.com/4910/hafa-still-lagging-ineffective/
Explanation of the program: http://www.freddiemac.com/singlefamily/service/hafa.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, August 2, 2011
UBS Gets Sues over selling bad Mortgages to Fannie & Freddie
http://www.mortgagenewsdaily.com/07272011_mortgage_fraud_gses.asp
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, July 27, 2011
Does an HOA have right to take over foreclosed properties?
Apparently it is now legal in Florida and Nevada.
What is the HOA supposed to do, just wait for the properties to sell before spending money on property maintenance?
So what about property rights of the bank or investor owner?
This is a serious issue in those complexes with a high volume of foreclosures.
Source: http://online.wsj.com/article/SB10001424052748704281504576327693591415736.html#articleTabs%3Darticle
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
What is the HOA supposed to do, just wait for the properties to sell before spending money on property maintenance?
So what about property rights of the bank or investor owner?
This is a serious issue in those complexes with a high volume of foreclosures.
Source: http://online.wsj.com/article/SB10001424052748704281504576327693591415736.html#articleTabs%3Darticle
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, July 26, 2011
Countrywide to pay $108 Million to 450,000 home owners
Based on FTC investigations and findings of excessive fees on servicing default/delinquent mortgages serviced 1/1/2005 thru 7/1/2008; incorrect figures about what they owed on their mortgages; and fees/escrow charges - vast majority will get less than $600.
Source: http://www.nytimes.com/2011/07/21/business/countrywide-to-pay-borrowers-108-million-in-settlement.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://www.nytimes.com/2011/07/21/business/countrywide-to-pay-borrowers-108-million-in-settlement.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, July 25, 2011
Should the US Government allow banks to rent foreclosed homes?
Update: 7-29-2011: Ok, Fannie Mae and Freddie Mac, as owners of some foreclosed properties, may decide to rent them as opposed to try and sell them. But that might just cause more cost in the long run by delaying the inevitable ale and won't make a huge dent in the wave of 4-6 million more foreclosures to come. Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/07282011-nike-sifma-debt.aspx
My first thought when I read the artile below is - What business is it of the US Government to say what private business should or shouldn't do? But then I woke up from that dream and found myself in reality....
US Government probably thinks the number of distressed properties would decline, thereby reducing pressure on prices, allow real estate prices to stabilize and increase, create more tax revenues for states/local government through higher property taxes; and help the economy recover....all good stuff for governments...
But what do the banks think? Do they want the injury/damage liability of renters living in their properties? What will be the cost of repairing or selling a property in the future that may not be of the same or higher value as it is now? Will they want the continued monitoring/maintenance issues that may or may not be covered by the amount of rent on their property?
Bottom line: Banks are in the business of lending money, not holding assets - they would rather take a hit to get rid of a property and loan what they get from a sale than keep it on their books as a nuisance and further liability. But as I learned in grad-school, "it all depends"... on how sweet of a deal the US Government proposes and how banks' bottom line can improve on the implementation of such an idea!
Source: http://realtybiznews.com/government-plans-to-rent-out-foreclosed-homes/9874253/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
My first thought when I read the artile below is - What business is it of the US Government to say what private business should or shouldn't do? But then I woke up from that dream and found myself in reality....
US Government probably thinks the number of distressed properties would decline, thereby reducing pressure on prices, allow real estate prices to stabilize and increase, create more tax revenues for states/local government through higher property taxes; and help the economy recover....all good stuff for governments...
But what do the banks think? Do they want the injury/damage liability of renters living in their properties? What will be the cost of repairing or selling a property in the future that may not be of the same or higher value as it is now? Will they want the continued monitoring/maintenance issues that may or may not be covered by the amount of rent on their property?
Bottom line: Banks are in the business of lending money, not holding assets - they would rather take a hit to get rid of a property and loan what they get from a sale than keep it on their books as a nuisance and further liability. But as I learned in grad-school, "it all depends"... on how sweet of a deal the US Government proposes and how banks' bottom line can improve on the implementation of such an idea!
Source: http://realtybiznews.com/government-plans-to-rent-out-foreclosed-homes/9874253/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, July 21, 2011
Stop Mortgage Fraud
The US Attorney General's Office is doing the right thing to pursue criminal activity in the mortgage business.
There are alot of good people and companies who work very hard in the mortgage industry, but there are some who need to be caught and disposed.
Report fraud of any kind to the Attorney General through this portal - http://www.stopfraud.gov/report.html
General US Government website to review fraud activities you need to know - http://www.stopfraud.gov/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
There are alot of good people and companies who work very hard in the mortgage industry, but there are some who need to be caught and disposed.
Report fraud of any kind to the Attorney General through this portal - http://www.stopfraud.gov/report.html
General US Government website to review fraud activities you need to know - http://www.stopfraud.gov/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, July 20, 2011
Georgia Association of Realtors (GAR) forms - one problem I see
I wish to first thank and I appreciate GAR for creating and producing standardized real estate contract forms to use by all real estate agents. These forms make real estate transactions smoother in Georgia since all agents are familiar with the forms and contents.
However, there is one question from the Seller's Property Disclosure Statement that I've recommended to have it changed and it has not been changed that reads as follows:
"Is there presently any polybutylene plumbing, other than the primary service line, on the property?"
Now if the Seller marks this statement NO, and there is a polybutylene plumbing line that is connected from the street to the house, then is the Seller lying, even if they knew it existed?
If I were to judge from an independent person's viewpoint I would say - NO. I believe that the way this is worded, "other than the primary service line" may mean what it says in a court of law, regardless of how agents "may" interpret this statement in practice and application.
Furthermore, the Seller may not know by visually inspecting the water line since it's buried underground and the connection may terminate inside foundation wall.
I can't wait for the first lawsuit over it - maybe at that time, the language will be changed.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
However, there is one question from the Seller's Property Disclosure Statement that I've recommended to have it changed and it has not been changed that reads as follows:
"Is there presently any polybutylene plumbing, other than the primary service line, on the property?"
Now if the Seller marks this statement NO, and there is a polybutylene plumbing line that is connected from the street to the house, then is the Seller lying, even if they knew it existed?
If I were to judge from an independent person's viewpoint I would say - NO. I believe that the way this is worded, "other than the primary service line" may mean what it says in a court of law, regardless of how agents "may" interpret this statement in practice and application.
Furthermore, the Seller may not know by visually inspecting the water line since it's buried underground and the connection may terminate inside foundation wall.
I can't wait for the first lawsuit over it - maybe at that time, the language will be changed.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, July 5, 2011
SAFE (Secure and Fair Enforcement Mortgage Licensing Act of 2008)
Update 9-9-2011: SAFE is causing alot of confusion and possible complexity. Definition isn't clear of what is meant by "licening requirements" because HUD and each State Banking Department, who blame each other or not defining, can't define it clearly enough. Source: http://www.nhbr.com/news/931927-395/is-safe-mortgage-reform-law-squeezing-the.html
Licensing Loan Originator - ok, but seriously - Isn't this another example of the US Federal government being too little too late - again?
This Act started in 2008 is still going on, but is changing hands. The Housing and Urban Development (HUD) office has just issued its final ruling/interpretation of the Act, but is going to be passing many of the decisions onto the Consumer Financial Protection Bureau (CFPB) --- which may never be funded if left up to the Republicans---
So will this legislation solve any problems? Probably some, but not others, and not necessarily the right problems. It is one piece of the puzzle, but the shape and dimensions of the puzzle keep changing.
Note: You can see from licensing real estate agents that it has "completely cleared up any shenanigans that agents perform and their misbehavior - right?
Yes, we had unscrupulous loan originators, but if they couldn't turn and sell them to Fannie, Freddie and others at the drop of a hat, then someone else would have created and sold the same loans to the secondary market.
Maybe we should license the Federal Government and put them on notice or fine them for any misbehavior?
Source: http://mortgage.nationwidelicensingsystem.org/SAFE/Pages/default.aspx
Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/07042011-safe-act.aspx
Source: http://mortgage.nationwidelicensingsystem.org/SAFE/NMLS%20Document%20Library/Mandates-SAFE.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Licensing Loan Originator - ok, but seriously - Isn't this another example of the US Federal government being too little too late - again?
This Act started in 2008 is still going on, but is changing hands. The Housing and Urban Development (HUD) office has just issued its final ruling/interpretation of the Act, but is going to be passing many of the decisions onto the Consumer Financial Protection Bureau (CFPB) --- which may never be funded if left up to the Republicans---
So will this legislation solve any problems? Probably some, but not others, and not necessarily the right problems. It is one piece of the puzzle, but the shape and dimensions of the puzzle keep changing.
Note: You can see from licensing real estate agents that it has "completely cleared up any shenanigans that agents perform and their misbehavior - right?
Yes, we had unscrupulous loan originators, but if they couldn't turn and sell them to Fannie, Freddie and others at the drop of a hat, then someone else would have created and sold the same loans to the secondary market.
Maybe we should license the Federal Government and put them on notice or fine them for any misbehavior?
Source: http://mortgage.nationwidelicensingsystem.org/SAFE/Pages/default.aspx
Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/07042011-safe-act.aspx
Source: http://mortgage.nationwidelicensingsystem.org/SAFE/NMLS%20Document%20Library/Mandates-SAFE.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, June 29, 2011
Not only underwriting, but a Wall Street and GSE problem
In other posts, I have written about many causes of mortgage and financial market meltdown, but this press release from Senator Isakson seems to narrow on the correct fix - modify the intent of the Dodd-Frank QRM provisions, but not just because of underwriting problems.
http://isakson.senate.gov/press/2011/062211QRM.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
http://isakson.senate.gov/press/2011/062211QRM.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 23, 2011
Subdivision Ladder
Wouldn't it be nice for a subdivision to purchase one or two ladders and allow the residents to borrow it when needed? That eliminates the purchase of many ladders and storage at the home (which normally won't have the space to store it).
So many times, I have shown homes with 12' or higher chandeliers in their foyers and the normal comment is "Wow, how will I change the bulbs? I'll have to buy a 12' ladder to change the bulbs."
Wouldn't it be so much better to act as a neighborhood and buy one ladder to share it as you need it?
Note: My guess is that we will not cooperate to get the ladder back to its proper place in a timely manor.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
So many times, I have shown homes with 12' or higher chandeliers in their foyers and the normal comment is "Wow, how will I change the bulbs? I'll have to buy a 12' ladder to change the bulbs."
Wouldn't it be so much better to act as a neighborhood and buy one ladder to share it as you need it?
Note: My guess is that we will not cooperate to get the ladder back to its proper place in a timely manor.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, June 22, 2011
NCRC helps homeowners in mortgage trouble
The National Community Reinvestment Coalition (NCRC) helps those in need of mortgage modification by offering counseling and advice - so don't wait until the last minute, seek help now and get to know the steps to go through and what to do.
Source: http://www.ncrc.org/component/k2/item/536-hcn-offers-assistance-to-dc-residents
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://www.ncrc.org/component/k2/item/536-hcn-offers-assistance-to-dc-residents
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 16, 2011
Mortgage Assistance Relief Services (MARS) Rule Disclosures
7-18-2011: More updates and new stories about relaxation of rule for real estate gents under MARS - http://www.mortgageorb.com/e107_plugins/content/content.php?content.9178
7-16-2011: Many of the provision of the MARS rule is no longer applicable to real estate agents. The power of National Association of Realtors' lobbying efforts? Or just a "kindler or gentler" US Government and Administration? Source: http://www.ccireports.com/company/newsarticle.asp?ArtID=147533
MARS became effective December 29, 2010
In response to the mortgage crisis, government and private sector programs have been initiated to assist distressed homeowners. In March 2009, the Obama Administration launched the Making Home Affordable (MHA) program and the MHA’s Home Affordable Modification Program (HAMP), through which the government provides mortgage owners and servicers with financial incentives to modify and refinance loans.
Among other things, the proposed rule included provisions that would:
Under the program, The Federal Trade Commission (FTC) requires that the advertising short sales need to "clearly and prominently" disclose two things:
"(...Your company/broker name...) is not associated with the government, and our service is not approved by the government or your lender";
"Even if you accept this offer &use our service, your lender may not agree to change your loan."
Source: http://realtytimes.com/rtpages/20110607_disclosure.htm
Source: http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
7-16-2011: Many of the provision of the MARS rule is no longer applicable to real estate agents. The power of National Association of Realtors' lobbying efforts? Or just a "kindler or gentler" US Government and Administration? Source: http://www.ccireports.com/company/newsarticle.asp?ArtID=147533
MARS became effective December 29, 2010
In response to the mortgage crisis, government and private sector programs have been initiated to assist distressed homeowners. In March 2009, the Obama Administration launched the Making Home Affordable (MHA) program and the MHA’s Home Affordable Modification Program (HAMP), through which the government provides mortgage owners and servicers with financial incentives to modify and refinance loans.
Among other things, the proposed rule included provisions that would:
- Prohibit MARS providers from making false or misleading claims;
- Mandate that providers disclose certain information about their services;
- Bar the collection of advance fees for the provision of MARS, except in certain circumstances for attorneys who collect them in connection with preparing or filing documents in bankruptcy, court, or administrative proceedings;
- Prohibit anyone from providing substantial assistance or support to another they know or consciously avoid knowing is engaged in a violation of the rule; and
- Impose record keeping and compliance requirements.
Under the program, The Federal Trade Commission (FTC) requires that the advertising short sales need to "clearly and prominently" disclose two things:
"(...Your company/broker name...) is not associated with the government, and our service is not approved by the government or your lender";
and
"Even if you accept this offer &use our service, your lender may not agree to change your loan."
Source: http://realtytimes.com/rtpages/20110607_disclosure.htm
Source: http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, June 15, 2011
Cobb County Codes & Ordinances - Some Common Violations
There are laws (codes and ordinances) that all local cities and counties legislate to try and protect the enjoyment of property that may seem intrusive, but are designed to balance lifestyles and freedom from harm.
These are the codes & ordinances for Cobb County: Complete Cobb County Code
Some of the most common code enforcement topics are:
Link to Common Cobb County Code Violations in Subdivisions
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
These are the codes & ordinances for Cobb County: Complete Cobb County Code
Some of the most common code enforcement topics are:
- Dead Trees
- Dwelling Unit
- Door-To-Door Solicitations
- Exterior Attachments
- Fences/Walls
- Grass and Weeds
- Garbage Collection
- Group Home
- Gutters and Shutters
- Home Business
- In-Home Day Care
- Junk Cars
- Leash Law
- Livestock and poultry
- Outside Storage Limitations
- Parking
- Personal Vehicle Sales
- Temporary Signs
- Windows and Exterior Doors
- Yard Sales
Link to Common Cobb County Code Violations in Subdivisions
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, June 14, 2011
Cspan's segment on Proposed Mortgage Rules and Debt Resolution
If you have 35 minutes to spare, watch this Cspan segment on causes of mortgage meltdown & upcoming new mortgage rules.
The proposed new mortgage rules for 20% down payment will be implemented in future and eventually the US Government may get out of most mortgage lending. Right now, Fannie, Freddie, FHA, and VA are over 90% of the loans being created. That may revere itself over the next few years and as a result, fewer borrowers qualifying for a loan.
There are some good calls about what actually caused the mortgage problems.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, June 10, 2011
Bankruptcy News
Hello readers - as usual, as I hear of new Bankruptcy news I will update this blog post.
Some say consumer bankruptcies are on the rise (in 2006 there were less than 600,000 filed; last year (2010) there were 1.4 million, and this year (2011) is on pace to top 1.6 million). The rules to make bankruptcy filing more difficult were instituted in 2006, but that hasn't stopped the growth due to severe economic forces.
According to Page 30A of the Atlanta Business Chronicle, November 12-18, 2010, 1.2 million bankruptcies were filed in 2010 (up 11% from 2009) and 43,016 were business bankruptcies and that number was down about 6%.
Per the 8-5-2010 WSJ (Page A2), Georgia had 6 of the top 10 counties in the US for filing bankruptcies - Only about a quarter of them file Chapter 13 (restructuring) and almost 75aa% filed for Chapter 7 (complete) bankruptcy.
Regardless of whose numbers are accurate, it is distressing to see so many bankruptcy filings
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Some say consumer bankruptcies are on the rise (in 2006 there were less than 600,000 filed; last year (2010) there were 1.4 million, and this year (2011) is on pace to top 1.6 million). The rules to make bankruptcy filing more difficult were instituted in 2006, but that hasn't stopped the growth due to severe economic forces.
According to Page 30A of the Atlanta Business Chronicle, November 12-18, 2010, 1.2 million bankruptcies were filed in 2010 (up 11% from 2009) and 43,016 were business bankruptcies and that number was down about 6%.
Per the 8-5-2010 WSJ (Page A2), Georgia had 6 of the top 10 counties in the US for filing bankruptcies - Only about a quarter of them file Chapter 13 (restructuring) and almost 75aa% filed for Chapter 7 (complete) bankruptcy.
Regardless of whose numbers are accurate, it is distressing to see so many bankruptcy filings
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 9, 2011
Commercial Mortgage Backed Securities – (CMBS)
Apparently, Atlanta had the highest number of CMBS loans in March 2011 and led the nation for troubled CMBS loans. A little less than 10% of all CMBS in the US missed payment in March 2011. The dilemma seems to be that many CMBS are nearing maturity on older properties with lots of vacancies and cash flow (i.e., ability to repay loans) are serious issues to prevent refinancing to repair, improve or refinance debt to lower rates.
Source: (Atlanta Business Chronicle – 4/8-14/2011)
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, June 7, 2011
RESPA - Real Estate Settlement & Procedures Act
HUD requires that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses loan terms and closing costs and provide borrowers with a new HUD-1 settlement statement. New RESPA regulations were published November 17, 2008 and are scheduled to take full effect on January 1, 2010. The "New RESPA Rule FAQs" were comprised from industry questions and are posted to facilitate implementation of these new requirements.
Source: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm
However, as disclosed from my earlier BLOG post, the passage of the Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB). One of their new responsibilities, once they are formally in place,is to integrate the Truth In Lending Disclosure form with the Good Faith Estimate (GFE) disclosure forms.
Source: http://abirenews.blogspot.com/2011/05/new-mortgage-disclosure-documents-from.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respa_hm
However, as disclosed from my earlier BLOG post, the passage of the Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB). One of their new responsibilities, once they are formally in place,is to integrate the Truth In Lending Disclosure form with the Good Faith Estimate (GFE) disclosure forms.
Source: http://abirenews.blogspot.com/2011/05/new-mortgage-disclosure-documents-from.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, June 6, 2011
Mortgage Loan Guidance and Information - HUD Settlement Cost Booklet
In accordance with Real Estate Settlement Procedures Act (RESPA) laws, you are supposed to get this HUD settlement cost booklet within 3 days of loan application - http://portal.hud.gov/hudportal/documents/huddoc?id=SETTLMENTBOOKDEC_15REVISED.pdf
The booklet outlines what to expect when considering purchasing a home including
Don't wait to make a loan application to receive and read this booklet - glance through it when you consider buying a home.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
The booklet outlines what to expect when considering purchasing a home including
- if it's right for you; what you an afford;
- some of the inspections to perform;
- shopping for a loan and evaluating the different types of loans;
- selecting a lender;
- closing attorney;
- what to expect from the Good Faith Estimate (GFE); and
- an excellent detailed discussion of the HUD-1 Settlement Statement.
Don't wait to make a loan application to receive and read this booklet - glance through it when you consider buying a home.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, June 3, 2011
Will the new Qualified Residential Mortgage (QRM) criteria solve or create more problems?
During the mid 2000's housing boom, did lenders produce lot of crappy loans - yes. Is the QRM a solution to crappy loans - yes, in a way - But isn't it like taking a chainsaw to the table to slice a loaf of bread?
Basically, when the new QRM definition hits the street, any non-Government backed loan will require lenders to keep or holdback 5% or more of the loan amount in case the loan goes south.
Sounds like a reasonable request so lenders don't get too loose with loans. The down sides are this will (a) restrict the amount of money the lender will then have to loan out; (b) will require even more stringent financing qualifications which will (c) further restrict the number of loans approved, and thereby (d) reducing real estate sales in an already depressed real estate market.
FHA, VA, USDA (rural properties), Fannie Mae and Freddie Mac (currently government owned) will be exempt from the 5% "holdback" risk retention regulations of Dodd-Frank.
All other loans will need to require 20% or higher down payments and Debt-To-Income ratios of 28/36 or better or they face the 5% holdback.
You now, alot of people, including "elected" US Senators, are griping about this - so what problems does it solve and which ones does it create?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Basically, when the new QRM definition hits the street, any non-Government backed loan will require lenders to keep or holdback 5% or more of the loan amount in case the loan goes south.
Sounds like a reasonable request so lenders don't get too loose with loans. The down sides are this will (a) restrict the amount of money the lender will then have to loan out; (b) will require even more stringent financing qualifications which will (c) further restrict the number of loans approved, and thereby (d) reducing real estate sales in an already depressed real estate market.
FHA, VA, USDA (rural properties), Fannie Mae and Freddie Mac (currently government owned) will be exempt from the 5% "holdback" risk retention regulations of Dodd-Frank.
All other loans will need to require 20% or higher down payments and Debt-To-Income ratios of 28/36 or better or they face the 5% holdback.
You now, alot of people, including "elected" US Senators, are griping about this - so what problems does it solve and which ones does it create?
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, June 2, 2011
Reading into $100 Down HUD homes
Per the Mortgagee Letter 2011-19, if Buyer are purchasing HUD properties (i.e., homes that were foreclosed under an FHA loan), and placing $100 down, then the Buyer can roll the UFMIP (Up Front Mortgage Insurance Premium) into the loan provided the total amount of the loan plus the UFMIP doesn't exceed 100% of the "as-is" (i.e., FHA appraisal amount).
Reading between the lines tells me they are willing to settle for less than the asking price since they are allowing for the UFMIP charge of currently 1% of the loan (http://abirenews.blogspot.com/2010/09/changes-to-fha-up-front-annual-mortgage.html) and net of the $100 down payment, to be rolled into the loan up to a certain level.
Source: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/11-19ml.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Reading between the lines tells me they are willing to settle for less than the asking price since they are allowing for the UFMIP charge of currently 1% of the loan (http://abirenews.blogspot.com/2010/09/changes-to-fha-up-front-annual-mortgage.html) and net of the $100 down payment, to be rolled into the loan up to a certain level.
Source: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/11-19ml.pdf
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, May 31, 2011
New Mortgage Settlement Disclosure Documents from the CFPB - Pick one!
Part of the Dodd-Frank bill gave the Consumer Financial Protection Bureau the assignment of combining the Truth In Lending (TIL) statement with the Good Faith Estimate (GFE) by July 2012.
2-21-2012: Here are the latest versions of the new Settlement Disclosure form for home buyers who apply for mortgages (Butternut and Hemlock - great names huh - Hemlock relates to death - terrific!) - http://www.consumerfinance.gov/knowbeforeyouowe/
Note: I wonder when people pay cash for properties, will this form be used to identify non-loan related expenditures and protect "cash" consumers with competitive disclosure details?
Source: http://www.dsnews.com/articles/new-mortgage-disclosure-form-to-help-safeguard-against-default-cfpb-2011-05-18
Source: http://www.mortgagenewsdaily.com/05182011_gfe_til_combined.asp
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
2-21-2012: Here are the latest versions of the new Settlement Disclosure form for home buyers who apply for mortgages (Butternut and Hemlock - great names huh - Hemlock relates to death - terrific!) - http://www.consumerfinance.gov/knowbeforeyouowe/
Note: I wonder when people pay cash for properties, will this form be used to identify non-loan related expenditures and protect "cash" consumers with competitive disclosure details?
Source: http://www.dsnews.com/articles/new-mortgage-disclosure-form-to-help-safeguard-against-default-cfpb-2011-05-18
Source: http://www.mortgagenewsdaily.com/05182011_gfe_til_combined.asp
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, May 27, 2011
Georgia HB 1055 – Seniors say goodbye to Georgia Income Taxes
Georgia HB 1055 – May 2010
New law begins a phase out of Georgia’s income tax on retirement income beginning in 2012 and eliminates taxes entirely by 2016 ($65K, $100K; $200K; and all income in 2016 and beyond). Qualifications include taxpayer being 65 or older during any time within the year.
Evidently, under current law, seniors who were 62 or older could exclude up to $35K of income before being levied Georgia income tax.
So what about those who are 62-65? Are they under the current law and still have to pay Georgia income taxes over $35,000 annual income? Probably!
Evidently, under current law, seniors who were 62 or older could exclude up to $35K of income before being levied Georgia income tax.
So what about those who are 62-65? Are they under the current law and still have to pay Georgia income taxes over $35,000 annual income? Probably!
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, May 25, 2011
Current Mortgage Loan Delinquencies by Loan Type
According to calculatedriskblog, about 4 million loans are seriously delinquent : about 75% are Prime or Subprime loans, but FHA delinquencies more than doubled in 4 years. Even though the number of Prime and Subprime loan delinquencies have fallen, the number of serious delinquencies of Prime and Subprime loans are huge!
Thanks to calculatedriskblog for disclosing and analyzing this...
Source: http://www.calculatedriskblog.com/2011/05/mortgage-delinquencies-by-loan-type.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thanks to calculatedriskblog for disclosing and analyzing this...
Source: http://www.calculatedriskblog.com/2011/05/mortgage-delinquencies-by-loan-type.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, May 24, 2011
FHA loans may require a 5% down payment
US House Republicans are kicking around a proposal to raise the minimum down payment on FHA loans to 5% and may drop the maximum loan balance to about $625K. This action may reduce the number of FHA loans, but will tend to increase the performance by requiring "greater" investment by the Buyer. It all depends on which end of the argument you sit, but there's alot of heat against this by the Realtor community.
Source: http://therealdeal.com/newyork/articles/house-republicans-make-moves-to-curtail-fha-backed-loans
Source: http://www.washingtonpost.com/business/economy/gop-proposes-increase-in-fha-down-payments/2011/05/23/AF3NX69G_story.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Source: http://therealdeal.com/newyork/articles/house-republicans-make-moves-to-curtail-fha-backed-loans
Source: http://www.washingtonpost.com/business/economy/gop-proposes-increase-in-fha-down-payments/2011/05/23/AF3NX69G_story.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, May 23, 2011
Mortgage servicers were being investigated back in 2009
May 2011-05-23
Mortgage servicers (many from large US Banks participating under the TARP) were being sued for abuses or practices that resulted in excessive fees or improper foreclosure practices (WSJ 8-6-2009). (NOTE: Even though legal actions had started in 2009, the US Congress/Administration/50 State Attorney Generals are just wrapping up some challenges and investigations and are in the process of negotiating a “final settlement” – from $5 B to $20B - with the largest of loan servicers.)
$50 B of the 700 B TARP funds were applicable under the HAMP program that pays Mortgage loan servicers for loan modifications if the homeowner maintains payments for at least three (3) months and payments are made to servicers after the three month time period. Servicers generally earn ½ to 1% of the loan balance each year and lower balances mean lower profits. Servicers normally earn more from late fees or by foreclosing on a property, but not on loan modification.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, May 20, 2011
Broker gets sales commission even though homes don't sell
Is this legal? - Normally, it all depends on you contract, but in most every case here in Georgia....
YES - it's legal! In fact, it's contractual per the signed Georgia Association of Realtor's *(GAR) contract mot all agents in Georgia use to negotiate the purchase and sale of residential real estate properties.
Source: http://www.miamiherald.com/2011/05/02/2210428/court-says-broker-entitled-to.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
YES - it's legal! In fact, it's contractual per the signed Georgia Association of Realtor's *(GAR) contract mot all agents in Georgia use to negotiate the purchase and sale of residential real estate properties.
Source: http://www.miamiherald.com/2011/05/02/2210428/court-says-broker-entitled-to.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, May 19, 2011
More US Congressional legislation to help home builders
To quote a former US President..."Here you go again"....more US Congressional meddling in the housing market and at what price?
The following legislation was proposed in the US House of Representatives in May 2011. Don't know how far it will go, but the National Association of Home Builders (http://www.nahb.org/page.aspx/category/sectionID=1831) is in favor of it:
Home Construction Lending Regulatory Improvement Act of 2011, H.R. 1755 for AD&C or acquisition, development and construction loans. Source: Link to article addressing the proposed legislation
Basically, it allows financial institutions to (a) exceed it's financing limits for projects near or that will be completed; (b) ban the use of foreclosures when performing an appraisal and using an arbitrary value when the project is finished; and (c) prevents regulators from interfering with lenders to stop loans in trouble but still making payments under original terms and conditions.
Is this an example of "too small to fail, but too big in the aggregate to succeed?"
Nevertheless, even though new home sales have jumped (just clearing out some backlog) new home construction is down about 25% from this time last year - http://lansner.ocregister.com/2011/05/17/really-more-bad-news-from-nations-builders/110155/
Builder confidence is pretty low and not rising any time soon - http://realtytimes.com/rtpages/20110518_confidence.htm
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
The following legislation was proposed in the US House of Representatives in May 2011. Don't know how far it will go, but the National Association of Home Builders (http://www.nahb.org/page.aspx/category/sectionID=1831) is in favor of it:
Home Construction Lending Regulatory Improvement Act of 2011, H.R. 1755 for AD&C or acquisition, development and construction loans. Source: Link to article addressing the proposed legislation
Basically, it allows financial institutions to (a) exceed it's financing limits for projects near or that will be completed; (b) ban the use of foreclosures when performing an appraisal and using an arbitrary value when the project is finished; and (c) prevents regulators from interfering with lenders to stop loans in trouble but still making payments under original terms and conditions.
Is this an example of "too small to fail, but too big in the aggregate to succeed?"
Nevertheless, even though new home sales have jumped (just clearing out some backlog) new home construction is down about 25% from this time last year - http://lansner.ocregister.com/2011/05/17/really-more-bad-news-from-nations-builders/110155/
Builder confidence is pretty low and not rising any time soon - http://realtytimes.com/rtpages/20110518_confidence.htm
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, May 18, 2011
HUD or FHA News
This post will be updated from time to time - so check back in on a regular basis.
5-18-2011: Check out all HUD (i.e., FHA loan foreclosed) properties on HUD's property sale website - http://www.hudhomestore.com/ - To submit offers, find a registered HUD home Buyer's Agent...like me!
3-8-2011: FHA backed about $208 billion (up from $85 billion in 2007) in mortgage loans with a delinquency rate of about 25%.
As of 2010, Shaun Donovan is the Housing and Urban Development (HUD) Secretary.
HUD's website is: http://portal.hud.gov/portal/page/portal/HUD
FHA's related link is: http://www.hud.gov/offices/hsg/hsgabout.cfm
8-26-2010: HUD has a program which only requires $100 down payment as long as the purchaser pays full price on a home and uses FHA financing. Other programs exist - like Good Neighbor (where a police officer, EMT, or teacher live in a house) which is located in their district or high crime area - they can buy it at 50% of price. Check out all the programs at HUDPEMCO's website.
8-24-2010: As of June 2010, only 8.3% of FHA loans were delinquent 90 days or more - this is down from January's peak of 9.4%.
Also, beginning in October, FHA will raise lower the up-front MIP charge from 2.25% to 1%, but raise the monthly MIP fee from 0.55% to 0.90%.
The number of home purchase mortgages are rising to almost 50% of the total purchases, while their reserves for losses are shrinking fast. Another round of price declines will take a heavy toll on the reserves.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
5-18-2011: Check out all HUD (i.e., FHA loan foreclosed) properties on HUD's property sale website - http://www.hudhomestore.com/ - To submit offers, find a registered HUD home Buyer's Agent...like me!
3-8-2011: FHA backed about $208 billion (up from $85 billion in 2007) in mortgage loans with a delinquency rate of about 25%.
As of 2010, Shaun Donovan is the Housing and Urban Development (HUD) Secretary.
HUD's website is: http://portal.hud.gov/portal/page/portal/HUD
FHA's related link is: http://www.hud.gov/offices/hsg/hsgabout.cfm
8-26-2010: HUD has a program which only requires $100 down payment as long as the purchaser pays full price on a home and uses FHA financing. Other programs exist - like Good Neighbor (where a police officer, EMT, or teacher live in a house) which is located in their district or high crime area - they can buy it at 50% of price. Check out all the programs at HUDPEMCO's website.
8-24-2010: As of June 2010, only 8.3% of FHA loans were delinquent 90 days or more - this is down from January's peak of 9.4%.
Also, beginning in October, FHA will raise lower the up-front MIP charge from 2.25% to 1%, but raise the monthly MIP fee from 0.55% to 0.90%.
The number of home purchase mortgages are rising to almost 50% of the total purchases, while their reserves for losses are shrinking fast. Another round of price declines will take a heavy toll on the reserves.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, May 13, 2011
Home Warranties
A Home Warranty is really "home maintenance" insurance policy.
Home Warranty Companies "issue" home warranty policies.
These specialized "insurers" charge an annual fee for the "coverage", and offer service call "deductibles" where authorized, screened contractors are dispatched to resolve household maintenance issues upon your request. Each company offers at least one type of coverage that normally offers repairs for HVAC, water heaters, electrical or plumbing issues.
Note: If you can fix or troubleshoot the obvious (a GFCI outlet trips & press the reset button or a simple $15 toilet tank repair), you can save a $50+ service call. Otherwise, call your home warranty provider and get a professional to help you.
SOME HOME WARRANTY COMPANY WEBSITES
NOTE: There may be other home warranty service providers, but I have only seen warranty plans from these companies.
AMERICAN HOMESHIELD - HOME WARRANTY INFORMATION
Buyer's Protection Group (Formerely Land America) - HOME WARRANTY INFORMATION
FIRST AMERICAN- HOME WARRANTY INFORMATION
Old Republic - HOME WARRANTY INFORMATION
http://www.prnewswire.com/news-releases/home-warranties-protect-homeowners-during-extreme-weather-attract-buyers-in-competitive-real-estate-market-118901959.html
According to many home warranty providers, the highest rate of homeowner claims encompasses water heaters, furnaces and central-air conditioning, while major appliances covered by a home warranty generally start to require servicing at five years of age. Since home systems and large or built-in appliances are acquired during a home sale, there are many unknowns, such as how things previously have been used and maintained.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, May 3, 2011
Where can you find HUD foreclosures? - Right here!
You can use this website to find available HUD (FHA foreclosed) properties:
http://www.hudhomestore.com
Be sure to check out the Property Condition (i.e.,short form inspection) Report (PCR) and if the property is IE (Insured with Escrows) or not. If IE, then FHA financing can be used, but you must have the repairs financed into the FHA loan. If the status is UI (Un Insured), then FHA financing can't be used.
If you find a property here and have any questions or wish to make an offer, let me know. I am a registered Exclusive Buyer Broker for all HUD foreclosures in Georgia.
Let me explain the process of buying a foreclosure and answer your questions.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
http://www.hudhomestore.com
Be sure to check out the Property Condition (i.e.,short form inspection) Report (PCR) and if the property is IE (Insured with Escrows) or not. If IE, then FHA financing can be used, but you must have the repairs financed into the FHA loan. If the status is UI (Un Insured), then FHA financing can't be used.
If you find a property here and have any questions or wish to make an offer, let me know. I am a registered Exclusive Buyer Broker for all HUD foreclosures in Georgia.
Let me explain the process of buying a foreclosure and answer your questions.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, April 28, 2011
Lenders are delaying foreclosures in several states
4-28-2011: This delay in foreclosure action is expected to slow the foreclosure process on existing distressed homes, thereby prolonging the economic recovery and putting continued downward pressure on housing prices.
Basically, due to lack of thorough attorney review, Robo signatures, and lack of good accounting to track true ownership of properties that have been foreclosed, many lenders (including Wells Fargo, Bank of America, Chase, and others) have stopped the foreclosure process. Some people have gone as far as suing the lender, even though they haven't made a payment in months or years.
In Florida, the average number of days it takes to foreclose is 573 (as opposed to 423 days in 2009). Nationwide, the number of day is 478 (v. 361 in 2009).
The immediate results is mass confusion and delaying the inevitable. If people could afford to pay the monthly payments, they would. Since they can't pay, they face foreclosure from the lender who has ownership of the property a secured by the property (i.e., your lender who owns the mortgage note). But what if the lender who is collecting your mortgage payment doesn't own the mortgage note?
Another result in delaying the inevitable foreclosure process will be to slow down the rate of foreclosure sales. Once the vast majority of foreclosures are sold, home prices should become stabilized and have room to grow. To keep the stream of foreclosures steady, through these delays, then the "cleansing" process never has a chance to eliminate the backlog of foreclosures and falling home prices.
http://www.examiner.com/real-estate-in-st-petersburg/the-latest-action-and-inaction-on-foreclosure-fraud
http://www.examiner.com/real-estate-in-st-petersburg/real-estate-investors-beware
http://www.examiner.com/real-estate-in-st-petersburg/real-estate-investors-beware
10-6-10: I saw in today's WSJ that the loan servicing arms of the major lenders are holding up foreclosures - which doesn't make sense for the servicer since they need to continue to send payments to investors - unless there's good reason - that makes no sense now unless someone is challenging the legitimacy of ownership and threatens a lawsuit.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Basically, due to lack of thorough attorney review, Robo signatures, and lack of good accounting to track true ownership of properties that have been foreclosed, many lenders (including Wells Fargo, Bank of America, Chase, and others) have stopped the foreclosure process. Some people have gone as far as suing the lender, even though they haven't made a payment in months or years.
In Florida, the average number of days it takes to foreclose is 573 (as opposed to 423 days in 2009). Nationwide, the number of day is 478 (v. 361 in 2009).
The immediate results is mass confusion and delaying the inevitable. If people could afford to pay the monthly payments, they would. Since they can't pay, they face foreclosure from the lender who has ownership of the property a secured by the property (i.e., your lender who owns the mortgage note). But what if the lender who is collecting your mortgage payment doesn't own the mortgage note?
Another result in delaying the inevitable foreclosure process will be to slow down the rate of foreclosure sales. Once the vast majority of foreclosures are sold, home prices should become stabilized and have room to grow. To keep the stream of foreclosures steady, through these delays, then the "cleansing" process never has a chance to eliminate the backlog of foreclosures and falling home prices.
http://www.examiner.com/real-estate-in-st-petersburg/the-latest-action-and-inaction-on-foreclosure-fraud
http://www.examiner.com/real-estate-in-st-petersburg/real-estate-investors-beware
http://www.examiner.com/real-estate-in-st-petersburg/real-estate-investors-beware
10-6-10: I saw in today's WSJ that the loan servicing arms of the major lenders are holding up foreclosures - which doesn't make sense for the servicer since they need to continue to send payments to investors - unless there's good reason - that makes no sense now unless someone is challenging the legitimacy of ownership and threatens a lawsuit.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, April 21, 2011
Prompt Decision for Qualification for Short Sale Act (HR 6311)
This House Resolution (i.e., bill) (was originally introduced in 2010) has been reintroduced in the 112th Congress. The legislation proposes to amend the Truth in Lending Act and provide for "automatic approval of short sale proposal (i.e., package that include an Executed Purchase and Sale Contact between Buyer(s) and Homeowner(s)) if more than 45 days had expired "after" the loan servicer receives the package and doesn't render a decision. This is designed to improve the process for approving short sales of real estate and would prevent extended delays (sometimes over 6 months).
Since short sales now range from 10-15% of all real estate transactions, and show no signs of disappearing anytime soon, this legislation has some traction.
Time will tell if this legislation gets any traction, but based lobbying efforts by the lenders and the legal profession and on recent changes in the law (especially the SAFE Act) that prohibit Real Estate Agents from negotiating short sales with lenders, I wouldn't hold my breath.
The Act amends the Truth in Lending Act to consider approved a mortgagor's written request to a mortgage loan servicer for a short sale of a dwelling or residential real property if the mortgagor has not received, within 45 days after the servicer's receipt of the request, a written notification of whether the request has been approved, specified changes are required, that such request has been approved subject to specified changes, or that additional information is required for such a determination, such request shall be considered to have been approved by the servicer.
Here's an excerpt from the Bill: "(a) Requirement- Except as provided in subsection (b) and notwithstanding any other provision of law or of any contract, including a contract between a servicer of a residential mortgage loan and a securitization vehicle or other investment vehicle, if the mortgagor under a residential mortgage loan submits to the servicer of the mortgage loan a written request for a short sale of the dwelling or residential real property that is subject to the mortgage, deed or trust, or other security interest that secures the mortgage loan, and all information required by the servicer in connection with such a request (including a copy of an executed contract between the owner of the dwelling or property and the prospective buyer that is subject to approval by the servicer), and the mortgagor does not receive from the servicer, before the expiration of the 45-day period beginning upon receipt by the servicer of such request and information, a written notification of whether such request has been approved, that such request has been approved subject to specified changes, or that additional information is required for such a determination, such request shall be considered to have been approved by the servicer."
Note of caution: Since many loan servicers have repeatedly told borrowers they have not received paperwork and had to resubmit pills of paperwork, or another form or updated forms, then when will the loan servicer actually technically "receive" all "required" information?
Prompt Decision for Qualification for Short Sale Act (HR 6311)
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Since short sales now range from 10-15% of all real estate transactions, and show no signs of disappearing anytime soon, this legislation has some traction.
Time will tell if this legislation gets any traction, but based lobbying efforts by the lenders and the legal profession and on recent changes in the law (especially the SAFE Act) that prohibit Real Estate Agents from negotiating short sales with lenders, I wouldn't hold my breath.
The Act amends the Truth in Lending Act to consider approved a mortgagor's written request to a mortgage loan servicer for a short sale of a dwelling or residential real property if the mortgagor has not received, within 45 days after the servicer's receipt of the request, a written notification of whether the request has been approved, specified changes are required, that such request has been approved subject to specified changes, or that additional information is required for such a determination, such request shall be considered to have been approved by the servicer.
Here's an excerpt from the Bill: "(a) Requirement- Except as provided in subsection (b) and notwithstanding any other provision of law or of any contract, including a contract between a servicer of a residential mortgage loan and a securitization vehicle or other investment vehicle, if the mortgagor under a residential mortgage loan submits to the servicer of the mortgage loan a written request for a short sale of the dwelling or residential real property that is subject to the mortgage, deed or trust, or other security interest that secures the mortgage loan, and all information required by the servicer in connection with such a request (including a copy of an executed contract between the owner of the dwelling or property and the prospective buyer that is subject to approval by the servicer), and the mortgagor does not receive from the servicer, before the expiration of the 45-day period beginning upon receipt by the servicer of such request and information, a written notification of whether such request has been approved, that such request has been approved subject to specified changes, or that additional information is required for such a determination, such request shall be considered to have been approved by the servicer."
Note of caution: Since many loan servicers have repeatedly told borrowers they have not received paperwork and had to resubmit pills of paperwork, or another form or updated forms, then when will the loan servicer actually technically "receive" all "required" information?
Prompt Decision for Qualification for Short Sale Act (HR 6311)
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Tuesday, April 19, 2011
Financial System Breakdown & Foreclosure Blame - who gets what? Wall Street & Regulators
Plenty of blame to go around including high risk lending, regulatory failures, inflated credit ratings, and investment bank abuses.
2-22-2012: Bloomberg objects to blaming the US Government housing policies as the "major" cause of mortgage crisis. The greatest blame apparently goes to wall street. Source: http://www.cjr.org/the_audit/bloomberg_takes_on_the_big_lie.php
The recent US Senate report on what caused the financial system meltdown has arrived and there is plenty of blame to go around. My main question:
The official title of the US Senate Investigative Committee Report is
WALL STREET AND THE FINANCIAL CRISIS: Anatomy of a Financial Collapse
MAJORITY AND MINORITY STAFF REPORT - PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Get it here:
http://www.levin.senate.gov/imo/media/doc/supporting/2011/PSI_WallStreetCrisis_041311.pdf
Note: Once you read this 650 page report, dive into Atlas Shrugged by Ayn Rand - that's a good read too.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
2-22-2012: Bloomberg objects to blaming the US Government housing policies as the "major" cause of mortgage crisis. The greatest blame apparently goes to wall street. Source: http://www.cjr.org/the_audit/bloomberg_takes_on_the_big_lie.php
The recent US Senate report on what caused the financial system meltdown has arrived and there is plenty of blame to go around. My main question:
Who will wind up paying for the mistakes beside the taxpayer and common US resident, regardless if employed or not.
The official title of the US Senate Investigative Committee Report is
WALL STREET AND THE FINANCIAL CRISIS: Anatomy of a Financial Collapse
MAJORITY AND MINORITY STAFF REPORT - PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Get it here:
http://www.levin.senate.gov/imo/media/doc/supporting/2011/PSI_WallStreetCrisis_041311.pdf
Note: Once you read this 650 page report, dive into Atlas Shrugged by Ayn Rand - that's a good read too.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Monday, April 18, 2011
Appraisal News
This blog post will be updated with other appraisal related news from time to time.
2-23-2012: Sellers are now getting pre listing appraisals to see what the appraiser may think the house is worth and then compare the results with their listing agent so the home isn't underpriced.
Source: http://www.prweb.com/releases/2011/11/prweb8969795.htm
2-20-2012: Gone are the days of banks telling appraisers "what price they need to hit", or are they? Higher costs for appraisals - appraisal management companies owned by some banks - and unfamiliar appraisers evaluating property values - all part of the attempt by US Government for more "fairness", to be more transparent and less influential by banks? Right! Source: http://seattletimes.nwsource.com/html/realestate/2017336010_harney29.html
2-19-2012: As of September 2011 report, about 1/3 of all appraisals weren't hitting their sales price - what's happening today? Source: http://www.smartmoney.com/spend/real-estate/how-appraisals-are-derailing-home-sales-1320357466034/
1-20-2012: Appraisers must use foreclosures/distressed sales at times when warranted to value properties and hold their allegiance to lenders and protect their investment - not the Sellers' or Buyers' interests. Source: http://realtormag.realtor.org/daily-news/2012/01/20/appraisers-dont-blame-us
9-10-11: Besides these suggested ways to fight a low appraisal (if you get that far into a deal), you can offer the seller (reluctant to drop his price) to pay for an appraisal, from an appraiser acceptable to the lender, to show that their price is too high, especially if it's been on the market a while and nobody has bid on it. The seller, in this case not a bank, sometimes needs a 3rd party to compare recent sales. I've done it and it makes the process a little smoother. Source: http://rismedia.com/2011-09-07/five-ways-to-fight-a-low-appraisal/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Rismedia+%28RISMedia+Real+Estate+News%29
9-5-2011: Ways to fight your appraisal are listed in this article, but would you really want to buy a house that is priced higher than the appraisal value? Unless your crystal ball is working properly, you might reconsider. Source: http://www.upi.com/Business_News/Real-Estate/2011/09/05/Five-Ways-to-Fight-a-Low-Appraisal/9321315243322/
9-1-2011: New appraisal guidelines for new conventional loans (i.e., those purchased by Fannie Mae and Freddie Mac) will require special codes for appraisers; property conditions will be rated on a scale of 1 to 6; and more detailed interior/exterior information from real estate agents about the property. These and other changes became effective today, September 1, 2011. Source: http://www.boston.com/realestate/news/articles/2011/09/01/changes_in_home_appraisals_raise_concerns/
8-26-2011: Appraisals are still coming in below purchase prices. This causes additional sluggishness in market, but it is what it is...at least depending on the subjectivity of each appraiser. I'm not sure of the percentage of homes in the Atlanta area that have come in below appraisal, but I do know of several homes purchased that were never appraised, but sold for cash. Prices were so low, investors felt confident in value. Source: http://www.homebuyinginstitute.com/news/appraisal-below-purchase-178/
6-19-2011: Apparently all the rules for commercial property appraisals are loose, and dependent on lenders demands for comparables, when trying to reach a appraisal value mainly due to lack of sufficient recent sales and comparables - some appraisers are going back years (which 3-6 months prior sales are typical on Residential real estate). But commercial real estate is a whole new animal than residential! Source: http://www.startribune.com/business/124099969.html
One interesting article on attack on appraiser income => http://www.bostonherald.com/business/real_estate/view/20110417lenders_still_making_big_money_on_home_appraisals/srvc=home&position=recent%20
Another interesting story about the appraisal industry => http://ezinearticles.com/?Who-Owns-the-Appraisal-Management-Companies?&id=3727433
I understand since the advent of the Home Valuation Code of Conduct (HVCC), deigned to correct abuses of large banks "influencing" the outcomes of appraisals by making them go through Appraisal Management Companies, and it subsequent "corrections" that appraisers may still be busy, but they are not getting paid for their work in many cases.
And to top it all off, some big US banks may also own these warehousing firms they can use for their appraisals - can you say "conflict of interest" or "screw HVCC"?
Now there are some unscrupulous lender and appraiser that try to force a deal to happen, just a there are appraisers who are not familiar with the specific, limited geographic market of houses - each one resulting in bad decisions - accepting bad loans o rejecting good ones.
See my blogpost on Electronic Appraisals too => http://abirenews.blogspot.com/2011/02/electronic-house-appraisals.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
2-23-2012: Sellers are now getting pre listing appraisals to see what the appraiser may think the house is worth and then compare the results with their listing agent so the home isn't underpriced.
Source: http://www.prweb.com/releases/2011/11/prweb8969795.htm
2-20-2012: Gone are the days of banks telling appraisers "what price they need to hit", or are they? Higher costs for appraisals - appraisal management companies owned by some banks - and unfamiliar appraisers evaluating property values - all part of the attempt by US Government for more "fairness", to be more transparent and less influential by banks? Right! Source: http://seattletimes.nwsource.com/html/realestate/2017336010_harney29.html
2-19-2012: As of September 2011 report, about 1/3 of all appraisals weren't hitting their sales price - what's happening today? Source: http://www.smartmoney.com/spend/real-estate/how-appraisals-are-derailing-home-sales-1320357466034/
1-20-2012: Appraisers must use foreclosures/distressed sales at times when warranted to value properties and hold their allegiance to lenders and protect their investment - not the Sellers' or Buyers' interests. Source: http://realtormag.realtor.org/daily-news/2012/01/20/appraisers-dont-blame-us
9-10-11: Besides these suggested ways to fight a low appraisal (if you get that far into a deal), you can offer the seller (reluctant to drop his price) to pay for an appraisal, from an appraiser acceptable to the lender, to show that their price is too high, especially if it's been on the market a while and nobody has bid on it. The seller, in this case not a bank, sometimes needs a 3rd party to compare recent sales. I've done it and it makes the process a little smoother. Source: http://rismedia.com/2011-09-07/five-ways-to-fight-a-low-appraisal/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Rismedia+%28RISMedia+Real+Estate+News%29
9-5-2011: Ways to fight your appraisal are listed in this article, but would you really want to buy a house that is priced higher than the appraisal value? Unless your crystal ball is working properly, you might reconsider. Source: http://www.upi.com/Business_News/Real-Estate/2011/09/05/Five-Ways-to-Fight-a-Low-Appraisal/9321315243322/
9-1-2011: New appraisal guidelines for new conventional loans (i.e., those purchased by Fannie Mae and Freddie Mac) will require special codes for appraisers; property conditions will be rated on a scale of 1 to 6; and more detailed interior/exterior information from real estate agents about the property. These and other changes became effective today, September 1, 2011. Source: http://www.boston.com/realestate/news/articles/2011/09/01/changes_in_home_appraisals_raise_concerns/
8-26-2011: Appraisals are still coming in below purchase prices. This causes additional sluggishness in market, but it is what it is...at least depending on the subjectivity of each appraiser. I'm not sure of the percentage of homes in the Atlanta area that have come in below appraisal, but I do know of several homes purchased that were never appraised, but sold for cash. Prices were so low, investors felt confident in value. Source: http://www.homebuyinginstitute.com/news/appraisal-below-purchase-178/
6-19-2011: Apparently all the rules for commercial property appraisals are loose, and dependent on lenders demands for comparables, when trying to reach a appraisal value mainly due to lack of sufficient recent sales and comparables - some appraisers are going back years (which 3-6 months prior sales are typical on Residential real estate). But commercial real estate is a whole new animal than residential! Source: http://www.startribune.com/business/124099969.html
4-18-2011: Hey, what's going on in the world of home appraisers? Does the mortgage mafia have a contract out on them? Are they being squeezed out by real estate agents performing Broker Price Opinions (BPOs) (http://www.startribune.com/business/118548204.html) or the lending institutions either using more "electronic appraisals" (see my blogpost link at bottom) or due to large banks owning a controlling interest in Appraisal Management Companies (AMCs)?
One interesting article on attack on appraiser income => http://www.bostonherald.com/business/real_estate/view/20110417lenders_still_making_big_money_on_home_appraisals/srvc=home&position=recent%20
Another interesting story about the appraisal industry => http://ezinearticles.com/?Who-Owns-the-Appraisal-Management-Companies?&id=3727433
I understand since the advent of the Home Valuation Code of Conduct (HVCC), deigned to correct abuses of large banks "influencing" the outcomes of appraisals by making them go through Appraisal Management Companies, and it subsequent "corrections" that appraisers may still be busy, but they are not getting paid for their work in many cases.
And to top it all off, some big US banks may also own these warehousing firms they can use for their appraisals - can you say "conflict of interest" or "screw HVCC"?
Now there are some unscrupulous lender and appraiser that try to force a deal to happen, just a there are appraisers who are not familiar with the specific, limited geographic market of houses - each one resulting in bad decisions - accepting bad loans o rejecting good ones.
See my blogpost on Electronic Appraisals too => http://abirenews.blogspot.com/2011/02/electronic-house-appraisals.html
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Friday, April 15, 2011
Tax Credit for retrofits for energy improvements
Commercial buildings now account for 20% of the energy used in US.
President Obama would like to see energy efficiency of commercial buildings improved by 20% by 2020 and has called on Congress to propose tax deduction for commercial building upgrade/improvements and wants the Department of Energy to guarantee loans for the energy efficiency upgrades at commercial properties, schools and hospitals...
Building Owners and Managers Association (BOMA) has challenged its members to reduce energy consumption 30% by 2030.
So we are back again at old familiar territory - allowing the federal government to dictate what is and isn't an energy efficient improvement and how much companies receive in tax credits or eventual funding credits. And the production of new energy including oil production and nuclear energy remains dormant until the next person realizes the futility of the 1970's approach to energy efficiency didn't work either.
Source: Atlanta Business Chronicle, 2/11-17/2011, Page 18A.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
President Obama would like to see energy efficiency of commercial buildings improved by 20% by 2020 and has called on Congress to propose tax deduction for commercial building upgrade/improvements and wants the Department of Energy to guarantee loans for the energy efficiency upgrades at commercial properties, schools and hospitals...
Building Owners and Managers Association (BOMA) has challenged its members to reduce energy consumption 30% by 2030.
So we are back again at old familiar territory - allowing the federal government to dictate what is and isn't an energy efficient improvement and how much companies receive in tax credits or eventual funding credits. And the production of new energy including oil production and nuclear energy remains dormant until the next person realizes the futility of the 1970's approach to energy efficiency didn't work either.
Source: Atlanta Business Chronicle, 2/11-17/2011, Page 18A.
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Thursday, April 14, 2011
Summech CDC (SCDC) Provides Affordable Housing to Quaified Home Buyers
Provides comprehensive counseling and affordable housing in Atlanta metro area (where some residents earn less than 80% of the Area Median Income).
SCDC is a non-profit community-driven housing development organization founded in 1989, whose mission is to provide affordable housing to promote home ownership and to encourage economic development in the Mechanicsville community in the City of Atlanta. SCDC housing counseling services are targeted to potential home buyers throughout the City of Atlanta, which includes Fulton County, and a small portion of Dekalb County. SCDC provides opportunities through several programs including:
Paving the Way, Fill in the Gaps and the Youth Economic Empowerment Program. Paving the Way is the agency‟s housing counseling program that provides home buyer education, financial literacy, pre-purchase, delinquency/default, and non-delinquency post-purchase counseling. During Fiscal Year 2009, Summech served 214 clients.
Summech is one of the Founding Partners of the Metro Atlanta Community Development Corporation (MACDC) and has collaborated with the Atlanta Housing Authority (AHA) to develop low cost housing.
SUMMECH is a Community Housing Development Organization (CHDO) with the City of Atlanta and the State of Georgia.
Website: http://www.summechcdc.com/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
SCDC is a non-profit community-driven housing development organization founded in 1989, whose mission is to provide affordable housing to promote home ownership and to encourage economic development in the Mechanicsville community in the City of Atlanta. SCDC housing counseling services are targeted to potential home buyers throughout the City of Atlanta, which includes Fulton County, and a small portion of Dekalb County. SCDC provides opportunities through several programs including:
Paving the Way, Fill in the Gaps and the Youth Economic Empowerment Program. Paving the Way is the agency‟s housing counseling program that provides home buyer education, financial literacy, pre-purchase, delinquency/default, and non-delinquency post-purchase counseling. During Fiscal Year 2009, Summech served 214 clients.
Summech is one of the Founding Partners of the Metro Atlanta Community Development Corporation (MACDC) and has collaborated with the Atlanta Housing Authority (AHA) to develop low cost housing.
SUMMECH is a Community Housing Development Organization (CHDO) with the City of Atlanta and the State of Georgia.
Website: http://www.summechcdc.com/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Wednesday, April 13, 2011
HomeSafe Georgia - "free" loans to help Georgia Homeowners in trouble?
HomeSafe Georgia will provide "bridge" mortgage assistance (from the US Treasury's Hardest Hit Fund) to unemployed Georgians or those who have seen a dramatic decrease in their income due to national economic conditions.
Sounds like they will make you a "one-time" temporary short term (bridge) 0% loan for up to 18 months that is forgiven at a rate of 20% each year for 5 years to allow you to pay any back mortgage payments.
Website for help: https://www.homesafegeorgia.com/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
Sounds like they will make you a "one-time" temporary short term (bridge) 0% loan for up to 18 months that is forgiven at a rate of 20% each year for 5 years to allow you to pay any back mortgage payments.
Website for help: https://www.homesafegeorgia.com/
References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.
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