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.
Wednesday, August 31, 2011
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.
Subscribe to:
Posts (Atom)