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.

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.

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.

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. 

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.

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.

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:

• 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.

 

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).

 

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.

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.