Michelle Frericks, Realtor®

Archive for March, 2010

If your mortgage is held by Bank of America, this is something you should look into! Click below for more details.

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WASHINGTON – March 26, 2010 – A 2009 U.S. District Court decision indicated that add-on fees – commonly known as transaction fees – not accompanied by specific services violate federal law. As a result, many large real estate brokers altered their commission rate and fee procedures.

The Department of Housing and Urban Development (HUD) recently clarified the government’s position on add-on fees. General counsel Helen Kanovsky emphasized that federal law under the Real Estate Settlement Procedure Act (RESPA) regulates how the commission should be disclosed – but it does not prescribe how a real estate agent or broker determines the charge for his/her services.

The commission may be disclosed as a flat fee, a percentage of the sales price, or a combination of the two.

On the revised HUD-1 settlement sheet, commissions are now reported as dollar amounts rather than percentages in the 700 series. If the total charges disclosed in the 700-series exceed the amount of commission in the listing or buyer brokerage agreement, then HUD can review those charges to determine whether additional services were provided for the excess amount charged.

Any charge for which no, or nominal, services were performed, or that duplicates other fees, violates RESPA.

Experts say small and midsize brokerages unaware of the court decision should review their commission policies now to avoid legal trouble.

Still have questions? Call Florida Realtors Legal Hotline at (407)-438-1409. The hotline is an included member benefit, except for the cost of a long-distance call.

© 2010 Florida Realtors®

NOTE: I don’t charge transaction fees!

A new program was announced this week to assist unemployed homeowners with their mortgages. The program will also include relief for homeowners that are “underwater” or owe more than their home is worth. Click below for more details:

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CITY’S NEIGHBORHOOD STABILIZATION PROGRAM HOSTS HOMEBUYER WORKSHOPS AND HOUSING FAIRS

JACKSONVILLE, Fla. , March 22, 2010 – The City of Jacksonville ’s Housing and Neighborhoods Department, through its Neighborhood Stabilization Program (NSP), will conduct homebuyer workshops and housing fairs on March 30 and 31.  These workshops are designed to help educate interested homebuyers about the NSP.  Lenders will be available to provide mortgage qualification information to interested homebuyers and developers will showcase homes that are available through the program.

The March 30 event is scheduled for 6:30-8 p.m. at St. Pius V Catholic Church at 2110 Blue Ave.   The March 31 event is scheduled for 6:30-8 p.m. at the Main Library at 303 N. Laura St with street parking available in addition to the Duval Street parking garage located at 33 W. Duval Street .

The Neighborhood Stabilization Program is a $26 million program utilizing Housing and Urban Development (HUD) money to buy foreclosed houses.  Developers purchase the homes and renovate them to strict standards.  The homes are then sold to qualified homebuyers. 

Homes are available in the 32206, 32208, 32209, 32244 and 32254 zip codes.  Prospective buyers must make their NSP home their primary residence and complete a mandatory eight-hour credit counseling program.

Families and individuals with an adjusted family income of up to 120 percent of the area household median income are eligible to participate.  A family of four can earn as much as $78,000 and qualify for an NSP home.  Buyers can own for as little as $500 down and may qualify for purchase assistance.

There are currently over 70 homes in the rehabilitation phase, soon to be available for purchase.  All homes are renovated to include Energy Star-rated appliances to lower electric bills.  For more information about the Neighborhood Stabilization Program, go to www.nspjax.com or call 904-398-HOME (4663).

If you are considering making an offer on a short sale property, it would be worthwhile to wait until April 5th. The new regulations beginning on that date will provide financial incentives to banks to respond to offers on short sale properties within 10 days. I’ve had these offers drag out for MONTHS and it is not a good experience for anyone involved in the transaction. Hopefully this will help clear out some of the short sale inventory and begin to stablize the housing market!

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Click the link below to see the foreclosed homes available for puchase in Jacksonville.

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SACRAMENTO, Calif. – March 19, 2010 – Homeowners defaulting on mortgages today may be surprised to learn years from now that they still owe thousands of dollars – and a collection agency is coming after them to get it. That’s because lenders have been quietly selling second mortgages and home equity lines left unpaid after foreclosures and short sales. The buyers: collection agencies, which in some states have years to more.

Copyright © 2010 The Sacramento Bee. All rights reserved

Canadians were the largest group of foreign home buyers in the United States in 2009, according to the National Association of Realtors – and Florida Home Finders says they accounted for 30 percent of purchases by foreigners MORE

Source: Hamilton Spectator (03/16/10) Wong, Tony

© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688

Banks are again offering home equity loans.

Lenders are expected to make about $36 billion in new home equity loans over the next year, according to Moody’s Economy.com. That’s actually more than the $34 billion in home equity loans MORE

Source: Bloomberg, Kathleen M. Howley, Prashant Gopal, John Gittelsohn (03/11/2010)

© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688