Tag Archives: Congress

Happy New Year 2014!! Ringing in the NEW and extending the OLD….

Will the Federal Mortgage Debt Relief Act be extended for another year in 2014?

Yes. The Mortgage Debt Relief Act (MDR) will be extended. The National Association of Realtors (NAR) is working with the lawmakers to get the MDR extended for at least another year. Here are the details for you: Continue reading

Good news for California homeowners facing short sales

short saleUnder regular tax rules, when a lender forgives a debt — that is, relieves the borrower from having to pay it back — the amount of the debt is taxable income to the borrower.

A homeowner who has $100,000 in mortgage debt forgiven through a short sale, for example, would have to pay income tax on the $100,000.

Continue reading

Housing Market May Be Shut Down Like the Government!

The Government shutdown is quickly spreading its effects to the Housing industry or Real estate sector.

congress1st time Home Buyers’ loan account for 30-40% of the market, and the stories of Buyers purchasing a first home and being homeless because of Republican and Democrat posturing (or better described as out-of-control egos), are beginning to be created as the link described above.

90% of FHA employees have been furloughed, leaving a handful of employees to process FHA loans–what normally takes 30-45 days will take much longer to close, and cause cancellations as a result.

To top it off, sellers will completely stay away from FHA loans until the shutdown is lifted.

Now is the time Congress to get this settled ASAP. Thanks for reading!

Fannie Mae sees housing upturn as “intact”

Despite some bumps in the road, the housing upturn is “intact” and rising home prices are expected to boost household net worth and offset fiscal tightening, according to a monthly economic outlook released by economists at Fannie Mae.

Tight inventories continue to restrain sales of existing homes. Although the number of homes on the market grew by nearly 10 percent from January to February, the 1.94 million homes for sale represented a 19.2 percent decline from the same time a year ago.

Pending sales of existing homes dipped 0.4 percent from January to February, but remained at their second-highest level in nearly three years, according to the NATIONAL ASSOCIATION OF REALTORS®.Fannie Mae

New-home sales also slipped from January to February and builder confidence was down for the second month in a row in March. But housing starts reached a near five-year high in February and new-home sales climbed 12.3 percent year-over-year.

Fannie Mae economists project that existing-home sales, which were up 9.4 percent last year, wlll grow by an additional 10.5 percent this year, to 5.15 million homes, and by 6.2 percent in 2014, to nearly 5.5 million homes. Sales of new single-family homes are expected to post even stronger growth — 15.1 percent this year and 44.1 percent in 2014. Continue reading

Proposed Bill to Speed Up Short Sale Process and Prevent Foreclosure

We all know short sales are not so “short”–but this proposed bill outlined by DSNews.com’s article may speed up the process, while also preventing foreclosure.
 
To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.  
 
Senators Lisa Murkowski (R-Arkansas), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.
 
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
 
The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.
 
The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer will be limited to one extension of no more than 21 days.
 
The bill will also…
 
Read the rest of this article by DSNews.com here: “Proposed Bill to Speed Up Short Sale Process and Prevent Foreclosure“.

More mortgage relief from the White House – but congressional ‘ok’ doubtful

Mortgage reliefAn summary update (by CAR.org) on the mortgage relief plan by the federal government, covering an article by The Mercury News:

In his State of the Union Address, President Obama laid out a plan to help responsible borrowers and support a housing market recovery. Details of that plan were released yesterday. However, funding for the proposed program must be approved by Congress, lowering the possibility that it will be implemented quickly. Making sense of the story:

  • Operated by the Federal Housing Administration, the plan would allow underwater homeowners to refinance into cheaper federally insured loans. Borrowers with good credit who are current on their loan payments are eligible.
  • The measure also streamlines the process of refinancing an underwater mortgage, eliminating the need for an appraisal or submitting a new tax return.
  • To qualify, borrowers must be current on their mortgage, have a minimum credit score of 580, and must be refinancing a loan on a single-family owner-occupied principal residence.
  • Lenders only need to confirm that the borrower is employed. Loans that are more than 140 percent of the home value probably would not qualify until banks wrote down part of the balance.
  • Congress must approve $5 billion to $10 billion in funding, leading housing experts to praise the plan’s objectives with skepticism of it passing this year.

Read the full story from The Mercury News here: “More mortgage relief from the White House – but congressional ‘ok’ doubtful.”