Thinking about installing some new windows? Maybe some new kitchen cabinets? How about knocking down that wall to give your old home that "open concept" look? Do you want to be fined $32,500 per RRP rule violation and face a federal felony per violation? Do I have your attention now??Well, before you start that new renovation or begin to rehab that flip house, make sure you read up on the EPA's new Renovation Repair and Painting Rule also called RRP which is how it will be referred to the … [Read more...]
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FHA Relaxes Anti-Flipping Rule
This is something that has been rumored for a little while now. At some point, I anticipate the "90-day" rule to be reinstated.Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner … [Read more...]
Filed Under: Lending, Real Estate Genius, Realty, The Barry Blog
FHA To Toughen Down Payment Rules
Ouch! Here is an article about a couple of the new FHA rules trying to get finalized. I think the raise in the upfront mortgage insuranc premium is bit much. In other words, if you are buying FHA , on a $100,000 loan you will have $2,250 tacked onto the loan because you are using FHA. On the down payment part, a lot of lenders are not lending FHA to people that have a credit score below 580 anyway.The Federal Housing Administration will raise the minimum down payment for its least credit-worthy … [Read more...]
Filed Under: Real Estate Genius, The Barry Blog, Uncategorized
Mortgage Modification Plan Falls Short
Here is an article from the AP about loan modifications:Only 65,000 people – about 7 percent of those who applied – have successfully navigated President Obama’s plan to help borrowers who are in trouble, the Treasury Department said last week.About 49,000, or 5 percent, have dropped out of the program because they don’t qualify. Most of the remainder are still waiting.Bank of America, the largest company in the program, has completed fewer than 2 percent of the modifications for 200,000 … [Read more...]
Filed Under: Lending, Real Estate Genius, The Barry Blog
Potential Fraud Scam in Southwestern Michigan
The following is a warning message that I received from my Michigan MLS Board of Realtors. I thought that I would pass this on to you as well, in case you run into this scam.The Association was recently made aware of a failed fraud scam that happened in Southwestern Michigan over the past 45 days. The scam started with a purported Doctor from the United Kingdom contacting a local Brokerage about his desire to purchase a home in a private lake front community that he had seen on the internet. … [Read more...]
Filed Under: Real Estate Genius, Realty
Parents Should Consider Homes As Gifts
Parents who are looking for a gift to give their kids this holiday season should consider a house.With prices in the cellar, this could be a terrific year to give a down payment or even the whole home.The Internal Revenue Service says a married couple can each give gifts of $13,000 of money or property without triggering taxes for the gift givers or the recipients. That means a married couple can give another married couple a total of $52,000 a year. To maximize that they can give $52,000 in … [Read more...]
Filed Under: Lending, Real Estate Genius, Realty, The Barry Blog
Homebuyer Tax Credit Extension and Changes
Today, in a vote of 403-12, the House passed a bill that the Senate had already passed that extends the Homebuyer Tax Credit and also makes some changes to the existing tax credit. Now, before I go ANY further, I need to throw out a disclaimer that President Obama still needs to sign this into law to make it official. Although that should just be a formality, it is in fact not law until he signs it. So, this is just to inform of what the bill is and what some of the changes are.Ready? Here we … [Read more...]
Filed Under: Economy, Lending, Real Estate Genius, Realty, The Barry Blog
A Full Credit Bid
I recently attended a continuing education class in Michigan and was taught some very interesting information about Foreclosure that goes against the common thought about having your house taken back by the bank. And, this applies to both Indiana and Michigan.When your house is officially taken back by the bank is when it is sold at the Sheriff's auction. The bank does this by making a credit bid against your house. This "credit bid" is where things get interesting because of the belief out … [Read more...]
Filed Under: Foreclosure, Lending, Real Estate Genius, Realty, The Barry Blog
D.C. Dances Around Tax Credit Extension
I keep getting questions about the First Time Buyer Tax Credit and if it will be extended. Although I don't have an answer to that yet, I thought that you would be interested to read this article from the AP.Washington is being forced to take a hard look at the expiring $8,000 first-time homebuyer tax credit.Nearly a dozen bills have been proposed to extend the credit past the Nov. 30 deadline, but the top decision makers are just beginning to weigh in.On Thursday, Senate Majority Leader Harry … [Read more...]
Filed Under: Lending, Real Estate Genius, Realty, The Barry Blog
"Making Home Affordable" Picking Up Steam
Here is a new article about how the "Making Home Affordable" plan starting to gain steam. About a month ago I posted an article on how it was failing. Although Bank Of America is still lowest on the list, it should be noted that in one month they went from 4% to the 7% that they are currently at:The Obama administration's $50 billion "Making Home Affordable" mortgage relief plan is picking up steam, with 360,000 borrowers, or 12 percent of the eligible group, signing up for a three-month trial … [Read more...]
Filed Under: Lending, Real Estate Genius, Realty, The Barry Blog
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