Housing Stimulus Bill Summary

July 31st, 2008 Categories: For Buyers, For Sellers, Real Estate Chatter

I’m going to catch some slack from my blogging colleagues on this one.  That’s because I’m reprinting an article in it’s entirety.  What a faux pas!  But for time’s sake, I opted for that this time.  This issue is too important and I don’t have the time for a full-fledged analysis of it but still want to make my readers aware of what’s going on.  I do hope to blog soon about the fact that this bill ELIMINATES in it’s entirety down payment assistance programs and I don’t agree with the change.  But for now, without further ado, I present you the National Association of REALTORS®’ take on the Housing Stimulus bill:

Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions: 

• GSE Reform - including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

• FHA Reform - including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

• Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

• FHA foreclosure rescue - development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

• Seller-funded downpayment assistance programs - codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

• VA loan limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

• Risk-based pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

• GSE Stabilization - includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

• Mortgage Revenue Bond Authority - authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

• National Affordable Housing Trust Fund - Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

• CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

• LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.

• Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

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  For more information, visit http://www.realtor.org/governmentaffairs.National Association of REALTORS®

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Happy Birthday America!

July 4th, 2008 Categories: South Florida Living

I love this country. I’ve called it home for 37 years now. I have enjoyed the many freedoms and opportunities it offers. I know these things have come at a cost. A very dear cost to many. Thinking of the many men and women who continue to serve this great nation and thanking them for doing so.

Here’s wishing everyone a happy and safe Fourth of July.

Happy Birthday America!

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Miami Renters Beware. Please!

June 29th, 2008 Categories: Real Estate Chatter

We Realtors are known for working all odd hours and weekends. I’ve been attempting to take Sundays off whenever possible. When duty calls, I go though. Today duty called and it was a most unsavory type.

I received a call from a real estate agent who had tried to show one of the REO (bank owned) properties I have listed. He had a problem when he arrived at the property though. Apparently it was no longer vacant, but occupied. I assured him that the home was vacant and on lockbox. He assured me that it was not.

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Miami Short Sale Tax Implications

June 25th, 2008 Categories: For Sellers, Real Estate Chatter, Short Sales

Several of my clients have been sellers of distressed Miami homes. Homes where the owners were no longer able to keep up with the mortgage payments. In some cases, short sales were good options. In others, a short sale was not the solution and the owner allowed the properties to be foreclosed on.

Why would someone who is facing a foreclosure in Miami not want to get out of it if possible? The simple answer is tax implications. Allow me to explain. If you own a property that is facing foreclosure and you work out a short sale agreement with the lender, that lender is going to give you a form 1099 for the amount that was short to pay the loan off completely.

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Don’t Fall For Foreclosure Help Scams

May 4th, 2008 Categories: Real Estate Chatter

You may have seen the signs around Miami. They scream out at you. “Don’t Lose Your Home!!” “Stop Foreclosure Now!” And if you find yourself on the short end of a Miami-Dade county foreclosure proceeding, you might stop and listen.

There are a lot of scam artists out there. It sickens me to think that people whose homes are being foreclosed on are easy prey for these scams. Why don’t we kick them while they’re down, right? It’s wrong! It’s unscrupulous. And it’s being done all over the country not just here in Palmetto Bay and the Redland.

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Miami Real Estate Blog Hacked

April 20th, 2008 Categories: Community News

Last Sunday The Blog That Ate Miami, along with several other Real Estate Tomato blogs, was hacked into. The entire site went down. Visitors to the Redland Palmetto Bay real estate blogsite would have been presented with an error page upon entry.

Although the site is up now, it is not back to normal. For instance, I can’t insert pictures into my posts. It’s been a week and Jim Cronin and his staff at the Tomato have worked tirelessly to restore not only my site, but all the others affected. My sincere thanks go out to Jim, Jason and others at the Tomato who have worked tirelessly after the attack.

I would also like to extend my apologies to the readers of my blog. Those of you who come to The Blog That Ate Miami to get your Miami real estate news may have wondered what was going on. Now you know. I’m still here and will continue to provide pertinent real estate information to the Miami real estate market. At the same time, the blog will be tweaked until it’s back to normal. Thanks to all for your understanding and patience.

It’s good to be back!

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The Blog That Ate Miamis Last Post

April 1st, 2008 Categories: Community News

It saddens me to tell my now-nine loyal readers that I won’t be writing any more. I’ve just gotten too busy to deal with a silly blog. All you agents who wondered why anyone would even waste their time blogging were right. I can’t keep up with a blog, work and family too.

Where will you find out where the best milkshakes in the Redland can be found? Who’s going to keep you posted on livestock running amok through the streets (OK it was one horse on one street)? And worse, who’s going to keep you posted on real estate stuff every once in a while? I’m not sure, but it won’t be me.

For those of you getting your knickers in a bunch, don’t. Look at the date. My Little One is planning lots of pranks today. I figured I’d join her. =)

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