Tue Mar 27, 4:11 PM ET
A growing number of state housing agencies are developing or considering issuing bonds to assist subprime mortgage holders to refinance their obligations at fixed rates, officials at housing agencies said on Tuesday.
The Ohio Housing Finance Agency intends to launch a refinance program on April 2 to accept applications from lenders. That program would be funded by taxable bonds issued probably later that same month in an amount likely around $100 million, said Bob Connell, director of debt management for the agency.
The aim is to allow low- to moderate-income mortgage holders who have not entered the foreclosure process to refinance their mortgages at a fixed rate likely around 6.75 percent, Connell said.
A U.S. Treasury official said the tax code places limits on such issuances through a series of "volume cap" rules.
Other states are implementing, drafting or considering similar measures.
"Maryland has had a similar refinancing program for subprime mortgages for the last few months," said Garth Rieman, director of housing advocacy at the National Council of State Housing Agencies.
Officials at Maryland's Department of Housing and Community Development were not immediately available for comment.
In recent weeks, financial markets have been shaken by increasing delinquencies among subprime mortgages offered to borrowers with damaged credit. This has triggered concerns that the fallout may spread to mainstream lenders and damage the U.S. economy. For more on subprime mortgage markets, please see:
Rhode Island, Massachusetts and Virginia are now "running or developing similar programs and are further along than other states," Rieman added.
Colorado, California, Washington and Wisconsin, meanwhile, have been inquiring about the details of such refinancing programs, Rieman said.
Indiana, meanwhile, is about to open a hotline to help homeowners facing foreclosure and is offering referrals to advisors who are able to assist with loss mitigation, while the state legislature is considering a bill that includes a public awareness campaign.
"We are not currently offering such a (refinancing) program," Indiana Housing and Community Development Authority spokeswoman Amber Seidler said.
"Tax exempt bonds are, pursuant to the IRS (U.S. Internal Revenue Service) Code, limited to being used to fund new mortgages, not refinancings," she added.
"A couple of other states have set up pilot programs utilizing taxable bonds to target subprime borrowers, but they are very new and we have not reached that stage of having a program ready to offer," Seidler said.
Copyright © 2007 Reuters Limited. All rights reserved.
Friday, March 30, 2007
Thursday, March 29, 2007
Feeling Nosy about DC? MD? VA?
Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Major Changes to the Seller’s Disclosures in DC
There have been major changes to the Seller’s Disclosures in DC, this article from Sunday’s Washington Post details those changes and clarifies some of the confusion that is out there regarding the new disclosures.
New Requirements Govern Seller's Disclosure in the District
By Benny L. Kass
Saturday, March 24, 2007; F07
Q: I am a real estate broker in the District. I understand that effective Feb. 9, we have been required to provide potential home buyers with a new Seller's Disclosure Statement, and that once a buyer gets that statement, they have the right to cancel their sales contract by giving written notice to the seller no later than five days after receipt of the form.
Here's my problem: On Jan. 20, I obtained a listing agreement from a seller and was fortunate to get a full-price contract on Feb. 4. The contract purchaser was provided with the Seller Disclosure Statement then in existence.
The buyer has not gone to settlement yet. Must I provide the new form to that purchaser? I am concerned that the purchaser may get buyer's remorse and use the new form as an excuse to terminate the contract.
A On Feb. 9, the D.C. Department of Consumer and Regulatory Affairs published a revised Seller's Disclosure Statement in the D.C. Register, which means that the requirement to provide the new form became effective that day.
First, I have to correct one of your statements. According to the regulations promulgated by the District (17 DCMR Chapter 27, ?2708.13), "the Seller, not the broker and not the management company, condominium, cooperative or homeowners association" is required to complete the form.
If the property in question consists of one to four residential units and the transaction involves a sale, exchange, installment land sale, a lease with an option to purchase or any other option to purchase, the disclosure form must be provided to a potential buyer. The purchaser must express an interest, in writing, in residing in the property in question. This requirement will normally be met in the sales contract itself.
The disclosure requirement does not apply in the following situations:
Court-ordered transfer.
Foreclosure sale.
Transfer by a fiduciary (such as a personal representative, guardian or conservator) if the person conveying the property was not personally occupying it.
Transfer between parents and children, or from one spouse to another.
Sale of a newly constructed property that has never been lived in.
Generally, the disclosure statement must be provided to a potential purchaser in all other circumstances.
Although the new form contains more detailed information about the property, it is easier to read than the previous one and is more logical. It consists of many subtopics broken down in four general areas: structural condition, operating condition of property systems, appliances and fixtures, and exterior and environmental issues. For all practical purposes, however, the substance is the same.
What rights does a potential buyer have under the law?
When the buyer is given the disclosure statement, he has five calendar days in which to terminate the sales contract by giving written notice to the seller. However, this right to terminate is waived if not exercised before:
The buyer applies for a mortgage loan and the lender discloses in writing that the right to rescind will terminate when the loan application is made.
Settlement on the property takes place.
The person with a lease with an option to purchase begins to occupy the property.
The seller of a condominium unit, cooperative apartment or a house in a homeowners association is obligated to disclose information as to the unit or house only, not the common elements or areas outside of the property being sold.
Can a buyer rely on the disclosures provided by the seller? That's a legal question that the courts in the District have not yet addressed. The form specifically states, "This statement is not a warranty of any kind by the seller or by any agent representing the seller in this transaction, and is not a substitute for any inspections or warranties the buyer may wish to obtain."
Nevertheless, the statement is a disclosure by the seller of the defects or information actually known by the seller. Thus, while all buyers should obtain an independent home inspection and make their sales contract contingent upon receiving a favorable inspection report, the fact remains that if the seller makes material misstatements or omissions in the disclosure form, the buyer may have a legal case.
You asked whether the new disclosure form should be provided to contract purchasers, even though they have already received the old form. Connie Maffin, who heads the D.C. Real Estate Board, told me that she is "encouraging everyone to immediately use the new form on new and existing listings."
According to Maffin, the law is in effect, and although the board will not immediately enforce violations in the immediate future, sellers are required to honor the law.
Does this mean that a buyer who receives a second form has another chance to terminate the contract? That is another legal issue that has no definitive answer. Because the new disclosure statement is substantially similar in content to the old form, and because the potential buyer already had the opportunity to cancel when he received the older form, a strong argument could be made that the court will not permit the termination. Sellers and buyers should consult their own counsel for more specific legal advice.
Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed stamped envelope to Benny L. Kass, Suite 1100, 1050 17th St. NW, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, http://www.kmklawyers.com
New Requirements Govern Seller's Disclosure in the District
By Benny L. Kass
Saturday, March 24, 2007; F07
Q: I am a real estate broker in the District. I understand that effective Feb. 9, we have been required to provide potential home buyers with a new Seller's Disclosure Statement, and that once a buyer gets that statement, they have the right to cancel their sales contract by giving written notice to the seller no later than five days after receipt of the form.
Here's my problem: On Jan. 20, I obtained a listing agreement from a seller and was fortunate to get a full-price contract on Feb. 4. The contract purchaser was provided with the Seller Disclosure Statement then in existence.
The buyer has not gone to settlement yet. Must I provide the new form to that purchaser? I am concerned that the purchaser may get buyer's remorse and use the new form as an excuse to terminate the contract.
A On Feb. 9, the D.C. Department of Consumer and Regulatory Affairs published a revised Seller's Disclosure Statement in the D.C. Register, which means that the requirement to provide the new form became effective that day.
First, I have to correct one of your statements. According to the regulations promulgated by the District (17 DCMR Chapter 27, ?2708.13), "the Seller, not the broker and not the management company, condominium, cooperative or homeowners association" is required to complete the form.
If the property in question consists of one to four residential units and the transaction involves a sale, exchange, installment land sale, a lease with an option to purchase or any other option to purchase, the disclosure form must be provided to a potential buyer. The purchaser must express an interest, in writing, in residing in the property in question. This requirement will normally be met in the sales contract itself.
The disclosure requirement does not apply in the following situations:
Court-ordered transfer.
Foreclosure sale.
Transfer by a fiduciary (such as a personal representative, guardian or conservator) if the person conveying the property was not personally occupying it.
Transfer between parents and children, or from one spouse to another.
Sale of a newly constructed property that has never been lived in.
Generally, the disclosure statement must be provided to a potential purchaser in all other circumstances.
Although the new form contains more detailed information about the property, it is easier to read than the previous one and is more logical. It consists of many subtopics broken down in four general areas: structural condition, operating condition of property systems, appliances and fixtures, and exterior and environmental issues. For all practical purposes, however, the substance is the same.
What rights does a potential buyer have under the law?
When the buyer is given the disclosure statement, he has five calendar days in which to terminate the sales contract by giving written notice to the seller. However, this right to terminate is waived if not exercised before:
The buyer applies for a mortgage loan and the lender discloses in writing that the right to rescind will terminate when the loan application is made.
Settlement on the property takes place.
The person with a lease with an option to purchase begins to occupy the property.
The seller of a condominium unit, cooperative apartment or a house in a homeowners association is obligated to disclose information as to the unit or house only, not the common elements or areas outside of the property being sold.
Can a buyer rely on the disclosures provided by the seller? That's a legal question that the courts in the District have not yet addressed. The form specifically states, "This statement is not a warranty of any kind by the seller or by any agent representing the seller in this transaction, and is not a substitute for any inspections or warranties the buyer may wish to obtain."
Nevertheless, the statement is a disclosure by the seller of the defects or information actually known by the seller. Thus, while all buyers should obtain an independent home inspection and make their sales contract contingent upon receiving a favorable inspection report, the fact remains that if the seller makes material misstatements or omissions in the disclosure form, the buyer may have a legal case.
You asked whether the new disclosure form should be provided to contract purchasers, even though they have already received the old form. Connie Maffin, who heads the D.C. Real Estate Board, told me that she is "encouraging everyone to immediately use the new form on new and existing listings."
According to Maffin, the law is in effect, and although the board will not immediately enforce violations in the immediate future, sellers are required to honor the law.
Does this mean that a buyer who receives a second form has another chance to terminate the contract? That is another legal issue that has no definitive answer. Because the new disclosure statement is substantially similar in content to the old form, and because the potential buyer already had the opportunity to cancel when he received the older form, a strong argument could be made that the court will not permit the termination. Sellers and buyers should consult their own counsel for more specific legal advice.
Benny L. Kass is a Washington lawyer. For a free copy of the booklet "A Guide to Settlement on Your New Home," send a self-addressed stamped envelope to Benny L. Kass, Suite 1100, 1050 17th St. NW, Washington, D.C. 20036. Readers may also send questions to him at that address or contact him through his Web site, http://www.kmklawyers.com
Friday, March 23, 2007
Feeling Nosy about DC? MD? VA?
Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Thursday, March 15, 2007
Feeling Nosy about DC? MD? VA?
Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
D.C. Officials Look To Help Homeowners Keep Homes
WASHINGTON -- The D.C. City Council said it is trying to help homeowners who are having trouble making their mortgage payments, saying it is crafting legislation that will crack down on foreclosure rescue scams and subprime mortgage money.
Inday Williams said an inflated mortgage led to $8,000 in missed payments on his home, leading to a threatened foreclosure if he did not come up with the money in 30 days.
Williams said that's when he turned to someone that had contacted him, promising to loan him the $8,000 and allowing Williams to keep his home.
Williams said it wasn't until he tried to repay the loan that he realized that he had been the victim of a bait-and-switch scam and he no longer owned his house.
Experts said foreclosures are at their highest rate in 40 years. Last year, the District had 2,900 foreclosures, officials said. By February of this year, the city already had 700, experts said, on pace to a record.
As property appreciates and increasing numbers of subprime loans go to unqualified buyers, experts said, foreclosures will continue to rise and scam artists will find fertile ground to snatch equity or property.
District officials said they are now looking to create legislation that would tighten protection for homeowners.
source: nbc4.com
Inday Williams said an inflated mortgage led to $8,000 in missed payments on his home, leading to a threatened foreclosure if he did not come up with the money in 30 days.
Williams said that's when he turned to someone that had contacted him, promising to loan him the $8,000 and allowing Williams to keep his home.
Williams said it wasn't until he tried to repay the loan that he realized that he had been the victim of a bait-and-switch scam and he no longer owned his house.
Experts said foreclosures are at their highest rate in 40 years. Last year, the District had 2,900 foreclosures, officials said. By February of this year, the city already had 700, experts said, on pace to a record.
As property appreciates and increasing numbers of subprime loans go to unqualified buyers, experts said, foreclosures will continue to rise and scam artists will find fertile ground to snatch equity or property.
District officials said they are now looking to create legislation that would tighten protection for homeowners.
source: nbc4.com
Thursday, March 08, 2007
Feeling Nosy about DC? MD? VA?
Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Don't Forget to 'Spring Forward' One Hour this Weekend!
Due to new legislation, Daylight Savings now occurs on the 2nd Sunday in March (March 11th) instead of the initially scheduled date of Sunday, April 1st.
Check your PC and other systems to make sure they update properly on Sunday due to the above change.
The legislative change also modifies when Daylight Savings ends. It will now end on the first Sunday in November (November 4th) instead of October 28th.
Check your PC and other systems to make sure they update properly on Sunday due to the above change.
The legislative change also modifies when Daylight Savings ends. It will now end on the first Sunday in November (November 4th) instead of October 28th.
Thursday, March 01, 2007
Feeling Nosy about DC? MD? VA?
Ok, I know you're probably not planning on moving this very second, but here's this week's list of interesting-looking listings that have just come on the market. Mind you, they may not actually be my personal listings --- just intriguing properties I've come across that week.
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
Feeling nosy about the District of Columbia?
Feeling nosy about Virginia?
Feeling nosy about Maryland?
If you know someone who might be interested in this list, please forward it on to him or her. And if there's a listing that you're curious about yourself, just let me know ... and I'll show it to you ... just for the hell of it ... no obligation ... *I promise*. Really. (One of the perks of being the friend of a real estate agent ought to be that you get to freely snoop around other peoples' homes!
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