California Attorney General Edmund G. Brown Jr., the California DRE, and the State Bar of California recently issued a warning to homeowners about the sudden and steep increase in short-sale fraud statewide, according to a statement released by the California Association of REALTORS®.
In the warning, homeowners, home buyers, real estate agents, and lenders were made aware of red flags that may appear when working with or paying a short-sale negotiator, including: A negotiator working without a license; charging up-front fees without prior written permission from the DRE to do so; adding surcharges and hidden fees to place an offer on a home; and misrepresenting current market conditions and only submitting offers on the property from an affiliated straw buyer.
Short sale negotiators and agents may use a variety of titles including: Debt negotiator, debt resolution expert, loss mitigation practitioner, foreclosure rescue negotiator, short sale processor, short sale coordinator, and short sale expeditor.
Homeowners wishing to file complaints related to short-sale fraud can do so by calling the attorney general’s office at (800) 952-5225 or filing a complaint online at www.ag.ca.gov/consumers/general.php. To file a complaint against a lawyer, a legal specialist, or a company purporting to operate as a law firm with the California State Bar, homeowners should call (800) 843-9053 or visit www.calbar.ca.gov.
Wednesday, June 23, 2010
House passes extension of National Flood Insurance Program
The U.S. House of Representatives today passed a short-term extension of the National Flood Insurance Program (NFIP), funding the program through Sept. 30, 2010. The extension still must pass the Senate, which now has two flood-insurance bills to consider.
Flood insurance is required for mortgages on properties in the 100-year floodplain. Congress has allowed the program to lapse three times this year, forcing many real estate transactions to be put on hold and, in some instances, cancelled. Fannie Mae and Freddie Mac both have provided guidelines for lenders to follow in order to close loans during the most-recent lapse. Some REALTORS® also have successfully obtained private flood insurance for clients during the lapse.
Flood insurance is required for mortgages on properties in the 100-year floodplain. Congress has allowed the program to lapse three times this year, forcing many real estate transactions to be put on hold and, in some instances, cancelled. Fannie Mae and Freddie Mac both have provided guidelines for lenders to follow in order to close loans during the most-recent lapse. Some REALTORS® also have successfully obtained private flood insurance for clients during the lapse.
Monday, June 14, 2010
Federal Tax Report: June 30 Closing Date May be Extended
The National Association of REALTORS® reports that Senators Johnny Isakson (R-GA) and Harry Reid (D-NV) have filed an amendment that may be offered to a major tax and jobs bills. That bill, HR 4213, is a huge piece of legislation that would renew and extend a series of provisions (including the 15-year recovery period for leasehold improvements) through December 31, 2010. The bill also includes extensions of various government programs, including unemployment insurance and flood insurance. The bill has passed the House and is likely to be called up for debate in the Senate on or around June 15.
The Isakson-Reid amendment would apply only to purchasers who have satisfied the April 30 binding contract rule for the $8000 and $6500 tax credits. The amendment creates no new eligibility for the credit. The amendment would extend the required June 30 closing date through September 30, 2010. The introduction of the amendment does not guarantee consideration; any of several procedural obstacles could derail it. Nonetheless, NAR is hopeful that the amendment can be adopted and that the House will retain it as the bill moves to its final consideration.
The Isakson-Reid amendment would apply only to purchasers who have satisfied the April 30 binding contract rule for the $8000 and $6500 tax credits. The amendment creates no new eligibility for the credit. The amendment would extend the required June 30 closing date through September 30, 2010. The introduction of the amendment does not guarantee consideration; any of several procedural obstacles could derail it. Nonetheless, NAR is hopeful that the amendment can be adopted and that the House will retain it as the bill moves to its final consideration.
Flood Insurance Update
The Senate continued to debate legislation (H.R. 4213) that includes a year-long extension of the National Flood Insurance Program (NFIP). Since the bill also includes a number of contentious issues, Senate leaders continue to work to find the 60 votes needed for passage. Senate action is not expected until late the week of June 14th. Any changes made to the bill by the Senate will require the House to approve the modified measure.
Since June 1, 2010, the NFIP has not had statutory authority to issue new or renewal flood insurance policies, which are required for mortgages in the 100-year floodplain. NAR has been urging Congress not to wait for agreement on the larger package and immediately pass the NFIP extension provision as separate legislation.
Meanwhile, various lending authorities (FEMA, Fannie, Freddie, etc.) have issued guidance describing the documentation they will accept as proof of flood insurance purchase while the NFIP is shutdown.
Click here for more information.
Since June 1, 2010, the NFIP has not had statutory authority to issue new or renewal flood insurance policies, which are required for mortgages in the 100-year floodplain. NAR has been urging Congress not to wait for agreement on the larger package and immediately pass the NFIP extension provision as separate legislation.
Meanwhile, various lending authorities (FEMA, Fannie, Freddie, etc.) have issued guidance describing the documentation they will accept as proof of flood insurance purchase while the NFIP is shutdown.
Click here for more information.
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