News You Can Use

There was lots of interesting news this week, so I will get right to the point:

Corrections from my last post:
· The SAFE ACT (requiring seller financiers to be licensed to be a mortgage lender) is actually delayed until August 31. This means that for 2 more months, sellers can finance to their hearts content. Once and If the SAFE ACT does come into play, sellers will have to be licensed in their state to be a mortgage lender for anything other than a primary residence. The commissioner of the Texas Dept of Savings and Mortgage Lending is also taking significant steps to allow property owners to seller finance up to five transactions in a 12 month period. Not reality yet, so I am sure more is to come.

· Extension of Homebuyer Tax Credit: This is NOT reality. There has been proposals in the House to pass a bill , but because it is grouped together with other legislation, it is getting caught up in red tape. Will it make the 30th deadline? Not sure. If passed, it applies ONLY to those persons already under contract.



More news you can use:
· What do you think about the 1200 prison inmates that were able to defraud the government of 9.1 million total in tax credits reserved for 1st time buyers? It’s a shame, for such a generous move on our parts (via our legislators!), that people still find a way to take advantage. There will always be fraud, it just moves from product to product. Sad.

· Fannie Mae is seriously considering ‘cracking down’ on homeowners that walk away from their homes even if they have the ability to pay. (ex: the values are less than the loan balance). After a default/foreclosure they would not be able to get another Fannie or Freddie mortgage for at least 7 years AND could be receiving a judgment for the full loan balance amount. Many homeowners have the attitude of ‘why should I pay?’. So they walk.

· Well, how about because it’s the right thing to do? Reading the blog comments on this one was interesting. Responses varied from ‘it’s the right thing to do’, to ‘can’t believe Fannie has the nerve to make homeowners pay (once again) for the bad products they created that started this whole mess. It was all very interesting, to say the least.

· Unemployment benefits were NOT extended. Millions of unemployed are about to lose benefits. Congress did not pass the bill, wary of increasing the deficit further.



Rates are still at record lows….best time to be looking if you are a buyer!