RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm

Foreclosed houses are often targeted by vandals, squatters, and thieves–which could drive out a neighborhood’s residents and cause property values to plummet. Image: HUD

If you think your neighbor’s foreclosure doesn’t impact you, think again. According to a Center for Responsible Lending report, foreclosures lower the property values of nearby homes by $7,200, on average.

Foreclosures can affect your community in other ways. Vacant homes can invite crime, and public services can suffer as revenue from property taxes dries up. All isn’t lost, however. There are ways to fight foreclosures in your community.

Foreclosure activity is widespread

Foreclosures are hard for homeowners to ignore. In 2009, a record high 2.8 million properties received at least one foreclosure filing. At the end of the third quarter of 2009, 4.47% of mortgage loans were in the foreclosure process. The Center for Responsible Lending projects a total of 9 million foreclosures between 2009 and 2012.

Foreclosure activity is widespread

Foreclosures are hard for homeowners to ignore. In 2009, a record high 2.8 million properties received at least one foreclosure filing. At the end of the third quarter of 2009, 4.47% of mortgage loans were in the foreclosure process. The Center for Responsible Lending projects a total of 9 million foreclosures between 2009 and 2012.

The $7,200 in lost property values in 2009 could be the tip of the iceberg. The Center for Responsible Lending report said the figure didn’t take into account the impact of short sales—when a lender agrees to the sale of a home for less than the outstanding mortgage—or the general decline in home values caused by a glut of inventory.

The problem could snowball. Declining home values could presage more foreclosures as homeowners walk away from underwater mortgages that total more than a house is worth. Even if you’re current on a mortgage, reduced home equity due to declining property values weighs on consumer confidence. The result: Less consumer spending leading to more job losses leading to more homeowners facing the risk of foreclosure.

For the full article, visit houselogic.com for more articles like this.

© Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

The increase in sales has led to stabilizing home prices. January’s median sales price of $124,405 was 1.4 percent higher than a year ago. Yes, rising prices are ordinarily a pretty ho-hum and normal thing, but in light of the drop in prices that most parts of the country have seen over the last several years, “ho-hum” is a welcome phrase these days. 

The Months Supply of Inventory in the region has decreased in the last year to 17.3, down 7.8 percent from the mark of 18.7 seen a year ago. That’s still a very high mark, which means sellers still face challenging conditions that require smart pricing and marketing.

Whether it’s prospecting activities, going on a diet or seeing political change, they all require time and commitment. On Tuesday evening at 7pm, Minnesota’s 4 major political parties - DFL, Green, Independence and Republican - all hold caucuses at hundreds of neighborhood locations across the state. You can find out where your favorite party is meeting athttp://caucusfinder.sos.state.mn.us.

As Minnesota’s largest Professional and Trade Association (according to MN Business Journal, January 2010), we are a bi-partisan organization focused on supporting candidates and issues that benefit the REALTOR^®Party. We work with Democrats, Republicans and Independents (currently, there are no Green Party candidates in the legislature) to either pass or modify legislation that supports the ability of citizens to own, transfer and utilize their private property. In past sessions, we have worked with both major political parties on these issues.

Last session, one of the ideas that was discussed and passed in the House of Representatives was elimination of the Mortgage Interest Deduction and the deductibility of property taxes on your Minnesota income tax. The DFL controlled Minnesota Senate did not pass a bill with this language and Governor Pawlenty said he would veto the legislation if it made it to his desk.

So why worry? The Governor will be moving on to other activities next year when the largest deficit in state history will need to be filled. The House of Representatives and Senate are both up for election this year and the future leadership of the House is in question. Last week, NIAOP came out with an editorial saying that before the legislature focuses on tax increases or spending cuts they should look at tax expenditures – this means tax breaks in legislative lingo – especially deductibility of the Mortgage Interest Deduction!

So why attend the Caucus? The caucus is not just about who should be the next Governor, it is the area where regular citizens can let the political parties know how they feel about issues. This would be a perfect arena to tell all political parties to “Just Say No” to ideas eliminating the Mortgage Interest Deduction/property taxes. By bringing the issue forward within a caucus of your neighbors, you can heighten their attention to the issue and send a message to both political parties that elimination of the Mortgage Interest Deduction is not an acceptable direction to Minnesota’s homeowners.

You can find out more on the caucuses at the Secretary of State’s website:http://www.sos.state.mn.us/index.aspx?page886. You can read the NIAOP editorial, featuring comments from Rep. Ann Lenczewski, Chair of the House Tax Committee, discussing eliminating the Mortgage Interest Deduction here.
Filed under: Real Estate Issues and Events ]]> http://glarstar.com/2010/02/01/change-takes-time-commitment/feed/ 0 46.365906 -94.191077 46.365906 -94.191077 The "Lo-ca-tor" http://glarstar.com/2010/01/25/hud-is-requiring/ http://glarstar.com/2010/01/25/hud-is-requiring/#comments Mon, 25 Jan 2010 21:10:47 +0000 Marvin D. Strong http://glarstar.com/2010/01/25/hud-is-requiring/ ]]> HUD is requiring that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a new HUD-1 settlement statement. New RESPA regulations were published November 17, 2008 and are scheduled to take full effect on January 1, 2010. The “New RESPA Rule FAQs” were comprised from industry questions and are posted to facilitate implementation of these new requirements

http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm

Supply was a different story for the year, as the 5,792 new listings represented
a drop of 7.5 percent from 2008.
  
Strong sales and falling supply have helped bring the Months Supply of Inventory
down to 19.6, a decline of 6.8 percent from a year ago and a sign that the market
is moving slowly back towards equilibrium.

 REALTORS CHART A WINNING COURSE WITH 20,000 REALTORS^® IN SAN DIEGO 

            Baxter November 20, 2009 – Twelve members of  The Greater Lakes Association of REALTORS  joined 20,000 Realtors^® in San Diego during the 2009 REALTORS^® Conference & Expo, “Chart a Winning Course,” held November 13-16.  Conference attendees are:  Sandy Arildsen (C21 Brainerd Realty); Rob Birkeland (Larson Group Real Estate); Tim Bosch (Weichert REALTORS Tower Properties); Kevin Goedker (Goedker Realty); Carrie Lee (Larson Group Real Estate); Sue McAllister (United Country McAllister Realty); Sheila Holley (Edina Realty); Diane Pogatchnik (Keller Williams Brainerd Realty); Rebecca Sellnow (RE/MAX Lakes Area Realty); Dinah Sundberg (Edina Realty); Marvin Strong (Keller Williams Realty Brainerd Lakes) and Janie Weston, CEO of the Greater Lakes Association of REALTORS.

            Attendees assembled at the National Association of Realtors^® annual conference to address industry issues affecting Realtors^® nationwide and to invest in education and networking for their local businesses. The various forums, classes, exhibits and workshops provided attendees with the pertinent information and skills necessary to prepare themselves for today’s industry challenges and opportunities.

 Charles McMillan, NAR’s 2009 president, praised his fellow members for their resiliency in the face of a challenging year for real estate.  “Realtors^® handle hundreds, if not thousands, of real estate transactions over the course of their careers, and understand the real estate market is cyclical,” said McMillan.  “They’ve been there every step of the way to ensure potential buyers are well informed about the once-in-a-lifetime opportunities available to them in this market – low interest rates, lots of inventory, affordable prices and, of course, and the recently extended and expanded home buyer tax credit.”

 Days before the conference, Congress voted to extend the home buyer tax credit through April 30, 2010, and expand it to include current homeowners.  Realtors^® welcomed the news and are hopeful about the impact of the expanded tax credit to help stabilize home prices. According to an NAR survey, first-time home buyers made up 47 percent of all transactions in the past year, the highest on record dating back to 1981. 

 It was noted that the incentive has already spurred national home sales and more than 2 million home buyers are expected to take advantage of it this year. “Congress’ decision will enable many more families to achieve the dream of homeownership and take advantage of current low interest rates and affordable prices.”  

NAR launched a new Short Sale and Foreclosure Resource Program during the conference. The program is designed to strengthen Realtor^® expertise in handling distressed properties by giving them stronger knowledge and greater resources to help families on both sides of the transactions. Through this certification and other programs, NAR is working to help streamline short sales and help more families avoid foreclosure.

 Realtors^® also examined the impact of the Home Valuation Code of Conduct on the nation’s real estate recovery efforts. NAR has been calling for a moratorium to address the unintended consequences of HVCC and its implementation and believe accurate, timely appraisals are necessary for successful real estate transactions. Both Realtors^® and appraisers report HVCC has adversely affected the appraisal process and was the cause of many lost sales.

 A highlight of the conference was an address by former Secretary of State Condoleezza Rice who shared her perspectives on current world events that helped contextualize the global economic crisis and set the framework for Realtors^® as they focused on real estate recovery during the week.

 During the conference, Vicky Cox Golder, from Tucson, Ariz., was installed as the 2010 NAR president.  Touting her theme, “On the Rise,” Cox Golder called on all members to prepare for the dawning of a new day for real estate in America.

 More than 400 exhibitors displayed the latest in professional development services, “green” products and services, Internet advertising and other state-of-the-art industry tools at the conference’s Expo.       

            The Greater Lakes Association of REALTORS represents 650 members in Aitkin, Cass, Crow Wing, Hubbard, Mille Lacs, Morrison, and Todd Counties.

 The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.