Government Regulations and Programs

The Internet Goes on Strike

You may have noticed that Wikipedia and others have taken down their sites today in protest of a bill before Congress to censor the internet. Watch this video to get an idea of what this censorship could mean to you.

****Update****

In case you didn’t hear…

This bill died a swift and sure death. I quote CNN:

“Google, Wikipedia and others altered their homepages and websites in opposition of the bill last week, making the issue a topic of popular discussion across the country. The controversial anti-piracy bills that attracted tens of millions of dollars of lobbying for and against the proposed laws ironically were killed by free publicity.”

It’s not nice to mess with our freedoms on the internet!

01 / 18 / 2012
No Comments

RUCO Laws – Are They Still in Effect?

State Assembly Building

In June, the NC General Assembly voted to amend the state RUCO laws (Rental Unit Certificate of Occupation). Until June, the law had been that, before a property could be rented out, it had to be checked by a RUCO inspector and was not deemed marketable without a RUCO certificate of occupancy.

The question is whether or not that law is now dead. The June amendment has been interpreted as an abolishment. But was it?

The section of state law that was amended pertained to building inspections in cities and counties and stated that these inspections can no longer be made without “reasonable cause.” The Greensboro ordinance, however, was enacted under a separate statutory section dealing with minimum housing standards.

12 / 15 / 2011
No Comments

New Bulk Selling of REOs – How Will it Impact You?

For those who aren’t familiar with the term REO, it’s short for Real Estate Owned and refers to properties that have gone through the foreclosure process, did not sell, so the bank has taken over as the owner on record for that property. The original homeowner lost it to foreclosure, the bank now owns it.

The Obama administration recently announced new plans to sell Fannie Mae, Freddie Mac and FHA REOs in bulk to mega-investors at deep discounts.

Which begs the question, who are mega-investors? Currently, they consist of: hedge funds, large institutional investment groups, and real estate companies with the capital, national or regional reach, and management capability to purchase and convert these REOs into rentals.

What dollar amount is considered “bulk”?

12 / 05 / 2011
2 Comments

Message to Congress on Small Home Mortgage Foreclosures

“Those who cannot remember the past are condemned to repeat it.” George Santayana

Read this Message from Franklin D. Roosevelt to Congress. American Presidency Project, April 13, 1933. We have been here before..

To the Congress:

“As further and urgently necessary step in the program to promote economic recovery, I ask the Congress for legislation to protect small home owners from foreclosure and to relieve them of a portion of the burden of excessive interest and principal payments incurred during the period of higher values and higher earning power.

Implicit in the legislation which I am suggesting to you is a declaration of national policy. This policy is that the broad interests of the Nation require that special safeguards should be thrown around home ownership as a guarantee of social and economic stability, and that to protect home owners from inequitable enforced liquidation in a time of general distress is a proper concern of the Government.

11 / 30 / 2011
No Comments

New Rules Concerning Short Sales

Have you been, or will you be, involved with a short sale?

Beginning January 2012, new rules:

Starting January 2012, everyone involved in a short sale will be liable for “negligent or intentional misrepresentations in the transaction” and will have to sign affidavits stating that they are handling the transaction to federal standards.

The addition of the affidavits to the short sale process is designed to help everyone involved in the short sale “identify potential mortgage fraud and have a clearer understanding of the intent of all parties involved in the real estate transaction,” the GSE (government-sponsored enterprise) announced in a public statement.

The move is specifically designed to prevent “flopping” short sales, which occurs when short sale properties are purchased from the bank at a discount, then sold immediately for a higher price. The government agency considers this practice unscrupulous because it involves at least one party having knowledge of another party willing to pay more for the property than the amount for which the bank is settling.

11 / 29 / 2011
No Comments

Are You Hiring an Employee or an Independent Contractor?

And do you know the difference? The IRS does, and they’re checking your records.

Employee – Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages.

Independent contractor – You do not generally have to withhold or pay any taxes on payments.

These statements make hiring independent contractors sound like the way to go for small business, don’t they? So, what’s the catch if you do?

If you classify an employee as an independent contractor and the IRS deems they are actually an employee, you will be held liable for employment taxes for that worker as well as fees and penalties.

To determine how to pay a worker, you must first know the business relationship between you and the person performing the services.

11 / 21 / 2011
2 Comments

Forecosure Avoidance Programs = Failure

The following is taken almost verbatim from a Tuesday, October 11, 2011, article by Ken Harney found in Inman News™. Rather than trying to summarize, I edited to leave in highlights of this important “admission” by a group other than homeowners that the government programs have not/are not working. They, like we the people, weren’t pleased with the results. I’m thrilled about that – now anxious to see if they do anything meaningful about it.

Following are excerpts from that article:

10 / 18 / 2011
No Comments

How to Reduce Everyday Bills

Want to save some money pretty easily? Check out this list:

Lower your mortgage rate. Yup. Especially if you have a loan backed by Fannie Mae or Freddie Mac – this is the perfect time. The Home Affordable Refinance Program has been extended until June 30, 2012. Loans backed by Fannie Mae or Freddie Mac are being refinanced at 4%-5% and (best part) with NO closing costs.
Lower your energy bill. Contact your utility company. Find out if they offer free energy audits by inspecting your home for energy effectiveness and recommending inexpensive ways to cut energy costs. Ours does. I had to wait several months because they stay so backed up, but Duke Energy gave me a free energy audit and gifts!
Cut down on drafts. Speaking of lowering your energy bill, this one trick can lower your bill 3% to 18%! Here are some way to stop/reduce drafts:

09 / 20 / 2011
2 Comments

Home Affordable Refinanace Program for investors!

Here is a letter we recently received from a Triad Mastermind student of our. Thanks for the heads-up, Fred!

“I can personally attest to the fact that the Home Affordable Refinance Program does apply to investors. I was in such disbelief that government funds would be available to investors that I argued with a Bank of America contact (i.e. who took my initial phone inquiry) about why BOA would not lend to someone with no w-2 income and no job. Fortunately, the rep hung in there with me and got me in touch with someone who told me that all I needed was:

A tax ID number for the business
Articles of Incorporation
Money for a $395 application fee

There was no credit check, no tax returns to submit, no bank statements, no appraisals, etc. etc.

Six weeks later I refinanced an interest only loan to a fixed 30 year rate. By the way, all of this started by responding to a “junk” mailer BOA had been sending to me for the prior 6 months. On another by the way note . .this was on a property that I purchased before finding the mastermind group and did so with a mortgage in my own name.

Anyway, I have a second property just like the one I just described. So, I contacted Chase Home Mortgage who has money for the same program and we are off and running with the same refinance for that property.”

Are you an investor? Do you need a bank loan? Try the Home Affordable Refinance Program and let us know the results you get.

09 / 19 / 2011
No Comments

Real Estate Owned Properties Portal

The US Department of Housing and Urban Development has a property portal that takes you directly to REO properties from Fannie Mae, Freddie Mac and FHA.

On their map, you can find REOs anywhere in the country or drill down to your specific target areas. To begin using this site, simply register with a user name and password and you’re immediately able to find listings, sometimes even photos, of available properties.

Let me know how this site works for you.

Real Estate Owned Properties Portal