Bus travels, Tour and transport: September 2009

SAFE mortgage licensing act

Posted by david - Wednesday, September 30, 2009

Mortgage Licensing Act (SAFE Act) of the Housing and Economic Recovery Act of 2008 was signed into law on July 30, 2008 to enhance consumer protection and reduce fraud in mortgage loan transactions. It requires all 50 states and 5 territories to put into place a system for licensing mortgage loan originators that meets the minimum requirements of the SAFE Act. The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) have created, and will maintain, the Nationwide Mortgage Licensing System and Registry (NMLS&R) to streamline the licensing process with oversight by HUD. In addition to state requirements, NMLS&R will contain a single license record for each mortgage loan lender, broker, branch and mortgage loan originator which can be used to apply for, amend and renew a license in any participating jurisdiction. Three bills have been introduced in the California legislature to implement the SAFE Act in California – Senate Bill 36 (Calderon), Senate Bill 491 (Maldonado) and Assembly Bill 34 (Nava). The SAFE Act licensing system will be implemented in California once legislation has become effective, most likely in mid-to-late 2010.

Real Estate Licensing Examinations

Posted by david - Tuesday, September 29, 2009

The Michigan real estate examinations are administered by PSI Services, LLC (PSI). The Real Estate Broker and Salesperson Candidate Information Bulletins (CIB) have been posted to PSI's website at www.psiexams.com . Follow the prompts to select "Michigan" as the state and the type of exam. The CIB details examination registration procedures and exam content.

Effective December 1, 2007, prior to taking the exam, salesperson candidates will be required to apply for their license on-line at www.michigan.gov/iCOLA . This system (iCOLA) will allow applicants who have completed the application process on-line, and have had a broker verify their employment relationship, to receive their license immediately upon passing the licensing examination.

This system requires brokers to go on-line to verify that an applicant is approved for employment by their office (this would be the same as signing the bottom of a salesperson's paper application in the past). Brokers must register at www.michigan.gov/iCOLA .

The new system will work as follows:

1. Real estate salesperson candidates will access the Department's new internet database system to apply for a license at www.michigan.gov/iCOLA .

2. Applicants will enter their information, answer questions and pay electronically.

3. Once the applicant completes the process, employing brokers will be required to access iCOLA using their user ID and password to confirm that the broker desires to have this new salesperson licensed to work for them.

4. A salesperson applicant does not have to have an employing broker at the time of application; however, they will not be eligible to receive a license at the examination site.

5. After the salesperson applies for a license on iCOLA, the Department will supply this information to our exam administrators, PSI, electronically. The applicant will then need to register and pay for the exam at www.psiexams.com .

6. All salesperson applicants who take the exam will have their picture taken at the exam site.

7. Once the salesperson applicant passes the exam, they will receive their photo pocket license at the exam site, enabling them to begin their new careers immediately! The wall license and paper pocket card will be sent in the mail to the employing broker's main office in approximately two weeks.

8. Salespersons who pass the exam but who did not enter employing broker information in the beginning of the process can, within one year of applying on-line, must have their broker submit to the Department, the Employing Broker Notification (LRE-052) form. Once the broker confirms employment and the Department processes the new information, PSI will mail the photo pocket license to the applicant, and the department will mail the traditional wall and pocket license to the employing broker.

The requirements to obtain a salesperson license remain the same: a 40-hour fundamentals class, passing the exam, possessing good moral character and a valid employing broker. If you have passed the salesperson exam prior to 12/1/07, you will not be able to apply for licensure via iCOLA, please use the application given to you at the exam site.

The license and exam application processes for brokers and associate brokers remain unchanged at this time, but it is anticipated that they too will be automated in the future.

We encourage ALL brokers to immediately access iCOLA to create a permanent user ID and password to verify new salesperson relationships as the need arises. If you have questions about creating your user name and password on iCOLA, please call (517) 373-7353 to reach the real estate unit.

Homeless Assistance Programs

Posted by david - Thursday, September 24, 2009

Introduction

HUD's Homeless Assistance Web Page is available to help you learn more about HUD's homeless assistance programs, and to keep you informed about available funding. HUD's homeless assistance programs are broken down into two main categories, formula (non-competitive), and competitive. Competitive programs are under the umbrella of Continuum of Care.

Competitive Programs

The McKinney-Vento Homeless Assistance Act programs administered by HUD that award funds competitively require the development of a "Continuum of Care" system in the community where assistance is being sought. A continuum of care system is designed to address the critical problem of homelessness through a coordinated community-based process of identifying needs and building a system to address those needs. The approach is predicated on the understanding that homelessness is not caused merely by a lack of shelter, but involves a variety of underlying, unmet needs - physical, economic, and social. Funds are granted based on the competition following the Notice of Funding Availability (NOFA). Continuum of Care Homeless Assistance Programs include:

Supportive Housing Program
Provides housing, including housing units and group quarters, that has a supportive environment and includes a planned service component.
Shelter Plus Care Program
Provides grants for rental assistance for homeless persons with disabilities through four component programs: Tenant, Sponsor, Project, and Single Room Occupancy Rental Assistance.
Single Room Occupancy Program
Provides rental assistance on behalf of homeless individuals in connection with moderate rehabilitation of SRO dwellings.

Formula Program (Non-Competitive)

Formula grants are awarded on the basis of the Consolidated Plan that states and local jurisdictions may fill out.

Emergency Shelter Grant Program
A federal grant program designed to help improve the quality of existing emergency shelters for the homeless, to make available additional shelters, to meet the costs of operating shelters, to provide essential social services to homeless individuals, and to help prevent homelessness.

Other

Title V program
HUD collects and publishes information about surplus federal property that can be used to help homeless persons. Eligible grantees include states, local governments, and nonprofit organizations.
Base Realignment and Closure
The congressionally authorized process the US Department of Defense has previously used to reorganize its base structure to more efficiently and effectively support our military forces, increase operational readiness and facilitate new ways of doing business.

If you would like to locate the HUD office closest to you, please select your Local HUD Office which will connect you with the Web Page of each Field Office. The Annual Progress Report is available now in a Word format.

NEW LICENSING REQUIREMENTS EFFECTIVE

Posted by david - Wednesday, September 23, 2009

In February 2004, The Appraiser Qualifications Board (AQB) of the Appraisal Foundation adopted changes to the real property appraiser qualifications criteria that will become effective January 1, 2008. The requirements individuals must meet in order to become a licensed or certified appraiser will change significantly. The changes include increased requirements for qualifying education and experience, and a new Uniform State Appraiser Examination.

The manner in which the Office of Real Estate Appraisers will implement the new criteria is important to understand. For all initial license applications and upgrade applications received on or after January 1, 2008, applicants must meet all components (education, experience, and examination) of the new requirements.

Initial or upgrade applications received on or before December 31, 2007, will be reviewed based on current licensing requirements. However, if an examination is not taken until after January 1, 2008, the examination content will be based on 2008 criteria. Any deficient component of an application not completed prior to December 31, 2007, will be required to meet the 2008 new requirements. This pertains primarily to the education and examination components.

Please refer to this website frequently. Additional information will be posted as it becomes available.

The real property appraiser criteria effective January 1, 2008 are summarized in the following table.

AQB Minimum Real Property Appraiser Qualifying Criteria - (Effective January 1, 2008)
OREA License Levels	Basic Education Requirements	College Level Requirements	Experience
Trainee (AT)	150 Hours	N/A	N/A
Residential (AL)	150 Hours	N/A	2,000 Hours (accumulated over at least a 12 month period)
Certified Residential (AR)	200 Hours	Associate Degree*	2,500 Hours (accumulated over at least a 30 month period)
Certified General(AG)	300 Hours	Bachelors Degree**	3,000 Hours that include at least 1500 non-residential hours (accumulated over at least a 30 month period)

Individuals gaining experience at the AT level must be supervised by a certified licensed level appraiser under the new criteria. No supervisor can supervise more than three trainees.

* In lieu of the Associate Degree, an applicant can complete 21 college semester credits in courses covering specific subject matters: English Composition; Principles of Economics (Micro or Macro); Finance, Algebra, Geometry or higher mathematics; Statistics, Introduction to Computers; and Business or Real Estate Law.

** In lieu of the Bachelors Degree, an applicant can complete 30 college semester credits in courses covering specific subject matters: English Composition; Micro Economics; Macro Economics; Finance, Algebra, Geometry or higher mathematics; Statistics, Introduction to Computers; and Business or Real Estate Law; and two elective courses in accounting, geography, ag-economics, business management, or real estate.

Real Estate Brokers and Sales Agents Licensure

Posted by david - Tuesday, September 22, 2009

Licensure. In every State and the District of Columbia, real estate brokers and sales agents must be licensed. Prospective brokers and agents must pass a written examination. The examination—more comprehensive for brokers than for agents—includes questions on basic real estate transactions and laws affecting the sale of property. Most States require candidates for the general sales license to complete between 30 and 90 hours of classroom instruction. To get a broker’s license an individual needs between 60 and 90 hours of formal training and a specific amount of experience selling real estate, usually 1 to 3 years. Some States waive the experience requirements for the broker’s license for applicants who have a bachelor’s degree in real estate.

State licenses typically must be renewed every 1 or 2 years; usually, no examination is needed. However, many States require continuing education for license renewals. Prospective agents and brokers should contact the real estate licensing commission of the State in which they wish to work to verify the exact licensing requirements.

Like-Kind Exchanges - Real Estate Tax Tips

Posted by david - Monday, September 21, 2009

Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.

Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.

Like-Kind Property

Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.

Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.

Competing Models of Real Estate Brokerage

Posted by david - Friday, September 18, 2009

Traditionally, real estate brokers have performed virtually all services related to buying and selling a home, including:

Marketing the home.
- Marketing services include listing the property in the local multiple listing service (MLS), placing advertisements in local media and on the Internet, and hosting open houses.
Reviewing contracts.
- Contract review might include providing advice on pricing, home inspections or other contractual terms.
Negotiating with potential home buyers and sellers.
Locating potential properties for prospective buyers.
Arranging for prospective buyers to inspect properties.
Providing prospective buyers and sellers with pertinent information about a community such as relative property values, most recent selling prices, and property taxes.
Apprising potential buyers of financing alternatives.
Assisting in the formation and negotiation of offers, counter offers, and acceptances.
Assisting with the closing of the transaction.
- Closing services might include assistance with handling paperwork.

Fair Lending

Posted by david - Thursday, September 17, 2009

Discrimination in mortgage lending is prohibited by the federal Fair Housing Act and HUD's Office of Fair Housing and Equal Opportunity actively enforces those provisions of the law. The Fair Housing Act makes it unlawful to engage in the following practices based on race, color, national origin, religion, sex, familial status or handicap (disability):

* Refuse to make a mortgage loan
* Refuse to provide information regarding loans
* Impose different terms or conditions on a loan, such as different interest rates, points, or fees
* Discriminate in appraising property
* Refuse to purchase a loan or set different terms or conditions for purchasing a loan

Filing a Complaint

If you have experienced any one of the above actions, you may be the victim of discrimination. Recognizing the signs of lending discrimination is the first step in filing a complaint. HUD investigates your complaints at no cost to you. If you believe you have experienced lending discrimination, visit our housing discrimination complaint website to learn more about the complaint process.

HUD Fair Lending Studies

Pre-application inquiries about mortgage lending financing options represent a critical phase in the homebuying process. If potential homebuyers cannot obtain full and fair access to information about mortgage financing, they may give up on their pursuit of homeownership, their housing search may be restricted, or they may be unable to negotiate the most favorable loan terms. HUD has conducted a number of studies to determine whether minority homebuyers receive the same treatment and information as whites during the mortgage lending process. Read more on mortgage lending discrimination studies.

Subprime Lending

Subprime loans play a significant role in today's mortgage lending market, making homeownership possible for many families who have blemished credit histories or who otherwise fail to qualify for prime, conventional loans. A recent HUD analysis, based on HMDA and related data, shows that the number of home purchase subprime applications increased from 327,644 in 1997 to 783,921 in 2000.

While the subprime mortgage market serves a legitimate role, these loans tend to cost more and sometimes have less advantageous terms than prime market loans. Additionally, subprime lenders are largely unregulated by the federal government. Data shows blacks are much more likely than whites to get a subprime loan, and many of the borrowers who take out these loans could qualify for loans with better rates and terms. As such, many have expressed fair lending concerns about the subprime market. Read more on Subprime Lending.

Predatory Lending

Some lenders, often referred to as predatory lenders, saddle borrowers with loans that come with outrageous terms and conditions, often through deception. Elderly women and minorities frequently report that they have been targeted, or preyed upon, by these lenders. The typical predatory loan is: (1) in excess of those available to similarly situated borrowers from other lenders elsewhere in the lending market, (2) not justified by the creditworthiness of the borrower or the risk of loss, and (3) secured by the borrower's home. HUD is working hard to fight against predatory lending.

Minority Homeownership

HUD is committed to increasing homeownership opportunities for all Americans. HUD is engaged in a special effort to boost the minority homeownership rate since the rate for black and Hispanic Americans lags behind that of others. Read more about HUD's efforts to Increase Minority Homeownership.

Tips for Avoiding Foreclosure

Posted by david - Wednesday, September 16, 2009

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

Don't ignore the letters from your lender

Contact your lender immediately

Contact a HUD-approved Housing Counseling Agency

Toll FREE (800) 569-4287

TTY (800) 877-8339

If you are unable to make your mortgage payment:

1. Don't ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL .

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets.

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

Dubai Real Estate Corporation

Posted by david - Tuesday, September 15, 2009

Dubai Real Estate Corporation (DREC) was established by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in June 2007 through Law Number 14.

DREC’s activities encompass owning and managing its land bank which includes a sizable amount of properties registered under the name of the Dubai Government,as well as others. Its mandate extends to building, investing in and utilisation of commercial and industrial lands and properties.

DREC contributes to the sustainability of Dubai’s urban growth while expanding its asset base by providing unique projects that satisfy market needs and exceed customer expectations.

Property Management

Posted by david - Monday, September 14, 2009

Property Management represents wasl’s core business activity. It covers a full range of property leasing, facilities management and call centre operations and services.

wasl’s leasing services include the letting of residential apartments and villas, as well as commercial units such as offices and retail outlets. We also provide staff accommodation, light industrial and warehousing units within the Emirate of Dubai.

Our extensive portfolio of over 20,000 residential and commercial units and 5,000 industrial land plots are spread over a wide geographic area, including Al Karama, Al Muhaisnah, Al Barsha, Jumeirah, Umm Ramool, Al Bada’a, Al Wasl, Jebel Ali, Al Quoz and Ras Al Khor and other areas within the emirate.

Our facilities management operations includes the major aspects of building services such as cleaning, security, pest control, mechanical, electrical and plumbing (MEP) maintenance, landscaping, waste management and structural works, as well as the care of recreational facilities, such as gyms, saunas and swimming pools.

To facilitate continues improvement in our operations, our Customer Service Centres located in Jumeirah (Main Office) and Umm Hurair (Branch Office), support our new developments and provide the best services to customers .

wasl is aiming at expanding its portfolio to cover different areas in Dubai. For more information about wasl’s properties and leasing options.

WASL

Posted by david - Friday, September 11, 2009

wasl is an Asset Management Group owned by Dubai Real Estate Corporation (DREC), created to manage and develop its assets. It aims to grow into a globally competitive entity. wasl operates a wide spectrum of property management, project management and investment management services for DREC.

Key business areas that wasl is focused on are project management , property management, hospitality and investment. In line with its long term strategic ambitions wasl’s project management capability will cover Residential, Commercial, Retail, Light-Industrial, Public Utilities, Leisure and Entertainment sectors and Education.

Before it was known as Dubai, our great Emirate was called wasl which signifies connection in Arabic, reflecting Dubai’s historic position as the trading hub of the region. Dubai continued to flourish because of its entrepreneurial drive and continuous investment in the future.

Inspired by Dubai’s vision, Dubai Real Estate Corporation (DREC) established wasl, an asset management group that emphasizes our values of unity, connectedness, integrity and tradition.

wasl is symbolic of the strong connection we share with our customers, our partners and our stakeholders. It highlights the tight connection and open channels of communication between all areas of our business. It represents our connection to the past, our stature in the present, and our vision for the future.

wasl was established to strengthen the success of Dubai, to actively contribute towards securing its growth far into the future. We aim to carry out this vision by being a major contributor to Dubai’s legacy.

Real Estate Continuing Education Course Instruction

Posted by david - Thursday, September 10, 2009

Application and Approval

• For each course, the initial application fee is $50.00. This fee is non-refundable. The check or money order must be payable to: Ohio Division of Real Estate.

• Continuing education course applications may be submitted for consideration atany time during the month.

NOTE: Please be advised that, to be eligible for approval of continuing education
credit, the application form and fee must be submitted to the Division of Real Estate
at least thirty (30) days prior to the proposed initial date of the offering.

• Applications must be typed in black ink only. This is for your protection as all course applications are microfilmed, and the information must be legible.

• The application must be signed by the person who is authorized to act for the offering entity.

• No offering will be approved in which classroom instruction exceeds more than eight (8) clock hours in any one day.

• One clock hour consists of fifty-four (54) minutes. Attach a detailed content outline. The outline should contain study modules that are thirty (30) minutes in length (or shorter) and should indicate the length of breaks and meal times.

• Dates, times, and locations must be specific on the application or the course will not be approved and may be returned for that information. This will result in a delay of the course approval.

• The Ohio Real Estate Commission shall approve course offerings for continuing education credit only in the following areas:
1. Real estate ethics;

2. Legislative issues that influence real estate practice;

3. Real estate laws and regulations, including licensing provisions and regulatory practices;

4. Advanced real estate financing, including mortgages and other financing techniques;

5. Real estate market measurement and evaluation, including site evaluation, market data, and feasibility studies;

6. Real property management, including leasing agreements, accounting procedures, and management contracts;

7. Land use planning and zoning;

8. Real estate securities syndication;

9. Accounting and taxation as applied to real property;

10. Land development;

11. Advanced real estate appraising;

12. Real estate marketing procedures related specifically to actual real estate knowledge;

13. Timeshares, condominiums, and cooperatives;

14. Brokerage office management;

15. Use of calculators/computers as applied to the practice of real estate;

16. Business administration, including, but not limited to, business operations management, human resources management, and business taxation;

17. Personal safety issues for the real estate agent and consumer;

18. Real estate negotiation and real estate business communications, and;

19. Cultural diversity as applied to the practice of real estate.

• For each additional offering of an approved course after the initial offering, there is a fee of $10.00. This fee must be submitted at least ten (10) days prior to the date the course is offered again.

• Each offering entity must notify the Ohio Division of Real Estate and Professional Licensing in writing and at least ten (10) days in advance of the additional course offering date of: an approved course, a change in an offering date of an approved course, and any change in the location, time, instructor, or course content of an approved course.

• All course providers must submit an attendance roster of licensees who successfully completed each course. The roster must be submitted using the Online Roster Entry within fifteen (15) days after completion of the course. A user ID and password will be forwarded to the Continuing Education Provider upon application approval.

• The offering entity shall furnish the attendee and attendance certificate within thirty (30) days after the completion of the offering.

• Course approval (or denial) will be sent by letter approximately fifteen (15) days after the application has been received by this office. If it is approved, this letter will include the certification number of the course and the date it is effective.

NOTE: The Superintendent may revoke approval of a course for continuing education credit for failure to comply with these requirements.

REBA

Posted by david - Wednesday, September 09, 2009

The Real Estate and Business Agents Supervisory Board regulates the State's real estate industry. It is the independent statutory authority established under the Real Estate and Business Agents Act 1978 to regulate people who conduct real estate transactions and certain business transactions.

The Board is the licensing and supervisory authority. It issues licences and certificates of registration to suitably qualified and experienced people. It supervises industry compliance with the Act and the standards of conduct required under the Code of Conduct for Agents and Sales Representatives.

The goal of the Board is for the people of Western Australia to have confidence in the real estate industry.

CONSUMER TIPS – REAL ESTATE SHORT SALES

Posted by david - Tuesday, September 08, 2009

In today’s real estate market, many Missouri home buyers and sellers are considering an option
known as a “short sale,” which allows a buyer to pay less than what’s owed on a property. By
some estimates, short sales accounted for as much as 10 percent of all home sales nationwide in
the past year. The Missouri Real Estate Commission is warning buyers, sellers and real estate
brokers that this process is not an easy one and not suitable for all situations.
In a short sale, the mortgage holder (bank, credit union, mortgage company or other) has the
final say on whether to accept the amount being offered, since it’s less than what’s owed on the
mortgage. The mortgage holder releases the borrower from any further legal obligation to pay.
Home buyers and real estate brokers should be aware that even if the buyer and seller agree on a
price, the lender must still approve the deal, along with any other lien holders. That could include
a second mortgage holder, a private mortgage insurer, a tax collection agency and others. It’s not
uncommon in the industry for the approval process to take 60 days or more.
Here are suggestions for homeowners considering a short sale:
• Be prepared to demonstrate to your lender that your home’s market value has dropped
and that you are unable to pay the full mortgage balance, even with other assets you
might own.
• If you elect to go with a short sale, talk to a real estate lawyer and an accountant. Make
sure any forgiven debt is not considered taxable income by the state and federal
governments.
• Ask about impact on your credit score. Even if your lender agrees to forgive, say,
$20,000 of your debt, that simply means you are no longer legally obligated to pay that
amount. Your credit report, however, may still reflect that you failed to pay $20,000 of
debt.
• Be prepared to wait. Short sales are subject to lender approval, and it can take several
months for the bank to make a final decision on your request.
• If your lender approves the short sale, accepting less money than you owe, get the
agreement in writing from the lender.

SAFE Mortgage Licensing Act of 2008

Posted by david - Monday, September 07, 2009

In July, Congress passed H.R. 3221, the “Housing and Economic Recovery Act of 2008,” in response to the challenges facing the real estate market, Along with the more publicized portions of the Act that provide tax benefits for selected home purchases and authorization for a takeover of Fannie Mae and Freddie Mac, the Act also significantly alters mortgage licensee regulation in the United States.

Title V of the Act is the S.A.F.E. Mortgage Licensing Act of 2008 (SAFE). SAFE was developed by policy makers as they searched for the cause of the challenges facing the United States economy, particularly the housing market. Among the many causes, policy makers targeted oversight of loan originators.

While Utah regulates mortgage brokers with background checks, pre-licensing education, testing, and enforcement actions against bad actors, few other states protected the public as well. SAFE requires licensing according to minimum federal standards and calls for a more coordinated effort among the states in regulating mortgage loan originators.

All mortgage licensees need to understand that SAFE will impact your license or license renewal process over the next couple of years. The Division of Real Estate is actively working to implement the mandates in SAFE with as little impact on you as possible. This article summarizes some of the key provisions of the Act.

Home Inspections

Posted by david - Friday, September 04, 2009

Perhaps one of the most important protections a buyer and a seller can have in a home sale or purchase is a whole-house home inspection. In addition, you should have a termite or other wood-destroying insect inspection and any other type of inspection that your particular property may require.

Many buyers want to save a little money by waiving their right to a home inspection. The Commission advises against such a decision. There are numerous aspects of a property that may need to be repaired or replaced. The seller may not even know of some defects and may not, therefore, be able to disclose them to you.

Likewise, your real estate agent cannot guarantee that a property is free from defects. A listing agent only knows as much about the property as the seller has disclosed and as much as he or she can see with his or her own eyes. Most real estate agents are not certified home inspectors. Most sellers do not even know all of the potential problems with their homes.

Tenancy DataBase

Posted by david - Thursday, September 03, 2009

What is a tenancy database?

Tenancy databases generally store personal information about individuals relating to defaults or alleged defaults on tenancy agreements, including failures to pay rent or damage to property. This information is usually supplied to tenancy database operators by real estate agents. The information in these databases is then accessed by real estate agents assessing potential tenants.

Are tenancy databases covered by the Privacy Act?

Yes, tenancy databases are covered by the Privacy Act.

How did I get on a database?

There are different reasons why a real estate agent may have put your details on a tenancy database. When you sign an application for a lease, it is important to read the notice about how the agent will use your personal information and whether your information will be disclosed to a tenancy database in certain circumstances.

I am a real estate agent / tenancy database operator. Where can I go for more information?

If you are a real estate agent or tenancy database operator and you would like more information you may wish to contact our Office or your state Real Estate Institute.

Other places to go

Fair Trading or Consumer Affairs agencies in your State or Territory.

Real Estate Institutes or your local Tenants Union.

Fraud Alert

Posted by david - Wednesday, September 02, 2009

Protect Your License and Career by Avoiding “Investment” Scams

Please be aware and make your employees aware of a dramatic increase in illegal property flipping throughout

our state. The scam involves individuals posing as “real estate investors” – offering to purchase single-family

homes at inflated prices, promising “guaranteed high rates of return”, falsifying or obtaining fraudulent

appraisals to substantiate the artificial values, and reselling or refinancing the homes several times for 150 to 200

percent of the actual value. The scam is most prevalent in areas of new construction and high-end homes,

particularly Utah County (Provo/Alpine), Washington County (St. George), and Salt Lake County (Draper).

Identifying and Avoiding Real Estate Fraud

• Properties reported as “sold” or offers to buy at values significantly higher than asking price.

• Property sales history shows many sales with rapid and significant increases in value.

• Buyer purchasing multiple properties in a short period of time (often as owner occupied).

• Appraisal is dated prior to the loan application.

• “Investor” using someone else’s identity and/or credit score to purchase a home.

• Buyers providing false information on employment, credit score, income, or the occupancy of the home.

• REPC does not reflect the “true terms” of the agreement, such as undisclosed addendums.

• Unlicensed persons receiving “consulting fees” for helping “clients” purchase investment properties.

• Buyers and sellers conspiring to artificially inflate the property value and sharing the “profit”.

• Excessive payments to third parties such as unsubstantiated notices of interest or unrecorded second-mortgages.

• Using HUD-1 statements as sales verification for appraisal “comparables”.

Advance Fee

Posted by david - Tuesday, September 01, 2009

The term “advance fee” as used in this part is a fee claimed, demanded, charged, received, collected or contracted from a principal for a listing, advertisement or offer to sell or lease property, other than in a newspaper of general circulation, issued primarily for the purpose of promoting the sale or lease of business opportunities or real estate or for referral to real estate brokers or salesmen, or soliciting borrowers or lenders for, or to negotiate loans on, business opportunities or real estate. As used in this section, “advance fee” does not include “security” as that term is used in Section 1950.5 of the Civil Code, or a “screening fee” as that term is used in Section 1950.6 of the Civil Code. This section does not exempt from regulation the charging or collecting of a fee under Section 1950 1950.6 offees that are not subject to those sections.

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