Changes to Seller Financing

The Secure and Fair Endorsement for Mortgage Licensing Act (also known as SAFE Act), signed by President Bush in 2008, places minimum licensure requirements on all mortgage loan originators, this includes seller financing. To seller finance a one-to-four family residential transaction involving property other that the seller’s primary residence, the seller must now be a licensed as a residential mortgage loan originator (RMLO).

In the Texas Legislation, there was an exemption allowing sellers of a one-to-four family residence to seller finance up to 5 transactions in a single year without being licensed, but this will expire August 31st 2010.

Source: Anderson Edra, Texas Realtor Magazine, May 2010

Unhappy Seller Sues Condo Auction Buyers

I wrote a post on July 13th about an Auction I attended. In a strange turn of events, the seller is sueing the buyers! Apparently he doesn't agree with the terms of the sale price. This is an article I will continue to follow. Click the following link for the entire Austin Stateman's article.

Unhappy seller sues condo auction buyers

Federal Sales Tax on Home Sales

Recently researching claims that the new Healthcare Law enacted a sales tax on all home sales. Doing abit more digging I found a website that clarified the issue for me.

First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. The tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)

http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

Fannie Mae Website - Short Sales & Foreclosure

I came across a website for consumers that address questions about foreclosure, short sales and ways to stay in your home. It allows you to see if your mortgage is owned by Fannie Mae, contact a housing counselor and provide a financial checklist.

Click here for the Fannie Mae Website

June Market Statistics: Austin Texas

Days on market dropping and sold prices are rising. Austin looking good in June!

Auctions & the Real Estate Market

I attended a United Country – Supreme Auctions this weekend at the Omni Hotel in Austin TX. This auction represented two different condo developments in the 78704 zip (The Ivy & The Element). Supreme Auctions estimate that in the coming years more and more property will be conveying in this manner. As an attendant, in my opinion, it was exciting to see the free market in action. Buyers bidding on the properties at its highest value and you could see your competition in the room. The first property sold 25% under last MLS sold price, and quickly moved to 40-50% under last MLS sold price.

My client and I had a good time. I look forward to doing it again.

Tax Credit Deadline Extended; Flood Insurance Program Reinstated

Congress has passed a bill extending the Homebuyer Tax Credit closing deadline to September 30, 2010. This is a huge win for REALTORS® and homebuyers, and the National Association of Realtors [NAR] worked closely with members of Congress to make it happen.

The extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30 and the date the President signs the bill into law.

Additionally, Congress has extended the National Flood Insurance Program (NFIP) through September 30th. The bill is retroactive and will cover the lapse period from June 1, 2010, to the date the law is enacted. NAR will continue to work with Congress on the NFIP Reform bill, and we will keep you posted on those efforts.

For additional information on both the tax credit deadline and the NFIP, visit Realtor.org/Government_Affairs.