Neither an individual nor an investor can purchase a HUD home for $1.  And even though individuals who use FHA and are owner occupants can buy HUD homes for $100 down ( ) or certain qualified public servant home buyers can buy homes for 50% of full asking price from HUD, they can’t buy a HUD foreclosure for $1.

HUD’s program provides for local Government Agencies to partner with non-profit organizations to buy FHA foreclosed properties that have been unsold for about 6 months.  Or in other words, nobody else wants them because of property condition and other factors that make the property non marketable. 

http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

8-10-2014: Dodd-Frank law took effect July 21, 2010. With 2,300 pages, it has overloaded regulatory agencies and about half o the regulations required by it have been finalized and >45% of Congressional deadlines have been missed. There have been unnecessary rules like the Volker rule that have done nothing to prevent the main cause of the mortgage meltdown – lower Fannie and Freddie underwriting standards. Or how about the definition of a SIFI with >$50 Billion in assets that won’t bring down the US financial system. Since the Federal Reserve funds the CFPB, Congress can’t influence its funds and operations…which may be partially good, but the CFPB isn’t accountable to us but it is to the Federal Reserve – scary as well. And even the employment of 1,000s of compliance officers that don’t generate income but cost money has an impact on bottom line revenues. WSJ, 7-21-14, A13.

10-11-2013: Apparently, rephrasing a 2010 quote by Barney Frank (Dodd-Frank named after him)…he hoped Fannie and Freddie is abolished as it was a mistake pushing lower income people into housing they couldn’t afford…Source: WSJ, 9-18-2013, A17.

8-24-2013:  Ok, a Wall Street Journal (article on page C1, 7-24-2013) reported that the Federal Reserve (monster who funds the CFPB) and the FDIC intend for the CFPB to “loosen” requirements that banks retain a portion of the equity to have “skin in the game” – WHAT!- wasn’t this a major plank (lender loan shenanigans) on which the CFPB was initiated?  Do you feel duped yet?

6-13-2013: Another unintended consequence: Thanks to tighter definitions by the CFPB (created by Dodd-Frank), home sellers now are demanding “pre-approvals”, not “pre-qualifications”. Source: http://www.housingwire.com/rewired/2013/06/11/dodd-frank-mortgage-shift-pre-qualify-pre-approval

Dodd-Frank bill makes owner financing and builder financing a thing of the past. Source: http://www.news-press.com/article/20130604/OPINION/306040013/Dodd-Frank-Act-government-overreach-into-private-real-estate?nclick_check=1

Apparently the federal limits of credit card issuers can adjust rates led to higher rates and limited product offerings driving borrowers to less conventional lenders including payday lenders, loan sharks, and pawn shop rates.

Also the 2009 CARD (Card Accountability Responsibility Disclosure) Act imposed limits on credit card interest rate adjustments and penalty fees and is designed to enable transparency relating to the extension of credit under credit cards.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Yes – you can buy an FHA foreclosed (HUD) home with $100 down…

But you must use FHA financing; the total estimated repairs don’t need to be under $5,000 (i.e., FHA insurable) as long as FHA financing is used; and you must be an owner occupant.

Unfortunately, Good Neighbor Next Door properties are ineligible for the $100 down.

See details here – http://www.hudpemco.com/100%20Down%20Payment%20Incentive.pdf

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

5-31-2013: Some are predicting more commercial real estate foreclosures. Apparently, every 5-10 years, banks evaluate commercial loans and can ask for them to be paid off. Cash reserves of many small businesses have fallen and placed them in a short squeeze. Exposed loans in 2013: $263 Billion! Source: WSJ, April 29, 2013, PR3

2-8-2011:  Now the news seems rosy about Commercial Real Estate according to this article – but it seem the rosiness is based on buying foreclosed/depressed sale of commercial properties and the specific market of these properties so my conclusion is still…it all depends on which end of the market you sit whether things are good or bad – http://www.businessweek.com/news/2011-02-04/u-s-commercial-property-recovery-spares-economy.html

Green Street Advisors – Said Commercial Real Estate hit bottom in 2009 and is rising.  They track 47 REITS with $400 billion of assets.

Moody’s Investors Service – Said commercial real estate hasn’t hit bottom yet.  They track closed sales of at least $2.5 million.

Source:  WSJ 10-13-2010, C11

RESIDENTIAL INDEXES

S&P Case Shiller home price index – 3 month average of home prices in 10 major metropolitan areas.

Federal Housing Finance Agency index which covers sales and refinancings of conventional mortgages purchased or securitized by Fannie Mae/Freddie Mac (which omits jumbo and subprime loans).

Source:  WSJ 10-27-2010, A6

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

For a number of years, there was a little noticed fee on each closing statement (HUD-1) in Georgia. A $6.50 fee was charged for each new loan on a property.

You an see why the fee doesn’t raise any interest because you normally focus on alot higher charges in closings and the fee goes to cover the costs for the Georgia Department of Banking and Finance (click here for GDBF website) to develop and administer rules and regulations, licensing and registration requirements, review of applications by prospective mortgage lenders in Georgia, and the review and enforcement of statues.

So why mention it? – That fee has now been raised to $10 (see form and notice of increase here). I hate it when fees are raised and no discussion is provided for the increase. Is this fee adequate to cover legitimate expenses? Does the Georgia Department of Banking and Finance deserve the fee? Do we have a “taxation without representation” situation here?

NOTE: When I called last year to mention the possibility of filing a complaint on a lender, they told me their budget was cut and didn’t have money to investigate any more complaints…

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

The answer isn’t more cash…but…

What is the real cost of your credit card charges?

And paying the minimum balance on your credit card is like paying mostly the interest and not much of the principal.

So be careful of the balance building too fast – be a deadbeat to the credit card company and pay your balance as often as you can…Clark Howard would be proud of you if you did!

Click here to calculate yours

President Obama’s Financial Fraud Enforcement Task Force (FFETF), was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.

With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.

I’m thinking that the FFETF website will provide more information, but is this Task Force now no longer required since the investigations are now the responsibility of the Consumer Financial Protection Bureau(CFPB)?

Source: An old loan safe article.

I have noticed several “out-of-state” license plates here in the Atlanta, Georgia area.

Most of these tags I see in parking lots of apartment complexes.

Per Georgia State Law, you must change your vehicle registration within 30 days of relocating to Georgia.

There is a basic fee plus Ad Valorem taxes when you transfer.

I am willing to bet that most every vehicle in the parking lots of an apartment complex with an out of state tag is not paying that fee, and should.

How many tens or hundreds of thousands of dollars has Georgia and their counties lost in revenue?

Maybe they could cut back on speed traps and catch the apartment dweller tax evaders instead? Right…..

Update 4-12-2021:  Sometime after this original blog post, Georgia Legislature capped the income exclusion at $35,000 if you’re 62-64.  Age 65 and older, the exemption rises to $65,000.  If a couple qualifies for both, I understand the total exclusion is $65,000 (of qualified income…excluding pensions and other income sources), but I don’t think they qualify for two $65,000 exemptions.  Consult your tax professional for actual exclusion application.

Update 2-18-2016: As of the 2016 tax year, all pensions and other retirement income will be exempt from Georgia income taxes

Senate Passes GA Taxpayer Relief Act

ATLANTA (April 14, 2010) – On the eve of national tax day, the Georgia General Assembly has passed major tax relief, HB 1055 called by some the “Georgia Taxpayer Relief Act of 2010”. The measure eliminates retirement income tax on Georgia seniors and eliminates the state property tax. Senate Majority Leader Chip Rogers (R-Woodstock) lead the efforts in the Senate to help add the tax elimination measures to HB 1055

Georgia HB 1055 – May 2010

Taxpayer Relief Act of 2010

From the IT 511 GA DOR handbook:

A 2010 Georgia law began to phase out Georgia’s income tax on retirement income beginning in 2012 and eliminates taxes entirely by 2016 ($65K, $100K; $200K; and all income in 2016 and beyond).  Qualifications include taxpayer being 65 or older during any time within the year.

Evidently, under current law, seniors who were 62 or older could exclude up to $35K of income before being levied Georgia income tax.

So what about those who are 62-65?  Are they under the current law and still have to pay Georgia income taxes over $35,000 annual income?  Maybe!

Source:  http://www.georgia.gov/00/press/detail/0,2668,78006749_157126503_159410187,00.html

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Easement is roughly defined as “permission to get access to” something. Whether it’s your spouse, or utilities, or a neighbor’s adjoining property…you’ll have to get permission first to access their “private” property.

All kidding aside about your spouse’s or partner’s permission, which isn’t called “easement” but perhaps “uneasement” if trespassing…

4-16-2014: Here’s a case where certain rights and duties were implied and someone refused to comply resulting in an expensive lawsuit.

Utility easements grant the right to a utility company (electric, gas, water, cable, phone, etc,.) to enter your real property to repair or provide service to you and your neighbors. They normally run underground so when you plan to landscape or dig into your yard, it’s wise to call a Utilities Protection Center in your area (in Atlanta you call 811 before you dig) and they should come out at no charge to draw lines in your yard indicating where utilities are running so you don’t get “surprised” with a huge repair bill!

Negotiated easements are when the owners of two or more adjoining properties need access to each others property. For instance people who own properties that border a lake give easement to the lake for other neighbors. Or one property which is landlocked and has no access to a road without driving over another person’s property is usually granted easement over the property that borders the road.

Easements are normally found on surveys and subdivision plats in your county records or the homeowner’s records.  So be sure to ask for a copy of the survey in your offers and review it.

Make sure your title insurance provides coverage for any easements and if not, get the disputes resolved before closing – make your contract contingent on their resolution or provision.

Source article addressing more detail on express, implied and other easements: http://www.cdapress.com/real_estate/article_769840c2-a337-51f7-84c0-72df3929c506.html