6-1-2017: 10 Crucial Real Estate Contract Terms Home Buyers Should Know Before They Sign.

5-31-2017: ‘Will An Exclusive Buyer’s Agent Really Look Out for Me?’

5-30-2017: 3 home insurance myths you need to dispel. Not everything is covered-no; flood insurance-no; and market value insured-no…

5-26-2017: Real estate agents share dos, don’ts for buyers, sellers.

5-24-2017: New home sales are down over 11% in April but national Association of realtors said that we’re on a slow and study upward trajectory on existing homes and the supplies of new homes should be rising as well. This should be good news for those that are in the market search for better inventory and for sellers to move to more choices. Source: WSJ, 5-24-2017, page A2.

5-23-2017:

Post #1
Zillow’s next step may disrupt real estate brokerages.

Post #2:

Three Things Home Buyers Should Never Do

5-22-2017: First-time buyers are snatching up homes in droves.

5-19-2017: How to Get Along With Your Contractor.

5-17-2017: The biggest regrets people have after buying a home. Not buying a bigger house. This was the No. 1 regret listed in studies. About 41% of homeowners said they were not aware of all of their loan options. About 1 in 5 home buyers wished they had had more information about their homes. Other findings in report from Nerdwallet were interesting.

5-16-2017:

Post #1: Real estate’s new normal: homeowners staying put.

Post #2: About 4% of employers offer mortgage assistance to relocating employees; 3% offer down payment assistance; 8% offer reimbursement of fees paid to real estate agents. The movement of employers now is to offer a lump sum amount to employees and not detailed coverages. It is suggested that employees try to negotiate for the best deal and consider the income tax implications of a lump sum payment for relocation. WSJ 5-5-17, Page M4.

5-15-2017: Real Estate’s New Normal: Homeowners Staying Put. The median length of time people have owned their homes rose to 8.7 years in 2016, more than double what it had been 10 years earlier. And now that interest rates have begun to turn up from their historic lows, the housing market may face a problem called “the lock-in” effect, where homeowners are reluctant to move, since moving might entail taking out a new mortgage at a higher rate.

5-12-2017:

Post #1: Do Schools Really Impact Property Values? YES…YES…and YES!

Post #2: 7 Snapchat tips for agents (i.e., How to better market to millennials).

5-11-2017: Is the Traditional Real Estate Model Under Pressure? (California may BAN Dual Agency?)

5-10-207:

Post #1: 3 Big Things Home Buyers Are Looking For In Their New Home .

Post #2: Efforts to overhaul Fannie Mae and Freddie Mac could lead to “a potential and significant shock” to the commercial real-estate sector.

5-9-2017: Homeowner sues Zillow, says ‘Zestimate’ is nonsense.

5-8-2017: A drop in new home construction (labor shortages, increased zoning regulations, rising prices of building materials, and caution among builders) and strong demand from Buyers pushing prices up is causing National Home Price Index to rise. With small chance of supply gut in near future, economists expect prices to continue to rise. Nationally it is estimated that home prices are 4% overvalued.
Source: Rising Home Prices Stir Overheating Fears – WSJ, 4-26-2017, Pge A2

5-5-2017:

Post #1: Arzona Real estate agent sick of burglaries drives into man he believed was stealing.

Post #2: 10 Most Common Real Estate IRA Questions Asked by Investors.

5-4-2017:

Poat #1: Home Values in 2017: Are We Facing A Real Estate Bubble?.

Post #2: Real Estate Sale: First 4 Steps After Deciding To Sell Your Home.

5-3-2017:

Post #1: NAR report highlights growing appraisal problems. Also, combined with financing issues comprises over 50% of issues preventing closings. Over 50% of mortgage originators interviewed in a separate survey said they had experienced difficulty with appraisals. But is this the fault of appraisers, or agents/homeowners pricing their homes too high?

Post #2: Are Your Title Insurance Fees Paying for Rangers’ Playoff Tickets?

5-2-2017: Minnesota Commerce Warns of Wire Scam involving Real Estate – spreading across the US. The scam profile: Criminals hack into the computers or email accounts of real estate professionals; find out when closings are happening; then send fake email containing instructions to wire funds to a different account. This works pretty well since most all closing attorneys don’t accept Certified Checks any longer for funds since they can’t be verified as legitimate.

5-1-2017: Rental-home success depends on quality of tenants.

4-28-2017: Should You Use a Real Estate Agent to Find Your Next Rental?

4-27-2017: Real Estate Lawyers Applaud New Jersey Supreme Court’s Ruling on Email Notice.

4-25-2017:H1-B Visas – can we have the evidence that US citizens are even considered?

4-21-2017: Commercial Lending Falls Amid Growing Risks.

4-20-2017: Why world tensions are making mortgages cheaper.

4-19-2017: Using Smart Home Devices to Help Seniors.

4-18-2017: What Happens When a Buyer Backs Out Last-Minute.

4-17-2017: What a New Glass-Steagall Act Wouldn’t Do.

4-14-2017: Homeowners and appraisers disagree on home valuations.

4-13-2017: Appraiser Opinions Keep Falling Short of Homeowner Expectations…ut some cities are bucking that trend.

4-12-2017:HUD Administrative actions against mortgage lenders.

4-11-2917: America now divided over Bible verses. And I would say to those who ask “what does this have to do with real estae?”…well, He’s Got the Whole World in His Hands!

4-10-2017:Real Estate Advice: Shop around for the right mortgage.

4-7-2017: U.S. Property Taxes Levied On Single Family Homes In 2016 Total More Than $277 Billion.

4-6-2017:Buyer Beware: Real estate scams exposed.

4-5-2017: Mortgage interest rates respond to the 10 year Treasury notes since most homeowners stay in their homes closer to 10 years than what used to be the typical 30 years.

4-4-2017: Hidden Costs That Can Diminish Your Rental Property Profits.

4-3-2017: Cost of Construction permitting has risen over past decade including storm water capturing devices, customized architectural plans, and $15,000 to remove a tree on a property, as well as other new regulations. The average cost of compliance with regulations has risen 30% in the past 5 years. WSJ, July 23-24, 2016.

3-31-2017: ‘No Knock’ Registry Is a Jab at Real Estate. Is this coming to a town near you? Doe it also include mailings and posted advertisements like “We Buy Houses”?

3-30-2017: Veteran with A Purple Heart received a free house. Isn’t that good news? Wells Fargo said that since 2012, the bank has donated about 300 homes, with a value of more than $50 million, to veterans in all 50 states. Wells Fargo has donated more than 200 through the Military Warriors foundation.

3-29-2017: FHA lost > $300,000 in transactions for three properties. Freddie Mac, also lost about $164,000 and Fannie Mae was allegedly also defrauded out of > $15,000.

3-28-2017: Real Estate Commissioner in California Issues Warning To Agents and Brokers – This warning also applies to all Brokers and Agents across the US.

3-24-2017:
Buyer Beware: Real estate scams exposed. Never wire money to anyone in a real estaet transaction unless first verifying the Bank and Account info is legitimate.

3-23-2017: 10 Secrets to Selling Your Home Faster.

3-22-2017: How millennials are changing the real estate market. Millennials are in fact very civic-minded and believe in equality for all…willing to buy a smaller place in a less desirable area …increasing number of millennials accessing the internet exclusively on mobile devices, agents should also look into marketing avenues and mobile apps that could enhance their businesses.

3-21-2017: Ask the HOA Expert: Mold Conditions.

3-20-2017: What are Atlanta’s real estate hotspots of 2017?

3-16-2017: 4 Common Real Estate Scams That Smart People Fall For.

3-15-2017: After peaking at all time high of 69.2% in 2Q04, the US homeownership rate fell in 2Q16 to 62.9% (lowest rate in 50 years) but more likely skewed by the higher rate of renter household formation. WSJ, 7-29-16, A2. However, by January 2017, the rate has risen to 63.7%. Encouraging sign of growth?

3-14-2017: MBA Reports Double Digit Jump in New Home Purchase Applications.

3-13-2017: Understanding VA Minimum Property Requirements.

3-10-2017: Utah real estate agent gets 6 months in jail over waterless subdivision.

3-9-2017: 7 Things You Can Do Now To Instantly Up Your Home Value For Under $100.

3-7-2017: Should You Work With a Part-Time Real Estate Agent?

3-6-2017: How pot is firing up this real estate. A Cannabis REIT? – Innovative Industrial Properties, Inc. (IIPR)

3-2-2017: Retirement: Can I use my IRA to buy real estate?

3-1-2017: Six arrested in ‘elaborate’ real estate fraud scheme.

2-28-2017: Gap between housing affordability and availability will grow in the months to come. The National Association of Realtors (NAR) suggests homebuyers at many income levels could see an inadequate amount of listings on the market within their price range in coming months.

2-27-2017: Tight inventory of homes on the market causing decline in sales you say???? Yeah, plenty of crap homes on market and not enough decent inhabitable homes for decent prices…everybody wants alot for the crappy homes!

2-23-2017: Existing Home Sales and Prices Surge Despite Rate Increases

2-22-2017: Governing documents in a Condominium are similar to HOA CCRs in a subdivision and restrict your use of common elements and sometimes inside your home.

2-20-2017: U.S. Congress passed a law years ago that first time home buyers who purchase a home between April 9, 2008 and July 1, 2009 would be eligible for a $7,500 tax credit. As I understand it, $500 tax credit per year for 15 years or until the property ownership is transferred. If the ownership transfers prior to the 15 year period, then all cumulative tax credits are now owed to and to be paid back to the IRS upon ownership transfer. Furthermore, the US Congress passed another bill that made those first time homebuyers who purchased homes after December 31, 2008 and before December 1, 2009 would now be eligible for an immediate $8,000 non refundable (isn’t required to b paid back to the IRS) tax credit. I wonder how many homeowners are stuck in this position now that home prices are returning to re-crisis levels and they are ready to sell their homes and move?

2-18-2017: Six Reasons Why Wholesale Repeal of Dodd-Frank is Unlikely.

2-17-2017: 2016 Homebuyer Survey Contains Valuable Information For Agents and Home Sellers.

2-16-2017: Distressed Asset Stabilization Program (DASP) = 105,000+ loans sold to private investors & 10,000 remained in homes – worth taxpayer payout? Also per WSJ, 7-1-2016, A2 article – homeowners got to stay in 20% of the DASP homes. Regardless of actual %, was the payout from US taxpayers (via lower sales price of loan and through FHA loan losses) worth it?

2-15-2017: Realities of Real Estate: What’s the value of improvements when a home is sold? .

2-13-2017: Before anyone blames Trump for playing favorites with mortgage lenders, it was Fannie Mae and Freddie Mac (or more correctly Mel Watt (an Obama appointee) in charge of FHFA approved it. Fannie and Freddie agreed to arbitration over appeals from lenders in cases where Fannie and Freddie accused lenders of loan mistakes and compel them to buy back the mortgage loans. The result is that if lenders have a path to prove their innocence in arbitration, then they are more willing to make loans. Source: WSJ, 2-3-2016, Pag C6.

2-10-2017:Here’s Why More Millennials Are Living With Mom and Dad.

2-6-2017: Countertop Pros And Cons: What To Choose And Why.

2-3-2017: Question of the day: When a life insurance policyholder dies, is it up to the insurance company or the beneficiary to follow up to ensure payment?

2-2-2017: By 2020 there are forecast to be 54 million 55-plus households in the U.S..

2-1-2017: Hey – wait a minute….California residents demand repeal of zoning laws to provide more housing?

1-31-2017: YEs – yes, I know this the topic of REITs or Real Estate Purchase and Leasebacks aren’t my typical thing, but I found this a little humorous and sad at the same time. Online transactions are crushing “brick and mortar” retailers like Macy’s and Sears. But there is hope for future revenues and expenses. Macy’s is now partnering with Brookfield (property management company) to offer 50 real estate properties (100 more to come in 2017) for subleasing or development for other retailers or companies thereby generating lease revenue. Sears has created Seritage Growth Properties (who bought almost 300 Sears/Kmart properties and rents most back to Sears) to use their real estate assets to generate income as well. Sears and Macy’s got some level of cash infusion selling these properties and now are in a position to terminate any long term leases of stores that are not profitable. However, they have a good idea to sub-lease space in their stores for products and services that “can” make money and therefore, pay “rent”. AJC, 1-29-2017, Buyer’s Edge, Page 4.

1-30-2017: Real estate investors (many are small companies) may lose important tax tool – Section 1031 deferred tax exchange. US Congress may eliminate or seriously restrict the use of tax-deferred exchanges – property swaps – under Section 1031. This applies to commercial & rental properties only – Fixer-upper houses and other real estate held for short periods and then flipped to new buyers do not qualify for tax-deferred exchanges, nor do owner-occupied residences.

1-27-2017: Explanation of duties between Listing Agents and Buyer Agents.

1-26-2017: Post #1: City of Chicago to expand $1 lot program to 4,000 vacant properties.

Post #2: How to buy a property without a real estate agent.

1-25-2017: U.S. Home Affordability Drops to 8-Year Low in Q4 2016.

1-24-2017: 2016 Saw Mortgage Distress Recede Strongly.

1-23-2017: Where were home sales most likely to FAIL in 2016?

1-20-2017: Trump suspends the January 9th FHA mortgage insurance rate reductions on day of Donald Trump’s inauguration. Why? Congressional Republicans believe the fund isn’t sufficient to cushion taxpayer bailouts during any economic downturn since these loans are more risky than conventional loans.

1-19-2017: 6 Questions to Ask Your Real Estate Agent Before Buying a Home?

1-18-2017: Developer building up a portfolio by creating housing for millennials.

1-12-2017: Real estate scam bilks buyers, sellers during transactions. Email hackers and spoofers will pretend they are from closing attorney or real estate offices and send an email to you reportedly stating there has been a change of financial institution routing information. Normally, you may follow those instructions. However, you should call the closing office to verify any financial institution routing transaction information first before you execute any wiring transmission to the closing office. Cybercriminals who have hacked into the email accounts of real estate brokers, title companies and consumers who are in the process of buying or selling a home.

1-11-2017: Foreclosures Approach Normal Level.

1-9-2017: Breakdown of FHA’s Multifaceted MIP Cut. Annual FHA MIP drops by 25 bps effective February 1st and beyond.

1-6-2017: A New Twist on Owner Occupancy Fraud.Borrowers are applying for loans with the stated intent of investment property, using rent income to qualify for loan, then moving into property as personal residence….mortgage fraud!

1-5-2017: Buying More Affordable Than Renting in 66 Percent of U.S. Housing Markets.

1-4-2017: Banks make house flipping easier for investors.

12-31-2016: Wish for a Happy New Year in 2017 for you!

A SELECT FEW OF THE THOUSANDS OF FORECAST VISIONS for 2017 REAL ESTATE

Vision #1: Real estate agents predict low inventory levels in 2017.

Vision #2: What’s ahead for 2017? Headwinds form in real estate boom-bust cycle.

Vision #3: Speical Inman Report – Outlook for 2017 Real Estate. See full Inman Real Estate Report for 20176 here.

Vision #4: Rising interest rates in 2017 may not matter in housing demand and prices.

Vision #5: These 5 Trends Will Shape the Housing Market in 2017.

Vision #6: Top 5 real estate trends for 2017.

Vision #7: 2017 Real Estate could be bumpier. Although it’s not true that TRID has been implemented smoothly (there are still errors and as an agent, I don’t receive document before closing so when I see mistakes, it’s too late!) Interesting that PMI will no longer be tax deductible.

12-30-2016:

The $72,000 question you should be asking your real estate agent – “SHOW ME WHERE THE MONEY GOES?” To pull it off, scammers hack into real estate agents emails and then quietly monitor communications, waiting until they are about to close in on a deal. The scammer then sends buyers money wiring instructions under the identity of the agent, which routes the payment to offshore accounts. So ALWAYS ALWAYS ALWAYS call the applicable party to verify where any wire transfer of funds is going to BEFORE SENDING wire transfer.

12-29-2016:

Post #1: More millennials entering the housing market.

Post #2: Skipping the Real Estate Agent: What Can Go Wrong.

Post #3: Six Reasons You Should Buy Your Next Home Right Now.

12-23-2016: MERRY CHRISTMAS TO ALL!

Post #1: Hot trend in 2017: Rise of Islamic banks on Main St. USA.

Post #2: Minorities and young people being left behind in housing, Pew Research Center says.

Post #3: Outlook for real estate market not as gloomy as feared.

12-21-2016:

Post #1: California high court decision favors real estate buyers.

Post #2: The tax benefits of home ownership.

12-20-2016: 59 individuals have agreed to plead or have pleaded guilty to foreclosure bid rigging at public foreclosure auctions.

12-19-2016:

Post #1: The 5 Real Estate Trends That Will Shape 2017.

Post #2: Realtors are responsible for a lot, but responsibility isn’t unlimited.

12-15-2016:

Post #1: Are HOA Dues Making Real Estate Unaffordable?.

Post #2: Home Builders’ Confidence Rises to Highest Level Since 2005.

12-13-2016:

Post #1: How (and when) to fire your real estate agent.

Post #2: Smart Homes: The New Frontier For Cyber Crime.12-8-2016:

Post #1:
5 big real-estate trends to watch in 2017.

Post #2: 5 Expectations You Should Have When Selling Your Home.

12-5-2016: Caught on camera: Real estate broker accused of stealing prescription drugs from home.

12-2-2016:

Post #1: How Colorado’s Legalization of Marijuana Sparked a Homebuying Frenzy.

Post #2: How Does Your Real Estate Agent Get Paid? (Besides handsomely, extremely well, or too much for the effort they put into the deal….).

12-1-2016:What scent works best for selling your house? (a) fresh cookie aroma (b) Vanilla plug-ins (b) citrus?

11-30-2016:

Post #1: 3 things to expect in real estate in 2017.

Post #2: The 5 Real Estate Trends That Will Shape 2017.

11-29-16:

Post #1: When people moved in 2015-61% stayed in same metro area while only 25% moved to a different state-a 15 year-low.

Post #2: 5 Reasons to Shop for a Home in December.

11-28-2016: 6 Reasons to Use a Real Estate Agency – When Buying/Selling a House. Expertise – maybe…Access to other properties – maybe –all the other benefits are marginal…Especially connections to contractors – most contractors are inconsistent and may do well on another property and mess yours up.

11-23-2016:

Post #1: Smart Homes: The New Frontier For Cyber Crime.

Post #2: Buying A Home Over The Holidays: The Smartest Real Estate Decision You Can Make .

Post #3: 2016 Homebuyer Survey Contains Valuable Information For Agents and Home Sellers .

11-22-2016: 6 Reasons to Use a Real Estate Agency – When Buying/Selling a House.

11-21-2016: Buying A Home Over The Holidays: The Smartest Real Estate Decision You Can Make

11-18-2016:

Post #1: Mortgage Rates Jump Back to Highs.

Post #2: Housing Starts Explode to 9-Year High.

Post #3: Now, here’s August 2016 news….another “jerk your chain” headline???? Even though many say the picture for residential housing looks positive, sales of previously owned homes rose at the best pace since 2007, and housing starts have risen as well; but residential housing permits fell more than 2% in 2016. WSJ – August 2016.

11-17-2016:

Post 1: Is the Seller’s Housing Market Finally Over?

Post 2: Understanding real estate agent commissions.

11-16-2016: Can this happen in the US with our Federal Housing Discrimination laws? Federal law prohibits housing discrimination based on your race, color, national origin, religion, sex, familial status, or disability.

11-15-2016: First-Time Buyers Expected to Return to Housing Market.

11-14-2016: Real estate fraud ‘mastermind’ sentenced to 24 years in jail.

11-11-2016: Important Things To Know About Home Inspections. And be aware that they only are to reveal potential or existing issues and may limit the liability of inspector to the cost of the inspection.

11-10-2016:FHA Paid Claims for an Estimated 239,000 Properties That Servicers Did Not Foreclose Upon or Convey on Time.

11-9-206: Three Tips to Get a Higher Home Appraisal.

11-4-2016: The Foreclosure Gender Gap: Foreclosure Rates Higher for Male Homeowners Than Female Homeowners.

10-31-2016:

Post #1: Sample Home Electrical Inspection Checklist.

Post #2: Do You Really Need A Home Inspection? – Tracey’s Real Estate Tip Of The Week.

10-28-2016:

Post #1: U.S. Pending Home Sales Rebounded in September.

Post #2: Millennials are the new driving force in U.S. real estate, Zillow says.

10-27-2016:

Post #1: Report: Real estate market putting downward pressure on commissions.

Post #2: Redfin testing a 1 percent home listing fee in metro Denver.

10-26-2016:

Post #1: ReMax to launch mortgage business.

Post #2: The worst thing about working in real estate.

10-25-2016: How Homebuyers Can Receive Down Payment Assistance.

10-24-2016:

Overall prices about 2% lower than peak in 2006; home price increases mostly due to shortage of inventory than the surge of Buyers; main reason for lower homeownership rate is lack of mortgage availability; total inventory of homes for sale has fallen 37% since 2011; and even though 1 million new households were formed in 2015, only a little more than 600,000 homes were built. WSJ,8-11-2016, A1.

10-21-2016:

Post #1: Wells Fargo has seen their portfolio of PCI loans – mortgages of deteriorating mortgage quality or underwater (owing more than property values were worth) – drop which will allow more interest payments faster than before all due to rising home property values and employment. These PCIs were leftovers from when Wells Fargo bought out Wachovia. Basically, with many of these loans probably going to get refinanced, they won’t be outstanding as long as expected. (Source: Wsj..10-16-2016, C6)

Post #2: Wells Fargo agreed to pay $3.45 million to the Federal government per Justice Department finding that they delayed letters to 8,000+homeowners in bankruptcy for more than the minimum 21 day requirement. The US Justice Department said Wells Fargo failed to file >100,000 notices involving homeowners in bankruptcy. Source: WSJ, 8-26-16, C3.

10-20-2016:

Monday Morning Cup of Coffee: Fannie Mae sets official date for using trended credit data.

Appliance manufacturers downsizing products for 2 reasons: people are moving into smaller homes and more people are expanding into other spaces of the home requiring smaller appliances. Wsj..10-20-16, D1

10-19-2016:

Post #1: Does A Mortgage Broker Have Fiduciary Duty To The Borrower? .

Post #2: U.S. Home-Builder Gauge Edges Lower in October.

10-18-2016: Eminent Domain – The main concern when acquiring properties is “whether (the city) can reach an agreement with the owners on value.

10-17-2016: Why saying too much to a real estate agent at an open house can get you into trouble .

10-14-2016:

Post #1: Realtor Pleads Not Guilty To Stealing Real Estate Signs.

Post #2: Zillow stock could surge on back of ad-hungry real estate agents.

10-13-2016:

Post #1: Home sellers forgo agents, go FSBO.

Post #2: Mortgage applications down 6% as rising rates take a toll

10-12-2016:

Post #1: Homeowners on the Move Are Choosing More Affordable States.

Post #2: How Bank of America is getting more involved with the home-buying process.

10-11-2016: Freddie Mac pilots new lending program for first-time buyers. Some features (a) ease income and documentation requirements that come with a standard mortgage application; (b) allows mortgage applicants to include the income of other people who live with them; and (c) income from second jobs will also be taken into consideration.

10-9-2016: EB-5 program set to expire – again.

10-8-2016:Five essential tips for networking in real estate.

10-7-2016:

Post #1: Hackers target pending real estate transactions in Colorado. Be careful where you are getting your closing fund wiring instructions. Please call your closing agent/attorney and verify the wiring instructions you received were the proper ones.

Post #2: Your Home: Real estate myths debunked.

10-6-2016:

Post #1: Five Habits That Real Estate Brokers Should Get Into.

Post #2: Updates to FHA Single Family Handbook Offer Clarity for Appraisers.

10-5-2016:

Post #1: Shortage of real estate appraisers is hurting the housing market.

Post #2: Fannie Mae and Freddie Mac came to agreement with lenders in February 2016 to resolve mortgage failure disputes using arbitration at times as opposed to strict 100% loan buybacks. Source: WSJ, 2-3-16, C3.

10-4-2016:
Post #1: Mortgage Rates Rise Quickly on Overseas Concerns.

Post #2: Startup ‘games’ continuing education for agents.

10-3-2016:

Post #1: Do you need a real estate agent to find yourself a home?.

Post #2: Why some home buyers are ditching the real estate agent and turning to start-ups.

9-30-2016: What Business Leaders Need to Know About Latest Real Estate Trends.

9-29-2016:

Posting 1: Drone use in real estate is soaring, say Realtors at Long Beach conference.

Posting 2: ​4 Reasons Millennials Aren’t Investing in Real Estate (& How To Change That).

9-28-2016:What Is an HOA?.

9-27-20156: Four real estate myths debunked.

9-26-2016: How to Negotiate Real Estate Commissions When Selling Your Home.

9-25-2016: On Real Estate: Choosing Your Broker.

9-24-2016: Existing home sales down in August.

9-23-2016: The Housing Market Paradox – Mortgage rates are low, but so is homeownership.

9-22-2016:Are You Ready to Apply for a Mortgage?.

9-21-2016: The Housing Market Paradox – Mortgage rates are low, but so is homeownership.

9-20-2016:Title issues can complicate real estate transactions.

9-19-2016:Nevada Supreme Court hears case on real estate crisis foreclosure sales. Did the sale violated the due process clauses of both the Nevada and U.S. Constitutions by extinguishing its property rights without providing notice? The Nevada Supreme Court had previously ruled that paying off the super-priority lien held by an HOA extinguishes all other pre-existing liens, including the original mortgage. In the 9th U.S. Circuit Court of Appeals decision released in August, the appeals court panel said the “opt in” notice requirement in Nevada law violated the constitutional rights of the mortgage lenders. If the appeals court ruling is upheld, the sales could be nullified because of the 9th circuit ruling, restoring the status of the foreclosed homes with the mortgage lenders again holding the priority liens on the properties.

9-16-2016: How Do Real Estate Agents Get Paid?.

9-15-2016: Is fannie Mae and Freddie Mac beginning to play games with relaxing underwriting standards to get more homes sold at the risk of increased foreclosures? Monday Morning Cup of Coffee: Fannie Mae sets official date for using trended credit data.

9-14-2016: Three of the most expensive mistakes Texas homebuyers make.

If passed as is, new EB-5 bill could see RE deals crumble. It would become more expensive to buy an EB-5 visa, but still allow developers to side-step rules to develop in blighted areas and avoid the real intent of developing poorer areas.

9-13-2016: Monday Morning Cup of Coffee: Fannie Mae sets official date for using trended credit data.

9-12-2016: How Bank of America is getting more involved with the home-buying process – Bank of America Real Estate Center. The Bank of America Real Estate Center includes property-search functions, home valuation information, and tools and information related to buying and selling a home.

9-11-2016:

Never forget 9/11 – peace and blessings to all our soldiers, police, fire and first responders – thank you all! May God Bless You!

9-9-2016: Nevada Supreme Court hears case on real estate crisis foreclosure sales.

9-9-2016: The Top Three Questions Sellers Ask – Tracey’s Real Estate Tip Of The Week.

9-8-2016:The Volcker Rule (from the Dodd-Frank BS) is supposed to prevent “commercial bans” from risky securities trading. Yet the major reasons for the recent financial system meltdown was not only the Federal Reserve’s monetary policy, subprime, and liar loans; but also a liquidity crisis due to over leverage and bad mortgages at non banks (i.e., investment capital firms) such as Bear Sterns, Lehman Brothers, AIG, and Merrill Lynch. Leave it again to the federal government to listen to the cause and correct a problem that doesn’t exist.

9-7-2016: Crowdfunding Transforms Real Estaet Investing.9-7-2016:How Overseas Buyers Can Get a Mortgage for a U.S. Home.

9-6-2016: Utah real estate agent gets 6 months in jail over waterless subdivision .

9-2-2016: Many homeowners are now delinquent on their HELOCs (Home Equity lines of credit that normally defer principal payments and allow low payments for 10 years and reset to much higher payments). About 850,000 HELOCs are resetting (payments can increase hundreds of dollars) in 2016 and projections are another one million to reset in 2017. To put the dollar volume in perspective, the average HELOC is around $55,000. However, those with both a 1st mortgage and HELOC are more likely to default. For instance, about 5% of homeowners with a 1st mortgage are underwater…more than 15% of those with 2 mortgages are underwater. WSJ, 8–12-2016, C1.

9-1-2016: CFPB (Consumer Financial Protection Bureau) plans to rewrite rules to require credit collection companies to know more about the debt on which they are trying to collect. To give perspective on size of the debt collection industry, there are about 9,000 businesses with almost $14 Billion in annual revenues. Also, there are approximately 70 million US consumers having a at least one debt in collection. The CFPB also estimates at least 8 million borrowers are in default of total debt of about $110 Billion and that number will probably swell with growing default of student loans. Source: WSJ, 7-28-2016, C2.

8-31-2016:

• About 6% of homes in the US are underwater compared with 17% with 2 or more mortgages. WSJ, 8-12-2016, C2.
• About 33% of millennials polled fear rising home prices are rising or getting too high as biggest issues… see WSJ 8-30-2016, C1
• It’s forecast that spending on home remodeling/improvements will grow faster than new residential construction thru 2019-WSJ, 8-22-2016, A3

8-30-2016: Housing Market: Why Millennials Are Getting Priced Out.

8-29-2016: About 13% of homeowners owe more than the home is worth compared with 31% in 2012. WSJ, 6-20-2016, C8.

8-26-2014: FHA Streamlines Process to help Delinquent Homeowners avoid Foreclosure and remain in their homes. Specifically, FHA will:

• Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months;
• Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their arrearages current versus the previous four-month minimum;
• End the traditional stand-alone Loan Modification option so borrowers can access the FHA-HAMP option, with its greater payment relief, sooner; and
• Eliminate the minimum 12-month delinquency term to qualify for FHA’s special forbearance option. This will allow servicers extend this option to unemployed households sooner in their delinquency.

8-25-2014: Finding the Right Home Inspector.

8-24-2016: U.S. New Home Sales Rise to Highest Level Since 2007.

8-23-2016: Why giving clients straight talk as an agent is beneficial.

8-22-2016:5 Mistakes to Avoid When Selling a Home.

8-18-2016: September interest rate hike could happen, Fed minutes show.

8-17-2016:A home inspection helps you make an informed decision.

8-15-2016: Title Company Sues Realty Firm Over Wire Fraud. Someone spoofed the closing escrow agent email account and sent an email to FATC’s escrow from their email account purporting to be from the Escrow Agent. The email said the Escrow Agent was having problems with his bank, Bank A, and that the funds should be wired to an account at Bank B. Funds were wired, but fraudulent account and offshore….ooops!

8-14-2016: Contractor lien must be cleared before refinancing…and Step #1 – List your house…Step #2 – take a vacation.

8-12-2016: Free FICO scores are given to customers of over 40 lenders including Wells Fargo, Ally Financial, American Express, JP Morgan Chase, and others. WSJ, 8-9-2016,C3.

8-9-2016:How To Become A Real Estate Agent. Rule #1, it’s not as easy as it looks in real life!

8-8-2016: How to Avoid Buying a Money Pit. (Hint: Structural, Roof, HVAC, PLumbing, Electrical, other systems and Landscaping.)

8-7-2016: Federal watchdog expands anti-money laundering disclosure rules for high-end real estate buyers.

8-6-2016: 3 tech trends impacting real estate this year.

8-5-2016:How a Condo Association Could Kill a Sale

8-4-2016:Lawmaker offers new ‘lead-safe’ proposal. Local politician proposes a visual inspection of a property instead of performing a more thorough test for lead based paint in order to be deemed “lead safe” before they could be rented. Kind of like a sniff test – could have lead based paint but who cares, as long as I didn’t “see” LBP.

8-3-2016:The Worst Home-Buying Advice People Actually Believe

8-2-2106: 7 Steps Every Homeowner Should Know About Selling For Top Dollar. Remember, be honest and know thy neighbor’s property value…

8-1-2016: U.S. Pending Home Sales Edged Higher in June by a small percentage and were mixed in areas around the country.

7-30-2016 Jury rules against pastor in consumer real estate fraud case. Home-buying program in Kansas City was a scam – upfront payments on real-estate contracts, then failed to pay back taxes and make repairs that had been promised.

7-23-2016: 7 Easy Tips to Stage Your Home’s Exterior.

7-22-2016: Lawmaker offers new ‘lead-safe’ proposal including allowing initial inspections to be visual, doing away with the proposed requirement that residences would be swabbed with dust wipes and tested for lead paint dust before getting a “lead safe” certificate.

7-21-2016: The pros and cons of buying a brand-new home

7-20-2016: 5 Questions to Ask Before Hiring a Real Estate Agent

7-19-206: Title Company Sues Realty Firm Over Wire Fraud. Moral of story, always call the title agent/closing attorney/escrow office to verify any transfer of funds “before” wire transfer of funds is ordered and executed.

7-13-2016:Florida real estate agents could get protections from crime

7-12-2016: How to get a good real estate deal like a flipper (even if you don’t want to be one).

7-11-2016:How to answer an age-old real estate question – Rent or Buy?

7-10-2016: A good real estate agent: how to find, hire one.

7-9-2016: About Real Estate: Intrafamily loans tricky for new home buyers

7-8-2016: Fannie/Freddie Joint Venture Creeps Forward

7-8-2016: First-Time Buyers: Must-Know Advice Before You Buy

7-7-3026: Banks are pushing home-equity lines of credit which allow homeowners to draw down the equity in their homes . Average credit line credit line in 2015 was 119,007. the big push now is to make up for the falling levels of mortgage origination and refinancing. The use of risen back up to about 5% below their all time peak in 2006. Requiring 20% equity minimum and I are going to Fico scores. Source WSJ-March 28, 2016 C1

7-6-2016:Fannie’s and Freddie’s Plan to Cut Mortgage Balances May Be Near.

7-5-2016: Hackers Perpetrate Wire Transfer Fraud In Real Estate Transactions

7-4-2016:30 tips to get your mortgage approved.

7-3-2016: Finding the Right Mortgage for You.

7-1-2016:The Staying Power of Crowdfunding in Real Estate

6-30-2016: Ex-real estate appraiser sentenced for tax conviction

6-29-2016: 5 things real estate agents wish you wouldn’t do.

6-29-20156-28-2016:How Much Can a Full-Service Real Estate Agent Do to Help Sell Your Home?.

6-27-2016: One of the biggest trade-offs is commuting. buying vs. renting….overspend on a down payment for the house itself and leave themselves without enough money for furnishings and emergency expenses……extremely high long-term price expectations… the most powerful emotional drive at work in a sale is loss aversion—not wanting to sell a home for less than what you paid for it..

6-26-2016: Home builder confidence is rising due to several factors (Source: WSJ,6-22-2016, B2) :

• Slow and steady economic recovery in the US
• modest wageg growth
• positive consumer confidence
• lower unemployment levels
• tight inventory levels; and
• rapid emergence of first time homebuyers

6-25-2016: Obama has requested for 4 billion… Obama has requested $4 billion took accelerate autonomous car technologies. Traffic fatalities increased 9% in 2015…distracted drivers..drunken driving..drowsiness…liability and regulatory confusion prevent self driving car technology to flourish. Source WSJ, 3-14-16, B3

6-25-2016: Let me digress a bit here from Real Estate – But reading the Georgia Natural Gas (GNG) mailer-filler with their latest bill regarding their Automatic Draft policies, Statement #6 caught my attention and made me bust out laughing…

It says…”6. Resolving Errors: If you notify GNG that an error…occurred, GNG will investigate promptly….except…will determine whether an error occurred within ten (10) business days of receiving a notice of the error….if GNS is unable to complete its investigation within ten (10) business days, GNG may take up to forty-five (45) days …to investigate whether an error occurred…”

But I have to remember this policy had to be approved by…wait for it….the Georgia Public Service Commission and Georgia Department of Consumer Affairs…So the State of Georgia is in full compliance that billing errors may take longer to resolve than committing the error in the first place…alot longer!

6-24-2016: The U.S. Housing Market in 9 Charts.

6-24-2016: Buying a Foreclosed Home: Info You Need to Know.

6-24-2016:Would-be homebuyers are stumped: The Wall Street Journal estimate February sales of previously owned homes fell 2.6% from a month earlier. On a year-over-year basis, sales are expected to have risen by about 7%.

6-23-2016: Is it Time to Retire the Real Estate Agent?

6-23-2016:Lack of New Home Construction Is Bad Omen for Buyers (Not enough new inventory).

6-22-2016: Four (4) Reasons to Not Pay Off Your Mortgage Early. However, if you can get better than 4% return on a safe investment, go for it…but with 10 year T-Bills <2% and bank balances paying <1%, eliminating 40% of your monthly cash outflows also makes sense.

6-21-2016:To help public housing residents find jobs and educational opportunities, the U.S. Department of Housing and Urban Development (HUD) today awarded nearly $32 million in grants to public housing authorities and non-profit organizations across the nation to hire or retain service coordinators to help residents achieve economic and housing independence.

6-21-2016: 5 Mortgage Mistakes Homeowners Regret Making

6-20-2016: Which are the top crowdfunding sites for real estate investing?

6-19-2016: In Real Estate, A Picture Is Worth $1,000 or More…probably alot more!

6-18-2016: Banks Are Falling Back in Love With Mortgages

6-18-2016: Millennial buyers are finding their own houses. They feel more comfortable relying on online information and sources, but still require help maneuvering around the details.

6-16-2016: FHFA Authorizes Principal Reduction for GSE Loans.

6-16-2016: Fannie Mae’s new headquarters deemed too fancy for troubled agency.

6-15-2016: What impact do professional sports teams have on immediate and local real estate market?

6-15-2016: How to Create a Pool Maintenance Schedule .

6-15-2016:
Student Debt May Delay Homeownership More Than 5 Years.

6-14-2016: Want to own a home? Say no to student loans.

6-14-2016:10 Mortgage Numbers You’ll Be Glad You Know

6-13-2016: Should you get into real estate crowdfunding?

6-12-2016: Here’s a lesson on earnest money. The amount of the earnest money deposit is negotiated between the buyer and the seller….Without both signature on a release forms, the earnest money cannot be released. If the buyer and seller cannot agree, it becomes a legal matter and attorneys must be retained by the parties to try to resolve the issue…

6-11-2016:3 Tips for Homebuyers in a Fast-Paced Real Estate Market.

6-10-2016: 7 Things Renters Really Should Check on Their Lease & be sure to mark your calendar with important dates.

6-9-2016:Wow, now Facebook is planning to search the internet in order to…get this..find out more data about non-Facebook users so it can…wait for it…send more ads to an unsolicited request! But never fear, because Facebook has all kinds of information on each Facebook user given up at their own volition. Source: WSJ, 6-1-2016, B5B.

6-8-2016: Jumbo loans (in most cases, larger than $417,000), which became increasingly more attractive since their interest rates dropped below non-jumbo mortgages, accounted for about 23% of J.P. Morgan’s total mortgage lending business in 2014. The top 10 US banks accounted for about 10% of jumbo mortgages. Jumbo loans are attractive to large banks for the purposes of avoiding fines and penalties under the 2010 Dodd Frank law which come with federally backed FHA, VA, and Fannie.Freddie backed mortgages. Source: WSJ, 6-2-16, A1.

6-7-2016: Zillow to pay $130M to settle lawsuit with Move over alleged trade secret theft. (Note: Move, who operates Realtor.com (which is the website for the National Association of Realtors), is owned by News Corp.)

6-6-2016: 5 things needed at home to “age” in place and not move after reaching retirement age – no steps; lever handles; switches reachable from chairs; one level; and wide doorways/hallways for wheelchairs. Source: WSJ, 6-6-2016, R4.

6-6-2016: This one keeps me up at night… The same Takata airbags that have been linked to deaths and personal injuries from rupture are…get this…legally permitted to be installed on…new cars…but there’s a silver lining…these same quasi-“defective” air bags will be replaced in “new” cars by 2018. Source: WSJ, 6-2-2016, B3.

6-5-2016: Good news for real estate? S&P/Case-Shiller index is back up to within 4% of 2006 peak before the last housing bubble. Lack of inventory, fewer first time home buyers, and a large influx of high income residents to big cities make it very competitive for lower priced homes. While at the same time, lower income mortgage applicants have a harder time meeting stringent loan guidelines. Source: WSJ, 6-1-2016, A1.

6-3-2016: Solution to pay-day lenders? Why not have your employer float you a small loan? A recent survey found that almost 40% of employees find it difficult to meet monthly household expenses. Some employers are partnering with Kashable, Ziero Financial, and other vendors in not only providing lower cost loans, but budgetary education to correct bad financial behavior. They are also preventing more and more employees from borrowing from their future (i.e., 401K plans). According to the Employee Benefits Research Institute, about 20% of all employees borrow money from their 401K plans. Source: WSJ, 6-1-2016,B5.

6-2-2016:Dear Mom and Dad: Can You Give Me a Mortgage?

5-27-2016: Home improvement investments that pay you back.

5-26-2016: New home sales in the US are skyrocketing.

5-25-2016:It take 5+ years for 18-34 year olds w/o student debt to save 20% down on a home; 10+ yrs for those with debt; homeownership <35 down to 34% (lowest level since 1994); and even though college grads earn $23,000 more than non-college grads, they only save 10% of that extra - they spend more on rent, transportation, and entertainment. Source: WSJ, 5-23-16, A3 5-24-2016:Real estate agents warning buyers of new scam.

5-23-2016: Top 10 cities for singles looking for love and real estate.

5-22-2016: 6 Reasons Real Estate Agents Aren’t Extinct.

5-20-2016:What Happens When a Homeowner Dies Before the Mortgage Is Paid?

5-19-2016:There is NO WAY on this earth that Fannie Mae & Freddie Mac will be released from bondage – it’s too much of a cash cow for the US Government. Also, Fannie Mae reported 1Q16 income at $936 million, from which $919 million will be paid to the US Treasury for dividends. (Source: WSJ, 5-6-16, C8) Any questions as to the Government ever giving up this cash cow? I didn’t think so.

5-18-2016:Making money the old fashioned way – lawsuits – More than 10 large US banks agreed to a settlement of almost $2 Billion to reimburse a handful of hedge funds (about $150 million each) for how they traded credit derivatives after the 2008 financial crisis hit. It doesn’t stop there…there may be up to 14,000 potential eligible participants in the settlement. Source: WSJ, 1-11-2016, C3.

5-17-2016: Real Estate Agents, Appraisers Voice Concerns over FHA Appraisal Policies – with an FHA-insured loan, the appraiser not only determines market value but also inspects the home to ensure it meets certain minimum property standards. Requiring appraisers to take on home inspection-type duties to ensure standards are met.

5-16-2016: Computerized robot beats human real estate brokers.

5-15-2016: Home Builders still confident but higher labor and land costs are concerns.

5-14-2016:Hey – this is a one time review and once it’s done…go out for an ice cream cone and don’t dwell on it…Policies about what happens when a borrower dies can vary widely among lenders, and terms are usually buried in the fine print of mortgage contracts.

5-13-2016: Computerized robot beats human real estate brokers…except when it came down to lying, then agents beat robots every time.

5-12-2016:Seven (7) things homeowners want their homes to have.

5-11-2016:Ever wonder just how much your “stuff” weighs when you determine a household move?

5-10-2016:JP Morgan plans to issue $1.9 Billion in mortgage backed securities comprising of about 6,000 mortgages, 75% are conventional conforming and will only include the riskiest loan elements (which means higher interest rate). US Financial institutions issues about $62 Billion in MBS in 2015 compared to about $1.9 Trillion in MBS just before the financial crisis hit. Source: WSJ, 3-15-2016, C2.

5-9-2016:Home buyers should beware of electronic fraud, say real estate agents

5-8-2016:Millennials set to drive change in real estate market

5-7-2016:Tucker-Northlake Master Development Plan

5-6-2016:Special TRID edition of Borrower Do’s and Don’ts

5-5-2016: During and immediately after the mid 2000’s financial crisis, banks were understating their loan loan loss provisions. The International Journal of Business and Financial Research published a study by Burka Dolar entitled “Income Smoothing Practices of U.S. Banks Around the 2008 Financial Crisis”. The study revealed that during the financial crisis, banks were understating their losses. As a result, the Financial Accounting Standards Board (FASB) is proposing rules to require banks to record loan losses alot quicker than they do now. Source: WSJ, 2-22-2016, C6.

5-4-2016:In some states, trusts can be used as a type of entity that acts much like a corporation in shielding the real owners of the real estate from personal liability…Not in California.

5-3-16:Hackers scam homebuyers by pretending to be real estate agents

4-29-2016: Think Sex Offenders Drive Down Home Prices? Not Necessarily

4-28-2016: Real estate title scams steal homebuyers’ money and dash ownership dreams.

4-28-2016: Some Good News for Real Estate. The number of contracts signed to buy existing homes rose higher than expected.

4-27-2016: Millennial impact on real estate

4-27-2016:Which kind of real estate agent is the right one for you?

4-26-2016:Plenty of blame to go round in real estate crisis in Canada

4-25-2016: Recent survey reveals that real estate is still rated as the best long-term investment by Americans.

4-22-2016:Are single women refraining from buying real estate?

4-21-2016:Appeals Court questions constitutionality of CFPB, attacks Director Cordray

4-19-2016: Here’s Why Investors Continue to Beat Out First-Time Home Buyers

4-19-2016: New U.S. Program to Offer Mortgage Relief to 33,000 Underwater Borrowers.

4-18-2016:Fannie’s and Freddie’s Plan to Cut Mortgage Balances May Be Near

4-15-2016: 4-28-2016: The Florida Homeowners’ Association Act (Chapter 720, Florida Statutes) – permits owners to speak on each point. Does your state or HOA allow you to voice your opinions on each topic discussed?

4-14-2016: Appeals Court questions constitutionality of CFPB, attacks Director Cordray.

4-14-2016: Having HOA Neighbor Knowledge

4-14-2016: Why It’s So Tough to Get a Mortgage—and How to Increase Your Chances.

4-13-2016: Appeals Court questions constitutionality of CFPB, attacks Director Cordray. Big question: How far does CFPB authority reach. More specifically in this case: “Does the CFPB have authority to assess huge $109 million fine when another law judge already assessed a $6+ million judgment?

4-11-2016: The Essentials Checklist for Newly Married Homeowners

4-10-2016: The US Treasury 10 year note (that is used to parallel movement in mortgage interest rates), settled at 1,77% on 4-8-2016. Core consumer price index was 2.3%. This means that the effective rate of growth of the 10 year note is negative.

4-9-2016: About 246 million desktop & laptop computers were sold in 2015, but that was down 11% from previous year. (Not real estate related, but very interesting.) Source: WSJ,4-6-2016,C12

4-8-2016: 1st time homebuyers can be…Landlords?. Not so fast there oh wise one…there’s alot to consider on this one before you jump on this train. Consider the pros and cons first…

4-8-2016: Tight home inventory levels are helping to drive up prices. Typically, there is a 6 month inventory of homes, but currently running about 4 months. Source: WSJ, 3-21-2016, C1

4-7-2016: Why Home Buyers Really Need to Hurry.

4-6-2016:HOA must accommodate religious beliefs.

4-5-2016: Cancer Risk From Lumber Liquidators Laminate Wood Flooring Was Underestimated: Report. This is related to the safety of products manufactured in China. It was questioned by the California Air Resources Board (CARB)and a $2.5 million out of court settlement resulted. WSJ, 3-23-16, B3.

4-4-2016: Things to keep in mind when choosing a home inspector.

4-3-2016: 5 Tax Benefits of Owning a Second Home.

4-1-2016:Foreclosure firms are becoming an endangered species – See more at: http://realtybiznews.com/foreclosure-firms-are-becoming-an-endangered-species/98732507/#sthash.WaT0S25z.dpuf

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.

A proposed rule change to Georgia Real Estate Commission Rules, Chapter 520; Rule 520-2-.04 (6) is up for debate and discussion at the June 8, 2016 GREC meeting in Atlanta which could eliminate Continuing Education Credit for thousands of realtors.

The elimination of the following course design was proposed by the GREC:

10. instruction in the use of technology, computers, or other devices;

Essentially, this means that training courses in the use of computer/online based realtor based property search tools (i.e., listing service training) would no longer receive CE credit for licensees.

If you wish to object to this rule change, you have until close of business on June 7th to furnish your written rationale for such objection to Georgia Real Estate Commission, Suite 1000 International Tower, 229 Peachtree Street, N. E. Atlanta, Georgia 30303. But beware, the GREC meeting is on June 8th, so that’s not alot of time to review your objection(s).

Maybe it will be like “Miracle on 34th Street”…where bags and bags of written objections will be delivered during the Commissioners meeting. No, I seriously doubt that would happen.

By the way, here’s the list of areas or topics of continuing education that may not
be considered appropriate for continuing education include, but are not limited to:

1. the psychology of selling;
2. personality assessments;
3. business development;
4. personal real estate investing;
5. retirement planning;
6. personal or business branding such as dress and presentation techniques;
7. motivational classes or seminars;
8. time management classes;
9. sales and marketing techniques unrelated to real estate;
10. instruction in the use of technology, computers, or other devices; and
11. training in social media;

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.

A recent survey revealed:

“Seven out of every ten homes will experience a system or appliance failure during the course of a year.”

When I started practicing real estate in the 1990’s, despite the “dip tube” fiasco inside water heaters, and based on information from Freddie Mac (A Consumer Home Inspection Kit 12/2000) and other sources, I would notice water heaters lasting 12-13 (and sometimes many more years) years before experiencing problems requiring repair or replacement. For the past several years, my experience with my home and with clients is that I wouldn’t give them any more than 8 years to last- tops!

Also, I used to observe HVAC air condensing units (those outside the home in a protective cover with a compressor, capacitors, freon, and wiring) lasting 13-15 years (and sometimes many more years). Now, I’ve noticed them lasting no more than 10-12 years before you need to repair or replace them. We also now switched to a new “lower pollutant” freon (From R-22…which is getting more rare/expensive… to R410A…which is more expensive since it’s new…) and tried to make systems more energy efficient. And since they are supposed to be “closed systems” (freon cycles from system coils, to condensing unit, back to system coils), why would they ever leak freon??? (Could it really be why one technician once told me that using two different (differing periodic element) metal connections will cause one to corrode/fail next to another???)

I believe you can apply that same experience with clothes washers, clothes dryers, dishwashers, microwave ovens, countertop ovens, etc., since I have seen them last fewer and fewer years in attempts to make them more and more energy efficient…(not to mention the idiocrasy of thinking they save water —or as I refer to “they don’t clean your items as well”—in a closed water filtration system from your local water authority).

Questions:

(1) When do we demand and get better longevity and reliability from household appliances?

(2) Maybe shipping the work overseas has something to do with it?

(3) Don’t we deserve better?

(4) Did the household appliance manufacturers read about the average homeowner staying 7 years in home and implement planned obsolescence?

Maybe the millennials will solve that problem if they now plan to live in a home at least 10 years, they will start to see what I’m talking about after the 6th year of homeownership.

Bottom line word to homeowners: Budget for system replacements early and often…and prewash your dishes to get them clean “before” stacking them in your dishwasher!

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.

To avoid FHA loan denial, you (and your lender) may want to check these circumstances immediately after signing contract (or earlier) to avoid spending money on a home inspection, only to discover the FHA loan you plan to use is denied.

As I understand, new FHA loans for purchases are denied if the following conditions exist (and yes, the lender will require the condo HOA to complete a “condo questionnaire” they send during loan contingency period – you hope):

(1)…..If a condominium complex is not already approved by FHA (as reported on the Approved HUD PUD (i.e., approved Condos) website) and the HOA board abides by HUD rules. (The HOA Board of the Complex itself may, with the approval of its membership, be authorized to submit applications for approval>)

(2)…..<=15% of the total units are delinquent in homeowner association HOA dues; or

(3)…..>=50% of properties within HOA are rented; or

(4)…..The HOA is involved in a lawsuit; or

(5)…..<10% of HOA budget is in reserves, insurance or other requirements to fulfill the FHA guidelines.

Where HOA membership is mandatory in a single family HOA subdivision, if the conditions above (excluding FHA PUD approval) are present, it’s quite possible the FHA loan for a prospective buyer will be denied. That’s why most HOA Conditions, Covenants, and Restrictions (CCRs) provide for rules against the possibility of these issues arising…but it doesn’t mean “all” single family HOAs are exempt.

Some other reasons for denial of FHA loan during my research – HOA Leasing restrictions in CCRs weren’t in compliance; Balance sheet did not show a separate bank account for reserve funds; and there wasn’t evidence provided for proper insurance coverage for HOA or management company.

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.

There may be several terms/words you hear or read in real estate that you may not know what they mean. Check out my Dictionary of Terms used in Real Estate to learn what they mean and suggest other terms you don’t understand.

HUD Publication HUD-383-H(8) – “Home Buyer’s Vocabulary”

Breaking Down Real Estate Terms

TERMS and DEFINITIONS

10-31 Tax Exchange:A method of exchanging “like” real properties to defer capital gains taxes. This method normally results in less debt since the same or larger price of property that is acquired, but normally not very much higher. Currently, US Congress is considering allowing Buyers to expense the entire amount of building but not the land (which normally accounts for about 30% of the total property value).

Abstract (of Title): This is a summary of the public records relating to the title of the property. It could be all the Security Deeds, property and materialsmen liens, easements, and other legitimate claims against the use of the property. The closing attorney and mortgage lender usually review these records to ensure title is clear or to ensure any “defects’ (i.e., claims from other parties) are cleared and clear, marketable, and insurable title can be transferred to the next owner.

Acre: 43,560 square feet or 208.71’(L) x 208.71’(W).

Acceleration Clause: A clause in the mortgage loan that permits the lender to call the entire amount due and payable upon certain conditions or violations. (Examples include loan payments stop or upon of sale of property without informing lender.)

Adjustable Rate Mortgage (ARM): A mortgage loan that normally offers a low “fixed” introductory rate (i.e., low monthly payment to start) for a few periods and then provides for the interest rate to change at specific intervals during the term of the loan. The rate is normally tied to an index like the One Year US Treasury Bill, LIBOR rate or PRIME interest rate. CAUTION: You need to understand the impact on monthly payments – they could run hundreds of dollars per month higher than the introductory monthly amount. Borrowers who know they will only be in the property for a short period of time choose this option to keep payments low and then sell before the adjustable rate kicks in.

Agency Every relationship in which a real estate broker acts for or represents another by the latter’s express authority in a real property transaction.

Amortize: The act of paying off a loan over time to a balance of zero. Your “amortization” schedule for your mortgage on your home simply demonstrates where your monthly payment goes over time and how much of each payment goes toward principal and interest over time. Ask your lender to prepare one for you to see how many years it take to start paying over half your loan balance. Over 30 years, it takes more than 20 years before you start paying over half your mortgage since mortgage loans “front load” your interest.

Appraisal: Valuation of market value by a professional appraiser using standards/guidelines for the local and national real estate industry. The appraisal is critical information used by the lender to confirm/determine loan amounts. NOTE: Under the current environment, appraisers are more sensitive to fluctuating market prices and restrictions on subjective quality factors that were used before.

Back End Ratio: In short, it’s your annual gross income less long term debt (I.e., car loans, student loans, usually not credit card balances, etc,.) divide by your gross annual income.

Balloon Mortgage: Usually fixed monthly payments for a period of years (normally in 3,5, or 7 years) based on a 30 year loan and a lump sum balance is then due at the end of that period.

Balloon Payment: The final payment of a mortgage, usually a large lump sum, which pays off the remainder of the loan amount. Example: Monthly payments of $1,000 per month for 5 years and then a $50,000 lump sum (Balloon) payment.

Brokerage engagement A written contract wherein the seller, buyer, landlord, or tenant becomes the client of the broker and promises to pay the broker a valuable consideration or agrees that the real estate broker may receive a valuable consideration from another in consideration of the broker’s producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the property or in consideration of the broker’s performing property management services or performing community association management services. Such contracts or agreements as an exclusive listing contract, an open listing contract, a buyer broker agreement, a property management agreement, a community association management agreement, and an exclusive tenant representation contract are examples of brokerage engagements;

Builder Warranty: The builder offers home buyers peace of mind that he/she will come back and try to repair any major structural or system defects. Normally, written guidelines determine what is considered a defect and what repairs will be attempted. Many builders will have a period of time (e.g., 10 months after purchase) that they will return to repair known type repairs of house settlement and normal adjustments.

Buyer Broker/Buyer Agent: Agent hired by the Buyer that represents their best interests in finding a property, negotiating a contract, and all other aspects of the home buying transaction.

CAPS: Amount of rate that can change that is limited each time period and overall. CAPS are listed in X/X format where the first X is the maximum annual rate increase and the second X reflects the total increase over the life of the loan. Under an X/X/X format, the first X reflects maximum rate increase of first adjustment, second X is maximum increase under the next adjustment, and third X reflects maximum rate increase over life of the loan.

Certificate of Occupancy (CO): The local government issues this document that allows the home to be occupied once the builder has satisfied the building inspector’s review of local building codes. WARNING: This inspection is not to be relied upon or considered a thorough home inspection.

Closing: This just refers to when you meet with the closing attorney to sign a lot of papers reflecting the transfer of ownership from the seller to you and your commitment to paying off the loan. Basically, this is where you bring your down payment money and agree to pay on the loan and then you get the house in exchange. The HUD-1 and a lot of other standardized forms and documents are signed here and you understand that if you don’t make payments on the loan, you don’t get to keep the house.

Closing Attorney: An attorney trained and licensed to close loans for lenders. You may also hire one to review your real estate transaction. NOTE: At a loan losing, they do not represent the seller or buyer, but they represent the Lender’s best interests.

Closing Costs: Costs necessary to close the loan. They include expenditures like your lender’s loan origination fee, underwriting fees, property survey, appraisal fee, credit report, attorney fees, title insurance, recording fees, and any incidental expenses incurred by the lender or attorney. Closing costs (including prepaids/escrows) normally run anywhere from 2.0-3.5% of the amount of your loan. Other expenses to consider are: YOUR Title Insurance coverage; Flood Insurance coverage (if you’re in a flood zone); and PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premium) that may or may not be required at closing or rolled into the loan.
Here is a Zillow blog post regarding closing costs

Closing Disclosure(CD): This form has replaced the HUD-1 Settlement Statement for all residential purchases that involve a mortgage loan from a licensed lender or mortgage company. A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. This three-day window allows you time to compare your final terms and costs to those estimated in the Loan Estimate that you previously received from the lender. The three days also gives you time to ask your lender any questions before you go to the closing table.

Cloud On Title: An unresolved claim or encumbrance negatively affecting the marketability of the real property.

Condominium: This isn’t a style of building, but a form o ownership. This form of ownership means that you share financial responsibility with other owners in the care, insurance, and maintenance of common areas such as parking lot, gates, fitness centers, playground/pool area, walkways, and exterior building maintenance and landscaping.

Contingency Clause: Provisions in a real estate contract that protect either the Buyer’s or Seller’s interest by providing for a critical condition of sale to be satisfied, or else the contract may be terminated.

Conventional Mortgage: A type of mortgage not insured by any Government Agency (Federal Housing Authority (FHA) or Department of Veterans Affairs (VA)), and normally requires a larger minimum down payment than Federally Insured Loans (between 5% – 20% of the price). (Note: HUD homes may be purchased with conventional mortgages.)

Convertible Arm: A type of mortgage which starts out as an adjustable rate loan, but then converts to a fixed mortgage loan within a period of time giving the borrower flexibility when income will be higher years down the road.

Deal Agent: An independent firm or company that is designed to look out for the interest of investors as a (mortgage) bond is administered. The Deal agent would enforce the terms of a mortgage bond and have the power to negotiate changes to bond terms if and when needed. Bond issuers and investors will need to agree on who will be the bond agent.

Deed: A type of legal document evidencing transfer of ownership in a real property. The different levels of deeds from a General to a Limited to a Specific Warranty Deed to a Quit Claim Deed (transfers whatever interest the Seller has in the property) offer regressive levels of defense protection by former owners if challenged for right of ownership. Consult your real estate attorney for the differences and to discuss what form of deed will be transferred to you at your closing.

Deficiency Judgment If your short sale or foreclosure sale price is less than the amount remaining on your mortgage (or total lender losses exist including real estate commissions or other unexpected costs) you might still owe your mortgage lender money after the sale. This is determined a ‘deficiency” but a court may order a “deficiency judgment” lien in which the creditor may also have an interest in any personal property that you owned up through the time it filed the judgment lien including jewelry, equipment, business assets, art, antiques, electronics, and any other valuables. It is best advised to read your loan paperwork for such terminology to understand your responsibility. See more on Deficiency Judgments.

Discount Points: This simply means your lender would allow you to pay an extra amount of money at closing to “BUY DOWN” (i.e. reduce) your mortgage interest rate. Typically, the amount you would pay equals 1% of the loan amount which would equate to one “DISCOUNT POINT” or 1% reduction in the interest rate. However, sometimes the first “discount point” you pay is less and only reduces the rate a fraction of 1%, but the savings still adds up over time, so you need clear numbers of the savings v. costs of discount point. NOTE: The Neighborhood Assistance Corporation of America (NACA) will allow all negotiated closing costs to be applied toward Discount Points thereby lowering interest rates to significantly low interest rates.

Earnest Money:Funds provided up front with an offer to purchase a real property that represents the seriousness of Buyer’s intent to buy the property and is normally held in the real estate broker’s escrow account (a) until closing or (b) until it is released to the party who has legal claim to it. It may become part of the Buyer’s down payment at closing, be refunded to the Buyer, or is dispersed to the Seller as liquidated damages for contract termination depending on contractual terms.

Easement: This simply is an area on a real property that grants access to someone besides the home owner. A majority of easements are utility easemens t are granted to utility (water, sewer, gas, cable, or electric) departments/providers for utilities running underground. Another easement could be granted to a neighbor who needs to drive onto your real property to acces their property.

Equity: This is “your” ownership interest balance in your property after deducting the principal amount of your loan by the portion of all your previous monthly mortgage payments that was paid toward reducing your principal mortgage balance. It’s important to determine when selling your home how much of that “equity” you will actually get back after your sale.

Escrow Account: There are 2 types of Escrow Accounts – (1) Normally a specific checking account dedicated only for your earnest money deposits in your contract when you purchase a property. State laws govern that these funds “must not” be commingled in regular Brokerage checking accounts, but held in a separate Escrow Account by the Broker holding such funds; and (2) Escrow at your property closing will mean where certain portions of your monthly mortgage payment will be held – see “Prepaids/Escrows” in the definition further down this list.

Escrow Analysis: Analysis performed by the servicer, normally each year, to ensure they are collecting and holding a sufficient Borrower funds from their monthly mortgage payments, not excessive, cushion to cover annual property tax and homeowner’s insurance bills. (Note: Be sure to follow up with your lender each year to verify they have performed an escrow analysis in case your property taxes or homeowner’s insurance amounts are reduced enough that they should remit to you “excess” funds exceeding an appropriate cushion in your accounts.)

Federal Reserve” discount” rate: Interest rate that is set by the Federal Open Market Committee (12 FR Presidents & FR Governors) for banks to borrow money from other banks in the Federal Reserve System/Network. This rate more closely impacts mortgage rates by affecting consumer liquidity.

Federal Reserve “funds” rate: Interest rate the Federal Reserve sets to allow banks borrow money from other banks in the Federal Reserve System. Lowering the Federal Reserve discount rate is normally seen as a measure to improve bank liquidity in a slow economy.

FHA Mortgage: An entire mortgage that is insured against loss by the U.S. Department of Housing and Urban Development (HUD) and requires a down payment from 3-5%.

Five (5) year adjustable: Mortgage where interest rate changes every 5 years based on an index (Prime Rate; LIBOR; etc,.) plus a specified margin.

Fixed Rate Mortgage: Most of these mortgages with 15 or 30 year maturity (sometimes longer) where interest rate is fixed for the entire duration of the loan.

Fixed Rate Mortgage: A mortgage rate where the interest rate is fixed over the duration of your loan.

Good Faith Estimate (GFE): Generally a form you get from the lender you choose to get a loan from that outlines your interest rate; monthly mortgage payment; total estimated closing costs; and total estimated amount to bring to closing. RESPA requires the lender to provide the Borrower a GFE within 3 business days of applying for a loan.

Home Equity Line of Credit (HELOC): A variable rate loan tied to the prime rate and establishes a “line of credit” against a maximum amount (of the homeowner’s equity) and gives borrower quick access to cash.

Home Inspection: A private inspector, normally under certification from CABO/ASHI, that spends 2-3 hours at a home testing and inspecting for defects, functionality, operation, and possible problems and future repairs. There are normally a set of guidelines (i.e., building codes) that the inspector uses to evaluate whether or not the area/system of the house meets that guideline, and writes a report (including photos) to use to negotiate with seller for repairs.

Home Warranty: For used houses, the builder warranty is normally expired. There are private companies that offer assistance to locate plumbers, electricians, HVAC services, and other home services for you if you purchase a home warranty. The home warranty normally covers a period of 12 months and can cost almost $500 per year.

Homeowner’s Association (HOA): A group of homeowners that establish and enforce guidelines to preserve the quality look of the neighborhood and common areas/elements like pool, playground, and exterior of all homes.

Homeowner’s (Hazard) Insurance: Insurance against loss of your home and its contents due to burglary, flood, fire, wind or other provision of the insurance policy, or liability in case someone is injured on or damages your property. NOTE: Insurers and policies differ so please evaluate apples to apples of coverage and what their performance is when paying claims.

HOA CCRs (Conditions, Covenants, and Restrictions): This is a set of rules of which you must comply as a condition of home ownership in the community. The CCRs usually establish Board Member election guidelines; power of the Board members; and guidelines on what is and isn’t acceptable on the exterior of your home and in your yard. Pros: Ensures look of community is retained and kept maintained. Con: Restricts exterior house colors; fence styles; and items you can place in the yard.

HUD-1 (Settlement Statement): This document has been replaced by the Closing Disclosure form mentioned previously, but is still used when cash sales of real estate are closed.

HUD-1 EXAMPLE – This is a standard form used at all residential real estate transaction closings that itemizes all Buyer and Seller closing costs, the total amount due at closing from the Buyer, the total amount of proceeds to Sellers, and serves as the official evidence of transfer of ownership until the Warranty Deed is recorded in the local real estate office.

Index: Floating index tied to mortgage loans normally using either the one year Treasury Constant Maturity Yield or the LIBOR index.

Interest only Loans: Monthly payment covers only interest with the amount of principal adding to the loan for a number of years up to perhaps 10. (See Pros and Cons about Interest Only Loans)

Intangibles Tax: This is a closing cost and a state charge of $1.50 per whole or partial $500 of “new” mortgage loan generated in the state of Georgia. Again, I’m not sure what this finances at the state level other than monitoring the real estate or mortgage industry.

Interest Rate Lock: Lender usually “locks” or “guarantees” the interest rate quoted for only a specific number of days…normally 30 days…without a charge. After this period expires, the rate may fluctuate unless you pay extra to lock the rate for more than the initial period.

Investment Property: A real property purchased by an investor who plans to either (a) renovate/repair and place it back on the housing market in a short period of time, or (b) repair/renovate portions of the property and rent it for a period of time, until such time the sale of it will generate a desired return on investment.

Lender Inspection Fee: Normally the lender needs to make sure all repairs or a new home is finished with construction after closing your mortgage. This is the fee to have the representative visit the property to make sure all repairs/construction has been completed and any “hold-back of closing proceeds” can be released to the contractor and/or the homeowner.

LIBOR (London Interbank Offered Rate): The rate that international banks charge each other on large loans. This rate has been known to fluctuate and increase faster than the rate of U.S. Treasury 10 year bonds that U.S. mortgage rates parallel. Therefore, they are more volatile in Adjustable Rate Mortgages.

Loan Origination Fees: Fees charged by your lender to process the mortgage application, but may not include the processing, application, or other fees the lender charges to make the loan. Traditionally it has been 1% of the loan amount itself. Please compare these charges along with lender processing, application, and all other fees between lenders when selecting your lender.

Margin: The number of percentage points added to the index on adjustable mortgages.

Material Facts: Facts that one party of real estate transaction (usually the Buyer) doesn’t know or can reasonably discover and would want to know before executing the transaction.

Ministerial Duties: Acts performed by real estae agents that do not require broker’s professional judgment or skill. Examples include: providing real estate forms; prepare contracts; locating contractors, inspectors, and other professionals.

Mortgage: The legal document which pledges your home to the lender in exchange for your loan as “security” for your repayment of the loan. Often this is evidenced by a “Security Deed” which is represented by a “lien” against your property in order to satisfy the debt (i.e., mortgage) and reflects the lender’s rights to foreclose, take legal possession the property, and sell it to pay for the remaining loan balance and any other expense incurred in the foreclosure process.

Mortgage Broker: Generally, organizations that have relationships with the actual financial institutions that have the funds to lend. They do not lend to you directly, but do charge a fee to you to get a loan from a number of wholesalers/other investors but doesn’t service the loan (i.e., collect mortgage payments).

Mortgage Insurance: Insurance for mortgage lenders in case of mortgage default (i.e., foreclosure). A portion of the loan (usually anything above 80% original LTV) is insured either by the US Government (on FHA, VA, or USDA loans) or a private mortgage insurer (Conventional or non-Government insured loans). On FHA loans, it consists of an up-front lump sum and monthly payments over the “entire” (i.e., never expires) life of an FHA loan. On conventional loans, it is a monthly payment until the equity value of your home reaches 78% of the original loan balance. This insurance is required by lenders to insure loans greater than 80% of the sale price (due to higher probability of foreclosure). If the home forecloses, the remaining lender balance is paid.

Mortgage Interest: In addition to being the daily cost of getting your mortgage, it is accrued and paid in arrears…so you live in your home for a month and pay the interest for the previous month. It is charged to you at closing for the day of your closing and any other day left in the calendar month, but then your mortgage payment skips to the 2nd month after closing. (i.e., Close July 28th, you pay 4 day of interest at closing and your first monthly mortgage payment is due September 1st.)

Option ARM: Adjustable rate loans allow for a fixed period of time (1,3,5 years) a low payment based on interest only or no interest and accrue balance – very risky and for sophisticated borrowers.

Origination Fee: Percentage of loan amount usually charged by the lender as a cost to process the loan paperwork & follow through to underwriter and then to closing. (Note: Part of your lender closing costs.)

Points: Percentage of the loan amount – Each point is 1/100th of the loan amount. (Ex: $1,000 = 1 point of a $100,000 loan.)

Prepaids/Escrows: Accounts are established by the lender to collect upfront charges for your annual property taxes and homeowner’s insurance, as well as the daily interest charges for the day of closing through to the end of the month. Your monthly mortgage payment will include 1/12th of your estimated annual property taxes and homeowner’s insurance. At closing, expect to pay one full year of homeowner’s insurance and 2-3 additional months of insurance to start the escrow account.

Pre-qualification: Low level of loan qualification from a lender normally based on simple income and expense numbers provided over a 1st time phone call to the lender. It normally always is conditioned upon the borrower providing factual evidence of information. Because no “factual” data has been furnished to the lender, this type of qualification doesn’t provide alot of confidence if you submit offer and another competitive offer.

Pre-approval: High level of loan qualification from a lender that is normally based on actual documentation like W-2 statements, bank statements, and data that provides a clearer picture of financial ability to purchase the home. It also shows you are a serious buyer to have yourself qualified and ready to go. Another benefit, once you do find a home, you don’t need to run through a lengthy pre-qualification process and waste time during a Due Diligence period under the contract and then find time you have a qualification problem. And that could prohibit you from getting your earnest money back once the Due Diligence period ends, or past the expiration date of the Finance Contingency period.

Property Taxes: Local governments appraise real property, apply the 40% state assessment rate, and then apply a tax rate to the assessed value to determine how much property tax you pay. The government’s appraised value normally has no bearing on current market value. NOTE: Under current environment of property values falling nationwide, many homeowners are upset to pay taxes on values exceeding current market values.

Prepayment penalty: Some investors provide money in exchange for a certain return over a certain period of time. Therefore, certain home loans carry a provision that charges a fee (sometimes in the thousands of dollars) to pay off a loan early (i.e., before the term expires) so the investor earns a minimum return on their investment. WARNING: Always confirm in writing before you agree to the loan if there is a prepayment penalty and stay away from these loans unless you are willing to assume the risk.

Real Estate Settlement & Procedures Act (RESPA):

RESPA DETAILS HERE In 1974, US Congress passed a law that standardized real estate settlement that established the HUD-1 Settlement Statement; required escrow rules; disclosure requirements; closing cost estimates; and generally governed a more fair practice of mortgage lenders.

Refinance: This occurs when you payoff your existing mortgage with another mortgage and usually at a lower interest rate.

Servicer: A company who specializes in collection of the monthly mortgage payments from the borrower, pay the borrower’s property taxes and homeowner’s insurance, and managing the two escrow accounts to ensure (a) payments are made for all expenses on time and (b) perform an annual Escrow Analysis.

Security Deed: This is your “mortgage” or the “lien” document which represents a “lien” against your property in order to satisfy the debt (i.e., mortgage) and reflects the lender’s rights to foreclose, take legal possession the property, and sell it to pay for the remaining loan balance and any other expense incurred in the foreclosure process.

Shadow Inventory: This simply means housing units that would ordinarily be for sale, but aren’t yet on the market unless certain conditions were met. For instance, homes that home owners plan to sell, and may even be making repairs or updates to prepare them for sale, but do not place them on the market yet. This also includes bank owned or foreclosed properties that are still under the control of the bank, yet are not formally listed for sale in the marketplace. Or even perhaps those properties of which the homeowners are delinquent on their mortgage with no intention of making payments and in some stage of foreclosure or seeking short sale approval.

Short Sale: When a Seller is in a position (job loss, major illness, bankruptcy, etc,) that requires the sale of real property and the net proceeds will not be sufficient (i.e., will be short) to pay the remaining balance of the mortgage(s), the bank(s) involved need to agree to sell the real property at a negotiated price that causes the mortgage to be short. (See Deficiency Judgment)

Survey: A formal measurement of the boundaries of a property that also indicates any easements, encroachments, or right-of-ways. Traditionally, lenders have required a survey on new properties or properties of unusual shapes or sizes. In the past several years, if the property is a resale in an established subdivision, or the loan is a conventional type loan, then the lender doesn’t require a survey. However, it doesn’t preclude you to get a survey in case you plan to install a fence or just want to know where your property lines exist.

Tax Service Fee: If the lender establishes an escrow to collect for payment of property taxes, most lenders work through a tax service company to receive tax information on property directly with each county or through the tax service company’s computer database.

Title: Documented evidence a person/organization has rightful ownership of the property. This simply means the “rights of ownership” and is perfectly outlined in the Warranty Deed (designating the type of claim you have on property and the level of which previous owners will help you defend title challenges) filed on the property, but could also represent any other legitimate claims against the property such as utility easements, Security Deed (mortgage claim), etc,.

Title Examination (Search) Fee: This fee is charged by the closing attorney and is normally for someone to perform an examination of the “chain-of-title” on the property being purchased to ensure the Buyer is receiving clean and marketable title. Normally lenders want to make sure the title is good, but if you’re paying all cash and no loan is involved, the Buyer needs to have the title examined to ensure it’s a good one and I also recommend purchasing Owner’s title insurance.

Title Insurance: Insurance to protect the owner and lender from legal challenges to the property’s title. Generally, a closing attorney will investigate the Chain of Title to a property and determine if the Seller has “clean title” allowing the legal transfer of title to a Buyer. At times, due to recording errors, fraud and other reasons, clear title to a property may not legally exit by the Seller thereby resulting in the Buyer losing the property. Buyers may want to purchase this insurance to cover their down payment and their legal expenses challenging title claims in case they lose the home because real owner reclaims property. (This has happened more than once.)

Title Insurance Binder: Title insurance actually isn’t written at the closing table, but a final “binding” insurance policy is written after the warranty and security deeds get recorded in the county records and get returned to the closing attorney.

Transfer tax: Part of closing costs – In Georgia, it is a $1 per $1,000 of sales price. I’m not sure what the state does with the funds – maybe offset the costs of investigating and monitoring mortgage lenders in Georgia.

Underwriting: The process of a lender evaluating the property itself and both credit and ability of Borrower to pay mortgage with the objective of approving the Borrowers loan.

Uniform Residential Loan Application: A standard mortgage application used to complete all Borrower’s personal and financial information to apply for a mortgage. It asks for Borrower’s income, assets and liabilities.

VA Mortgage Loan: A mortgage guaranteed by the Department of Veterans Affairs against loss to lender, made through a private lender. (Note: HUD homes may be purchased with a VA loan.)

Yield Spread Premium (YSP): Mortgages with rates below what was quoted to a borrrower were be acquired at the lower rate and the difference in rates annuitized to current value is the premium that some lenders made in their other pockets. Old rules didn’t require this to be disclosed on the Settlement Statement unless another lender provided the lower rate loan. This YSP is pretty rare these days.

Zoning Ordinances:Regulations/rules/building codes, issued by local governmental authorities, governing the general category of property usage and what are acceptable behavior and practices within that category.

Have you heard of a term, word, or phrase that isn’t listed here? If so, please let me know and help you define it and determine its importance in your search or real estate transaction.

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.

A good way to think about residential building codes is:

They all mostly stem from obvious or actual problems encountered by home owners and caused by builders, general or special contractors.

Another way to think about building codes is:

Many builders proudly hail that they “build to all building codes.” But all Residential Building Codes are basically the “minimum” building standards for the State or Local authority and are required even though the City/County inspector won’t verify the builder is in compliance with ALL codes.

Also, think about who is responsible:

Even though there may be city or county inspectors, they really are often times eiher overworked in the summer or don’t spend alot of time inspecting every inch of the home while under construction and have NO responsibility. What recourse do you have if a builder doesn’t build to all building codes and they still are issued a Certificate of Occupancy (COO)? None! Therefore, it is very important to hire your own home inspector to perform a “code” inspection of the home while under construction. This will ensure there are a set of educated eyes on what should be done in certain structural or framing areas before sheetrock and flooring get installed and hide any problems.

Question: Are current building codes applicable for older properties?

Answer: No – it depends on when the home was built and the codes in effect at that time. Therefore, if current code requires low flow toilets, they aren’t required “unless” the local government authority (city/county/water service) requires it.

The International Code Council is an association of several code development organizations gathered to standardize all residential and commercial building codes around the world. It is dedicated to developing model codes and standards used in the design, build and compliance process to construct safe, sustainable, affordable and resilient structures. Most U.S. communities and many global markets choose the International Codes. The I-Codes are a complete set of comprehensive, coordinated building safety and fire prevention codes. Building codes benefit public safety and support the industry’s need for one set of codes without regional limitations.

The following building codes were in effect (and therefore applicable to residential buildings) between 1991 and 2004:

On and after October 1, 1991 (up to July 1, 2004), “state minimum standard codes” means the following codes:

1. Standard Building Code (SBCCI – Southern Building Code Congress International, Inc.); (MANDATORY)
2. National Electrical Code as published by the National Fire Protection Association; (MANDATORY)
3. Standard Gas Code (SBCCI); (MANDATORY)
4. Standard Mechanical Code (SBCCI); (MANDATORY)
5. Georgia State Plumbing Code or the Standard Plumbing Code (SBCCI); (MANDATORY)
6. Council of American Building Officials (CABO) One- and Two-Family Dwelling Code, with the exception of Part V — Plumbing (Chapters 20-25) of said code; (MANDATORY)
7. Georgia State Energy Code for Buildings as adopted by the State Building Administrative Board pursuant to an Act approved April 10, 1978 (Ga. L. 1978, p. 2212), as such code exists on September 30, 1991; (MANDATORY)
8. Standard Fire Prevention Code (SBCCI); (MANDATORY)
9. Standard Housing Code (SBCCI); (OPTIONAL)
10. Standard Amusement Device Code (SBCCI); (OPTIONAL)
11. Excavation and Grading Code (SBCCI); (OPTIONAL)
12. Standard Existing Buildings Code (SBCCI); (OPTIONAL)
13. Standard Swimming Pool Code (SBCCI); and (OPTIONAL)
14. Standard Unsafe Building Abatement Code (SBCCI). (OPTIONAL)

The following International Building Codes (i.e., “state minimum standard codes” ) were in effect since July 1, 2004:

1. International Building Code (ICC);
2. National Electrical Code (NFPA);
3. International Fuel Gas Code (ICC);
4. International Mechanical Code (ICC);
5. International Plumbing Code (ICC);
6. International Residential Code for One- and Two-Family Dwellings (ICC);
7. International Energy Conservation Code (ICC);
8. International Fire Code (ICC);
9. International Existing Building Code (ICC);
10. International Property Maintenance Code (ICC); and
11. Any other codes deemed appropriate by the board for the safety and welfare of Georgia’s citizens.

It is important to note that since Georgia Law give the “mandatory” building codes (building, electrical, gas, mechanical, plumbing, CABO, energy, and fire codes) above statewide applicability, local governments do not have to adopt them specifically. Local governments can exercise the right to choose which “permissive” (i.e., the remaining) codes they will enforce locally (interesting?).

The Georgia Department of Community Affairs maintains the Georgia State Minimum building codes.

My prediction:

some will buy…some will sell…some will not buy or sell….interest rates will change….big money investors will win…small money homeowners won’t…over 95% of home buyers will use an agent…less than 10% of those buyers will use an Exclusive Buyer Agent…people will still burn gas driving around to find homes, they start to realize more than just price and location are important factors that play a role in selection, and a few people, given the luck and fortune of factors beyond their control, will come out fine while the majority of homeowners will continue to watch values fluctuate….there, does that about cover a valid predictive model?

In other words, it all depends….on localized market you are looking – on employment – income growth – US and world economies – student debt – immigration – economic policy – and many other factors beyond anyone’s guess…

But here are a few of the many other higher paid, more sophisticated bull-crap predictions you will probably see out there:

Update 1-9-2016: The real estate market in 2016 will largely be like 2015

Update: 12-31-2015: Hot markets will cool, more people will buy multi family units, baby boomers likely to downsize, and millenials start buying?

Home Buying Predictions for a New Year

Predictions for the 2016 housing market

How the Rate Hike Could Impact the Real Estate Sector

What to watch for in 2016 real estate markets

What makes real estate experts happy (or worried) about 2016

8 Surprising Predictors of Housing Prices

CoreLogic’s 2016 real estaet predictions.