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Written by Clyde Rowland
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May 12, 2009 at 04:12 PM |
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The government today gave the green light to the financing of bridge loans of up to $8,000 to first time home buyers who qualify for tax credits under the Obama Administration's economic stimulus plan. The new mortgagee letter stipulates that government agencies, non-profits and FHA-approved lenders can give advances on the tax credits. Housing secretary Shaun Donovan told a national Realtor group Tuesday that, "We want to enable FHA consumers to access the tax credit funds when they close on their home loans so that cash can be used as a down payment." The mortgagee letter is now available online but more details are to follow.
One of my pet peeves with the replacement of the down payment assistance program with the tax credit program has been the fact that if you have enough money to make the down payment and wait to get it back from your tax return you really didn't need the assistance anyway. I feel this will help because states are starting to front the down payment money for the buyer and get their money back from the tax return.
The only thing I see about the program that worries me is it makes too much sense. The government helps with the down payment and doesn't pay billions to giant corporations for nothing. Meanwhile the program helps first time home buyers buy a home, helps the real estate industry, and helps all the supporting related housing industries, and our grand children won't have to pay the money back. Finally I can say, "Only in America"
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Written by Clyde Rowland
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Apr 24, 2009 at 01:12 PM |
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Consumer advisory: Avoid Chinese drywall scammers
TALLAHASSEE, Fla. – April 24, 2009 – In every crisis, a handful of unsavory characters will take advantage of worried homeowners. Yesterday, Florida Attorney General Bill McCollum issued a consumer advisory against “experts” offering help with Chinese drywall problems.
At least two types of fraudulent activity involving the defective drywall have been reported to the Florida Attorney General Bill McCollum’s Office by individuals in the building industry: bogus tests to determine the presence of the product and quick cure remedies that falsely claim to remove the corrosive properties of the drywall.
According to reports, defective Chinese drywall in a home causes black corrosion to appear on copper air conditioner coils and non-insulated copper wiring. If the air conditioner coils are corroded black, there is a strong likelihood that defective imported drywall is present in the home. Most homes that contain defective imported drywall were built between 2004 and 2008. Other homes probably do not have Chinese drywall.
McCollum says there are two easy ways to find out if defective Chinese drywall was used in a home: Ask the homebuilder or have a qualified professional air conditioner technician conduct a visual inspection.
However, the presence of defective imported drywall cannot be determined by “testing” the air in the home. Additionally, if the toxic version of drywall is found during a visual inspection, it cannot be remedied with a spray or an ozone generator. McCollum says those products can actually make the problem worse.
The Florida Attorney General’s Office has had the following specific complaints so far:
• Sale of bogus test kits. These can be expensive, often costing thousands of dollars, and are generally ineffective. The presence of defective imported drywall can only be determined through visual inspection.
• Solicited home inspections costing thousands of dollars by “experts” with no apparent qualification. Homeowners should beware of cold calls and door-to-door solicitors.
• Sale of sprays and applications that claim to miraculously cure the corrosion problem. Not only are these products ineffective, but moisture could accelerate the corrosion.
• Sale of ozone generators. Ozone will actually increase the chemical reaction between the drywall and copper and accelerate corrosion.
Consumers can file a complaint about scams by calling the Attorney General’s fraud hotline at (866) 966-7226 or by filing a complaint online at http://myfloridalegal.com.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
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Written by Clyde Rowland
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Apr 15, 2009 at 01:28 PM |
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I would like for each and every one of us to invite everyone we know in the real estate, mortgage, credit, construction, and anyone with a creative mind to join us here. We have a housing crisis and it is going to fall on our industry to correct the problem. The government throwing money at the big banks isn’t going to do it.
Some of the suggestions I have are:
#1
FHA 203K rehab loans. If you are not familiar with this program you need to be. Investors will only pay wholesale for a property. They will then fix it up and sell it at a profit. That is why they are called investors, they invest for a profit.
How about if we find a distressed property that can be bought right. The first time buyer can’t buy it because they can barely make the down payment and we, as lenders, won’t loan on damaged houses. This is a perfect client for a 203K rehab loan. The buyer buys the property at the distressed price. Lenders make the FHA Rehab loan and the buyer either fixes up the property or has a builder fix it up for them. The house is appraised at repaired value but purchased at distressed value plus repairs.
At closing the first time buyer has a house with equity, remember equity? It was a good thing.
#2
Selling the existing properties and getting them repaired and occupied does many positive things for the community.
* It converts a non taxpaying property into a taxable property.
* Home Owners always take more pride in their homes than a renter.
* Lowering existing inventory can help stabilize the housing price values.
* Repairing houses doesn’t come in a spray can or from China. American workers can be working again and off the unemployment rolls.
* This is not a government bailout. This is a legitimate FHA mortgage program designed to help promote home ownership rather than government handouts.
Here is the challenge. I already know I am the nicest, best looking, and most wonderful guy in America. If no one can top this and come up with any better ideas and solutions to our problems then I might get a big head. Trust me, no one wants an arrogant Clyde. So I will personally buy anyone that can top these ideas a 2 for $2.00 special at the fast food restaurant of their choice. I would buy you a huge dinner with champagne in Hawaii overlooking the Pacific but we are in a recession and we all need to tighten our belts and conserve. We also don’t have the time for long lavish vacations because we have to work to solve this problem. We didn’t get the big bonus from the government or had you forgotten?
I have put up a new website and limited it to the REO Industry and real estate, lending, credit and construction fields but I should add non-profit agencies are welcome as well. This is the time for you to step up as well. We need your assistance with credit counseling and down payment assistance and oversight. The new site is www.REOlendersolution.com.
I sure can use your help and I promise you I am good for not only the $2.00, I will pay the appropriate sales tax.
Oh, by the way, for the slower members of our industry, that was the gauntlet being thrown. Can you pick it up?
Help me, help you, help them, help us. Just help someone please.
Clyde Rowland
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