The Federal Trade Commission announced in July that it will not be enforcing most of the provisions of the Mortgage Assistance Relief Services Rule (also known as the MARS Rule) against real estate brokers and their agents who work with lenders and/or servicers to obtain short sales for their clients.
The heart of the MARS Rule is that companies who offer mortgage relief services to the consumer must disclose certian information about the services they provide, refrain from collecting advance fees, etc. With this decision, the FTC would no longer enforce these provisions in certain limited circumstances enumerated above. However, real estate professionals working with consumers to obtain short sales would still be subject to the MARS Rule ban on mirepresentations.
To read the full press release from the Federal Trade Commission, click here.
Monday, August 29, 2011
Friday, May 6, 2011
Susan M. Pesner named in 2011 Washington D.C. Super Lawyers
Pesner | Kawamoto | Conway is proud to announce that Susan Pesner selected to be included in the 2011 edition of Washington D.C. Super Lawyers. The publication, according to their website, is "a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement."
Ms. Pesner has previously been selected for inclusion in 2006, 2007, 2008, 2009, and 2010.
Ms. Pesner has previously been selected for inclusion in 2006, 2007, 2008, 2009, and 2010.
Friday, March 25, 2011
Homebuyer Credit Claim For Military/Foreign Service Personnel
If you are one of the many men and women who serve our country in the military or Foreign Service, there are two things that you should know. First, we here at Pesner | Kawamoto | Conway thank you for your service. Second, if you were on duty outside of the United States for at least 90 days during the period between January 1, 2009 and April 30, 2010, you may still be eligible for the first time homebuyer tax credit as a result of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
The first time homebuyer credit was designed to give a tax credit of $8,000 to those who met the qualifications. However, the credit program ended for purchases after September 30, 2010. Congress extended the credit to those serving overseas through the aforementioned Act.
There are a few requirements in order to claim the tax credit under this Act. First, of course, you must be a first time homebuyer. Second, you must enter into a binding real estate sales contract before May 1, 2011 and your settlement date must be before July 1, 2011. Third, your new home purchase price less than $800,000.00 and the purchaser exercising the credit must be at least 18 years of age. Finally, the home you are buying must be an arms-length transaction, meaning that you cannot be purchasing the home from your relatives.
If you believe that your eligible or you have further questions about your potential eligibility, you should consult with a tax advisor.
The first time homebuyer credit was designed to give a tax credit of $8,000 to those who met the qualifications. However, the credit program ended for purchases after September 30, 2010. Congress extended the credit to those serving overseas through the aforementioned Act.
There are a few requirements in order to claim the tax credit under this Act. First, of course, you must be a first time homebuyer. Second, you must enter into a binding real estate sales contract before May 1, 2011 and your settlement date must be before July 1, 2011. Third, your new home purchase price less than $800,000.00 and the purchaser exercising the credit must be at least 18 years of age. Finally, the home you are buying must be an arms-length transaction, meaning that you cannot be purchasing the home from your relatives.
If you believe that your eligible or you have further questions about your potential eligibility, you should consult with a tax advisor.
Thursday, February 17, 2011
Sunshine Coming Through the Clouds: Economic Forecast for 2011
Around this time ever year, several things always happen. The days start getting longer, people begin to prepare their tax returns, and economists make their predictions about the coming year. This year has been no different and we at PKC have had the opportunity to hear some excellent views about the economy and the real estate market for the coming year. The news has been, in a word, positive.
We had the opportunity to hear the news from George Mason University's Center for Regional Analysis (link). Its Director, Dr. Stephen S. Fuller, gave a presentation recently detailing both the national economy and the local economy. His presentation demonstrated that we are moving out of the recovery phase and into a growth or expansion phase. A great takeaway from his presentation was the strength of the local job market. As compared to other large metropolitan areas and the national averages, the Washington Metropolitan Area has far lower unemployment and is poised for more job growth. Fore more information, you can see the slides from the presentation here.
We had the opportunity to hear the news from George Mason University's Center for Regional Analysis (link). Its Director, Dr. Stephen S. Fuller, gave a presentation recently detailing both the national economy and the local economy. His presentation demonstrated that we are moving out of the recovery phase and into a growth or expansion phase. A great takeaway from his presentation was the strength of the local job market. As compared to other large metropolitan areas and the national averages, the Washington Metropolitan Area has far lower unemployment and is poised for more job growth. Fore more information, you can see the slides from the presentation here.
Thursday, January 13, 2011
Free Information from the FDIC
Are you looking for ways to spot a scam? How about tips and ideas if you are having problems paying your mortgage? Interested in new information on student loans? Perhaps you are looking fo ways to save money at tax time?
If you answered "yes" to any of the above, you should take a look at a great, free publication from the Federal Deposit Insurance Corporation, otherwise known as the FDIC. Its called FDIC Consumer News and can be found at www.fdic.gov/consumernews. From the FDIC website, you can browse both current and past issues. You can even subscribe for free and receive the issues via email by clicking the subscribe link at the top of the page.
Check it out today!
If you answered "yes" to any of the above, you should take a look at a great, free publication from the Federal Deposit Insurance Corporation, otherwise known as the FDIC. Its called FDIC Consumer News and can be found at www.fdic.gov/consumernews. From the FDIC website, you can browse both current and past issues. You can even subscribe for free and receive the issues via email by clicking the subscribe link at the top of the page.
Check it out today!
Thursday, December 9, 2010
Refinancing? What Are You Waiting For?
As interest rates continue to stay at record lows, many individuals are taking this opportunity to refinance their existing home loans. In comparing their costs among potential lenders, one large cost remains constant: recordation taxes. For Virginia properties, they are calculated based upon the amount of your loan. But what many people don't know is that a provision exists in the Code of Virginia that can offer relief from that cost, if certain circumstances are met.
The provision is §58.1-803(D), which states in pertinent part that "On deeds of trust or mortgages, the purpose of which is to refinance or modify the terms of an existing debt with the same lender, which debt is secured by a deed of trust or mortgage on which the tax imposed hereunder has been paid, the tax shall be paid only on that portion of the amount of the bond or other obligation secured thereby which is in addition to the amount of the original debt secured by a deed of trust or mortgage on which the tax has been paid...." To state the statute in another way, if you are refinancing your existing home loan with the same lender that presently holds your loan then there will only be recordation tax on the amount that exceeds the original amount of the loan.
For example, say you have a loan with Jones Branch Bank and its original principal balance was $300,000. You decided that you want to refinance your loan and you do so with Jones Branch Bank as the lender for your new loan. Your new loan has a principal balance of $250,000. What would be the amount you would be paying recordation taxes on? $0! That would mean you would have to pay only the Clerk of Court's recordation & processing fees, which are both constant and minimal regardless of the amount of the loan.
Using the same example, what if your new loan was $320,000 instead of $250,000? In that case, you would pay recordation taxes on $20,000 (new loan amount ($320,000) - original loan amount ($300,000) = $20,000).
This is just one of many elements to consider in making your decision regarding your refinance, but it can be an important element in reducing your cost. The key again is that it must be the same lender. Without that criteria met, the statute cannot be invoked.
Feel free to contact any of the real estate attorneys, paralegals or legal assistance in our real estate department for further clarification on this issue or other questions you might need answered regarding your future refinance.
To view the referenced code section, the Code of Virginia, and much more, check out the Virginia General Assembly's Legislative Information System at http://lis.virginia.gov/lis.htm
Happy Holidays from all of us at Pesner Kawamoto Conway!
The provision is §58.1-803(D), which states in pertinent part that "On deeds of trust or mortgages, the purpose of which is to refinance or modify the terms of an existing debt with the same lender, which debt is secured by a deed of trust or mortgage on which the tax imposed hereunder has been paid, the tax shall be paid only on that portion of the amount of the bond or other obligation secured thereby which is in addition to the amount of the original debt secured by a deed of trust or mortgage on which the tax has been paid...." To state the statute in another way, if you are refinancing your existing home loan with the same lender that presently holds your loan then there will only be recordation tax on the amount that exceeds the original amount of the loan.
For example, say you have a loan with Jones Branch Bank and its original principal balance was $300,000. You decided that you want to refinance your loan and you do so with Jones Branch Bank as the lender for your new loan. Your new loan has a principal balance of $250,000. What would be the amount you would be paying recordation taxes on? $0! That would mean you would have to pay only the Clerk of Court's recordation & processing fees, which are both constant and minimal regardless of the amount of the loan.
Using the same example, what if your new loan was $320,000 instead of $250,000? In that case, you would pay recordation taxes on $20,000 (new loan amount ($320,000) - original loan amount ($300,000) = $20,000).
This is just one of many elements to consider in making your decision regarding your refinance, but it can be an important element in reducing your cost. The key again is that it must be the same lender. Without that criteria met, the statute cannot be invoked.
Feel free to contact any of the real estate attorneys, paralegals or legal assistance in our real estate department for further clarification on this issue or other questions you might need answered regarding your future refinance.
To view the referenced code section, the Code of Virginia, and much more, check out the Virginia General Assembly's Legislative Information System at http://lis.virginia.gov/lis.htm
Happy Holidays from all of us at Pesner Kawamoto Conway!
Tuesday, November 2, 2010
FHA Launches Short Refi Opportunity For Underwater Homeowners
WASHINGTON - In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens. "This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."
Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
For more information on FHA Short Refinance option, read FHA's mortgagee letter
Published by the U.S. Department of Housing and Urban Development 8/9/2010 (HUD No. 10-173)
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