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Excellent news for first-time home buyers in the Atlanta Metro area! You no longer have to wait 90 days to use your FHA loan on a property that is being flipped by an investor.
In a somewhat surprising announcement, FHA has announced that it is waiving the property flipping rule for one rule starting February 1, 2010, with regard to subsequent sales by purchasers.
In the waiver, FHA said it was taking this action to address the foreclosure crisis.
The waiver is limited to sales meeting the following conditions:
a) All transactions must arms-length; no identity of interest between buyer, seller or third parties
Ways to ensure no unacceptable arrangements include:
§ Seller holds title
§ LLCs, corporations or trusts that are serving as sellers must meet applicable State and Federal law
§ No pattern of previous flipping activity exists on property (as evidenced by multiple title transfers w/i 12 month)
§ Property marketed openly and fairly (Any sales contracts w/ “assignment of contract of sale”) may be a red flag
§ Sales w/ 20% increase over seller’s acquisition cost will only be permitted if the lender:
§ Provides supporting documentation and/or second appraisal which substantiates increase in value (I.e. renovation or rehabilitation)
§ Orders a property inspection and provides it to the purchaser. (Borrower may be charged for inspection.)
§ Waiver provides what the inspection must review and other requirements
This is great news and I am sure additional information will be coming out shortly. If you have any questions regarding this development, please feel free to contact us!
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Like new home built in 2007 available for $100 down using FHA financing. Large floor plan, Brick Siding, Living Room and Kitchen with Island, Family room with fireplace. This home is an excellent value at this price! Contact us today to schedule a showing of this excellent home. |
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Jameka & Jarell Mikell
Maximum One Realty
5041 Dallas Hwy, Suite 700
Powder Springs, GA 30127
Office: 770-919-8825
Fax: 678-264-1587
Cell: 404-693-4117
Jarell Mikell
Cell: 404-403-2774
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I was at a staff meeting the other day and one our attorney partners provided some good information on several issues that have been due to fradulent title conveyances that have occurred between sellers and buyers who are placing properties in land trusts without following the appropriate requirements and precautions listed below.
Some tips for your clients to consider before conveying title in a land trust;
1) A fully executed contract for the sale of the property is needed
2) Since Georgia is an 'attorney state', it requires that an attornedy oversee the transaction and properly pass title from the seller to the land trust
3) Trust Agreement: A valid Trust Agreement is needed to make the transaction valid. Many people are transferring title to land trusts with no formal Trust Agreement being created. The closing attorney must have a copy of the trust agreeement which clearly identifies the Trustee's name and the name of the Trust. In addition, the trust will also specify what powers the trustee has per the Trust Agreement
4) Due on Sale Clause: Most security deeds (used in GA) contain a Due on Sale clause which specifies that the lender could accelerate the loan since the seller has transferred interest in the property without paying off the loan. Many times, the land trust is used to conceal the conveyance to prevent the triggering of due on sale clause.
5) Seller is stll responsible for mortgage: This is probably the most important point for sellers to consider. Conveying title in this manner via the land trust does not remove the seller's liablility for the underlying loan. If the new buyers fails to make a payment or the property ends up in foreclosure, the seller's credit will be negatively affected and not the buyer
Just some notes from our meeting that I wanted to share for anyone who is not familiar with this type of transaction. It is becoming more commonplace because many individuals are in foreclosure and this method allows a quick sale for the seller but they should be fully aware of the risks involved.
Have a great day!
I received calls this week from a couple of people interested in purchasing a home; however, they feared the possible rejection of not being able to pre-qualify for a home mortgage. These calls echo the many calls I receive and I am pretty sure this "fear of rejection" goes way beyond the callers who've contacted me.
So, in my role, what do I do? I give them the following tips:
- I encourage my callers to take action because KNOWLEDGE IS POWER. The" worst" outcome that can happen is they are not able to qualify NOW, but they are now empowered to know what actions they need to take to be in a better position LATER. The "not knowing" robs a person of the power they have to be proactive and make better decisions in the future; plus the "not knowing" is just not a fun place to be!
- I encourage my callers to set a goal, establish a budget and get in agreement with their spouse/significant other if their desire is truly home ownership. I LOVE the calls I get when couples have taken this advice, then call me back 6, 8 or 12 months later saying "we are ready"! Plus, the home search is much more enjoyable and closings are so sweet because my clients' dream of home ownership (and the sacrifices to get there) are recognized and rewarded.
- I encourage my callers to consider continuing to rent versus own as their current situation or the unknown about their future may not align with them being a homeowner at the time....and that's OK. Sure, I may loss a sale here and there, but nothing is worth losing my integrity (and sleep) in steering a person in a different direction that may benefit them in the long run. That's part of my responsibility in this public role as a Real Estate Agent!
I love my job, my past clients who've moved beyond their "fear of rejection" and all my future clients who will share their own testimony that yes.... KNOWLEDGE IS POWER and I WILL TAKE THE NEXT STEP!
I was working with a potential client the other day who really did not understand how a Buyer's Agent can help them in the real estate purchase process. After that conversation, I decided I would write down a few notes to describe how a Buyer's Agent can help during the sales process.
The Buyer's Agent represents you in the transaction. They are your advocate! The seller is represented by the listing agent.
Your Buyer’s Agent will help you narrow down the houses that best fit you needs and wants. They can take your input and select homes from the MLS that meet your criteria saving you the time and hassle.
Your Buyer’s Agent will look out for your best interests. If there are things that seem to be a challenge in a house that you considering, the Buyer's Agent will let you know immediately.
Your Buyer's Agent will help you understand the Purchase and Sale Agreement.
Your Buyer’s Agent will help create a Purchase and Sale Agreement that ensures you get the best deal and conditions for your purchase
Your Buyer’s Agent can assist you in getting pre-approved with a lender with one of their preferred lending partners if needed.
Your Buyer’s Agent can assist you in locating a Home Inspector and other Real Estate Professionals
Your Buyer’s Agent can explain a home survey, termite letter, termite bond, and title insurance.
Your Buyer’s Agent will work to perform multiple services between the time you go under contract and closing to help ensure a smooth, no hassle closing process.
As you see, a good buyer's agent can save you both time and money. In addition, they can help to protect you as a client from making unwise financial and legal choices. Even in today's Internet age, where a large majority of consumers use the internet to search for homes, many still also choose to use a buyer agent to assist them with the home buying process.
LOOK AT THE NUMBERS FOR THIS WEEK IN DOUGLAS COUNTY, GEORGIA.
DOUGLAS COUNTY MARKET REPORT ANALYSIS FOR THE WEEK OF 10/19/09-10/25/09
MARKET REPORT FOR DOUGLAS COUNTY :
THIS WEEK NEW LISTINGS: 63
FOR THIS WEEK PENDING SALE (UNDER CONTRACT): 37
THE EXPIRED LISTING FOR THE WEEK: 14
THIS WEEK SOLD LISTINGS: 21
AVERAGE LIST PRICE FOR THE WEEK: $158,732
AVERAGE SALES PRICE FOR THE WEEK: $140,379
If you would like a free market analysis of your own property, please feel free to email Jameka Mikell at jameka@mikellhometeam.com. Maximum One Realty Greater Atlanta.
Visit our website for additional details:
www.mikellhometeam.com
HUD has greatly increased the number of homes available in the Atlanta metro area in an effort to reduce foreclosed inventory by the end of year. If you are a buyer who is looking to take advantage of the $8000 first-time homebuyer tax credit and the great prices on HUD homes, now is a great time to buy.
Currently, there are 230 new HUD listings in the metro Atlanta area. Many of the listings are homes that are fairly new and need only minor cosmetic repairs. One the higher priced properties ($125,000 and above) in West Cobb is this appealing HUD home located at 402 Holland Springs Drive in Powder Springs. This home is a 4BR/2.5BA built in 2001 in the desirable city of Powder Springs.
There are also a large number of homes available that have been relisted or on a daily bid schedule so contact us to get more details about these listings. If you would like more information on HUD homes, contact us today.
Thanks for taking the time to read our West Atlanta HUD homes blog.
LOOK AT THE NUMBERS FOR THIS WEEK IN DOUGLAS COUNTY, GEORGIA.
DOUGLAS COUNTY MARKET REPORT ANALYSIS FOR THE WEEK OF 10/12/09-10/18/09
MARKET REPORT FOR DOUGLAS COUNTY :
THIS WEEK NEW LISTINGS: 45
FOR THIS WEEK PENDING SALE (UNDER CONTRACT): 26
THE EXPIRED LISTING FOR THE WEEK: 17
THIS WEEK SOLD LISTINGS: 30
AVERAGE LIST PRICE FOR THE WEEK: $178,880
AVERAGE SALES PRICE FOR THE WEEK: $156,902
If you would like a free market analysis of your own property, please feel free to email Jameka Mikell at jameka@mikellhometeam.com. Maximum One Realty Greater Atlanta.
Visit our website for additional details:
www.mikellhometeam.com
Just had an interesting situation with one of my clients who was purchasing a Fannie Mae REO. Property is under contract and everything was moving fine towards closing until two days before closing, when the attorney calls and says that there is a large federal tax lien that was filed before the foreclosure but the title company missed that lien and did not notify the foreclosing lender.
What is even more interesting is that the title company wants to play hardball and not cooperate even though they issued a title policy insuring clean, marketable title. I know many people try to save a few bucks and not purchase owner's title insurance but this scenario provides a good case study of why I always advise my clients to purchase a title insurance policy.
At this time, it looks like the attorney representing the lender is working to get the lien released while also pursuing legal action against the title company because the whole situation is putting the prospective buyers, who are my clients, in a very precarious situation.
Stay tuned...will update with outcome soon..
As we all know property values have taken a serious hit due to the number of foreclosures and fallout from the credit crisis. Below are some statistics that provide some insight into the Atlanta metro area. If you want to appeal your tax assessment, make sure to contact your county tax assessor and learn what steps are necessary to dispute your assessed value:
Five major metro Atlanta counties have dropped values for more than 350,000 parcels:
• Clayton: 90,000 parcels, 70,000 parcels lowered (78%)
• DeKalb: 235,000 parcels, 95,000 parcels lowered (40%)
• Fulton: 335,000 parcels, 100,000 parcels lowered (30%)
• Gwinnett: 273,000 parcels, 70,000 parcels lowered (26%)
• Cobb: 246,000 parcels, 20,000 parcels lowered (8%)
Source: Atlanta-Journal Constitution - www.ajc.com
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Jameka Mikell
Douglasville,
GA
More about me…
Maximum One Realty Greater Atlanta
Office Phone: (770) 919-8825
Cell Phone: (404) 693-4117
Email Me
Your local expert on all things real estate in the West Atlanta area. I utilize my many years of investment real estate experience to help buyers and sellers reach their real estate goals. Nothing is more exciting to me than the gratifying feeling I get from helping people meet their real estate needs. You can count on me to always do what's in your best interest. I pride myself on being honest, trustworthy, and knowledgeable in the real estate market. I know how important it is to find your dream home or get the best offer for your property. Therefore I will make it my responsibility to help you achieve those goals. I want to be your Trusted Agent!
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