RESPA FORMS - New HUD-1 and GFE (Good Faith Estimate) will becomeeffective January 1, 2010. This is an effort to simply the loan process, improve the GFE and HUD-1 Forms and create greater transparency. It is important for Sellers, Buyers, Lawyers and Realtors to be aware of the changes.
Below is a Re-Blog of a post written by Gary Woltal of Keller Williams, Texas. I found it to be well written and to the point. Links to the new forms are also included. Thanks Gary!
Come January 1st, 2010, as a REALTOR or a consumer at the closing table things are about to change as far as the Good Faith Estimate (GFE) and Settlement Statement (HUD-1). Links below will allow you to print these out to familiarize yourself with them. Both now are three pages in length. The highlights:
Revised Good Faith Estimate (GFE)
GFE tolerances on settlement costs (1/8 point allowed to be in error)
Revised Settlement Statement (HUD-1)
Revised definitions for application, Good Faith Estimate, and Mortgage Broker
Additional definitions for changed circumstances, origination services, loan originator, prepayment penalty, third party, title service and tolerance
Elimination of 1% origination fee cap on FHA loans
RESPA (Real Estate Settlement Procedures Act) forms apply to federally insured or backed loans such as FHA/VA/Conventional and NOT cash deals. There is also a 30 day cure period to give lenders after closing the ability to meet the tolerance. The closing script is eliminated as it is contained in the revised HUD-1. Average charges can be used by service providers and is not limited to loan originators.
Bottom line is it looks like the new GFE and HUD-1 want the borrower to be as crystal clear on everything related to the loan. It looks like the fastest you could go from app to close is about three weeks. On page three of the new HUD-1 boxes compare GFE and HUD-1 costs. On page 3 of the GFE they clearly in the instructions state what charges CANNOT increase past the GFE, can increase up to 10%, and what charges can change. It is VERY clear. The only thing weird I saw on both the new HUD-1 and GFE is it never clearly says the PITI monthly payment but just principal, interest, and mortgage insurance in the loan terms.
It looks a lot different for most of us, but print yourself out a copy and take a look. January is NOT that far off.
With closings averaging 130 pieces of paperwork both the REALTOR and the consumer need to know about these documents ahead of time. One last tip for both groups in this area, be sure to show up at the table with a U.S. government issued ID with a picture and your signature. This is mandatory for identification purposes. Good luck and happy closings!!!
FORECLOSURES or BANK OWNED PROPERTIES - Stowe, Vermont Area
Vermont does not have many bank owned real estate properties. However, I feel that the number has increased and will continue to increase in the next few years. Our MLS system does not allow for a simple search of such properties, but I am able to create specialized searches for bank owned real estate. The searches do not automatically update, but I will do my best to keep it current.
Buying a foreclosure, or short-sale property can be very complicated. I have been a licensed Realtor® in Stowe since 1998. I am currently studying and taking classes to obtain the National Association of Realtors® Short Sale and Foreclosure Certification, and I am an Accredited Buyer Representative. So be sure to hire a REALTOR® that is experienced, trained and can represent you as buyer. I can represent you on these properties and all other area properties as long as they are not listed by Stowe Realty. Please contact me for more information about these properties or other ones you are interested in. Hire an experienced Accredited Buyers Representative!
Vermont Short Sales - BUYERS - What You Need To Know!
What is a Short Sale? A home is being sold below what the current seller owes on the property and the seller does not have other funds to make up the difference at a closing. Sellers sometimes get in this situation due to number of factors including job losses, aggressive borrowing against their home, declining home values, and personal hardships.
Short Sale vs. Foreclosure - A short sale is different from a foreclosure. Foreclosure is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for BUYERS. Be prepared for the risks before you pursue a short sale purchase.
You may be a good buyer for a short sale purchase if:
YOU ARE VERY PATIENT. Even after you come to agreement with the seller to buy a short sale property, the seller's lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
YOUR FINANCING IS IN ORDER. Lenders like cash offers. If you can't pay all cash for a short sale property, it's important to show you are well qualified and your financing is set. If you are preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably.
YOU DON'T HAVE ANY CONTINGENCIES. If you have a home to sell first, or you need to be in a new home by a certain time, a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.
If you decide to purchase a short sale property, you will need expert assistance including:
EXPERIENCED REAL ESTATE ATTORNEY. A good real estate attorney who is knowledgeable about the short sale process will increase your chances of getting an approved contract. Only about 2 of 5 short sales are approved by lenders. Special provisions and language written into a purchase contract is essential throughout the negotiation.
QUALIFIED REAL ESTATE PROFESSIONAL. A qualified real estate professional will be able to show you short sale homes, help negotiate the purchase when you find a property, and smooth communications with the listing agent and lender. In Vermont, it is not always obvious a property may be in a short sale status.
Some of the other risks faces by buyers of short-sale properties include:
POTENTIAL FOR REJECTION. Lenders want to minimize their losses. If you make an offer tremendously lower than the fair market value, chances are your offer will be rejected. Or the lender could make a counteroffer, which will further lengthen the process.
BAD TERMS. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Vermont is a Recourse State so the borrower can be liable for the deficiency.
NO REPAIRS OR REPAIR CREDITS. You will most likely be asked to take the property "as is." Lenders are already taking a loss on the property and may not agree to requests for repair credits.
To Sum It Up - the risks of a short sale are considerable. But if you have the Time, Patience, Flexibility, and IronWill to see it through, a short sale can be a win-win for You and the Sellers.
Most of the information above is from the National Association of Realtors which I am a member of. I have added some Vermont Specific Information. Also, I am currently working on the NAR Short Sales and Foreclosure Certification a/k/a SFR. I hope to write about Short Sales as an option for Sellers but am still trying to understand the "Making Homes Affordable" Rules and Guidelines and how they apply in Vermont.
I came across a post by Rossi & Bishop on RealTalk yesterday. They referred to an article written by Jamie Nash of Montgomery County News. In the article was a YouTube Video that really stuck a nervee. I am the mother of two teenage boys. Both are actually quite good drivers, but I know the older one texts while he drives. And yes, he knows it's dangerous. I know that when I was a teenager, I thought I was immortal. When I look back at some of the things I did while driving, I am amazed I survived. In those days though we did not know what cell phones or texting were. I am actually pretty good about not using my cell phone while driving as I know how distracting it is. I can't imagine if I attempted to text while driving as I have a hard enough time texting at my desk.
I wanted to share this YouTube video with you. Maybe you have seen it before, but if not, check it out. Some feel it's too graphic, but I feel it gets the message across. Texting and Driving simply do not mix!
The National Transportation Safety Board has major concerns over cell phones and texting while driving. I already know that Vermont has no law against either. I hope that more states, including Vermont, take a proactive approach to this "accident waiting to happen".
Do you know where your state is with legislature? I found a chart posted by the Insurance Institute for Highway Safety dated October, 2009. Click on the icon for the Report by State
As a Stowe Resident for 22 years, I can proclaim that the foliage is at peak. It never seems to fail that Columbus Day weekend coincides with our Colorful Peak. It's been a rainy week but looks like there is some sun in the forecast for this weekend!
These are some photos I took today - October 9th, 2009.
What a pleasure it is to drive around our back roads to find such eye candy!
There are also some great events this weekend besides taking in the foliage:
Stowe Foliage Craft Show at Topnotch - October 9-11th, 2009
History of Trapp Family Lodge Tour - October 9-11th, 2009
Stowe Home Tour - October 10th, 2009
If you come up to Vermont, feel free to contact me. I'd love to show you some of the beautiful homes available for sale in the Stowe area!
STOWE VERMONT REAL ESTATE MARKET - STATISTICS ON HOME, CONDO AND LAND SALES - October 1, 2009
The Stowe Vermont Real Estatehas completed three quarters of sales history in 2009. So I thought it would be an appropriate time to take a look at the sales, pendings, and active listings for Stowe Homes, Condos and Land. The data was compiled from our MLS system and does not include private sales.
STOWE VERMONT HOMES MARKET:
As of 10/1/2009, there have been 23 homes sold. The average list price was $533,957 and the average sale price was $481,896. The Average Days on Market was 164. The median list price was $435,000 and median sale price was $399,000. The Median Days of Market was 151. The Average Price per Finished Square Foot Above Grade Sold was $193. There are 149 Active Homes on the market as of 10/1/09. There are 14 homes "Pending" with 5 priced between $0 - $500,000, 6 priced between $500,000 and $1.0m, and 3 priced above $1.0m. Stowe is certainly seeing an increase in home contracts.
CHART OF STOWE HOME SALES AS OF October 1, 2009
COMPARISON TO 2008: In 2008, a total of 52 homes sold. The average list price was $556,960 and average sale price was $535,481. The median list price was $492,000 and the median sale price was $445,000. The average DOM was 215 and the median DOM was 171. The average price per finished square foot above grade was $202.
COMPARISON TO 2007: In 2007, a total of 74 homes sold. The average list price was $710,000 and the average sale price was $652,098. The median list price was $499,000 and the median sale price was $450,000. The average DOM was 197 and the median DOM was 161. The average price per finished square foot above grade was $219.
STOWE VERMONT CONDO MARKET AS OF OCTOBER 1, 2009:
As of October 1, 2009 there have been 11 condos sold. The average list price was $428,727 and the average sale price was $387,420. The median list price was $299,500 and the median sale price was $290,000. The average DOM was 366 and the median DOM was 300. The average price per finished square foot above grade was $213. There are 100 condos actively on the market and there are 3 condos pending.
CHART OF STOWE CONDO SALES AS OF OCTOBER 1, 2009
Comparison to 2008: In 2008, 23 condos sold. The average list price was $326,300 and the average sale price was $294,261. The median list price was 220,000 and the median sale price was $220,000. The average DOM was 289 and the median DOM was 242. The average price per finished square foot above grade was $202.
Comparison to 2007: In 2007, 27 condos sold. The average list price was $459,530 and the average sale price was $437,752. The median list price was $399,900 and the median sale price was $387,000. The average DOM was 222 and the median DOM was 163. The average price per finished square foot above grade was $252.
STOWE VERMONT LAND SOLD AS OF OCTOBER 1, 2009
As of October 1, 2009 there have been 4 lots sold. The average list price was $627,250 and the average sale price was $511,250. The median list price was $647,500 and the median sale price was $560,000. The average DOM was 332 and the median DOM was $125. The average price per acre was $55,860. As of October 1, 2009, there were 57 lots actively on the market. There is 1 lot pending.
CHART OF STOWE LAND SOLD AS OF OCTOBER 1, 2009
Comparison to 2008: In 2008, 13 lots sold. The average list price was $472,231 and the average sale price was $412,962. The median list price was $295,000 and the median sale price was $278,000. The average DOM was 464 and the median DOM was 350. The average price per acre sold was $30,270.
Comparison to 2007: In 2007, 19 lots sold. The average list price was $577,711 and the average sale price was $498,947. The median list price was $375,000 and the median sale price was $350,000. The average DOM was 217 and the median DOM was 149. The average price per acre sold was $31,580.
GENERAL COMMENTS: As in many markets, Stowe has a higher inventory of homes, condos and land than in the past. The average and median prices have gone down, the number of sales have decreased, and the days on market has increased.
STOWE CHART OF ACTIVE LISTINGS AS OF OCTOBER 1, 2009
At this time, it appears that homes are getting the most attention from potential buyers. Stowe has many vacation, 2nd homes, and investment properties. There are some very good buys right now. You just need to know where the real value is!
VERMONT UPDATES SEX OFFENDER REGISTRY WEB SITE - October 1, 2009
Beginning October 1, 2009, the Vermont Sex Offender Registry Web Site has been updated to add persons meeting any of the following criteria:
Convictions for: Aggravated sexual assault of a child Aggravated sexual assault Sexual assault Kidnapp8ing with intent to commit sexual assault Lewd or lascivious conduct with a child Second or subsequent conviction for voyeurism Slave traffic Sex trafficking of children or by force, fraud, or coercion Sexual exploitation of a minor Any offense regarding sexual exploitation of children Certain federal sex crimes
A Second or subsequent conviction for sexual offenses
Individuals with an outstanding warrant for their arrest for a Registry violation
Individual who have been designated as sexual predators
Individual who have been designates "high risk offenders" by the Dept. of Corrections
Individuals who have not complied with or are ineligible for sex offender treatment as recommended by the Dept. of Corrections
For more information about the Vermont Sex Offender Registry:
The list allows for a search of offenders by name, town or county. One will be able to see photographs, physical descriptions, crimes, conviction dates, treatment status, and whether the Dept. of Corrections considers the offender as high risk. According to an article in the Burlington Free Press (written by Nancy Remsen) the expanded registry does not include the names of about 300 offenders who live in Vermont but were convicted elsewhere. Apparently a drafting glitch in the new law mistakenly exempted this category of offenders from the internet posting requirement.
To search for individuals within Vermont by name, town or county:
As I was researching the above information, I wondered where Vermont stands compared to other states in the area of crime statistics. Vermont came in number 48 - better not to be in the top 3 here. Below is a chart from the FBI Uniform Crime Reports (2007)
I also found the FBI TOP 10 MOST WANTED SITE - Yes, Bin Laden is still there! Here's quick access to it:
I applaud Vermont for updating the Sex Offender Registry! I realize that this was primarily done because of public pressure given some recent incidents. Please keep the list current and add those from out of state.
VERMONT Foreclosures and Mortgage Delinquencies - As an Active Rain blogger, every now and then I find a blog worth "re-blogging". Even though Vermont still has a relatively low foreclosure rate and deliquint rate, it is obvious that the longevity of our financial situation is catching up with many. This blog submitted by Jeff Geoghan of Lancaster, PA was well written and provides great graphs. I hope it helps shed some light on "The Coming Storm"!
This is one of those posts where I wish I didn't have to write it, but felt it was so important to my readers that I would be remiss not to at least talk about it.
Everyone out there probably knows somebody who is behind on their mortgage payments, looking for alternatives and likely also just finding out that their home's value has dipped below what their loan amount is. I know some within my own personal circles. It's a tough situation for me to advise them as a professional because it's such a personal challenge to their pride and self-worth, not to mention their plans and dreams for the family. The question we're asking is "when is this going to stop and where are we heading?"
I'm going to put up a few graphs that show the trends nationally with regards to mortgage delinquincies:
This chart is by quarter - Single-family mortgages set a new record delinquency rate in the second quarter of 2009, according to a quarterly survey by the Mortgage Bankers Association. Those of us in the real estate business see the foreclosure process (just visit the local Sheriff Sale docket to see the current numbers) but the looming delinqency-to-foreclosure issue is far, far larger.
The Wall Street Journal on 8/3/09 reported the following quote: “While subprime mortgages sparked the first round of housing problems two years ago, now "troubles are lurking further up the food chain," says Joshua Shapiro, chief U.S. economist at MFR Inc. White-collar job losses have accelerated while more adjustable-rate loans to prime borrowers are resetting to higher payments. ‘You put all that together, it leads me to believe that the next leg down on home prices is going to come from the top,’ he says.”
The first objection someone may have would be to say "yes, but historically those who are delinqent usually get their act together and come current on the mortgage after a while". That WAS true, but not anymore! We call that the "Cure Rate", that is the rate of delinquencies that go back to current. The Wall Street Journal reported on 8/24/09 about a Fitch analysis that found that the Cure Rate from 2000-2006 was 45% (which means about half of people fix their delinquency). However, as of July 2009 the rate had dropped to just 6.6%! That means that over 90% of delinquent customers are going to foreclosure. Take a look again at the above chart...
The next thing someone will say is "well, that's the 'sand states' and not my area". Here's the chart for all 50 states showing the same breakdown of delinquencies and foreclosures. Guess what - most states have a significant problem, especially compared to historical figures.
Now the next thing someone may say is "aren't those loans going to get 'fixed' by a loan modification?" I know several people right now who are applying for a Lancaster County loan modification but are waiting and waiting. I hope it works out for them...
In reality, loan modifications are hardly making a dent. To me, that's a burning question. Why arent banks being more aggressive in giving customers the option to extend their loan and/or reset to a lower rate? Why are they being SO difficult? The people I know don't want to be foreclosed. They CAN make payments. They just need the terms redrawn to allow them to catch & keep up. Loan modifications are not helping us get this crisis under control.
What are the causes of all these delinquencies? Here's a chart that is enlightening:
Keep in mind, this post is not intended to give us "good news". You may be experiencing good things in your market and that's great. My intent is to get us thinking about the challenges that aren't going away and how we're going to address them as homeowners, agents and professionals. I'd love to hear your ideas!
Well, it's September 26th, 20009 and Stowe, Vermont has become a haven for the Leaf Peepers. They come from all over the world - Europe, Australia, Canada, Japan and Vermont's neighbors - Massachusetts, Maine, New York, and let's not forget New Jersey.
They come by plane, by car, by bike, by motorcycle and my favorite - by bus. Buses are filled with "blue" haired folks who walk around town with ID cards hanging around their necks. For a period of about 3 weeks, Stowe and other Vermont towns become overrun by tourists. If you live here, it can be a bit frustrating because they drive differently. They stop in the middle of the road and just look at the scenery! Can you believe it? Also, the shops, restaurants, rec paths, and golf courses fill up with these leaf peepers. Since Stowe is a tourist town, this is certainly expected and welcomed.
I have lived in Stowe for 22 years. I am a flat lander and am primarily from the Washington D.C. area. You have to be born in Vermont to be considered a Vermonter. Every year, around this time, I am totally captivated by the beauty of nature. Just walking my dog is Stowe Hollow is a treat as all the amazing colors surround me. The two most utterly amazing foliage days I remember were: Snow at peak foliage - bright colors surrounded by new snow ; and Double Rainbows at full foliage - almost too much color for my eyes to take in. I guess you can tell that this is my favorite time of year.
Many Stowe, Vermont visitors are happy just to walk around Stowe Village and stop in the various shops. Plus, we have a very popular Stowe Recreation Path that starts in the Village and winds along the West Branch River, up the Mountain Road, and to the Covered Bridge close to Topnotch. And best of all - it's free! I hope that when I am in my 70's and 80's, I will be one of those "blue" haired ladies from the bus tours that takes the time to appreciate the simple pleasures of nature!
Another great activity is to Look For Homes! My office is located right on the Mountain Road in Stowe. I'd be happy to show you some of the areas homes, condos, or land. You can always check out Stowe Vermont Homes on my web site. Here's a Link Stowe Vermont Homes For Sale.
Here's a photo I took today from the Stowe Realty Parking Lot. Hurry and visit Stowe before the color fades away this year. Of course, next comes Ski Season! But that's another Blog.
On Friday, September 11th, 2009, I attended two real estate auctions in Stowe, Vermont. I have been a Realtor in Stowe since 1998 and have never been to a real estate auction. As a former Bed and Breakfast owner in Stowe, I used to attend many furniture auctions. They were always a lot of fun and I certainly was able to purchase some great antiques for the bed and breakfast.
In these trying times, I think we will see more properties going into foreclosure. Some on the auction block.
I decided to witness the auctions for three reasons: 1. To gain a better understanding of what happens at real estate auctions; 2. Had a potential buyer interested; and 3. I absolutely love the two properties on the block.
The photos of the auction properties were provided by Thomas Hirchak Company located in Morristown, VT and the Auctioneer of the real estate.
The first property is known as Staffords. It is located in the heart of Stowe Village. It used to be operated as a Vermont Country Store, Pharmacy, and Funeral Home. It also has 5 apartments. It has long been an icon in the Village. Many interested folks attended the auction. Most appeared to be curious locals, but there were definitely some serious buyers.
As a joke, the auctioneer started the bid at $5,000,000. Eventually, a starting bid was placed for $500,000. The auctioneers quickly picked out the serious parties and the bids went back and forth between them. It is always fascinating to watch the eye contact between the bidders and the auctioneers. Eventually, an investment group had the winning bid at $885,000. That was a hell of a good buy. Plus, it sounds like they have the right idea for the best use of the property and the desire to bring more vitality to the heart of Stowe!
The second property is known as Tandragee. It is a grand and beautifully located home in Stowe Hollow. I have had the pleasure of showing it to perspective buyers a few times and have always been awed by the views and gracious grandeur of Tandragee.
Once again, several interested parties previewed the property. The auctioneer started the bid at $500,000. Unfortunately, no one was able to match the bank's minimum. It sold back to the bank for $1,440,000. I guess we will see it back on the market at some point in time.
Another "famous" property will be auctioned off on Friday, September 25, 2009 by Thomas Hirchak Company. It is known as Winding Brook Lodge and is a 15 room lodge located on Edson Hill Road in Stowe. This one is a typical ski type lodge with lots of character. I hope the right buyer comes along and is able preserve this property's uniqueness and history.
Vermont has the lowest foreclosure rate in the country. It appears though that some property owners have become victims of the recession. And I must say that it is sad to see this...
I hope I do not have very many more occassions to attend real estate auctions in Stowe.
Teresa Merelman, Broker ABR, CRS, e-PRO, Green Stowe Realty located in Stowe Vermont (802) 253-8484 Office Teresa@StoweUSA.com www.StoweUSA.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
YOU ARE VERY PATIENT. Even after you come to agreement with the seller to buy a short sale property, the seller's lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
essential throughout the negotiation.
.jpg "Stowe Foliage")
.jpg "Foliage Leaf in Pond")
These are some photos I took today - October 9th, 2009. 
Well, it's September 26th, 20009 and Stowe, Vermont has become a haven for the Leaf Peepers. They come from all over the world - Europe, Australia, Canada, Japan and Vermont's neighbors - Massachusetts, Maine, New York, and let's not forget New Jersey.
peak foliage - bright colors surrounded by new snow ; and Double Rainbows at full foliage - almost too much color for my eyes to take in. I guess you can tell that this is my favorite time of year.
Here's a photo I took today from the Stowe Realty Parking Lot. Hurry and visit Stowe before the color fades away this year. Of course, next comes Ski Season! But that's another Blog.
Vermont Country Store, Pharmacy, and Funeral Home. It also has 5 apartments. It has long been an icon in the Village. Many interested folks attended the auction. Most appeared to be curious locals, but there were definitely some serious buyers.
I have had the pleasure of showing it to perspective buyers a few times and have always been awed by the views and gracious grandeur of Tandragee. 
is known as Winding Brook Lodge and is a 15 room lodge located on Edson Hill Road in Stowe. This one is a typical ski type lodge with lots of character. I hope the right buyer comes along and is able preserve this property's uniqueness and history.
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