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What's in a Tweet?

By
Real Estate Agent with Chad Kumpe Real Estate

I have a lot of random thoughts and a Tweet only gives you 140 characters. Not being sure how many characters each of my random thoughts would use, I decided to distribute those thoughts on good old e-mail (with emphasis on old.)

The Government is sure borrowing a lot of money. Interest rates will surely rise. I remember the last time, when Carter was President.  The fear is that some deserving folks will get left out.

Inflation is good for the Real Estate business but bad for the economy as a whole.  Saving is good for the individual but bad for the economy as a whole.  What an interesting time we live in!

Did you notice what HUD (government) has done about the $8,000 tax rebate? First it could be clamed with a re-filing of an individual's tax return.  Then it could be clamed at the closing table. That second option lasted less than a day, as some wise person figured it would lead the housing market right down a path we had just left. Some banks were loaning the money in return for the assignment of the tax credit, but that mess up the borrower's ratios.  Now some financial intuitions are making a kind of Bridge Loan to help "First timers" buy a house.

I noticed a superior court ruling in Alabama that declared the Broker Service Fee was a violation of RESPA, deciding it was an unearned fee. When that paragraph was first placed in our ARA forms, Andy Schaus warned Brokers to clearly define the specific service that the Broker Service Fee covered. It was not the paper work or the closing of the transaction.

Your closings may take longer than in past times. In order to assist the borrower in understanding the mortgage transaction and to prevent loan originators from pressuring appraisers about values, originators and appraisers have a fire wall between them now. A third party now selects the appraiser, and the buyers should get a copy of the appraisal to approve three to ten days before closing, depending on the lender's guidelines.

I know some loan originators that have a hard time understanding the appraisal forms. Will there be classes for home buyers on how to judge the validly of the collateral they are using for the mortgage?  Add ten days to your projected closing time.

On a personnel note:  I went to two CE classes this month. Yes, CE Instructors must do CE too. The first was sponsored by the Arkansas CRS Chapter. It was an excellent presentation on the anatomy of a Short Sale and dealing with REO (foreclosed) Property. We must thank those Realtors that tackle that tough part of the market.  The faster those properties get out of the market, the quicker we will return to a semblance of order.

The second class was presented by Paul Bynum. It was the most carefully researched presentation on the causes of the Mortgage/Credit Crisis I have seen or read. He may present it again in this market area.  It is worth a day's time. Get ready for information overload. I am still wondering what a Credit Default Swap was ever concocted to accomplish.

Speaking of CE, Tina Daniel and I will be presenting a six hour CE class the first Friday of every month at the Metro Board of Realtors and the first Tuesday, Wednesday and Thursday at our Lowell classroom on AR Hwy. 264 West, 3.6 miles west of the Lowell exit off I-540. We will be presenting weekend classes on the second and third weekends in July.  Call me for start times. You may register at the door.

 

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