I subscribe to the daily webcasts of Think Big, Work Small (TBWS), which is hosted by these two guys, Brian Stevens & Frank Garay. TBWS was founded a couple of years ago by a bunch of real estate and mortgage people who wanted to teach others in the business how to work smarter to grow their business.
This mornings video was especially interesting because there was a segment on the latest real estate scam. Apparently, many new home builders are attaching 99yr home resale fees to the title of new home sales and quite often, the new homebuyer is not aware of the repercussions and consequences of allowing these fees when they signed the purchase contract on those new homes.
These transfer fees are fees that kick in on every single sale of the home for 99yrs. These fees are typically 1% of the sales price of the home and the fee that is collected goes back to the home builder. This happens every time the home is sold and the builder just keeps collecting and collecting and collecting. Furthermore, Fannie Mae and Freddie Mac have announced that they are taking steps to stop lending on properties that have these transfer fees clouded on title.
If you are currently looking to purchase a new or newly built home, you definitely need to learn about whether or not the property has one of these seller resale fees before making an offer on the property. Anyway, here is the video regarding the segment I was referring to and I hope you enjoy it as much as I did.
I want to also suggest checking out some of their more recent ones too as well as their blog threads. Very interesting discussions going on.
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