In the letter, Crist asks FEMA to “conduct a preliminary damage assessment related to the issue caused by the degradation of Chinese drywall used in homebuilding in Florida.” The Florida Office of Insurance Regulation said damage caused by Chinese drywall is not covered by homeowners insurance.
The Drywall Victims Insurance Protection Act of 2009 has yet to make its way through congress.
The letter to FEMA can be viewed here.
DHW asks: Have you or anyone you know been affected by Chinese drywall?
]]>The numbers
February foreclosure filings of 308,524 reflect a decrease of 2 percent from January. However, this is still a 6 percent year-over-year increase.
“The 6 percent year-over-year increase we saw in February was the smallest annual increase we’ve seen since January 2006, when we began calculating year-over-year increases, but it still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, CEO of RealtyTrac.
Some fear the recent decrease in foreclosures is a false-positive. With the Treasury’s HAMP coming under fire for its low success rate in modifying mortgages for at-risk homeowners, many fear foreclosures will eventually find their second wind.
DHW asks: Do you think foreclosures will continue to decline?
]]>DHW asks: Do you really care?
]]>Mr. Shiller questions the financial soundness of having the taxpayer continue to finance (or at least insure) the American Dream. He feels the driving force behind this call to action is Americans’ belief that homeownership means the preservation of certain liberties. While few can argue with this observation, the article leaves out another important side of the story.
Prior to the advent of FHA, Americans were losing a home to foreclosure at a rate of 1,000 a day. At the time, it was not uncommon for homeowners to have multiple mortgages (each with short terms and high rates). Sound familiar? FHA mortgages were created to cure this ailment by allowing at-risk homeowners to refinance these high cost loans with low, fixed rate mortgages. The program was later expanded to help homebuyers finance their purchases. What FHA brought to the table for the first time was an amortized mortgage. Overtime, this instrument helped Americans build equity in their homes as well as build their personal wealth.
While Mr. Shiller is right to question the risk of supporting these institutions, it’s also important to look at the wealth building opportunities these lending programs have provided to disadvantaged populations. Rather than reinventing the wheel to get us out of The Great Housing Depression, we’d be wise to revisit history and learn what we can from the FHA.
DHW asks: What do you think?
]]>DHW asks: Would you trade a prized possession for a house?
]]>Income limits are very generous for those who buy between now until April 30, 2010:
While the $8,000 tax credit is getting a lot of use, Realtors are seeing very few existing homeowners taking advantage of the $6,500 tax credit.
The housing tax credits were extended under the H.R. 3548 Worker Homeownership and Business Assistance Act of 2009
DHW asks: Will you take advantage of the housing tax credits?
]]>The upside:
The downside:
Prior to these changes, most real estate closings could be preformed within one hour. However, lenders are not the only folks needing more time to deal with the new regulations. Real estate attorneys and title agents are taking more time to explain new closing documents.
In today’s environment, trying to fit a real estate closing in one hour is like trying to fit a square peg in a round hole. There is widespread bellyaching from all sides involved that closings are being rushed in an effort to move on to the next one. To avoid adding more stress into the mix, real estate attorneys and buyers would be wise to allow two hours for closing escrow. An attorney’s focus should be on the closing at hand and not the next party waiting to close.
DHW asks: Do you think real estate attorneys and title agents should allow more time for closings?
]]>DHW asks: Have you been discriminated against because of your sexual orientation or gender?
]]>The Real Estate Settlement Procedures Act (RESPA) is a federal law designed to “protect consumers from unfair practices by settlement service providers during the home-buying and loan process.”
The new RESPA handbook can be found here.
DHW asks: Do you think the new changes to RESPA will help protect consumers?
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