The mandatory 90-day waiting period instituted in 2003 by the Federal Housing Administration (FHA) on the sale of REO properties is being lifted. The waiting period was originally designed to reduce the number of properties in foreclosure that were being “flipped” by investors, but is now seen as an additional hurdle in the process of clearing the growing number of foreclosures from the market.
Agents should be aware that many REO properties do not meet FHA guidelines, however, and so properties that are in foreclosure may need to be rehabilitated prior to being sold to an FHA borrower.
The process of flipping homes gained popularity over the last few years. Investors would purchased foreclosed or distressed properties and then re-sell them to new buyers. The timeline for the re-sale is the subject of the 90-day rule.
HUD has released Mortgagee Letter 2008-09 which announced new limits on cash-out refi’s. The new loan-to-value (LTV) ratio may not exceed 85% of the estimate of value if the loan balance is to exceed $417,000.
The letter also states that any loan where the amount of the loan exceeds the conforming loan limit of $417,000 (January 1st, 2008 limits) and the LTV exceeds 95% of the estimate of value and the property is determined to be in a declining market by the appraiser or the lender, then a second appraisal will be required.
These new rules are designed to protect the Federal Housing Administration which will now be in a position to guarantee larger loans than it has previously. The letter also describes how a declining market is determined.
>>>>> Click Here to read Mortgagee Letter 2008-09
The Tax Policy Center, in a collaborative effort with the Urban Institute and the Brookings Institution, has released the Tax Policy Briefing Book: A Citizens’ Guide for the 2008 Election, and Beyond. This book is available online, and addresses various questions related to tax issues that have already or are likely to come up during the election.
The briefing book concept was developed so that it could be monitored and altered as the laws and moods of the government or citizens changed. The book teaches the background of the tax code, where government funding comes from and even lists the distribution of tax burdens.
This version of the Briefing Book also discusses President Bush’s tax cuts and their effect on the economy from a fiscal and tax standpoint, as well as who the beneficiaries of those cuts were, and who felt the fiscal effects. The book also includes a commentary on how the Federal tax system might be improved.
>>>>> Click Here to view the Tax Policy Briefing Book online
A Santa Fe real estate agent was abducted by a woman at gunpoint yesterday. The assailant is still at large.
The FBI has asked that a notice go out to all real estate professionals to help them determine if there have been any similar incidents reported nationwide. If you know of an incident please contact your local authorities or the FBI with this information.
In September during REALTOR® Safety Week the Masters Report posted on ways agents could help to protect themselves in the field. We encourage you to revisit that article by clicking here.
We again want to encourage you to visit the NAR Field Guide to Safety online. Here you will find important information on how to protect yourself at open houses, in the office, in the car and talking on the phone.
You can also go online to view a Safety Video prepared by NAR.
The IRS today announced the 2008 optional standard mileage rates that are to be used to calculate the deductible costs of operating an automobile for business, charity work and medical or moving expenses.
The rates, which go into effect January 1st, 2008, include the use of a van, pickup or panel truck;
* 50.5 cents per mile for business miles driven;
* 19 cents per mile driven for medical or moving purposes; and
* 14 cents per mile driven in service of charitable organizations.
The new rates represent an increase for business miles, while miles driven for medical or moving purposes will go down 1 cent per mile. And a reminder that a taxpayer may NOT use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously. Revenue Procedure 2007-70 contains more information;
>>> Revenue Procedure 2007-70
