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Tuesday, September 8, 2015

CFPB / TRID Update

October 3 is the date Consumer Finance Protection Bureau chose for implementation of TRID, the TILA-RESPA Integrated Disclosure, one integrated disclosure document that will replace the  GFE, TILA and HUD1 statements. These three documents have governed how we conduct real estate sales with mortgage lending for a considerable time. With the change, real estate brokers, mortgage lenders and borrowers will all be on the same page, so to speak, for the first time.

Our real estate world has been in preparation for this change for some time especially since the CFPB actually postponed the implementation date so everyone would have time to prepare and be ready for the big day.  Real estate brokerages, mortgage companies and title companies have offered classes, held fora and discussions.  Some of us are waiting with with great anticipation; others with trepidation. We are all excited because these changes relate to home ownership and home ownership matters.

A friend in the mortgage industry shared three presentations with me. They clarify points and stress that there should be nothing to fear in the implementation of TRID.  Cornerstone Lending videos help explain procedures and timing. Home ownership matters!

Saturday, September 5, 2015

Life After Foreclosure / Short Sale

National Association of Realtors (NAR) reports that as many as 9.3 million homes were lost to
foreclosure or short sale during 2006 to 2014. As a broker, I recall holding the hands of some very dear folk as they struggled through short sales transactions while I tried to encourage them that there could be life as a homeowner after a short sale.  I remembered my mother's words, the longest road has a turning.

According to NAR, the road has turned. Over 1 million who lost homes during the difficult years of 2006-2014 have already returned to the market place and are home owners again.

Many potential buyers,  currently renters, desirous of reawakening their American dream of home ownership are tentative. They worry that they won't qualify. They ask particularly about necessary waiting periods after bankruptcy, foreclosure, short sale. Some think their credit is ruined forever.
And just in case you are in this group and are contemplating joining the ranks of boomerang buyers, as these after-foreclosure and after-short sale home buyers are called, here is a synopsis of waiting periods.

Fannie Mae and Freddie Mac  require a 7-year wait from completion date; a 4-year war from completion dater short sale or Deed in Lieu; 4years from completion date for Chapter 7 Bankruptcy and for Chapter 13 Bankruptcy, 2 years from discharge date and 4 years from dismissal date.

The wait time is even shorter for FHA, VA, and USDA Rural loans. FHA requires a  waiting  period of 3 years for foreclosure; 3 years for short sale / Deed-in-lieu; 2 years for Chapter 7 bankruptcy and 1 year with some special conditions for a Chapter13 default. VA requires a 2-year waiting period for all categories except Chapter 13, which, like FHA and VA requires a 1-year waiting period.

 The road has turned. Renters can start owning again.

Saturday, July 4, 2015

Happy Fourth

Gift Realty NM wishes you a Happy Fourth!

Today, we celebrate the founding of our nation and all that founding promised in the Declaration,  
We the People . . . in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this constitution foe the United States of America. 

As we celebrate let us remember the expectations of that promise and reflect on the part we play in making them a reality. Let us not forget that we also are the People.

Happy Fourth!

Tuesday, June 9, 2015

Getting Ready For CFPB Changes

The Real Estate Industry is getting ready for August 1. That is the day the Consumer FinanceFinance Protection Protection Bureau (CFPB) has set for the start of implementation of new TILA rules when we in the real estate industry will switch from the HUD closing statement to the TRID. We are all taking classes to learn about the changes and what it will mean for lenders, title companies, Realtors and consumers. I attend a class next week. I will keep you updated.

New Mexico Oil and Gas Boom

Interestingly, it was almost exactly one year ago that I wrote about the oil and gas boom in New Mexico. Hopes were riding high for different interest groups for all the possibilities of the revenue that would enrich the coffers of the state. I, for one, hoped early childhood education would get the long-overdue attention many desired. Public education is one of the beneficiaries of oil and gas and other mining revenue in the state.

But in the nature of the ebb and flow of life, much has happened since May 2014.  Boom turned to bust to beginning boom again. We will have to wait and see.  The price of oil and gas fell, to the delight of most consumers. Fuel at the gas pump fell significantly in a relatively short time.  But not everyone welcomed the lower price. The state of New Mexico, for example that saw its revenue plummet to create a shortfall in the budget. Life in the oil rich areas suffered disruption as growth housing and other costs increased to meet growing demand then stalled; never mind that prices were skyrocketing to put affordability outside the reach of many who needed housing and services.

But gas prices are climbing again so the price of crude must be increasing and perhaps we can go back to nurturing hopes for a state-funded initiative for early childhood education.