LIEB BLOG

Legal Analysts

Thursday, May 19, 2011

Financing Issues with Distressed Properties - by RE School Instructor Karen Laurence

Usually a foreclosed home is not in excellent condition. Most of them have been neglected by their owners for lack of funds to maintain as well as make the monthly payments. The Bank-owned properties are called REO’s(real estate owned) and are back on the market for sale as is. Some will not pass an appraisal for a loan and must make use of a rehabilitation loan (203 k)that can be obtained through FHA or a construction loan-both of which are expensive and time consuming. Distressed properties, which are short sales and foreclosures, made up 40% of the sales last month.* Many buyers are not prepared to wait 3-6 months or longer for bank approval to move forward on these homes. They are looking to buy a house and move into it within 3 months.

In addition to that, 35% of these sales are all cash because financing is not obtainable or they are investment homes which are also difficult to finance at this point in time. Most of the time the electricity and the water are turned off and lenders must have the heat and water on to approve the loan. And a Certificate of Occupancy. The interest rate on a FHA rehab loan is ¼ point higher and usually has one or two points in it.

Sometimes you can get that bargain home through an REO but you can also get a great home now with your local realtor because prices are still low.

*The New York Times, May 15, 2011, Maryann Haggerty


Karen R. Laurence

Mortgage Loan Office

Email: klaurence@bethpagefcu.com

Bethpage Federal Credit Union

899 S. Oyster Bay Rd

Bethpage, NY 11714

Blackberry: 516-203-6286

Cell: 516-524-3953

Fax: 866-815-5710

Wednesday, May 11, 2011

My Home is Alive

Google did it again. Check out this article about how Google is changing the way we live at home from lighting to your alarm clock. Wow!!!

I love automation + there are many green concepts in energy efficiency that will emerge. Stay tuned.

Monday, May 02, 2011

Learn to be a Landlord

Did you know that Suffolk County has an entire Chapter of Laws concerning the rental of property?

These laws regulate such things as the minimum terms of a written lease (1 year unless waived by the tenant); requirements if the property is in foreclosure (notice to tenants within 5 days of service); social service recipients (landlords data collected by DSS) and criminal (misdemeanors) and civil penalties (3x actual damages).

The key is to remember that multiple levels of government may regulate the same thing, a landlord must look not only to their Town or Village for laws, but also to their County, State and Federal Government for the laws to make money without violation.

Keep posted to www.liebatlaw.com & this blog to learn when our first continuing education class on the Long Island Landlord will be offered.