LIEB BLOG

Legal Analysts

Thursday, May 19, 2011

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

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

Read more »
By at

Wednesday, May 11, 2011

My Home is Alive

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.
Read more »
By at

Monday, May 02, 2011

Learn to be a Landlord

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.
Read more »
By at

Friday, April 22, 2011

Assistance Available to "Green" Homeowners of Long Island

Assistance Available to "Green" Homeowners of Long Island

The Federal Government is now rewarding those homeowners on Long Island who choose to “go green” by offering assistance in the form of low-cost loans for energy-efficient home improvements. The pilot federal program, PowerSaver, will provide loans of up to $25,000.00 at low interest rates during its two-year pilot period. In addition, The New York State Energy Research and Development Authority will offer local assistance of up to $13,000.00 for similar renovations. The Town of Islip will open its office in Bay Shore shortly to assist local-area homeowners apply for loans. Be on the look-out for the announcement next week of its opening date.

Read more »
By at

Thursday, April 21, 2011

Underground Oil Tank Test - EZY3 Locator Plus Test

Underground Oil Tank Test - EZY3 Locator Plus Test
There has been a recent discussion among some local attorneys about the validity of and mechanism of an EZY3 Locator Plus Test. Knowing what I don't know, I asked Matt Kaplan of Housemaster, who teaches home inspections at our real estate school to explain.

Here is his response:

EZY 3 Locator Plus is not new technology (10 years). It uses ultrasound to scan the ullage (empty) area of a tank and is generally used in conjunction with other testing devices, such as low pressure volumetric testing equipment. The testing model described below is completely inaccurate based on several levels.

For example, air intrusion is not a physical condition considered during a tank test. Pressure may be introduced to a bulk storage facility and monitored for changes in pressure, but there is no condition for 'sucking' or release determined during that testing cycle.

Petroleum bulk storage (PBS) testing is regulated within specific guidelines established by regulatory authorities. The simplistic language referred to below actually creates a question of liability based on misinformation.

Your client would be served better by understanding the nature surrounding petrochemical pollution and appropriate regulations.

Specially, Matt was addressing the attorneys statement that: "test appears to be the suggested step up insofar as testing from traditional soil sampling, but not sure that it actually applies "pressure" or the like. It seems, unlike an air pressure test of years back (blowing air INTO the tank to check for leakage of air out of it), the below may be a slight vacuum of air OUT of thetank, then seeking to determine if air is being sucked INTO the tank- thus holes for leakage."

I hope you now understand the EZY3 Locator Plus Test.
Read more »
By at