Andrew Lieb discusses updates to Lieb School and Adverse Possession issues on 88.3FM Real Life with John Christopher.
Click here to Listen to Interview
Click here to Listen to Interview
Monday, June 20, 2016
The Making Home Affordable (MHA) Program, which was launched in 2009
to assist millions of distressed homeowners facing foreclosure, is set to
expire on December 31, 2016. Under this program, homeowners with non-GSE mortgages
(i.e. mortgages not owned or guaranteed by FannieMae or Freddie Mac) may apply and be reviewed for refinancing,
loan modifications, short sales, deeds-in-lieu, and unemployment assistance
with their lenders in accordance with stringent guidelines set forth in the Making Home Affordable Handbook. Many homeowners who were approved for loan modifications under
the Home Affordable Modification Program (HAMP) were also eligible for free HUD-approved credit counseling to assist them in creating
a household budget that lowers the risk of default in the future.
Previously set to expire on December 31, 2015, MHA was extended through 2016 due
to its widespread success and the continuing need for relief for millions of
homeowners nationwide. However, the number of applications under the MHA
program have declined overall in recent years due to both the stabilizing
housing market and drop in the unemployment rate. At the end of 2015, RealtyTrac
reported that there were 1,083,572 properties with foreclosure filings
nationwide—a significant drop from the peak of 2,871,891 properties with
foreclosure filings in 2010. As of May 2016, RealtyTrac reported a total of 896,913 properties in default, at
auction or repossessed by the banks.
The Obama administration has not yet
announced another one-year extension to the program through 2017, and it is
unclear at this time whether such an extension will be granted. The unknowns
that are involved with the looming presidential election make the possibility
of an extension even less clear. Though
the foreclosure rate is down, there is still a great need for the MHA program
for the many properties currently in foreclosure and the many millions more
that are still at risk for default.
Homeowners who are still facing the
possibility of foreclosure may apply for any of the foreclosure alternative
programs under MHA on or before December 31, 2016 deadline.
Though it is not necessary to have a
decision on the application for a loan modification, short sale, or
deed-in-lieu by the end of 2016 to be eligible under the MHA program, servicers
are required
under the MHA program to design
policies and procedures that ensure that permanent modifications are effective
by December 1, 2017 and short sales and deeds-in-lieu are closed by December 1,
2017.
Struggling homeowners should apply
now to take advantage of the foreclosure alternatives provided by the MHA
program before the deadline of December 31, 2016. If homeowners do not apply by
that date, they will be limited to applying for lender/servicer in-house
programs, which are usually limited in scope and may not be as affordable or
reasonable as the offers under the MHA program.
The candidates for the 2016 election should take a position on the possibility of extending the MHA program through 2017 in order to help the millions in foreclosure and in default.
The candidates for the 2016 election should take a position on the possibility of extending the MHA program through 2017 in order to help the millions in foreclosure and in default.
Wednesday, June 08, 2016
Deceptive & Misleading Advertising
Instructor: Andrew Lieb, Esq., MPHCredits: 3 CE Hours
Date Offered: 7/14/16
Location Offered: Newsday Training in Melville
Summary: This 3 hour real estate brokerage continuing education course maps out the rules to advertise property in the State of New York. Did you know that real estate salespersons, associate brokers and brokers cannot just say whatever they want in real estate advertisements? Moreover, agents can’t be forced by their clients to manipulate the true description of property while marketing. In this course, you will learn that there is no freedom of speech in this regulated industry. In fact, the New York State legislature empowered the Department of State to enforce advertising regulations and such regulations are actually enforced.
After taking this course, you will be able to recite, with precision, the do’s and don’ts of real estate advertising. Instead of passing this integral function off to your team members or 3rd party vendors, you will know the importance of actively managing every aspect of promotion and mastering this craft. You will learn what you can and cannot include in advertisements. We will go over team advertisements, classified advertisements, mail, telephone, websites, e-mail, business cards, signs, billboards, flyers, for-sale signs, photographs, web-based promotion and more.
We will review court cases of deceptive and misleading advertising and you will understand the consequences of such action. We will discuss advertising statutes, regulations and opinion letters from the Department of State so that agents can advertise right up to the limit of what is permissible while complying with the laws of the State of New York.
Friday, June 03, 2016
Andrew Lieb, Esq. takes a look at the most recent Fair Housing Initiatives.
Click here to read the full article published in The Suffolk Lawyer.
Click here to read the full article published in The Suffolk Lawyer.
Thursday, June 02, 2016
The New York State
School Tax Relief (STAR) program has changed. Rather than working with the local
assessor, as was required in the past, homeowners will now need to register
with New York State in order to apply for the program. Additionally, qualifying
homeowners will receive a rebate check in the fall of every year rather than
receiving a reduction directly on their school property tax bill.
- Basic STAR: At least one owner must use the property as a primary residence and the total combined household income of the owners and owners’ spouses who use the property as a primary residence must be $500,000 or less.
- Enhanced STAR: At least one owner must use the property as a primary residence, all owners must be 65 years or older, and there must be a total combined household income of all owners (not just those who reside at the property) and any owner’s spouse who uses the property as a primary residence of $84,550. All owners do not need to be over the age of 65 if they are spouses, registered domestic partners or siblings so long as at least one owner is at least 65.
Starting this year, qualifying
homeowners must register with New York State, which can be done online here
or by phone at 518-457-2036, in order to apply for the STAR program. If the
homeowners qualify, they will receive their STAR credit as a rebate check each September.
If homeowners are
already receiving a STAR exemption and purchased their primary residence prior
to May 1, 2014, they do not need to re-register to continue qualifying for the
exemption, and they will continue to receive the exemption as a reduction on their
school property tax bill. Only those who purchased their primary residence
after August 1, 2015 or did not apply before the 2015 STAR application deadline
are affected by these changes.
Homeowners can check your local assessment
roll to see if they are already receiving a STAR exemption. Understanding
how the STAR credit program works and what changes have been implemented can help
save time and money into the future.
Tuesday, May 31, 2016
The
U.S. Department of Treasury recently released Supplemental
Directive 16-04 (Making Home Affordable
Program – Handbook for Servicers Version 5.1). This Supplemental Directive announces the
release of Version 5.1 of the
Making Home Affordable (“MHA”) Handbook (the “Handbook”). This newest version of the Handbook consolidates
the “sunset” provisions provided by the U.S. Department of Treasury in Supplemental
Directive 16-02 (MHA Program Termination
and Borrower Application Sunset) and Supplemental
Directive 16-03 (MHA Program Termination
and Borrower Application Sunset II) into one location for ease of reference.
Distressed
homeowners who are facing foreclosure must submit their request for mortgage assistance
under the MHA program by December 31, 2016.
After that date, lenders will no longer be required to comply with the
MHA guidelines set forth in the Handbook.
This will leave many distressed homeowners with few remaining options
and most will face the possibility of foreclosure.
The MHA
program was announced in 2009, by the Obama Administration, as a relief to
distressed homeowners. The MHA program’s
objective is to provide guidelines to lenders to modify the terms of eligible
mortgages so that “at-risk” homeowners would be able to reduce their monthly
mortgage payments and to avoid foreclosure.
According to the most recent MHA Program
Performance Report,
during the last 7 years, the MHA program has only helped 2.5 million of the 7
to 9 million homeowners that were identified as “at-risk” by the Obama
Administration in 2009. This means that
the remaining 4.5 to 6.5 million “at-risk” homeowners who do not submit their
request for borrower assistance by December 31, 2016, will be faced with
foreclosure.
Congress’
decision to abandon the MHA program seems misguided because of the time and
resources it has invested in the program.
Most importantly, the termination of the program on December 31, 2016,
leaves up to 6.5 million “at-risk” homeowners scrambling to submit requests for
assistance of face the possibility of foreclosure.
Tuesday, May 24, 2016
You may think that you can save money in real estate by not using a Buyer’s Agent. On the contrary, it is often argued that there is no savings because the secondary benefits of using a Buyer’s Agent surpass any costs of such a Buyer’s Agent. Nonetheless, the only factor that can actually save you money in brokerage commission in a real estate transaction is if it’s a Direct Deal.
Read the full article by Andrew Lieb, Esq. here.
Read the full article by Andrew Lieb, Esq. here.
Monday, May 16, 2016
Finally, an article that simplifies this extremely complicated agency disclosure topic.
Buyer’s Agent. Seller’s Agent. Direct Deal. The terms may sound familiar, but do you or your clients or customers really know what they mean? That knowledge is essential for all sides in real estate dealings, particularly in understanding commissions and not violating license laws.
What’s in a Name? In Real Estate It Could Be the Difference Between a Great Deal & No Deal, is written by Andrew Lieb, Esq. one of the premiere lecturers on this topic.
Tuesday, May 10, 2016
The U.S. Department of Treasury (Treasury) recently released Supplemental Directive (SD) 16-03 (MHA Program Termination and Borrower Application Sunset II) to the Making Home Affordable (MHA) handbook, containing “sunset” provisions for its MHA program. The release of this Supplemental Directive signals that there will be no further extensions of the program.
The Making Home Affordable program was announced in 2009, by the Obama Administration, as a relief to distressed homeowners. The MHA program’s objective is to provide guidelines to lenders to modify the terms of eligible mortgages so that “at-risk” homeowners would be able to reduce their monthly mortgage payments and to avoid foreclosure. According to the most recent MHA Program Performance Report, during the last 7 years, the MHA program has only helped 2.5 million of the 7 to 9 million homeowners that were identified as “at-risk” by the Obama Administration in 2009. This means that the remaining 4.5 to 6.5 million “at-risk” homeowners who do not submit their request for borrower assistance by December 31, 2016, will be faced with foreclosure.
SD 16-03 provides the following modifications to the MHA handbook for winding down the program:
The Making Home Affordable program was announced in 2009, by the Obama Administration, as a relief to distressed homeowners. The MHA program’s objective is to provide guidelines to lenders to modify the terms of eligible mortgages so that “at-risk” homeowners would be able to reduce their monthly mortgage payments and to avoid foreclosure. According to the most recent MHA Program Performance Report, during the last 7 years, the MHA program has only helped 2.5 million of the 7 to 9 million homeowners that were identified as “at-risk” by the Obama Administration in 2009. This means that the remaining 4.5 to 6.5 million “at-risk” homeowners who do not submit their request for borrower assistance by December 31, 2016, will be faced with foreclosure.
SD 16-03 provides the following modifications to the MHA handbook for winding down the program:
- All borrower requests for assistance under MHA must be submitted by December 31, 2016;
- On December 1, 2017, MHA Help and the Home Affordable Modification Program (HAMP) Solution Center will no longer accept new cases, nor escalate cases to servicers;
- All cases that have been escalated prior to December 1, 2017 must be resolved by May 1, 2018;
- After December 30, 2016, servicers will no longer be required to assign relationship managers to borrowers;
- Effective May 1, 2018, servicers will no longer be required to follow Section 3 of Chapter 1 of the MHA Handbook; however, the Treasury suggests that servicers continue to follow the best practices that have been established by MHA;
- After September 1, 2016, servicers are no longer required to satisfy the Reasonable Effort standard set forth in Section 2.2.1 of Chapter II of the MHA handbook; and
- Servicers will not be required to suspend a scheduled foreclosure sale if a borrower submits an Initial Package after December 30, 2016.
Thursday, May 05, 2016
On 5/3/16 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC, Buffalo and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It's encouraged that Lieb School students attend these meetings to have your voices heard.
"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."
A complete video of the meeting is available on youtube.
In summary, the following was discussed:
"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."
A complete video of the meeting is available on youtube.
In summary, the following was discussed:
- Enforcement activity report;
- Equalizing points for salespersons seeking a real estate broker's license for acting on the selling and listing sides of deals;
- Updates on the continuing education topics of agency and diversity;
- The new broker's curriculum; and
- Fair Housing regulations, which were passed.
Most interestingly, the enforcement report claimed that while 317 complaints were fielded by the Department of State from January through April of this year, only 2% were referred to the Administrative Department to pursue charges. Agents should translate that statistic as meaning that while a lot of complaints come into the Department of State, a lot of effort is exerted in weeding out the legitimate complaints from the lot. This is quite reassuring.
