Throughout the year I compile and post title, escrow, short sale, foreclosure and closing tips presented by our friends at Ticor Title. Though these tips are directed to real estate professionals I believe consumers also benefit from this information. Here is the latest installment:
Tip #14 – What is Assembly Bill 65 & How Does That Affect The Notices Of Default?
Effective July 1, 2009, there was a new additional recording fee imposed for Notices of Default and Election to Sell. The new fee, established by Assembly Bill 65 is Fifty Dollars ($50.00). Below is a link to an informational brochure announcing the new recording fee for the Notice of Default and instructions for the individuals recording the notices involved in the new foreclosure procedures instituted by AB149.
AB 65 states: that Section 5 requires a county recorder to collect a fee of $50 upon the filing of any notice of default and election to sell and provides that such fees must be deposited in a special account to support a program of foreclosure mediation established by Supreme Court Rule. However, Section 5 also provides that 1.5 % of the fees collected may be placed in a special account for use by the office of the county recorder. (NRS 107.080)
See the Brochure On New Recording Fee
Tip #15 – Does The State of Nevada Have Information To Assist People Facing Foreclosure?
The State of Nevada does have a website completely dedicated to assisting those who are facing foreclosure. See Nevada Foreclosure Website
Tip #16 – What New Government Regulation Could Potentially Delay Your Closing Date?
Effective July 30, 2009 (HERA) Housing and Economic Recovery Act amends the Truth in Lending Act (TIL), implemented through Regulation Z. It has a number of provisions including the Mortgage Disclosure Improvement Act, which changes the Truth in Lending Act requirements surrounding early and final disclosures to homebuyers and addresses when lenders can accept payments for charges associated with a new loan.
Make sure you ask your preferred lender about this new regulation. This will impact your closing dates!
Tip #19 – Who is responsible for paying the HOA (resale) package?
Effective June 9, 2009, when selling a home that is part of a common interest community, providing the resale (HOA) package is “at the expense of the unit’s owner.” [See SB 253, Section 8] The clarification as to who pays for the resale package is explained in Senate Bill 253 and was put into effect on June 9, 2009 by virtue of a provision in Assembly Bill 350. Each of these bills also contains the list of documents and information to be included in a resale package.
You can view these bills and the detailed explanation of these new laws by clicking the links below:
Tip #20 – Valuable Short Sale Information
The National Association of Realtors® has a great education tool intended to give Brokers and Sales Associates a comprehensive overview of the short sale process.
This Short Sale Workflow is available on Realtor.org or the Reno Sparks Association of Realtors® website, Rsar.net.
To view the Short Sale Workflow, click Short Sale Workflow
Tip #21 – Freddie Mac & Short Sale Commissions
Freddie Mac confirmed in a bulletin dated, August 20, 2009, that its servicers are not allowed to renegotiate short sale commissions. According to the policy, as a requirement of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. Also, servicers must continue obtaining all applicable third party approvals and ensuring that the transaction is arms-length in accordance with the requirements specified in Section B65.37.
To view the Freddie Mac policy, click Freddie Mac Bulletin 2009-22
Tip #23 – New RESPA Regulations For Loan Originators and Closing Agents
Effective January 1, 2010 HUD will require mortgage lenders and mortgage brokers to provide borrowers with a new Good Faith Estimate (GFE) form which has been revised to a 3 page form.
The Settlement Statement (HUD-1) form has been redesigned to have the same categories of loan information as the GFE form.
Even though these RESPA regulations and rules do not involve the real estate agent directly, it is important that your client (borrower) understand lending and closing disclosure requirements.
To review the facts on the new GFE & HUD-1 forms, click FAQ’s on GFE & HUD-1