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GREEN NEWS & The Real Estate Market Update
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What makes a house green? And, what's the difference between sustainably built and green? Is there a difference? The homebuilding industry is going through some changes right now. Within short order the answers to such questions will be national debate! But if you are interested now, my goal is to share timely information about the Green Building movement. In the coming decade, it's a sure bet that new federal regulations will be put in place requiring new homes to meet a certain standard for energy efficiency, and that older homes purchased be retrofit with better quality heating and energy sources. Learning the curve now will mean saving money in the long run! One of the best places to start your quest for green knowledge is at The Energy & Environmental Building Assocation . There they list criteria for energy resource efficient buildings, including new construction and remodels. More to come! 
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| RESPA, otherwise known as: Real Estate Settlement Procedures Act (phew, what a mouth full!) took effect January 1, 2010.
These new federal guidelines were put in place to help the consumer understand their loan documents and settlement costs.
The new rules require mortgage originators to take all the origination costs involved in a loan and bundle it into one fee then shown on the Good Faith Estimate and HUD-1.
Any subsequent changes require a re-submission to the mortgage originator--adding an additional 3 days to a closing--and then disclosed on a re-issued Good Faith Estimate.
FAQ's and Answers can be found at www.hud.gov.
HAFA: HOME AFFORDABLE FORECLOSURE ALTERNATIVE PROGRAM
As if we needed ANOTHER acronym, here comes HAFA!
Unveiled at the end of last year, the new HAFA rules will take effect April of 2010.
So what are these new federal guidelines?
The HAFA program is a baby brother of the Home Affordable Modificiation Program. I guess somebody up there finally got wise that no one was actually qualifying for a modification so a short sale was the next best thing!
Homeowners with a home underwater will be able to be approved for a short sale before they list a home, and receive up to $1500 moving money. They will also be fully released from future liability to repay the defaulted loan.
But not everyone must comply. It is purely a voluntary program and does not apply at all to any Fannie or Freddie loans.
Incentives for the big boys to play include: $1000 Fed money to cover their costs, and subordinate lien holders can receive up to $3000.
How will you know if you are eligible?
1. The home in question is your principal residence.
2. The mortgage was issued prior to Jan.1, 2009.
3. The mortgage is deliquent (Duh)
4. The current unpaid balance is equal to or less than: $729,750
5. Your monthly payment exceeds 31% of your gross income.
No matter what, these new guidelines, as well as the new & upcoming rules from Fannie and Freddie, will take some time to implement and fully comprehend. If you are looking to do a short sale, talk with your bank first, then include a Realtor with a CDPE designation to help you fill out your forms and get going on the path to a successful short sale!
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Articles by Alisha Braatz
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