Short sales, now a familiar term for the population at large as well as for the relocation industry, occur when a home is sold for less than the balance remaining on the mortgage and the lender agrees to accept less than the mortgage balance as a payoff of the loan. Short sales guidelines that became effective November 1, 2012, shed new light on the process. The guidelines were issued by the Federal Housing Finance Agency (FHFA), the regulator and conservator of Fannie Mae and Freddie Mac, and apply to mortgages owned or guaranteed by either of those organizations in short [...] Read More
Tag Archives: FHFA
Private transfer fees (PTFs) are either (i) an ingenious business model created by property developers to help defray the purchase price of a residence; or (ii) a deceptive consumer ripoff of the unwary homeowner.
What are PTFs?
A builder who is creating a residential development can put covenants or restrictions in the deeds to the new homes. The restrictions might be mundane, such as “No outdoor laundry-hanging,” cosmetic, e.g., “All front doors must be blue,” or safety oriented: “No barnyard animals.” A buyer who buys such a house is bound by these rules. Short of court intervention, they are included with the [...] Read More