Short-sale disputes were designated as the most significant legal issue facing real estate professionals, according to therecent National Association of Realtors’.  In addition, according to a NAR survey, REO agency issues, property condition and RESPA issues are among the the top issues facing real estate professionals today.

Read more here from DSNews.com.

As the housing market begins to dig itself out of the trough caused by the bubble, new tough down payment requirements are hamstringing recovery momentum, especially among first time home buyers. Under the newly proposed Qualified Residential Mortgage (QRM) rule (meant to prevent another credit bubble in housing markets) only borrowers putting down 20 percent can get the best deals. To buy a median nationally priced home of $170,000, the borrower would have to come up with $34,000 in cash, which takes the average middle class family 14 years to save. Even repeat buyers will be restricted from getting the best deals as equity has eroded from their home which is normally used to purchase a new home.

The Federal Reserve Board’s regulations governing loan originator compensation went into effect April 6 after a federal appeals court dissolved a stay suspending implementation of the rule.

The U.S. Court of Appeals for the District of Columbia Circuit issued an order March 30 to stay the implementation of the Board’s loan originator compensation regulations. However, on April 5, the appeals court on Tuesday ruled National Association of Mortgage Brokers and (NAMB) the National Association of Independent Housing Professionals (NAIHP) had not “satisfied the stringent standards required for a stay pending appeal,” and dissolved its administrative stay of the rule.

The Associations filed a lawsuit March 9 against The Federal Reserve System seeking to restrain implementation of a section of the Fed’s loan originator compensation rule. On March 30, Judge Beryl Howell denied NAMB’s request although she found the rule could cause irreparable harm. NAMB then appealed to the U.S. Court of Appeals, which then issued the stay on March 31, preventing the rules from going into effect April 1. The Federal Court then dissolved the stay after both NAMB and the Federal Reserve filed replies.

The three-judge appeals court panel also denied an emergency motion to stay implementation of the rule pending appeal, and denied a motion for expedited relief that sought to fast-track the appeal process.

Read more about this on HousingWire.

The definition of loan fraud is simple.  According to the F.B.I. loan fraud is any material misstatement, misrepresentation or omission relied upon by a mortgage underwriter or lender to fund a loan.

The definition does not make any exception for white lies, half truths, fibs or creative facts.  It says any material misstatement, misrepresentation or omission.  In most cases if you are involved in a real estate loan transaction, as a borrower, real estate agent, attorney or some other party, and you have to ask yourself or someone else “Is that loan fraud?”  95% of the time the answer is “yes.”

In most cases when I am asked about whether or not something is loan fraud the conversation usually goes something like this: More… »

YOUR FIRST HOME. Purchasing one is a rite of passage that most non-homeowners dream of. Besides the intangible benefits, homeownership lets you build equity, and is the single biggest tax break available to most consumers. Here’s our look at some smart strategies for getting in the door.

First: Pay Off Your Debt

It’s a common mistake for home-buyers-to-be: They focus on saving as much money as possible for a down payment instead of paying off other debts.

How Much Can You Afford?

The answer to that is a function of two things: How much you can borrow and how much of a down payment you can muster. As a rule of thumb, your annual mortgage payment, taxes and homeowner’s insurance shouldn’t exceed 28% of your gross income.

Types of Loans

Now you’re ready to start shopping around for the right loan. A first-time home buyer with a steady job and good credit can buy a home with less than a 20% down payment.

Questionable Credit

Worried you don’t have perfect credit? You may yet qualify for a loan insured by the Federal Housing Administration, or FHA. These government-insured loans are issued with even more lenient credit criteria. You can also put down as little as 3.5% for an FHA loan. A portion of closing costs may be used to meet the 3.5% cash requirement.

Down-Payment Assistance Programs

Still having trouble coming up with that down payment? Each year HUD gives states and municipalities money to distribute to low- and moderate-income families for housing.

Read more: Tips for First-Time Home Buyers – Spending – Deals – SmartMoney.com

In Massachusetts an estate of homestead protects a homeowner’s primary residence from the claims of certain creditors. Prior to the change in the law the declaration of homestead protected the equity in the home for up to $500,000 of its equity in the event the home owner is sued. That is, if a homeowner is successfully sued in court, $500,000 of the home’s equity could not be touched by an attachment and or execution of sale by the judgment creditor. To acquire the homestead a homeowner would need to file a written declaration and record it with the county Registry of Deeds.

The Massachusetts Legislature has recently passed long awaited revisions to the Massachusetts Homestead Act. The revised law now provides automatic protection up to $125,000 on a homeowner’s primary residence, and a written homestead can also be filed to increase the protection up to $500.000.  The act also provides homeowners additional protection: More… »

Turmoil in Libya and Middle East countries may send oil prices up and affect mortgage rates.

If investors fear that rising oil prices will derail an emerging recovery, they will remove their money from stocks and put it into safer bonds, especially government Treasuries. That will help lower mortgage rates. More bond purchases will push bond prices up and their yields, or their interest rates paid to bond owners, down.  Mortgage rates would also decline, since they cannot be lower than government bond rates.

That’s exactly what’s been happening this week. Oil prices went over $100 a barrel, its highest price since September 2008.  Mortgage rates have declined for three consecutive weeks, with the average rate for the 30-year fixed-rate mortgage declining from 5 percent to 4.84 percent last week.   Read more of what Michael Kling says here.

Long-term fixed rates decreased for the third consecutive week, according to Freddie Mac’s Primary Mortgage Market Survey.

The 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending March 3, 2011, down from last week when it averaged 4.95 percent. Last year at this time, the 30-year FRM averaged 4.97 percent.

The 15-year FRM averaged 4.15 percent with an average 0.7 point, down from last week when it averaged 4.22 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.6 point, down from last week when it averaged 3.8 percent. A year ago, the 5-year ARM averaged 4.11 percent. More… »

The process starts with a real estate buyer with a property under contract. Once the settlement agent or closing attorney has been retained by the mortgage lender the begin the “title work.” That is the examination of the chain of ownership or chain of title to the property. This examination discloses the history of owners and lien holders on the property and helps the closing attorney to ensure that the buyer receives good clear title to the property and that the seller actually owns the property.

The closing attorney will also assist the lender to make certain the certain conditions of the mortgage loan are met. Like having the property insured for the proper amount of homeowner’s insurance or “hazard” insurance. The closing attorney will also help the lender and borrower meet conditions of the loan that are related to the title to the property, such as providing accurate real estate tax information. More… »

Realtors® are licensed and are trained to understand all aspects of real estate sale and purchase transactions as part of that licensing. From rules and regulations to financing options a good Realtor can guide their client through the complicated process of buying or selling real estate.  Realtors® are required to continue their training annually to receive training credits to renew their licenses.

Realtors® have access to resources not available to the average home buyer or seller.  More… »