December Broker Newsletter

Broker Newsletter
December 15, 2009

In This Issue
· Obama’s Standardized Short Sale Plan
· Meth Lab Disclosure Rules
· Getting the Most from Your Website
Revelation Links
Training Calendar
Current RE Issues
IRS Tax Credit Information
Information on the in’s and out’s of the tax credit for first-time homebuyers.
HUD Homes
A list of HUD homes available for purchase by city.
Meth Lab List
State list of unremediated meth labs
Broker Blog
See Past Broker Newsletters and Discussion of Real Estate Issues
Contact Us
480.722.9800 Office
480.802.1599 Broker Hotline
http://www.mywestusa.com
brokerreview@westusa.com


Obama’s Standardized Short Sale Plan
On December 1st, the US Treasury Department outlined a standardized short sale plan that is been nicknamed “Obama’s Short Sale Plan”. The plan is an attempt to streamline the traditionally time consuming and difficult short sale process by requiring lenders and other involved parties to used uniform documents, timelines, and by providing financial incentives. It should theoretically make it easier for a seller to sell their properties, hence making our jobs easier as well.
This is part of the Obama administration’s $75 billion foreclosure prevention plan that announced in May that it would include short sales but didn’t release the details until this month. The program’s official name is the Home Affordable Foreclosure Alternatives Program (HAFA) as a piece of the existing Home Affordable Modification Program (HAMP). The program actually applies only to loans not guaranteed by Fannie Mae or Freddie Mac which cover over half of all mortgages. Fannie and Freddie will be issuing their own versions of the guidelines in the next few weeks.
The new federal guidelines apply only to banks and lenders which are subject to federal banking oversight such as the biggies like Bank of America, Chase, Wells Fargo, but not necessarily smaller local and state chartered banks.
Under the new rules, mortgage servicers have 10 days to approve or disapprove a request for a short sale. Additionally, lenders are required to fully release the borrower from the debt upon completion of the transaction.
Homeowners who successfully complete the short sale under the program receive $1500 at the close of escrow to assist with moving costs.
1. Primary mortgage servicers or first lien holders can receive $1000 for each closed short sale.
2. Investors, such as PMI companies, receive $1000.
3. Secondary lien holders receive $3000.
4. Real estate agents will receive “standard”, agreed upon commissions. The rules prohibit banks from forcing agents to cut their commissions as a part of the final approval process.
The program does not take effect until April 5th, 2010 but servicers may implement it early if they meet certain requirements.

Meth Lab Disclosure Rules
We have the responsibility of disclosing to both buyers and tenants any unremediated meth labs or other dangerous drug labs.
The Board of Technical Registration maintains a list of all such properties, and you can access it via the link in the left margin of this newsletter. The list includes all seized drug laboratory sites that meet the state’s definition of “clandestine drug laboratory”. Once a site is remediated and properly inspected and certified, it is removed from the list.
A property that has concealed a dangerous drug lab can be a toxic menace to occupants. The property owner is required to clean up the property, and until it has been properly remediated, the property owner must disclose to buyers and tenants that the property has been used as a drug lab.
How much time is the owner given to have the property remediated? The owner shall remediate the property within 12 months after receiving notice. Clean up must be performed by a remediation firm approved by the Arizona Board of Technical Registration (BTR).
What happens if the owner does not remediate the home? If the owner fails to have the home remediated within the 12 months, BTR will alert the city or county manager, and the city or county may step in and remediate the home and pass the cost along to the homeowner.
Can you sell an unremediated property? Yes. The owner can sell the unremediated property as long as the seller notifies the buyer within five days after the contract is signed. The buyer must acknowledge receipt of the notice and may cancel the contract within five days of receiving the notice and receive their earnest money back. If the owner fails to provide the notice, the owner is subject to a civil penalty of $1000 and is liable for any harm resulting from the owner’s failure to comply with the requirements.
Once the property has been properly remediated, does the seller have to disclose to the buyer that the property was the site of a drug lab? No. Under the specific statute, the seller is only obligated to make the disclosure for the unremediated property. However, in regards to general seller disclosures, please counsel your sellers to include information about the remediation with the Seller Property Disclosure Statement (SPDS). When in doubt, disclose.
Not all dangerous drug labs are discovered by police. Are there any signs a buyer can look for that might suggest the past presence of a drug lab? There is no easy way to identify a property that once housed a drug lab, but here are five warning signs to watch for:
1. Yellow discoloration on the walls, drains, sinks and showers
2. Blue discoloration on valves of propane tanks and fire extinguishers
3. Fire detectors that are removed or taped off
4. Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.
5. Strong odors that smell like materials found in a garage such as solvent and paint thinner or odors or cat urine or ammonia
** excerpt from AAR articles

Getting the Most from Your Website
As NAR statistics indicate, an increasing number of buyers begin their home search on the internet. Make sure that you are using a website to market yourself and mine leads effectively. Here are some specific tips for using your website to increase your business.
1. It’s Not About You… Buyers and sellers are looking for information on available properties, tips on moving, etc. Consider the concerns each have and address them with your website.
2. Call to Action! Have clearly visible sections that encourage your clients to take action now.
3. Specific Property Searches. Increase the amount of time buyers spend on your website looking at properties by setting up specific, targeted searches for specific neighborhoods, price points, property types, etc.
4. Cultivate the leads. There is no such thing as a bad lead. Internet leads may have as long as a six month incubation period. Have a disciplined system for following up with your leads until they buy.
5. Is your website ready for Search Engine Optimization (SEO)? Use metatags and specific descriptions for your pages to increase the chances of buyers and sellers finding your website.
6. Consistency. Use a similar look and feel for your website, emails, flyers, postcards, and other marketing materials to build your brand recognition with your clients.
7. Add social media to your website. Consider using Twitter, Facebook, LinkedIn, and blogging to integrate other online media with your website and drive repeat traffic to your website.
8. Work in Progress. Your website is never done. It will always require tweaking, changing, and updating as you change and the market changes.
Please join us for a training class on Developing Your Personal Website on Friday, January 8th, after the office meeting at 12:30pm in the training room with Brian Ford from Superlative.