September 21, 2016
- In a paper titled, “Sales of Distressed Residential Property: What Have We Learned from Recent Research,” the authors summarize research findings on three topics: the impact of changes in housing prices on foreclosures; the impact of foreclosure on the sales price of the foreclosed house; and the impact of foreclosure on the sales prices of nearby houses.
- A paper titled, “The Effect of Housing on Portfolio Choice,” shows that characterizing the effects of housing on portfolios requires distinguishing between the effects of home equity and mortgage debt.
- An article titled, “A Dynamic Model of the Housing Market: The Role of Vacancies,” highlights the need for a better understanding of the dynamics of the housing market and the mechanisms that drive and sustain periods of disequilibrium. In this analysis, I develop and estimate a dynamic model of the housing market where vacancies naturally arise as the error correction mechanism.
- A paper titled, “The Role of foreclosures in Determining Housing Capital Expenditures,” studies how foreclosures affect capital expenditure investments in residential properties.
- A paper titled, “Housing Market Dynamics: Disequilibrium, Mortgage Default and Reverse Mortgages,” is an introductory paper which serves to set the stage by relating the papers in the 2013 FSU-UF Critical Issues Symposium entitled “Housing Market Issues: Initiatives, Policies and the Economy” to previous literature. It provides both a clear picture of the state of knowledge in these critical areas and the significant contributions of these recent studies.
- A paper titled, “If We Build it, Will They Come? The Housing Stock and the Socioeconomic Integration of Elementary Schools,” shows that increasing the stock of rental and affordable housing units in middle- and high-income neighborhoods has an important effect on the number of poor children attending schools. Our results also reveal the types of housing units that have the largest impacts.
- An article titled, “Patchwork of state laws hurts U.S. effort to modernize mortgages,” describes how the financial industry is pressing for change in the form of “remote notarization.”
- The U.S. Department of Housing and Urban Development (HUD) today published a final rule to ensure that all individuals have equal access to many of the Department’s core shelter programs in accordance with their gender identity.
- Deutsche Bank has said it will reject a $14 billion settlement proposal from the U.S. Department of Justice to put to rest claims the bank misled consumers into buying risky mortgage-backed securities in the lead-up to the financial crisis in 2007.
- JPMorgan Chase Bank NA asked a New York federal judge on Wednesday for a quick win in a putative class action over the bank’s alleged failure to properly file papers giving notice mortgages had been paid off for thousands of New York state homeowners.
- PNC Financial Services Group has agreed to pay at least $24 million to settle a class action in Pennsylvania federal court brought by homeowners alleging a bank it acquired overcharged fees and interest for its secondary mortgages and didn’t accurately disclose business arrangements or the terms.
- The Eleventh Circuit on Monday upheld a U.S. Tax Court decision that a married couple wrongly characterized the $8.5 million sale of their Florida property as a capital gain rather than an ordinary business expense, but struck down a penalty for understating their income tax.
September 16, 2016
Realtor.com quoted me in What Is a Probate Sale? A Home You’ll Have to Win in Court. It opens,
If you’re looking to buy a home on the cheap, you might have stumbled across a probate sale. But what exactly is a probate sale? Basically it means that the homeowner died without a will bequeathing the house to an heir. In most cases, this means that an estate attorney or representative has to sell the property in order to liquidate the asset and distribute the money to family members—and that can spell a major bargain for you.
Probate sales can be attractive to buyers because they’re often priced below their market value, much like foreclosures. But since a court has to supervise and approve the home’s sale, the process is more complicated—and lengthier—than usual.
Here’s a look at the legal hoops you’ll have to jump through to make a probate sale happen.
How A Probate Sale Works
In a probate sale, the estate attorney or other representative hires a real estate agent to post the listing and sell the home. While buyers may be drawn in by the budget-friendly price, probate homes are not for everyone, starting with the fact that the homes are typically sold as is.
“Usually the estate doesn’t have an interest in renovating the property, either because of logistics, timing, or available funds,” says Richard Witt, owner of Long Island Cash Home Buyer. So, don’t expect the estate owners to make any repairs before you move in; what you see is what you get. That said, those in the know advise getting a home inspection just to make sure there aren’t major problems that would deter you from moving forward.
Here’s another difference with probate sales: If you decide to make an offer, that must be accompanied by a deposit totaling 10% of the price of the home. That’s in addition to your down payment, although this deposit can be folded into your down payment if the deal goes through.
Once your offer is accepted by the estate’s representative, that’s not where the negotiations end. From there, the estate attorney has to petition the court to approve the sale. And as you might expect, courts move at their own pace; expect to wait 30 to 45 days (or even longer) for your day in court when you can claim your home.
Playing the waiting game isn’t the only frustrating aspect of probate sales. In certain states, even as your offer is making its way through the courts, the home can remain listed and be open to other bidders who may be allowed to show up at your hearing and outbid your offer.
“In California, for instance, probate homes typically do go up for auction at the courthouse after the offer comes in,” says David Reiss, research director at the Center for Urban Business Entrepreneurship at Brooklyn Law School. “This builds a lot of uncertainty into the process for the bidder who gets the ball rolling in the first place.” All that said, you also have a right to counteroffer and, even if you do lose out, you should at least get your 10% deposit back.
- America is thinking through how English Language Learners receive housing subsidies and support. Although the Fair Housing Act protects specific classes, individuals with limited English understanding and speaking are not fully covered. The U.S. Department of Housing and Development outlines specific rules to ensure these individuals are not discriminated again.
- The U.S. Department of Housing and Urban Development are seeking to help tribal communities across the nation. After completing a study, they have recently awarded 56 million dollars to these efforts.Particularly Alaska is extremely exciting because they are hoping to mitigate their decline in population and add more affordable housing.