Effective June 12, a new state law (House Bill 2791) protects distressed property owners. This press release covers: Distressed home purchasers, Distressed Homeowner Protections, & Tips for Distressed Homeowners.

FOR IMMEDIATE RELEASE
June 6, 2008

New law helps protect distressed homeowners

SEATTLE – A new state law to help protect financially strapped homeowners from equity skimming and foreclosure rescue scams in Washington goes into effect on June 12. The new law provides safeguards for people trying to stop the loss of their home and requires new disclosures and responsibilities for individuals claiming to help homeowners avoid foreclosure.  Continued… Rob McKenna, Attorney General of Washington, Press Release

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

A new Washington State law, HB2791, which goes into effect June 12, 2008 will change the duties required of real estate agents and brokers in many transactions.  Agents and brokers must modify the assistance they provide short sale sellers and will have to choose carefully the services they offer to sellers. 

The new law creates a significantly higher amount of liability for real estate agents, real estate brokers and distressed property buyers and therefore limits the options a distressed property seller will have.  Ultimately this will result in a higher amount of foreclosure homes selling at auctions and going back to the lender.  Watch for fewer distressed properties being listed for sale on the market and a higher amount of bank owned properties. 

“The distressed properties law was intended to protect vulnerable property owners from scams to steal the property owner’s equity. An unintended consequence of the law makes many agents and brokers [and buyers] a “distressed home consultant.” Generally, a distressed home consultant is any agent who offers to assist a seller with the sale of their home if the seller is either 30 days late on their mortgage payment or believes they could become late on mortgage payments in the next four months. Among other things, a distressed home consultant owes fiduciary duties to the seller, must use a special listing agreement and must write the listing agreement in the seller’s first language. Listing agents and brokers, selling agents and brokers and even buyers can become distressed home consultants.”

“The Washington REALTORS® carefully monitored the original piece of legislation as proposed by the Attorney General that was intended for consumer protection, however, damaging language was added during a complicated end-game process in the Legislature when there was no opportunity for public comment or time to study the wide-reaching implications on the real estate transaction.”

For more information read What you need to know about Washington State’s new distressed property law HB2791. 

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com 

New state law requires condo associations to report money set aside for long-term maintenance -Seattle Times

Attention, condominium shoppers: Washington soon will become one of a half-dozen states requiring condo associations to provide a financial-wellness check that can predict whether the place is a potential money pit.

The check, called a reserve study, estimates how much money an association must set aside to pay for expensive long-term maintenance, such as repaving a parking lot, replacing a roof or rebuilding rotting decks…

The reserve study must be done by a professional and can be waived only if it would “impose an unreasonable hardship,” something the law does not define. Still, the associations group, condo attorneys and property managers call the change necessary, if somewhat overdue, for a growing segment of the housing market. A quarter of King County home sales are condos, and many buyers are homeowner novices.

“It will act as consumer protection for a lot of potential buyers and give them a better perspective of the true costs of ownership in a condominium association,” says Marshall Johnson, president of The CWD Group, which manages about 90 condo associations in Seattle and Bellevue.

Sundberg, of Mercer Island, says that’s been sorely lacking.

“We’re seeing a substantial increase in litigation from unhappy purchasers who bought a condo then found out there’s a huge special assessment being levied,” he says. These irate buyers “go after the board, the manager, the real estate agents, the seller,” he says… 

For the fully story read New state law requires condo associations to report money set aside for long-term maintenance -Seattle Times

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com 

• Gregoire signs bill to protect Washington homeowners

  “Washington has a strong economy,” Gregoire said. “We are fortunate that we have not been touched by problems in the housing market in the same way as other states. But…”

• Countrywide, ACORN partner for foreclosure prevention

  Prevent Foreclosures – Strengthen Housing Market.

Are you serious?? You mean to tell me the sky isn’t falling? I have been telling you that all along. So what if there are a few more “Å“For Sale” signs up. So what if your house doesn’t sell in a month. So what if the Real Estate market is in a time of adjustment. There has always been Buyer’s Markets and Seller’s Markets. That is the point of a Free Market. Since when is this new news?

How about some good news instead of the self-fulfilling prophecy of doom-n-gloom the media likes to spread. Folks, we live in the “Å“Great” Northwest!! It is a great time to buy and own!! And if you are want to sell, our home values are still holding strong!! There are one million more people expected to move into Washington State by 2010!! If your eyes have been open while driving through Renton, Bellevue, Tukwila, Kent, Seattle, Kirkland, Bothell etc., you have seen new construction including new shopping centers, new skyscrapers, new office buildings and not to mention the widening of roads and freeways. Do the Paul Allens and other developers and investors know something the media does not? Our real estate market is still appreciating and these people seem to be preparing for more growth. Are you? I think this article puts things in a fair perspective: Rebound Talk Is Big At Realtor Annual Gig.

OUR KEY MESSAGE

The Washington real estate market is a stable and an excellent investment that you get to live in!

FACTS ABOUT FORECLOSURES

The foreclosure rates today are the same as they were 10 years ago.Fewer than one percent of mortgages end in default in Washington state.

As of mid-June, sub-prime, adjustable-rate loans represented 20 percent of loans nationally, but just 6 percent of home loans in Washington.

THE MARKET IS STRONG

Home appreciation in Washington continues to out-perform the rest of the nation with year-to-year price increases every quarter since the spring of 1995.

THE MARKET IS STABLE

Home prices in Washington have increased an average of 8.1 percent since the same time last year. Many counties, however, have experienced price hikes much higher: Chelan 29.8 percent, Okanogan 24.5 percent; Douglas, 22.2 percent; and Lewis 19.3. WSU Center for Real Estate Research (CRER)

The demand for median-priced homes has never been greater.

WHY WASHINGTON IS DIFFERENT

The home market isn’t keeping pace with the growth of the state’s population, which is continuing to increase at 1.8 percent per year.

The state’s population will increase by nearly one million over the present decade and reach 6.8 million by 2010. About two thirds of the growth is due to in-migration; the rest is a result of the growth of families now living in Washington. Washington State Office of Financial Management

WHAT ABOUT INVENTORY?

The key to stability in the residential real estate market is balance, where balance is about a six month supply (or inventory) of homes available on the market at any given time.

WHO WE ARE

Washington Realtors® represent approximately 170,000 homebuyers and the interests of more than 2 million homeowners throughout the state.

Realtors® top public policy priority is building communities that have a strong economy, attractive home choices, great schools and parks, safe neighborhoods, and good transportation choices.

Contact your Realtor for more information.

~WASHINGTON REALTORS