Federal Legislation and Impact to the Real

Federal Legislation and Impact to the Real Estate Market

Federal Legislation and Impact to the Real Estate

The Constitution was written to outline the limits of the federal government, to protect the people and to protect the people from government. The government is also obligated to ensure that all people have the opportunity to acquire property by ensuring the housing market is free from discriminatory and predatory practices. For these reasons I support federal government efforts to regulate the housing arena to ensure fairness, accessibility and equity in the market. I also support the federal government role in efforts to restore the market and to provide resources and assistance to help avoid foreclosure. For example, the Fair Housing Act was enacted in 1968 to "remove the walls of discrimination which enclose minority groups" to address the rampant issue of racial segregation in both public and private housing. I believe this is arguably the most critical legislation as it prohibits discriminatory practices and give the public fair access to housing.

The Housing and Economic Recovery Act of 2008 signed into law by President Obama is a critical legislation that aids the American homeowner and those aspiring to homeownership. It provides a homebuyer tax credit in the sum of $7,500 to first-time buyers and provides FHA foreclosure rescue to assist homeowners in danger of losing their home. The rescue plan provides an opportunity for buyers to receive new mortgages of 85% of current appraised value of their home. When the housing market declined, families begin to lose their homes, neighborhoods that were once filled with the sounds of people became silent; in their place were "foreclosure" signs. The housing market tanked, homeowners could no longer refinance, they owed more on their mortgage than what their home was worth. Or worse, homeowners who signed on to variable loan products saw their monthly mortgage payment skyrocket and left behind was the ability to pay. It was the Housing and Economic Recovery Act of 2008 that gave homeowners a second chance, saving them from foreclosure and allowing them to keep a roof over their heads. It is critical that Congress provide assistance to homeowners in danger of foreclosure, if the government can provide a bailout to big business, why not do the same for families? Helping homeowners remain in their homes helps the economy, locally and nationally. Empty homes are a no-win situation for lenders, businesses, local and federal government. Foreclosed homes benefit no one. Assisting homeowners from foreclosure is appropriate and necessary. This plan was extended and refined in 2011 by the Obama Administration.

Chapter 23: Condominiums and Timeshares

Buyers should be aware of rules that may prohibit the approval of a loan for a particular condominium property. For both FHA and conventional loans the unit needs be at least 50% owner occupied, if not, the loan will not be approved. Buyers should ensure the HOA does not have any pending litigation and that the HOA is well-funded, absent any of these factors and securing a loan for the condo can prove to be quite difficult.

There is an active condo market in my area. For people who looking to own property they find relative cost to own a condo compared to a single family home is much less. The economy in my area (Washington, DC) is supported heavily by government jobs. The healthy job market attracts tens of thousands of people annually, including younger workers who purchase a condo as their first home.

Chapter 24: Property Insurance

Lenders require property insurance to protect both parties against loss or damage to the property. Some lenders require a Loan Policy, which is based on the dollar amount of the loan. It is protection for the lender in the event of a title issue. Owner's title insurance protects the buyer if an issue comes up in regards to the title that was not previously found during a title search. In additional almost all lenders require homeowners insurance. Homeowners insurance usually covers the dwelling personal property, liability and loss of use. In some areas flood insurance may also be required.