Raleigh-Durham Real Estate Blog

Landlords and Property Managers: Be sure to update your leases to comply with new NC state regulations.

Some of the changes affect security deposits, penalties and fees paid during evictions, and repair charges. Scroll down to view my previous post from August 19, 2009 entitled “NEW LAWS That Will Affect Your NC Rentals and Investment Property” for details and instructions on where to find a copy of the full law.

Durham considers Landlord Registration and Rental Occupancy Permits

With the goal of improving rental housing and lowering the number of calls to the local housing board concerning unsafe housing conditions, the City of Durham is considering implementation of a Landlord Registration process. If implemented, landlords will be required to register all of their properties annually along with an update of current contact information, so that the city can more easily contact owners requiring repairs to their property. A nominal fee, per property, has been proposed to facilitate this process. In addition, the city is reviewing rental permitting and inspection processes currently in effect in Greensboro and other cities in the state. If implemented, ALL Landlords (not just Section 8 landlords) may be required to pay for periodic inspections of their rental properties and to make necessary repairs in order to receive a Rental Occupancy Permit. Without this permit, renting the unit to a tenant will be illegal. The city is seeking feedback on the best way to implement these changes, and all interested landlords/residents are invited to participate in the discussion. Interested parties can find out more by contacting Lorisa Seibel @ the Durham Affordable Housing Coalition at (919) 683-1185 ext. 25 or Lorisa@dahc.org. Click here to access the website for the Durham Affordable Housing Coalition. The next meeting on this topic will be led by the Campaign for Decent Housing and is scheduled for Tuesday, February 16, 5:00-6:30pm at Neighborhood Improvement Services, Golden Belt, Building 2, 3^rd floor, 807 E Main St (off Morning Glory Ave), 27701. Come out and be heard!

Increase in Upfront Premiums for FHA Mortgage Insurance (01/21/10)

Effective for FHA loans originated on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25% (an increase from the current 1.75% upfront premium). This policy change will increase premiums for purchase and refinance transactions. Rehabbers keep this in mind as it may result in an increase in closing costs that your buyers will ask for. Homebuyers, keep in mind that this will increase your closing costs by $500 for every $100,000 you borrow on an FHA loan. But, if you buy before the April 5 change, you will not only save on the addition fee, but you may be eligible for the $8,000 homebuyer tax credit. Remember, the early bird gets the worm!

Big Banks Accused of Short Sale Fraud

If you are asked to make a side-payment in a shortsale transaction (i.e. a payment not noted on the HUD1 settlement statement and/or a payment not approved by the primary lienholder). BEWARE…this is an ILLEGAL practice. Some banks, in an effort to recoup their losses in a shortsale will ask the buyer to pay them outside of closing or sign a promissory note if the payoff amount dictated by the 1^st mortgage lender or lienholder doesn’t allow enough funds to go to the 2^nd mortgageholder or other junior lienholder. Again BEWARE as you may end up facing mortgage fraud charges if your lender finds out about it after closing. The full CNBC article can be read here.

Buyers: Get off the fence and get your mortgage loans locked before rates go up!

If the fed stops buying mortgage backed securities at the end of March, mortgage loan rates might go up. If you have been considering a purchase or refi, now is the time. The full Wall Street Journal article can be read here.