Home Prices, Distressed Sales, Realtors & TILA/RESPA & Selling Your House as a Short Sale with Two Lenders

What did home prices and distressed sales look like in April and May?

How do you go about selling your house as a short sale with two lenders?

Get answers to these questions by listening to this week’s Ilyce Glink Show. You can click the audio link below to listen to the full show, or download the podcast via iTunes.

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On this week’s show I talk to Bill Gilmartin, the senior policy advisor for industry relations and outreach at the National Association of Realtors, about the upcoming TILA/RESPA changes.

More About This Show

Glinkonomics Report
CoreLogic: Home Prices Are Up and Distressed Sales Are Down [7:00]
CoreLogic’s reports on home prices for May and distressed sales for April show that the housing market is continuing its positive momentum.

I break down the implications of CoreLogic’s reports on home prices and distressed sales and what they reveal about the housing market as a whole. The CoreLogic Home Price Index (HPI) has seen annual increases in 39 consecutive months through May 2015, and home prices are continuing to close in on their previous high water mark from April 2006. But because distressed sales remain such a high percentage of home sales overall, home prices are continuing to feel the drag from that segment of the housing market.

Realtors Want More Time to Adapt to TILA/RESPA Changes [9:55]
Thanks to a reprieve from the Consumer Financial Protection Bureau, the TILA/RESPA mortgage disclosure changes won’t go into effect until October – but Realtors are still a bit worried.

TILA/RESPA stands for the “Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Mortgage Disclosures.” You may also see the acronym TRID refer to this as well. The CFPB has written these new rules as part of its mandate under the Dodd-Frank Act, and real estate professionals will need to be prepared to adjust to the new paradigm. But despite the consideration shown by the CFPB in delaying the implementation date for TRID, some in the real estate community continue to express concern about the risk of over-zealousness when it comes to enforcing compliance in the first few months after the change takes effect.

So the National Association of Realtors has sent a letter outlining some of those concerns to the CFPB, and today’s guest has some insight into what that letter contains. Bill Gilmartin and I get into the nitty gritty of TILA/RESPA.

Q&A: Selling Your House as a Short Sale with Two Lenders [25:50]
Selling your house as a short sale with two lenders can be complicated if your two lenders disagree on the property value or how to divide the proceeds from a sale.

The primary (or mortgage) lender has first crack at the proceeds from a short sale, but the secondary (or equity) lender is unlikely to agree to any sale that doesn’t offer at least some return on his or her investment. Since a short sale is, by definition, only going to return a fraction of the value of the original mortgage loan, neither of the two lenders is going to be all that excited about the result.

I answer a question from someone who has a mortgage and HELOC from two different lenders. Convincing his two lenders to agree on a short sale is going to be a big challenge.

If you have any questions about this show or in general, email me at questions@thinkglink.com.

Click the audio link below to listen to the full Ilyce Glink Show.

Thanks for listening!

 


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About Ilyce Glink

Author of 13 books, including the bestselling 100 Questions Every First-Time Home Buyer Should Ask. Writer of the nationally syndicated column, “Real Estate Matters.” Top-rated radio host in Atlanta. Writer for CBS MoneyWatch.com. Managing editor of the Equifax Personal Finance Blog.
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