June 08, 2011
Pennsylvania Real Estate
Short Sales Legislation To Limit Bank Response Time
The most positive of all Washington action in the real estate industry is a bill moving through Congress that would require banks to respond to a valid offer within 45 days. If the banks do not respond, then the contact is automatically approved. NAR is actively supporting this legislation.
Flood Insurance Reauthorization
The National Flood Plain Insurance Program (NFIP) will expire on September 30th, 2011. Since 2008, Congress has allowed 9 extensions of the program and 5 lapses. During the lapse last year, 47,000 home sales were delayed or cancelled. NAR is asking for a 5 year extension of the program, which provides flood plain insurance for 5.6 million property owners where flood insurance is required for a mortgage.
Together or individually each of these initatives could spell disaster for the real estate industry. If a homebuyer is required to put 20% down, and the MID is taken away, and property values drop 15% off the bat, those people will lose almost all of their hard earned equity. Without access to capital and mortgages, the housing market will dry up. As a REALTOR, please take time to participate in calls to action from your trade associations. It only takes 2 minutes to send your legislators an important message!