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Commercial Real Estate

Senate Bill 306 – How Does This Affect Short Sales?

Short Sales are confusing. But one of the more confusing things about short sales are all the rules and regulations that need to be followed in order to complete them. A recent law from the Senate is Bill 306. This bill was enacted to help the streamline the process of selling homes that are under water. Hopefully, I can lend my assistance and organize the some of the key points in this bill into a comprehensible format, so that you will have a better understanding of what it entails.
In the real estate market, a short sale is the sale of a property that is sold for less than what is owed to the bank. The bank receives all the money from the sale and may or may not return some of the funds to the borrower. Some California laws manage the real estate process. Generally, these types of real estate transactions help the banks by dodging foreclosure expenses, and stops borrowers from damaging their credit histories.
Bill 306
California Senate Bill 306 was signed in 2009. This bill helped clarify and create the rules and regulations for short sales in that state. A very important part of this bill affects the way lenders, normally the banks, deal with short sale offers. Prior to the new laws, banks were under no deadlines to answer these types of offers. The new law requires that lenders answer the offers within 21 days. So now, if a buyer makes an offer on a home that has already been approved for an underwater sale, the bank must accept the offer or refuse the offer within three weeks. Thanks to this law the process the real estate transaction is more likely to close. Making the process easier for all parties involved.
California Business and Professions Code, section 10131, states that a licensed real-estate broker must represent both parties in the sale of a property, and this includes short sales. It doesn’t have to be the same real estate agent representing both sides, but each side needs to have a real estate agent representing them. However, some parties attempt to get around this law. And so to preempt this, section 10139 of the same code states that failure to include a licensed broker during a short sale can result in fines or even imprisonment. Keep this in mind if you decide to purchase an underwater home. The last thing you need is to get in trouble with the law. This process is complicated enough as it is.
In the state of California, most people in mortgage situations expect to have a month or more of advance notice from a bank if foreclosure is imminent and short sale options are available. Furthermore, 306 includes types of properties that are owned and occupied by the borrower and that also include additional rental space up to four apartments or units. But, if the mortgage is at risk for any of these types of properties, short sales cannot be forced at the last minute.
When a licensed real-estate broker and escrow officer sign what is called “HUD1” the transfer of funds to purchase the property become nearly finalized. California law gives the banks, or mortgage lenders, four days to deny the offer, when a short sale escrow transaction is close to completion. If the lending institution does not formally deny the offer in this circumstance, the law states that the offer is automatically approved. This makes the process much quicker. since before this law a home could be in limbo for an insane amount of time But this law fast-tracks the process so sales can close significantly sooner.
There are many other regulations and rules that are apart of these Programs, but this is as simple as I can describe them. If you would like more information check the resources section of my website. Stay tuned for more information regarding HAFA and HARP. I plan on discussing these programs in the near future.…

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Building Contractor

What Green Guidelines Affect Commercial Construction

With environmental awareness of the rise and a shift in focus onto our effects on the planet, it is no wonder that residential, industrial and commercial construction projects now have ‘green’ guidelines that they must follow in order to be compliant. Whilst this type of construction doesn’t differ too much to the regular type (both require detailed levels of planning and skilled labour), it does take steps to ensure that the buildings affect on the environment is kept at a minimum. It is important to ensure that you are aware of the guidelines that could affect your commercial project. So, what are some of the guidelines that affect the commercial construction of today?

One example of this is central air conditioning systems; most of the newer units on the market today are much more efficient than those that were available 10 or even 5 years ago. The building will also be doubly checked for seals and leaking ducts, as these problems cause equipment to work overtime (especially the air conditioning), which defeats the purpose of using equipment with a good energy star rating.

This can be achieved in a number of ways, including the use of less materials and energy during this process. Unfortunately, all of the materials used in commercial construction will produce some sort of waste by-product; instead of throwing this waste into landfill, however, the guidelines stipulate that they should be recycled or compacted as much as possible (as this still reduces our carbon footprint).

In terms of commercial construction, this could involve using less water to accomplish necessary day-to-day tasks (such as flushing the toilet) and the conversion of wastewater into fertiliser. There are a number of toilet and plumbing systems that use less water per flush and that include faucets that cannot accidentally be left on (they usually operate off a sensor). The use of wastewater as a fertiliser also negates the need for wastewater treatment systems, which are energy hungry.

Whilst some builders may find that these new ‘green’ guidelines are just there to make their lives harder, it is important to remember that they have been put in place with good intentions. It is important to preserve the environment, so that our children and grandchildren will be able to enjoy it to the same level that we have. And, as commercial construction can have a big effect on this, it is important to lessen these as much as possible.…