I realize I have posted a lot of news in the last 15 hours, but if you’re in California or another state that allows for an energy retrofit lien against a home, or you’re in real estate or lending, or you’re the person who arranges speakers for a Board of Realtors, call me and I’ll come do a free detailed explanation for your members. THIS POST IS HUGE NEWS AND MOST HOMEOWNERS AND REALTORS ARE UNAWARE. IF YOU FAIL TO PROPERLY DISCLOSE THIS INFORMATION, THERE MAY BE AN OPPORTUNITY FOR LEGAL ACTION AGAINST YOUR BROKER DUE TO NON-DISCLOSURE OF A MATERIAL FACT. *Opinion* YOU NEED TO PAY ATTENTION TO THIS. FHFA (FANNIE MAE AND FREDDIE MAC) WILL NOT PAY OFF A PACE LIEN OR ALLOW A BORROWER TO REFINANCE IF THEY HAVE AN ENERGY RETROFIT LIEN COLLECTED THROUGH PROPERTY TAXES. These “super liens” which jump in front of the line with regard to position in the event of a foreclosure action are prohibited now by Fannie and Freddie, which buy the bulk of all loans. If you get an energy retrofit loan through one of these popular programs you will be potentially hurting your ability to market the property in the future unless you pay off the loan before selling. “The Federal Housing Finance Agency has issued a warning to homeowners, financial institutions and state authorities, citing its concern with super-priority liens created by either energy retrofit programs or homeowner association priority status.” “According to the FHFA, this restriction has two potential implications for borrowers. “First, a homeowner with a first-lien PACE loan cannot refinance their existing mortgage with a Fannie Mae or Freddie Mac mortgage,” the FHFA said. “Second, anyone wanting to buy a home that already has a first-lien PACE loan cannot use a Fannie Mae or Freddie Mac loan for the purchase. These restrictions may reduce the marketability of the house or require the homeowner to pay off the PACE loan before selling the house.”” Source: FHFA E-mail me at [email protected] and if you’re local I’ll come and conduct a thirty minute presentation.
Posted on: Tue, 23 Dec 2014 16:12:30 +0000
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