A few interesting developments have recently taken place within the housing industry in terms of rules, regulations and guidelines. Here is a look at just a few.
FDIC Clarifies Foreclosure Guidelines
The FDIC has clarified the guidelines that are currently in place regarding the halting of foreclosure proceedings once those proceedings have started. The FDIC decided the clarification was necessary in order to help prevent the borrower from abandoning the property or otherwise stop taking care of the property once the initial notice of foreclosure is sent out. As part of its policy, the FDIC requires institutions to maintain policies and procedures specifically addressing the process of abandoning a foreclosure. Some of the policies and procedures that are expected include:
•Obtain current information in order to determine the value of real estate and use this information to decide whether or not the foreclosure should be initiated or abandoned.
•If the decision is made to not go forward with a foreclosure, the institution should attempt to minimize the potential liability by releasing the lien at the appropriate time.
•State and local government authorities should then be notified about the decision to not move forward with the foreclosure.
•The borrower must be provided with written notice stating that the foreclosure will not move forward and whether or not the mortgage lien has been released. The notice should also include information about the borrower’s rights and obligations while also informing the buyer that he is responsible for maintaining the property in accordance with all applicable laws.
Moratorium Placed on Los Angeles Real Estate Projects
Shortly after the ballot proposal called the Neighborhood Integrity Initiative, which would impose a two-year moratorium on real estate projects within the City of Los Angeles, was released, a second proposal affecting development projects in the city has been released. The new proposal, which has been submitted by the L.A. County Federation of Labor and other groups, would require real estate developers in the city to set aside a portion of their projects for affordable housing. Or, as an alternative option, the developers could build the affordable housing in a different location or pay fees to the city. The proposal would further require that a certain percentage of construction jobs be reserved for local or disadvantaged residents.
With the Neighborhood Integrity Initiative already under fire from unions, business groups and affordable housing organizations, the new proposal is not likely to be any better received. The coalition that was formed by these groups, however, has come under some strain with union groups supporting the affordable housing measure while business groups remain in opposition. While unions insist affordable housing needs to be included in the city’s residential construction boom, business organizations say the affordable housing proposal will result in fewer small and mid-size apartment projects in Los Angeles.
These are just a few of the events taking place at the national and local levels that are affecting the real estate market. To learn more about the market or to explore luxury real estate properties in the Los Angeles area, contact us to see how we can help you meet all of your needs.
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(all data current as of 10/19/2017)
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