GRRA - Greensboro Regional REALTORS® Association, Inc.

  Stabilize and Provide Liquidity to Commercial Real Estate Markets:

 

     The freeze in our nation’s credit markets has adversely affected commercial and investment real estate.  Property owners seeking to refinance existing loans, including land and residential development loans, are finding access to credit limited. Restoration of the orderly functioning of financial markets is essential.

 

     NAR supports an expansion of the duration of loans offered to investors, by the Federal Reserve through the Term Asset-Backed-Securities Loan Facility (TALF), from the current three-year term to at least five years to better accommodate the longer loan terms of commercial mortgages. (Most commercial mortgages have a loan term of seven (7) to ten (10) years.

 

     NAR supports the retention of current capital gains rates.

 

  Unification of the TRIAD MSA:

 

In addition we lobbied for the Unification of the TRIAD MSA to include Burlington, Greensboro and Winston-Salem.  We asked them to write letters of support to the Treasury on this matter.

 

FINANCIAL INCENTIVES, UNIFORM PROCESS FOR SHORT SALE:

 

  Responding to the call of the National Association of REALTORS®, on May 14, 2009, the Obama Administration announced incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP). For borrowers who are unable to retain their home under the Making Home Affordable Loan Modification Program: The servicer may consider a short sale or, if that is not successful, a deed-in-lieu of foreclosure. Participating servicers must comply with program requirements so long as they do not conflict with contractual agreements with investors.

 

  Borrowers (Homeowners): Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

 

Incentives include:

 

     $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure;

     $1,500 for borrowers/homeowners to help with relocation expenses; and

     up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).

 

   Standardized Documents: The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

 

 

 
 

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