HUD CHARGES CHICAGO REAL ESTATE GROUP AND PROPERTY OWNERS WITH HOUSING DISCRIMINATION
August 10, 2010 by Bob Schenkenberger · Leave a Comment
NEWS Release
Sellers allegedly stated a racial preference and refused to sell home to black couple who submitted highest offer
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced that it is charging a Chicago couple, their real estate agent, and a real estate broker with refusing to sell a home listed for $1.799 million to a black couple because of their race, in violation of the Fair Housing Act. The charge alleges that owners Daniel and Adrienne Sabbia and real estate agent Jeffrey Lowe stalled negotiations and took the property off the market after receiving a $1.7 million offer from radio personality and comedian George Willborn and his wife, businesswoman Peytyn Willborn.
The Willborns submitted the highest offer the sellers had received in the two years the property was on the market. Yet, when faced with the sales contract, the Sabbias refused to sign it. Real estate agent Jeffrey Lowe told HUD investigators that Daniel Sabbia expressed a preference not to sell his home to an African-American.
The charge also names the Lowe Group Chicago, Inc. and real estate broker, Prudential Rubloff Properties.
“Racial fairness is important at all income levels. Civil rights enforcement must be the effective shield against housing discrimination that in this case wealth was not,” stated John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity.
The Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, and disability. This includes the selling, brokering or appraising of a real estate property. HUD’s action is also on behalf of the prospective buyers’ real estate agent who was effectively denied a commission by the alleged discriminatory action of the sellers.
The HUD charge will be heard by an Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he may award damages to aggrieved persons for the damages caused them by the discrimination. The judge may also order injunctive relief and other equitable relief to deter further discrimination, as well as payment of attorney fees. In addition, the judge may impose fines in order to vindicate the public interest. If the matter is decided in federal court, the judge may also award punitive damages to aggrieved persons.
FHEO and its partners in the Fair Housing Assistance Program investigate more than 10,000 housing discrimination complaints annually. People who believe they are the victims of housing discrimination should contact HUD at 1-800-669-9777 (voice), 800-927-9275 (TTY).
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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
FHA Increases Fees to Save Programs?
August 10, 2010 by Bob Schenkenberger · 1 Comment
It’s no secret that the housing crisis has strained Fannie Mae, Freddie Mac and the Department of HUD. So, congress just passed H.R. 5981. This bill gives FHA the authority to adjust its mortgage insurance rates to increase funding to the FHA Mutual Mortgage Insurance Fund. This move will immediately begin to yield $300 million per MONTH to the fund. The current increase is not set in stone, and if the powers that be at FHA decide they need a little more cash, they can simply raise the fees some more. My guess is within the next 6 months, the rates will indeed be increased.
After September 7th, 2010 all new FHA loans will incur substantially higher mortgage insurance (MI) fees. If maxed out the increase to the consumer could be upwards of 10% on your monthly payments! This is, in fact, a TAX on those who are looking at purchasing their first home. These are the very people we need to encourage getting in the market, not dissuade them from doing so.
I’ve attached a link to a document released by Mr. David H. Stevens, Assistant Secretary for Housing / Federal Housing Commissioner as to HUD’s announcement.
HUD_August_Special Edition_080510
Additionally, I’ve linked to a great video about the effect of these changes that really explains the program. http://www.thinkbigworksmall.com/mypage/archive/1/52542/
Bottom line, if you’re thinking of buying a home, and will be using FHA as a financing option, you need to act now, before the costs rise!
Feel free to tell me what you think with a comment below!
$8000 Tax Credit Still Available for Military
July 9, 2010 by Bob Schenkenberger · 3 Comments
The Get Home Denver Team is pleased to publish this post written by VA expert James Kelley.
Homebuilders in Denver, CO are very optimistic about the local economy. According to a recent Denver Post article, builders are buying vacant lots all over Denver with the intention of constructing new homes to meet predicted demand.
Although many of the perks of the real estate market are starting to cool down, many military members returning home to Denver next year will be able to not only take advantage of some new homes, but also the $8,000 Veteran’s tax credit.
The popular credit that gave real estate agents a boost in business this year was extended for military men and women. “Qualified service members” have until April 30, 2011 to enter into a binding contract and June 30, 2011 to complete the sale.
To make sure, these deserving men and women do not miss out on their chance. Here are a list of new rules and qualifying standards for the credit.
• The first-time homebuyer must be a member of the armed forces, Foreign Service or Intelligence community.
• The service man or woman must have served on official extended duty overseas for at least 90 days between Dec. 31, 2008 and May 1, 2010.
• Must be a first-time homebuyer. However, there is a $6500 credit for repeat homebuyers who have owned a principal home for a period of five consecutive years in the eight years prior to purchase.
Other Rules and Benefits:
• A single-person buyer is now allowed a salary up to $125,000. For a married couple, the limit is $225,000. Allowances might be made for some above the annual income.
• The home must have a market price that is less than $800,000.
• Only one spouse is required to be overseas to qualify for the extension.
• Military members who have to move from their new home within three years because of being called back to duty are exempt from repaying the credit.
• Qualified service members who are repeat homebuyers may take advantage of a $6,500 tax credit.
Couple Your Tax Credit with the VA Loan
Along with the tax credit, military members can make the stressful process of buying a home ten times easier with the VA loan. It requires no money down, less-strict credit requirements, and lower closing costs.
Contact us today for more info!
James Kelley blogs on veteran’s issues, real estate and finance across American markets at VA Benefit Blog .He also works with VA Mortgage Center, proudly serving American military families as a leading national VA lender.
Denver Real Estate Market Statistics April 2010
May 12, 2010 by Bob Schenkenberger · Leave a Comment
As a quick recap, while individual areas vary, April, 2010 combined MLS Residential Statistics had a number of positive indicators compared to April of 2009.
- Increase in the Number of Closed Sales to 3,308 (up 22.2% for the month)
- Average Days on Market reduced 22.5% to 79 days
- Number of Active Listings increased 1.3% to 15,843
- Absorption Rate dropped to 4.5 months (down 21.3%)
- Average Sold Price remains strong (up 7.8% from $254,442 to $274,253) compared to April, 2009.
April 2010
| Category | Apr-09 | Apr-10 | % Change |
|---|---|---|---|
| # of Closed Sales - Month | 2706 | 3308 | 22.2% |
| # of Closed Sales - YTD | 9247 | 9863 | 6.7% |
| Avg. Days on Market | 102 | 79 | -22.5% |
| # of Active Listings | 15,639 | 15,843 | 1.3% |
| # of New Listings | 6736 | 9699 | 44.0% |
| Absorbtion Rate (months) | 5.8 | 4.5 | -21.3% |
| Average Price (Closed) | $254,442 | $274,253 | 7.8% |
