Register Real Estate Advisors

There are several changes to Texas Laws that affect real estate professionals, property owners, and tenants that will go into effect January 1, 2012.  Below is Part III in a series that discusses the new changes.  Look on our Blog to read Parts I and II and come back tomorrow for the final Part IV in this series.

On January 1, one of the changes taking place affects both property owners and tenants.  Homeowners Associations will have new rules for foreclosures, finances, and more.  There are new guidelines for maintaining association documents, providing access to association records, and conducting open meetings.  Also, unless waived in writing by a property owner, a homeowner HOAs will be required to use an “expedited foreclosure” process, which includes obtaining a court order, before foreclosing against a property owner.  Property owners can now add or remove an HOA’s foreclosure power by a two-thirds vote of association members.  HOAs are also prohibited under the new laws from foreclosing a debt consisting solely of fees charged for obtaining copies of HOA records.  Another change dictates the order by which an HOA must apply owners’ payments:  delinquent assessments, current assessments, attorneys’ fees, and fines—affecting their ability to foreclose.  The notice that must be given to a property owner by an association before it can take certain actions against the owner, including foreclosure proceedings, must now inform the owner that he may have special rights or relief if the owner is on active military duty.  To learn more about these changes, contact your HOA where you are going to be purchasing your new home if you have questions.  As always, RREA Agents are available to take your calls and help you purchase your next home in Texas – 281.288.3500.

At the end of 2009, 10% of mortgages had at least 1-payment past due and another 5% of mortgages were in the foreclosure process.  At the end of the 3rd quarter of 2011 8% of mortgages had at least 1-payment past due and another 4% of mortgages were in the foreclosure process.  Currently, there are fewer homes being foreclosed on.  Many families are concerned about inflation in the US.  It has caused prices to rise throughout the country by about 64% over the last 20 years.  That’s an annual increase of 2.5%. An example that looks grim is that a person who retired December of 1990 on a fixed income with no cost of living adjustments would have 61% of their purchasing power as of December of 2010.  That surprising example keeps consumers teetering between purchasing homes and staying in their current homes.  The good news for Houston is that our current housing inventory has reduced, interest rates are low, and we have the most stable housing market in the country.  Consumers buying homes in Houston, Texas have a lot more buying power than home buyers in other areas of the country.

NEW YORK (Associated Press) – A little over a week after JPMorgan Chase & Co. announced plans to help keep at-risk borrowers in their homes, another major bank is stepping up its efforts to help struggling homeowners.

Citigroup Inc. announced yesterday that it will not initiate a foreclosure or complete a foreclosure sale on any eligible borrower if it is the borrower’s principal residence, the homeowner is working in good faith with Citigroup, and the homeowner has sufficient income to make affordable mortgage payments.

Over the next six months, Citigroup will reach out to 500,000 homeowners deemed as potentially needing assistance to keep up with their payments. This represents about one-third of all the mortgages that Citigroup owns.

Citigroup plans to devote a team of 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan.

More than four million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.