February 18th 2008
Interesting Indiana Legislation that either has been introduced,
has been moved ahead to the next vote or just did not make it.
SB 9
Every year this bill comes back and I do have my own thoughts on pro's or con's of this bill. Currently this bill again did not make it out of the gate and I think that is not bad.
Seller's Residential Disclosure Requirement -
SB 9 (Sen. Brent Steele, R-Bedford):
This bill would do away with the seller's residential disclosure requirement.
This is the second year in a row that Senator
Steele has filed this legislation but as of today this bill is no longer alive.
This bill brings up a lot of discussion on both sides of the field. One side is happy and gladly would like to do away with the Seller's Residential Disclosure Requirement and they jus tell the buyers " buyer beware, and relay on your professionals" and on the other hand there is the field of the group that rather not do away with the Seller's Residential Disclosure Requirements and keep the mandatory requirement for sellers to disclose any know defect and issue with the property.
Sure there are things on the Seller's Residential Disclosure where sellers really have not a clue on if they are broke or not unless you have a serious issue with for instance a water pipe bursting or you don't have electric in part of the house. ......Or the one with the underground storage tanks... unless you have been the builder building the home or you have been told by a former owner how would you know unless it is a gas station that you have an underground storage tank.
HB 1145 go here for link to read about the bill yourself
Tax delinquent properties HB 1145 (Rep. Scott Pelath, D-Michigan City)
Synopsis: Tax delinquent properties. Provides that a county may transfer real property for which the county holds a tax deed to an abutting landowner for no consideration or nominal consideration. Provides that a political subdivision that acquires real property from a county at a time when the county holds a tax deed for the real property may also transfer the real property to an abutting landowner for no consideration or nominal consideration. Provides for notice to all abutting landowners before a county or other political subdivision initiates negotiations for sale or transfer of the real property.
Effective: July 1, 2008.
go here for link to read about the bill yourself
HB 1360 (Rep. Jeb Bardon, D-Indianapolis)
Establishes a toll free number through the
Attorney General's office for citizens to report suspected fraudulent practices
during a real estate transaction.
Revises the Sales Disclosure Form to include:
An application for the Homestead Credit and Mortgage Exemptions.
The name and license or certificate number of each regulated professional involved in the transaction.
Requires County Assessors to submit sales disclosure form data to the Department of Insurance and requires that the Department of Insurance then make that data available to all appropriate law enforcement and regulatory agencies.
Requires that a closing agent provide property tax deduction and credit
information to a customer 48 hours in advance.
Requires settlement service providers to provide closing documents 48 hours in
advance of the closing.
Requires the customer, at the time of closing, to complete and sign the sales disclosure form (or in the case of a first lien, the application for the mortgage property tax exemption).
Requires the closing agent to then file the completed exemption and sales
disclosure forms with the appropriate county official.
Excludes from a taxpayer's adjusted gross income the amount equal to any loan
forgiveness.
Provides that that the licensing and registration
requirements for loan brokers, originators, and principal managers include an
FBI background check.
Requires the real estate appraiser and licensure board to require each initial
applicant for licensure or certification to
submit fingerprints for and FBI background check.
Allows the Securities Commissioner to enter into a multi-state automated
licensing system to process licenses for loan brokers,
originators, and principal managers.
Prohibits pre-payment penalties to be charged on a subprime mortgage.
Requires that a creditor or mortgage servicer
respond to a written offer made in connection with a short sale NOT LATER
THAN 10 CALENDAR DAYS after the date of the offer.
Requires a creditor that offers a subprime mortgage transaction to establish an
escrow account for the payment of real estate
taxes and insurance owed in connection with the subprime mortgage.
Prohibits a creditor from recommending or issuing a state income or no
documentation loan, or a home loan if the creditor does
not have reasonable grounds to believe the home loan is suitable for the
prospective borrower based on a reasonable inquiry into
the borrower's creditworthiness.
Requires creditors, when a loan becomes 60 days past due to:
Offer temporary forbearance, subject to terms,
payment plan; or
an option for refinancing,
restructuring, or
workout of existing indebtedness
For an adjustable rate mortgage, requires a creditor to provide a one page document with the following information:
The mortgage's fully indexed rate,
the maximum monthly payment that could be required under the terms of the mortgage, including taxes and insurance.
Regarding a mortgage foreclosure proceeding:
Requires the clerk of the court to certify to
the sheriff a copy of the judgment or decree not later than 5 business days
after
filing
Requires the sheriff to conduct sale of the property not later than 90 days after receipt of the judgment or decree
Forms a mortgage lending and fraud prevention
task force to coordinate various state agencies involved in regulating
participants who originate, issue, or close home loans.