New Fees for Homebuyers

I just received a letter from the State Representative of the 46th Distirict, Dennis M. Reboletti. It discusses Senate Bill 3739, which was just passed in both the House of Representatives and the Senate.

This is the GOOD news.

The bill extends the expiration date of the Homeowner Protection Act to July 1, 2013. This will continue to give homeowners who fall behind on their mortgage a 90-day "grace period" before banks can begin foreclosure proceedings.

Here is the BAD news....TWO NEW FEES!!!

1. Foreclosure Prevention Counseling Program Fund. A $50 fee for banks that file a foreclosure action against a borrower whom the financial institution (the mortgagee) has provided a mortgage...50% of the fee goes to the City of Chicago and the other half goes to the rest of the state, for HUD-certified counseling.

2. Abandoned Residential Property Municipality Relief Fund. A fee of $1 per every $1,000 of purchase price (not to exceed $300) imposed on a buyer of a foreclosure property at a judicial sale.

Another program by the Government that will hurt the real estate market and the economy.

First if the banks get charged for something, they will find a way to charge us.

Second, as if buying a distressed property does not come with enough damage and risks, now we will get taxed for trying to fix up all of those houses on the market that are in bad shape.

I guess there is more good news after all....The prices should continue to decrease with more reasons not to buy, making homes more affordable for homebuyers.