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C.A.R.'s Legal Department has released a new legal article, Housing Stimulus Laws for 2009, to help REALTORS® understand the recent laws enacted by federal and California lawmakers.  This legal article addresses the $787 billion economic stimulus bill, the federal Making Home Affordable Program, and new California housing stimulus laws.

Here are some of the highlights of C.A.R.’s Housing Stimulus Laws for 2009:

• Eligibility requirements for the $8,000 first-time homebuyer tax credit.

• Updated contact information for determining whether a borrower has a Fannie Mae or Freddie Mac loan.  This contact information is also pertinent because lenders are generally prohibited from reducing real estate commissions for Fannie Mae short sales (see Realegal 2/27/09).

• Details of the $275 billion Making Home Affordable Program, which includes refinances up to 105% of current value and government subsidized loan modifications.

• Monetary incentives of $500 for participating loan servicers and $1,500 for borrowers for doing short sales under the Making Home Affordable Program (see Question 57).

• Guidelines for the $10,000 new home tax credit under California law.

• Explanation of the new 90-day extension to the foreclosure process for lenders without comprehensive loan modification programs.

C.A.R. also has prepared a new resource guide that provides a summary of the federal programs, with links to a variety of sources for more detailed information.  The guide is available at http://www.car.org/governmentalaffairs/federal/hrlmp/.