we'd love to hear it! send me an e-mail or go to our website -- strangeinheritance.com. >> i'm bob massi. for 32 years, i've been practicing law and living in las vegas. i help people with all sorts of real-estate problems, from trying to save their homes to closing major deals. eight years ago, 6,000 people a month moved here, looking for employment and affordable homes. little did anyone know that we would become ground zero for the american real-estate crisis. now, it's a different story. the american dream is back. we're gonna meet real people who faced the same problems as millions across america, and we'll dive deep into a city on the rebound because las vegas was a microcosm of america, and now vegas is back. [ woman vocalizing ]

>> thanks for joining us. i'm bob massi, the property man. las vegas was the epicenter of the housing bust, and nowhere was that more evident than a place called ascaya. this massive mountain development came to a halt, but it is back in a major way, and it's a place you really need to see to believe. ♪ i'm standing at one the most amazing developments i've ever seen. i mean, it is truly majestic. the mountain was purchased in 1989 by a man with a vision -- dr. henry cheng. >> yes. he had vision. what he did is he came here. he built all these lots. >> it takes a staggering amount of work to get these mountaintop lots ready for homes. >> you've got water. you have electricity. you have gas. >> but the developer took the time to do it right, before

listing them for sale. >> typically, what happens is the developer will do maybe a few lots or wait for reservations and, with those funds, create the next phase. in this situation, everything's done. the lots are graded. utilities are in. the developer's invested hundreds and hundreds of millions of dollars of his own money. >> $250 million in development in all the groundwork, design, everything over a 5-year period. >> they say that ascaya is a greek word meaning "one who chisels boulders," and it is easy to see why. >> i've got approximately 32 miles of boulder walls in here. >> finally, all the boulders were in place, and the lots were ready. then the recession hit. >> that 5-year period ended right around 2008, and, obviously, at that time, it was not the right time to release a new community. so they made the decision to go ahead and pull the community off the market. >> he realized what was happening to the economy, and he just said, "shut it down." >> they didn't want this to be a ghost town, with one or two homes built in here. >> right. when many real-estate developers were running for the hills, the folks behind ascaya were just

sitting tight for years. >> he kept making sure that the landscaping was taken care of. they kept looking for what type of architecture they were looking for. everything was continuing. >> and we waited, and we waited. and then the signs from an international and a national and a local level all pointed to "now is the time." >> now here we are in 2015, and ascaya is up and running again. the vision he had more than two decades ago is now a reality. >> yay! >> there we go! [ applause ] >> the first two lots just broke ground, with 311 more to follow. the designs for the custom-built homes that will go there -- well, they're just as stunning as the land that will surround them. >> clients can come in, meet with their builder and architect, and design the home right on site. that is one of the hardest things in selling a lot, is that you have to also build the dream for the client so that they want to design and they have an idea

of what they want to build. ♪ you get a little bit of everything. you've got the buyers that are coming here as their second home to the family with three kids that are moving here for a permanent residence. >> what's amazing is the nature part of this and the brilliance of the design. >> they wanted to make sure that the design incorporated views for every homeowner as they would throughout the community. the way that the lot is positioned -- that's to maximize the view for each homeowner, who can still maintain a great view of the strip. approximately 80% of our lots have incredible city views. the other 20% are interior lots that still maintain those incredible canyon views that you saw coming up. >> the area around ascaya is a protected preserve, so the homes will always be surrounded by this natural beauty. >> the feeling that somebody gets when they walk in to ascaya is indescribable. you see it from a plane. you see it on a postcard. but you don't understand, truly, what you have until you drive up in and see the magnitude of the

layers, of the boulders, of the mountains, and you're immersed in what this project really is. it's this feeling of zen. but, at the same time, you look out and you've got the strip at your doorstep. you have this feeling of this energy that's all around you, where if you love nature and appreciate it, you will come in here and feel at peace and, at the same time, look out and see what las vegas has to offer. >> when we come back, the first home being built in ascaya will not just be beautiful, but it will also be energy-neutral -- no electric bill, no heating or cooling bill -- and we're gonna show you why. [ woman vocalizing ] i count on my dell small business advisor

for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone

>> welcome back. i'm bob massi, the property man. how would you like to never pay another electricity bill again? your home could actually generate more electricity than it uses. it's called "net zero," and the folks at blue heron design and

build some really beautiful homes this way. ♪ tyler jones -- he's the founder and owner of blue heron. he's involved every step of the way. so, tyler, this is one that's under construction here, and, in this case, which is probably unusual, you're the developer, you're the contractor, you're the architect completely, right? >> yes. blue heron's really unique in that regard. we're full-service, and that whole integrated service is what really sets us apart, and it helps us to achieve this level of technology, 'cause there's a lot of planning that goes into developing net-zero homes. >> one of the most critical things is sealing the house completely so that no air leaks in or out. that involves using spray-on insulation and choosing the right windows and doors. >> the insulation in a typical home stops when it reaches the ceiling, and then the attic space is ventilated, so all of your mechanical -- your heating and cooling ductwork goes through this space that is not

part of the building envelope. so, what we do is called the cocoon system. we're gonna bring that insulation all the way up to the roof line, and then we'll use a closed cell foam on the roof so the entire building envelope is insulated. that way, all of our heating and cooling systems are within this insulated cocoon, and that is a big deal for the efficiency of the overall home. we let people pick and choose how energy-efficient they want their home to be. >> so, you give them options? >> yes. so, we give them all kinds of options, and it's really just about education, because, you know, some things are simple. you talk about a cocoon system. that's something that everybody should be doing. it doesn't cost any more money. it's just a best practice. and there's no reason to not do it in every home. >> let's go see one of these completed homes. i can't wait to see it. >> sounds great. ♪ >> from the outside, blue heron "net-zero" homes may look like any other high-end desert contemporary design. but inside the walls of these innovative and cutting-edge properties, you're introduced to

a whole new world, where energy efficiency is meant to be not only affordable but also luxurious. tell us about the courtyard and why you designed it this way. >> yeah. the courtyard's a big part of what we do. so, what we want to have is great connections to the outdoors -- a lot of glass to bring in this indirect natural sunlight into the home so we don't have to use a lot of lights during the day, but we want to keep the sunlight off the glass so we're not letting that heat into the home when it's trying to cool it in the summertime. >> it's really neat -- all this water here, a little waterfall and places to sit and a television. >> this is the main integrated living space. want to have all the living space kind of in one casual space you don't have to have all these subdivided rooms all over the house that people never use. the orientation is key, so, facing north, we can really have as much glass as we want, because we're not gonna have any direct sunlight coming through the glass. >> mm-hmm. >> the choice of glass that you choose -- the window and door system -- is huge, as well. really high-efficiency glass, really well-put-together window. kitchen's over here to my right. you can see all of the

low-energy appliances, all energy star plumbing fixtures, as well, so everything down to the efficiency in the appliances has got to be done properly. >> this is not a matter of just putting some solar panels on the roof, although that certainly is a big energy saver. the entire design and construction process is focused on saving energy while maintaining luxury. >> you know, everybody's lived in a home that is not energy-efficient. you know, we can continue to build homes that way, or we can do something that's better. >> let's go take a walk upstairs and see what it looks like. ♪ there's almost windows all around this home. >> yes, there is, and there's one key footnote to that, which is if you look at the wall behind me, which is the west-facing wall, there's actually no windows whatsoever. so, that western sunlight, when the sun's going down, we're gonna keep all that heat out of the building envelope. >> what are you giving up insofar as cost? is it that much more expensive than building just your regular home, which, obviously, is not as efficient as this?

>> we talk about passive solar design. that's just actually how we create the architecture to be efficient in the first place. so, we use a lot of these heavy overhangs, we use these courtyards, and it's all part of that vegas modern strategy of having all this indoor/outdoor relationship but not letting the heat through. that costs nothing. other things do. probably the biggest thing is the solar panels themselves -- significant cost to that. of course, you're gonna get that back over a series of years as you live in the home, saving energy. >> do they take longer to build than an average home the same size? >> the green building technology -- to put in the high-efficiency water heater or hvac system definitely doesn't take any longer than it would to use a conventional system. >> the water heater issue is very interesting to me, because you've explained how you literally get instant hot water. >> yeah. this is a tankless hot-water heater. there's two of them that run this entire house, and it's basically on-demand hot water, so when you turn on the faucet, it's gonna run cold water through a pipe. it's gonna run a flame on top of that. it's gonna heat it up instantly until you're done asking for hot

water. >> the perception is this place is gonna cost a fortune to air-condition it, but yet this net-zero concept works even with units like this. >> exactly. these are high-efficiency units. these are kind of the top-of-the-line units you can use for hvac. there's no excuse to not use this technology. it exists, so it has to be this way. there's no other way around it. >> up next, if you're 62 or older, the federal government just made some changes that could make things a lot tougher for you. we'll tell you why after this short break. [ woman vocalizing ] my name is jeff sheldon,

and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everything's pretty much done. it's so much easier so now, we're ready, bring on t. shipstation. the number one ch of online sellers. go to shipstation.com/tv and get two months free. so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience.

♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. ♪ >> welcome back. i'm bob massi, the property man. the federal government just made some major changes to one of the misunderstood items in real estate, the reverse mortgage. i'm gonna go speak with some folks who just went through the

process and explain how the new rules could affect anyone over 62 years of age. >> senior citizens today are having a very difficult time because either they don't have a pension or they're up to their eyeballs in debt. the reverse mortgage is an opportunity they have to allow them to have financial freedom in their senior years. >> a reverse mortgage is simply a loan from the bank based on part of the equity in your home. it's available only to homeowners 62 or older, and it must be your primary residence. >> the advantage that the seniors have for that is that there is no mortgage payment. >> in fact, with many reverse mortgages, the bank makes monthly payments to you instead of the other way around. i wanted to see how reverse mortgages really work for actual folks, so i hit the streets to talk to a few homeowners. i'm gonna go meet with josh shein. he is a reverse-mortgage expert, and he's gonna introduce me to two families. hey, josh. what's up, buddy? >> hey, bob. good to see you. how are you? >> let's go meet these families we're talking about. >> that sounds great. we're gonna meet two families

today who have reverse mortgages, both different circumstances. first family we're gonna meet -- bob and marge. they did a lot of retirement planning, put a lot of money away, saved a lot. >> why did you both consider to do a reverse mortgage? >> we were going to be starting to tap in to our long-term stock investment, and, in looking at it, we said, "wait a minute. that's got time to grow yet, but we have a tremendous amount of equity in our property. why not take advantage of that?" >> they made sure that when they gave us the reverse mortgage, it would never take all of the equity so that, at the end of our 10-year term, there will be a lot of equity left in the house. >> it makes life a lot more pleasant for us because, "a," we don't have a mortgage payment anymore... >> right. >> and, "b," we have tax-free income coming in, and we're leaving our stock-brokerage accounts alone to grow. >> was it an expensive transaction for you? >> the only thing out of pocket, i think, was just the appraisal,

which was about $350. >> there seem to be a lot of people now realizing that a reverse mortgage is not we're losing the house, it's we're using the house to have financial security. >> from when you applied for the reverse mortgage, how long did it take to get it finalized, closed, and get your first check? >> i think it was 27 days. >> from start to finish? >> start to finish. >> you did hit the jackpot. >> yeah, we did. that's what we thought. >> just a few blocks away from bob and marge is another couple who got a reverse mortgage but, in this case, for a completely different reason. chuck and izola were tired of paying their traditional mortgage every month, and, suddenly, they needed to scrape up some extra cash. >> i needed some money for medical, things like that, around the house. >> you had some medical costs, medical expenses, and you thought, "this is a good way to get it without having a payment." >> yes. >> what did you understand your responsibilities were going to be? >> keep the insurance and pay the taxes, and that was it. >> how long did it take you,

actually, to finally get funded on the reverse mortgage. >> maybe 30 days. >> now, you said there was a second time you did a reverse mortgage. >> yes. i wanted to improve the house and get a new automobile. i went on a cruise last year. hadn't been on one in a while. and i got a little money in the bank now. >> would you encourage people to consider a reverse mortgage? >> hey, anytime i don't have a house note... >> [ chuckles ] >> ...it's a no-brainer. >> probably the biggest misconception about reverse mortgages is that the banks end up getting your home. that simply is not true. >> homeowners automatically assume you're giving up your home, you're giving up the deed to your home, ownership to your home. that's the biggest misconception. a reverse mortgage, when it really boils down to it, is just a loan. you're borrowing money. the difference is you're not making a payment on it regularly, as you do on a traditional loan, so that balance of the loan grows over time. you do independent counseling by a third party. that counseling will make sure you're educated on all the different options and make sure you know what you're getting into. >> in recent years, there were a

lot of defaults on reverse mortgages, but how could that happen if the people aren't required to make any payments? >> essentially, since there's no payment being made, the only default that can come up is if you don't pay your taxes or your insurance or you move out of the home. >> so, federal government -- well, they made some major changes to the reverse-mortgage rules. the new rules make it tougher to default by making sure borrowers can pay their taxes, their insurance, and their hoa dues. >> the changes that were recently set in place require the borrower to show to have an ability to make those payments for as long as they're gonna remain in the home, or, similar to the escrow on a traditional loan, have the money set aside to make sure the payments get made. >> can it end up excluding those people that need an extra $500, $600 a month and now that potential could be taken away from them because they don't have a cash reserve or a large portfolio? >> well, it's gonna depend on how much equity they have in their home. a certain amount of the money can be set aside for the taxes and insurance. an additional amount of money can be set aside and given to the borrower in a lump sum for home repairs, for the travel, or

maybe to buy something if they wish. >> what do you do in a situation where one of the two spouses is 62 or older -- okay? -- they get the reverse mortgage under their name, and they pass and now they don't meet that requirement? >> in the past, there was an issue where they could have been forced out of the house, forced to sell the house. the rules changed that, so it protects the borrower, the younger homeowner, staying in the house. >> so, the last of the reverse-mortgage people -- they die. what then has to be done by the beneficiaries who inherit the house? >> they could simply sell the home. that's the easiest way to pay off the balance due on the reverse mortgage. and they would certainly keep whatever equity, whatever money's left, when they sell that home. a lot of other families want to refinance the home and keep it. so, the nice thing about a reverse mortgage -- it's fha-insured. it's a non-recourse loan. the borrower is never responsible, nor is the family, nor are the heirs, so no one is ever accountable for any harm or ding to their credit or any bill coming due in the mail at any time.

that's the important thing. >> after the break, we've got an update on a couple we met a few weeks ago. they were stuck in what was called a zombie foreclosure -- one they thought was long dead but just keeps coming back. wait until you hear how it turned out. [ woman vocalizing ] for free. which means everyone has access to our real reviews that we actually verify. and we can also verify that what goes down, [ splash, toilet flush ] doesn't always come back up. find a great plumber at angie's list. join today for free. money managers are pretty much the same. all but while some push high commission investment products, fisher investments avoids them.

some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management.

♪ >> welcome back. i'm bob massi, the property man. a few weeks ago, we met with mark and yessenia. they were stuck in what i call a

zombie foreclosure -- one that just won't die. they thought their home was foreclosed on, so they moved out and worked on repairing their credit. years later, they found out the bank never foreclosed and they were still on the hook. i told them what they needed to do to put this thing in the grave once and for all. let's check in and see how things actually turned out. i put you in touch with a realtor. i know it was frustrating, because you're still jumping through hoops with lenders. >> yeah. >> tell us what happened. >> once we finished with you the first time, we got ahold of the real-estate agent. the next process was to put the house up for short sale. >> right. >> so, i went through the short-sale process, and it got a little frustrating halfway through because the second was sold to another lender, and then, of course, the housing market was starting to go up a bit, so they started changing the price on the house. >> the numbers. sure. >> and the initial buyer came in and was ready to pay everything the bank wanted, but the bank thought they'd get $10,000 more for the price of the real estate going up in that area, so they upped the price, the buyer backed out, we waited for

another buyer, so we had to start the process over, i think, about three different times because the lender selling the mortgage out to different companies. >> yeah, and that's what happens. when you're in the middle of a short sale and new servicers come in, it's like you're starting all over again, so they want the same paperwork you provided somebody else. and then i understand -- weren't there some liens against the property, too, that caused a problem? >> there were. there were some liens from the trash company, water company... >> hoa, probably. >> ...and the hoa, of course, so... >> but, finally, it was resolved. you got the house short-sold. now everything's out of your name, and you can now move on. you're in a new place, and life is better. >> oh, life is great right now. yeah. the house sold in october of last year, in 2014, so now the clock's on and we're ready to rebuilt, start over. >> it is a frustrating process. nothing happens quick when it comes to dealing with lenders, but at least we got the problem resolved, and that's -- and thanks for the opportunity to try to work with you and get it done. >> thanks for helping us. appreciate it. thanks, bob. >> thank you. that's it for today. be sure to send me your questions or property stories at... and check out our website at...

i'm bob massi. i'll see you next week. [ woman vocalizing ] >> i'm bob massi. for 34 years, i've been practicing law and living in las vegas, the center of the recent real-estate crisis. lives were destroyed from coast to coast as the economy tanked. now, well, it's a different story. the american dream is back. and nowhere is that more clear than the sunshine state of florida. so we headed from the strip to the beach to show you how to live the american dream. i'm gonna meet real people who are facing serious problems, take you behind the gates of properties you have to see to believe and give you the tips that everyone needs to navigate the new landscape because information is power and the property man has got you covered. [ woman vocalizing ]

thanks for joining us. i'm bob massi. a squatter is someone who settles on the land of another person without any legal authority to do so or without acquiring a legal title. there is a century-old legal concept called adverse possession that basically said if someone occupies a property for a long enough period, he or she can become the owner. >> the idea behind that law originally is that we want to have property being utilized, most likely for tax reasons, but it can create a lot of issues legally as to, "how do you get those people off?" >> adverse possession laws -- they vary from state to state. here in florida, it became a real problem during the financial crisis as foreclosure skyrocketed. people took advantage of the vacant homes and moved in and oftentimes filing paperwork to take over the home. in 2013, it got so bad that the florida legislature passed a new law to try to make it tougher for squatters to claim adverse possession. >> go home. >> this came out because

a squatter named andre barbosa, moved into a multi-million dollar waterfront home in boca raton and lived there for months as the neighbors tried, with no luck, to kick him out. >> nobody's happy. we all spent a lot of money to live on this street. >> eventually, he was evicted. but the community of 106 homes then pushed the state legislature to tighten the laws and make it tougher for future squatters. the bill limits adverse possession claims and makes it a crime to occupy a structure or lease out an adversely possessed property. now, i got an e-mail from a woman named mary, who noticed that a home in her neighborhood had been taken over by squatters. >> you could see where they broke into it. >> sure. >> you know, all the damage to the lock itself. >> the owner of the home was deployed overseas and has not been around for several years. and at some point, the bank attempted to foreclose. but now, suddenly, a random group of people were seen going in and out of this house. >> we noticed that there was an odd dog running in the neighborhood.

the doorknob was gone from the front of the house. and subsequently, they found out the dog was in there, left alone. >> so, mary, being very proactive, contacted the homeowners association. there's nothing they could do. >> i was told that nobody could do anything about it unless the owner and/or the bank initiated some kind of complaint. >> everyone who came out, from the police to code enforcement -- well, they said their hands were tied. >> they're going to be hesitant to kick them out. it's not as if you can evict them. there isn't a lease in place. there's not an agreement that they're in violation of. >> the squatters had the locks changed and even contacted the electric company to get the power hooked back up in their name. >> our electric company came out. >> so, they actually came out to hook up power. >> you know, and i asked them. i said, "what are you doing?" and they said, well, they don't care if it's an abandoned home as long as the person that wanted the electricity hooked up passed a credit check. >> mary went and confronted the squatters herself. >> i asked one of them

for their name, and at that point, her rather belligerent boyfriend, i assume, came out of the house. and he goes, "i don't know why you're harassing us. i have a key to the front door." and i had said, "yeah, you have a key 'cause you just the put the lock in the door. of course you have a key." well, another neighbor came out and asked, you know, "well, where is your -- your lease?" and they gave us three different answers. she says, "well, let's call the police so you can put a complaint in." and at that point, they all jumped in the car, and that's the last time i saw them. >> mary tracked down the bank that held the mortgage on the property. and eventually they came out and changed the locks to secure their collateral. so, the problem in a situation like this, when somebody's a squatter or also known as a trespasser, is the only person that has the right to do anything, in most cases, is the homeowner. so the homeowner's association and the management company and the community -- their hands are sort of tied. >> and it's kind of sad because they're taking over property they have no right to

do, you know, and it's just -- i don't know. it's wrong, just wrong. >> if a house is vacated or abandoned and the lender finds out about it... >> mm-hmm. >> ...okay, they have the right to go change that lock to protect the collateral so somebody doesn't move in and destroy the property. remember, a squatter's not a tenant. so, in other words, you don't go through a normal eviction process because they're there illegally. the hoas, they're afraid to do it because they don't want to get sued. so, a lot of times, these problems are solved by neighbors self-helping. >> mm-hmm. >> you, you know, picked up the sword, and you did what you had to do for the better of your neighborhood, and you chased these people the hell out of here. and that's a good thing. >> this is true. >> thank you for that. >> oh, you're welcome. >> be sure to stick around. there have been some major changes to lending rules, and i'll break them down for you next. [ woman vocalizing ]

♪

>> welcome back. i'm bob massi, the property man. there are a lot of people out there with mortgages. in fact, americans currently owe more than $8 trillion to mortgage lenders. but there have been some big changes in lending rules recently, and not everybody understands how it all works. ♪ the foreclosure crisis of a few years ago rattled the entire country. >> the industry came out with a no-doc loan and no-income-verification loans. and that just made it very easy for people who would normally not qualify for a loan to be able to purchase a home. >> it became clear that many people didn't understand the terms and the rules of their mortgages. and homeowners claimed that, by the time they found out, it was all too late. >> now people like to go through everything in detail so that you can understand. >> we've all heard of fannie mae and freddie mac. but many people still don't know what they are. they are loan purchasers. they purchase most mortgage

conventional loans in america. fannie mae is the federal national mortgage association. freddie mac is the federal home loan mortgage corporation. fanny and freddie were created by congress to buy mortgages from lenders and either hold them or package them together to sell to investors. >> those loans then later get sold into bonds, and they become a commodity in the market. >> these keeps the mortgage market stable and affordable by ensuring that the banks and the mortgage lenders, well, they have access to cash when needed. so then the lenders can come back and loan money again to the prospective homeowner. >> correct. that is the reason for fannie and freddie and, for that case, fha as well. >> and then we have fha. they insure about 30% of residential mortgages. >> fha is a true government loan -- federal housing administration. they were designed many years ago for first-time home buyers. >> after the housing crisis, the fha really tightened up on the guidelines.

they increased some of the costs of the mortgages. and over the last several years, they've loosened guidelines back up a little bit. >> they made it possible for more underwater homeowners to refinance and made some other changes also. borrowers who use fha loans will now likely save thousands at closing. but those monthly mortgage payments will be a little higher. >> it allows for a little lower credit scores than a conventional loan, and it allows you to do a mortgage with as little as 3.5% down. >> borrowers with credit scores of less than 580 -- they'll have to put 10% down instead of 3.5%. up-front mortgage insurance premiums have also increased. >> mortgage insurance is basically protection for the bank. regardless of the down payment that you have, you're still gonna pay mortgage insurance with fha, whereas on a conventional mortgage, as long as you put 20% down, you're not gonna pay mortgage insurance. >> and he loans need to be insured for the entire life of the loan.

>> where prior, you were able to remove the mortgage insurance after 5 years if you had reached a certain loan-to-value, that has been removed. >> and that, i'm sure, is a consequence of the foreclosure crisis, what we saw happen in america. >> 100% it's a consequence of foreclosures. >> the consumer financial protection bureau has been working to simplify the lending process and make it easier for borrowers to know what they're getting into and how much it's gonna cost -- very important change we're gonna talk about. in october 2015, big changes took effect. >> essentially, it's new legislation that has actually given borrowers a lot more transparency and giving them more time to decide on the lender that they're using, as well as giving them some time to review their final closing disclosures. >> it is known as know before you owe. there are new disclosure forms that replace some of the old ones. remember the good faith estimate hud statement and the truth in lending disclosures?

they're gone. >> those are three items that have actually been replaced in the new legislation. >> they combined the information into a loan estimate and what's called a closing disclosure form. >> your loan estimate will be given to you first, and that will be a combination of your good faith estimate and your truth in lending. and that gives a detailed explanation of every cost you're going to incur. >> when you're looking at your loan estimate, you really want to look at the type of loan that you're doing. is it a fixed-rate? is it an adjustable-rate? the l.e. will spell out directly if it's an adjustable-rate, and it'll tell you what that rate can adjust to in a worst-case scenario after its fixed period. you also want to know if there's a prepayment penalty. it specifically states it on the l.e. that the good faith estimate, you know, was not as specific about prior. >> every mortgage transaction will be summed up with these two forms so that buyers can clearly see what they're getting into. this should also make it easier to shop around and compare different loans against each other. >> your loan estimate is designed so that you can shop.

it's designed so that you can know everything up front and you can take that with you and compare. it's several pages long and meant to be very user-friendly so that you can get a clear understanding of what the charges are and what you're paying for. >> now, a loan estimate shows your interest rate, the lending fees, along with the appraisal fees, the title insurance, the closing costs and the details as it relates to your interest rate. the closing document spells out all of the final costs, the taxes and insurance and the closing costs and all fees, how much each realtor is getting and who's paying what, the buyer or the seller. >> lenders now are responsible for getting it as close as possible so that there are no surprises for you at closing. and a borrower needs to receive that three business days prior to be able to close. >> you as the borrower have three days to review this document and compare that to the actual cost you received

earlier. for example, if the interest rate is greater on this new disclosure form, as opposed to the other form you were given, wait a second. you have the right to ask for another three days so that you're able to make sure that what they told you originally is what it's going to cost you for your loan. >> a mortgage is typically gonna be the largest investment 99% of the population ever will make, so it's extremely important that they truly understand, you know, the documents that they're signing and the type of mortgage that they're getting into. >> and opportunity to sort of take a deep breath, understand the commitment they're making because -- and i say this all the time -- other than marriage, if it works, right... >> yes. >> ...it's the longest contract we literally sign in our life. it's usually a 30-year commitment. >> you can cancel the entire transaction right up to closing. so, this basically gives them three extra days to think about it. >> now, if you're shopping for a mortgage for the next home i'm going to show you, it's

gonna be a big one, probably the most breathtaking luxury home we've seen yet, with a price tag of $40 million. yep. you heard it from me, the property man, and i'll take you inside next. [ woman vocalizing ] i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ ♪ can i kick it?

♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver.

♪ >> i've shown you some luxury homes on this program, but not much compares to this next home, currently listed at $40 million. it's located on the ocean, in palm beach, florida. the realtors ngo hold the listi are the mother/son duo of paulette and dana koch. and i asked them to show me around. ♪ >> six bedroom, six and a half baths, all on one level, sprawls across the entire property. the house has roughly 10,500

square feet of air-conditioned square footage and a little over 13,000 square feet total. >> with over 200 feet of private ocean frontage. >> when it comes down to it, oceanfront is the gold standard. that's what people want. they want to, you know, step down off their property, onto the beach, jump into the ocean. ♪ >> visitors entering through the garden entry travel through the grand foyer and are immediately hit with this panoramic ocean views. >> the scale of it is magnificent. and as soon as you come in, you actually walk towards the ocean here. it kind of draws you like a magnet. but in this area, we have groined vaults, custom, cast-stone moldings, all limestone flooring. as we walk through, down this magnificent corridor, you have the views of the atlantic. >> yeah. the home's unique split-lineal design creates total privacy for the master suite, but still provides amazing views for the three additional bedroom

suites. >> from the bedrooms to the living room, from the library, you have these spectacular ocean views. and they're breathtaking. ♪ >> this is the master bedroom. >> yes. the master bedroom, again, is a corner suite. and it takes advantage of the views, which everybody wants. >> hand-painted ceiling, cove lighting recessed into the crown moldings. >> this house is one word: spectacular. >> it was designed and built in 2008 by architect jeffery smith but has the feel of an old, european castle. and that's no accident. the original owner was an english lord. >> old world details that you would see in a 1920s house, so it has the feel of a '20s house, yet you have all the amenities and updated bells and whistles. >> so it's kind of the ideal balance that people look for. they want to have a house that they don't have to maintain a lot, and yet

they have the ambiance, the personality, the character that existed from the '20s. >> the scale and the proportion is just unbelievable. you have hand-painted, wood-carved ceilings, cast-stone fireplace. >> the entire home sits on one level, except for the formal great room, which stretches one and a half stories. >> lord anthony jacobs, who owned this house, he was a collector. and he wanted to bring a bit of england and europe to palm beach. across the home from the ocean is a tranquil courtyard with carved-stone arches. >> you have a beautiful 70-foot swimming pool with glass shimmering tile. the owner was a very big swimmer, so it was really important for him that he was able to swim laps in this pool. >> and all of the landscaping was planted, creating a total

old world ambiance. >> it just has a very romantic feel to it. >> you have the atlantic ocean, and then you have this water feature, and it just sort of just grabs you on both sides, provides serenity. the passion that was put into this structure is amazing. >> that's kind of what palm beach is all about. >> it was really thought through beautifully. the floor plan flows indoors to outdoors, outdoors to indoors. there's a beautiful balance between the indoor space and the outdoor space. >> it's all about the lifestyle here. >> let's go and take a walk and just look. >> 203 feet of ocean frontage. toes in the sand directly on the ocean is the gold standard. and this is just a little slice of paradise right here. >> the grass is a diamond zoysia that you would normally see in a fairway on a golf course. >> you go out here and walk up and down the beach, and life cannot get much better. you can just see the history of this place and the beauty of this house and what it brings. and like you said, this is piece

of paradise. ♪ >> up next, the massi memo, where i'll run down all of the new changes to lending rules that you need to know if you're shopping for a mortgage. [ woman vocalizing ] you know who likes to be in control? this guy. check it out! self-appendectomy! oh, that's really attached.

that's why i rent from national. where i get the control to choose any car in the aisle i want, not some car they choose for me. which makes me one smooth operator. ah! still a little tender. (vo) go national. go like a pro.

and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everything's pretty much done. it's so much easier so now, we're ready, bring on t. shipstation. the number one ch of online sellers. go to shipstation.com/tv and get two months free. ♪ >> time now for the massi memo. we've talked earlier about new changes to lending rules. i've got a breakdown of some of the big ones on our website,

foxnews.com/propertyman. but let's just review some important points you need to know. as of october of 2015, the program is called know before you owe. there's two new disclosure forms. they replace four of the old ones. the good faith estimate hud-1 statement and truth in lending disclosures have been simplified and combined. the information is now all in a loan estimate and closing disclosure form. every mortgage transaction will be summed up with these two forms so that buyers can clearly see what they're getting into. this should also make it easier to shop around and compare different loans against each other. now the loan estimate shows you your interest rate, the lenders' fees, along with appraisal fees, your title insurances, your closing costs, and details like if your interest rate's gonna change during the course of your loan. the closing document spells out all of the final costs: taxes and insurance, closing costs, all fees,

how much each realtor is getting, and who is paying what, the buyer or the seller. borrowers now get this information three days in advance so nobody is surprised at the closing table like the past. if anything changes, like the interest rate or any fee charge, the borrowers can get another three days to review before the closing. the fha has made it possible for more underwater homeowners to refinance and made some other changes, as well. borrowers who use fha loans will likely save thousands at closing, but those monthly mortgage payments will be a little higher. in addition, borrowers with credit scores of less that 580 will have to put 10% down instead of 3.5%. up-front mortgage insurance premiums have also increased, and the loans need to be insured for the entire life of the loan. that's it for today. be sure to send me your questions or property stories at propertyman@foxnews.com.

and check out our website at foxnews.com/propertyman. i'm bob massi. i'll see you next week. [ woman vocalizing ] intelligence report" every day 2:00 p.m. on fox business network. >> announcer: the new week are. >> welcome to "wall street week," the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. kathy ireland is my special guest this weekend. it was a big week this week. after months of waiting president trump and republican lawmakers revealing their framework for tax reform wednesday. on the dorm rat side the plan cuts the corporate thanks rate to 20% down from