ACLU Announces Free Speech Settlement with Association | Articles & Archives | Community Association Management Insider

ACLU Announces Free Speech Settlement with Association | Articles & Archives | Community Association Management Insider: "The American Civil Liberties Union (ACLU) has reached a settlement on behalf of a San Francisco condo resident who challenged an attempt by a homeowner's association to force him to remove political signs from his windows."
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California Bond Woe Bodes Ill for States - WSJ.com

California Bond Woe Bodes Ill for States - WSJ.com
The normally staid market has grown volatile the past week, posting its sharpest selloff in nearly two years, as investors demand higher interest rates to buy paper issued by states, cities and counties to finance their operations. Localities have been hammered by a drop in tax revenue amid the downturn—and unlike the federal government, most are barred constitutionally from running deficits.
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This means state and local governments will be making more service cuts and raising whatever taxes and charges they can.

Stern's DAL Enters Forbearance Agreement With Bank of America Over Credit - Bloomberg

Stern's DAL Enters Forbearance Agreement With Bank of America Over Credit - Bloomberg: "A business run by David Stern, the Florida foreclosure lawyer who is under investigation by the state’s attorney general, entered a forbearance agreement with lender Bank of America NA.

The bank agreed not to take action in the period ending Nov. 26 over a default on a revolving line of credit by DAL Group LLC, a unit of Stern’s foreclosure-processing company, DJSP Enterprises Inc., according to a regulatory filing. The credit line, entered into in March, has an outstanding principal balance of about $12 million, DAL said."
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I'll let the irony just work its way through the system.

Condo associations may be coming to an end | WBEZ

Condo associations may be coming to an end | WBEZ
Hear crazed professor McKenzie on Chicago public radio today.

Dejected House Dems wipe away tears as GOP celebrates victory - The Hill's Blog Briefing Room

Dejected House Dems wipe away tears as GOP celebrates victory - The Hill's Blog Briefing Room: "Freshman Rep. Debbie Halvorson (D-Ill.), who lost her reelection bid, wiped away tears as she hugged fellow members of the class of 2008, many of whom lost on Nov. 2.

Less than three feet away, ousted Nevada freshman Rep. Dina Titus (D) appeared to brush away some tears in a less obvious manner."
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Heart-breaking. To think that these fledgling members of Congress are being evicted from their seats after only two years, before they could dig themselves in like ticks and become unaccountable, perpetually re-elected incumbents like the rest of the House.

Report: Foreclosure mess could threaten banks - Yahoo! Finance

Report: Foreclosure mess could threaten banks - Yahoo! Finance
So says a congressional oversight panel. If you think this is the prelude to Congress doing another great big favor for the big banks, you are right.

Rumors, Rumors. Is Lame Duck Congress Planning A CYA Bill For MERS Mortgage Fraud? | Crooks and Liars

Rumors, Rumors. Is Lame Duck Congress Planning A CYA Bill For MERS Mortgage Fraud? | Crooks and Liars: "When Congress comes back into session next week, it may consider measures intended to bolster the legal status of a controversial bank owned electronic mortgage registration system that contains three out of every five mortgages in the country."
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The Mortgage Electronic Registration System saved banks and real estate trusts billions of dollars in recording fees that are supposed be paid when somebody sells the mortgage on a piece of property. The banks set up MERS to avoid paying those fees. They didn't record the changes in ownership. They just passed the mortgages around and kept track of which banks owned which mortgage using this electronic system. That's why they can't prove ownership. Nobody has a valid recorded deed.

And what about the billions they owe the counties all across this nation?

Watch for the lame duck Congress to bail out the banks, once again.

HOAs give lenders ultimatum; Florida courts bless strategy

In too many cases, lenders are failing to foreclose on troubled assets, regardless of whether the owner is a troubled borrower or a secondary lien holder. In many cases, they are either waiting for the market to clear so they can sell the distressed assets at a better price, or they don't want to pay the dues and/or assessments required from owners.

Whatever the reason, lenders that drag their feet are leaving associations in the lurch. But with the Mortgage Terminator maneuver, says Association Law Group partner Solomon, associations can take the title to the property and then force the primary lien holder to initiate its own foreclosure proceeding or release its mortgage so the association can sell the unit to cover what it is owed.

Three times now, Florida courts have upheld the tactic, which Solomon calls "a legal strategy that finally gives banks a legal ultimatum."

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Click here for The L.A. Times story.

So in addition to REOs, now we'll have HAOs (Homeowner Association Owed) properties. The legal strategy has national implications, The Times reports, since it is not based on state law.

I'm guessing HOAs don't want to hold distressed properties either since that adds to their financial burdens. Taking over these limbo zone properties won't remedy the fact they aren't generating assessment revenue. That circumstance and the need for income to cover the cost of holding HAOs could compel HOAs to become landlords and place these properties on the rental market. But that could also have negative implications for HOAs given secondary mortgage market rules that disfavor purchasing loans in HOAs with too many rental units. So they'll probably quickly dispose of them at fire sale prices as the Times article suggests.

Money and the Midterms: Are the Parties Over? Interview with Thomas Ferguson » New Deal 2.0

Money and the Midterms: Are the Parties Over? Interview with Thomas Ferguson » New Deal 2.0
Profound but disturbing take on national politics.