Having weathered four years of declining property values, local governments have whittled spending to essential services, and some have spent reserve funds, according to city managers and finance directors.
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It's all the fault of Privatopia for failing to preserve property values.
Saturday, September 03, 2011
Friday, September 02, 2011
The $4 Trillion Dollar Question | The Big Picture
The $4 Trillion Dollar Question | The Big Picture
This analysis is by Dhaval Joshi, a financial analyst, reprinted on Barry Ritholtz's blog (highly recommended). It appeared in June 2010 but I just ran across it. Here's the lead:
"Can the US economy really return to “business as usual” when it has 4 million houses surplus to requirement, when 1 out of 4 mortgages are in negative equity, and when by our calculation, it is burdened with $4 trillion of excess mortgage debt, equivalent to 30% of GDP?"
This analysis is by Dhaval Joshi, a financial analyst, reprinted on Barry Ritholtz's blog (highly recommended). It appeared in June 2010 but I just ran across it. Here's the lead:
"Can the US economy really return to “business as usual” when it has 4 million houses surplus to requirement, when 1 out of 4 mortgages are in negative equity, and when by our calculation, it is burdened with $4 trillion of excess mortgage debt, equivalent to 30% of GDP?"
Robo-signed mortgage docs date back to late 1990s - Yahoo! News
Robo-signed mortgage docs date back to late 1990s - Yahoo! News
Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.
The suspect documents could create legal trouble for homeowners for years.
Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.
The suspect documents could create legal trouble for homeowners for years.
The Real Deal on HOAs - RE/MAX Baja Realty
The Real Deal on HOAs - RE/MAX Baja Realty
"The City Council is working on setting up a new department to coordinate the HOA of the different developments, to solve internal problems between residents, the HOA and the developer. Before the developer establishes the HOA the new department appointed by the City Council will check the regulations and then give its authorization to go ahead and establish it. Raúl Aragón, council member of Rosarito and businessman has made a lot of effort for this to happen; he is also assisting the Rosarito Realtors Association and obtaining a licensed requirement to practice real estate in the city of Rosarito." Gustavo Torres, President of AMPI, commented on the subject. The new department will have the obligations to create reorganization and modernizing programs, annual income and expense reports, administrative manuals, it will keep a statistical control, impose sanctions in case of violation of the law, inspections and notices when applicable, it will supervise the appointment of board members, security and management; it will also establish the budget for common expenses, types of payment and a reserve fund.
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Thanks to Robert Rancansky for this interesting link. The writer doesn't understand why associations are proliferating and explains that all wrong, but this last paragraph is worth noting. This is in Baja California, Mexico, where apparently they have some concept of the need to keep track of association affairs. I guess Milton Friedman didn't get around to preaching his gospel there.
"The City Council is working on setting up a new department to coordinate the HOA of the different developments, to solve internal problems between residents, the HOA and the developer. Before the developer establishes the HOA the new department appointed by the City Council will check the regulations and then give its authorization to go ahead and establish it. Raúl Aragón, council member of Rosarito and businessman has made a lot of effort for this to happen; he is also assisting the Rosarito Realtors Association and obtaining a licensed requirement to practice real estate in the city of Rosarito." Gustavo Torres, President of AMPI, commented on the subject. The new department will have the obligations to create reorganization and modernizing programs, annual income and expense reports, administrative manuals, it will keep a statistical control, impose sanctions in case of violation of the law, inspections and notices when applicable, it will supervise the appointment of board members, security and management; it will also establish the budget for common expenses, types of payment and a reserve fund.
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Thanks to Robert Rancansky for this interesting link. The writer doesn't understand why associations are proliferating and explains that all wrong, but this last paragraph is worth noting. This is in Baja California, Mexico, where apparently they have some concept of the need to keep track of association affairs. I guess Milton Friedman didn't get around to preaching his gospel there.
Calculated Risk: Lawler: Census 2010: Homeownership Rates by Selected Age Groups
Calculated Risk: Lawler: Census 2010: Homeownership Rates by Selected Age Groups
Homeownership rates for those under the age of 55 have fallen dramatically since 1980, according to the Census.
Homeownership rates for those under the age of 55 have fallen dramatically since 1980, according to the Census.
Wednesday, August 31, 2011
Oregon Foreclosures Appear Likely to Shift to the Courts | LoanSafe.org
Oregon Foreclosures Appear Likely to Shift to the Courts | LoanSafe.org
For half a century, the vast majority of the state’s residential foreclosures have occurred without a judge’s involvement. Oregon is one of 24 states that allow nonjudicial foreclosures, provided lenders give borrowers proper notice, publicize the sale and abide by other requirements.
But late last year, federal judges began blocking them, ruling that lenders had failed to follow one of those requirements: filing the mortgage’s ownership history in county records.
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I have said many times that nonjudicial foreclosure is a terrible thing, whether done by CIDs or banks. Here is some reconsideration of the practice taking place in Oregon.
For half a century, the vast majority of the state’s residential foreclosures have occurred without a judge’s involvement. Oregon is one of 24 states that allow nonjudicial foreclosures, provided lenders give borrowers proper notice, publicize the sale and abide by other requirements.
But late last year, federal judges began blocking them, ruling that lenders had failed to follow one of those requirements: filing the mortgage’s ownership history in county records.
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I have said many times that nonjudicial foreclosure is a terrible thing, whether done by CIDs or banks. Here is some reconsideration of the practice taking place in Oregon.
The Home Equity Theft Reporter: May 1, 2011
The Home Equity Theft Reporter: May 1, 2011
Ohio Supremes To Decide Whether Foreclosing Party Must Own Both Note, Mortgage At The Time Complaint Is Filed
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Interesting blog--and looks like a big case.
Ohio Supremes To Decide Whether Foreclosing Party Must Own Both Note, Mortgage At The Time Complaint Is Filed
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Interesting blog--and looks like a big case.
Guilty plea in homeowners association scheme - Houston Chronicle
Guilty plea in homeowners association scheme - Houston Chronicle
LAS VEGAS (AP) — A Las Vegas political consultant pleaded guilty Tuesday in federal court to taking part in a scheme to control condominium homeowners associations and steer business to favored companies in southern Nevada.
Steven Wark, 54, admitted in a plea agreement that in 2005 he joined an effort to control homeowners association boards of directors to send legal work and building contracts to a law firm and construction company designated by his co-conspirators, prosecutors said.
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Thanks to Bill Davis for the link. Others sent me a link to the Las Vegas Review-Journal version, but I never quote anything from that newspaper because they sued people for doing it.
LAS VEGAS (AP) — A Las Vegas political consultant pleaded guilty Tuesday in federal court to taking part in a scheme to control condominium homeowners associations and steer business to favored companies in southern Nevada.
Steven Wark, 54, admitted in a plea agreement that in 2005 he joined an effort to control homeowners association boards of directors to send legal work and building contracts to a law firm and construction company designated by his co-conspirators, prosecutors said.
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Thanks to Bill Davis for the link. Others sent me a link to the Las Vegas Review-Journal version, but I never quote anything from that newspaper because they sued people for doing it.
Tuesday, August 30, 2011
Guilty plea in homeowners association scheme
LAS VEGAS (AP) — A Las Vegas political consultant pleaded guilty Tuesday in federal court to taking part in a scheme to control condominium homeowners associations and steer business to favored companies in southern Nevada.
Steven Wark, 54, admitted in a plea agreement that in 2005 he joined an effort to control homeowners association boards of directors to send legal work and building contracts to a law firm and construction company designated by his co-conspirators, prosecutors said.
The Justice Department also alleged in the statement that co-conspirators forged ballots and rigged board elections in the scheme that involved about a dozen homeowners associations and took place from about August 2003 through February 2009. The names of the co-conspirators and other companies weren't made public.
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The story goes on to note a federal prosecutor expects more federal cases to be filed in the coming days and weeks. The late Las Vegan and wannabe wiseguy Phil "The Ghostbuster" Testa must be having a posthumous "told ya so" moment. Thanks to Bill Davis for the story.
Orange County, CA, may go bankrupt...again???
Second District Supervisor John Moorlach warned in a weekend editorial in the Register that the county is poised at the edge of bankruptcy – again.
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Thus spake Orange County Second District Supervisor John Moorlach, who was the county treasurer for 12 years--following the first Orange County bankruptcy in 1994. That time, it was the result of bonehead financial decisions made by the previous treasurer, Robert Citron, who thought investing public money in complex derivatives was a great way for the Republicans of Orange County to avoid paying taxes. This time? It sounds like a combination of factors, but the tax phobia of Orange County residents is a perennial fact of life for county officials.
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Thus spake Orange County Second District Supervisor John Moorlach, who was the county treasurer for 12 years--following the first Orange County bankruptcy in 1994. That time, it was the result of bonehead financial decisions made by the previous treasurer, Robert Citron, who thought investing public money in complex derivatives was a great way for the Republicans of Orange County to avoid paying taxes. This time? It sounds like a combination of factors, but the tax phobia of Orange County residents is a perennial fact of life for county officials.
Monday, August 29, 2011
Dispute could force out residents of rundown condo | The Tennessean | tennessean.com
Dispute could force out residents of rundown condo | The Tennessean | tennessean.com
Residents of a West Nashville condominium complex could soon be forced to search for new homes because of a complicated dispute between absentee real estate investors and their homeowners association.
The West Meade Condominium complex, located off Charlotte Pike next to the Nashville West shopping center, has become dangerously rundown because the homeowners association doesn’t have enough money to pay for repairs.
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Yet another collapsing condo project. I expect this sort of story to become commonplace over the next few years. Thanks to Fred Pilot for this link.
Residents of a West Nashville condominium complex could soon be forced to search for new homes because of a complicated dispute between absentee real estate investors and their homeowners association.
The West Meade Condominium complex, located off Charlotte Pike next to the Nashville West shopping center, has become dangerously rundown because the homeowners association doesn’t have enough money to pay for repairs.
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Yet another collapsing condo project. I expect this sort of story to become commonplace over the next few years. Thanks to Fred Pilot for this link.
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