Mortgage delinquencies among some homeowners just spiked, spelling trouble:
"Federal Housing Administration mortgage delinquencies jumped in the fourth quarter for the first time since 2006, the Mortgage Bankers Association reported Wednesday. The FHA insures low down-payment loans and is a favorite among first-time homebuyers. The seasonally adjusted FHA delinquency rate increased to 9.02 percent in the fourth quarter from 8.3 percent in the third quarter, MBA data show. The jump, which followed the lowest delinquency rate since 1997, was driven by loans made since 2014 and early-stage delinquencies, those just 30 days past due."
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Well, that isn't good. Especially this part: "... the foreclosure activity increases in states such as Arizona, Colorado and Georgia are more heavily tied to loans originated since 2009 — after most of the risky lending fueling the last housing boom had stopped,"
Friday, February 17, 2017
Thursday, February 16, 2017
Appeals court dashes hopes for investors who bought foreclosed homes in Nevada | Las Vegas Review-Journal
Appeals court dashes hopes for investors who bought foreclosed homes in Nevada | Las Vegas Review-Journal:
See the post below. This article explains that the real beneficiaries of the Nevada Supreme Court's decision regarding the superlien statute are investors who acquired an estimated 2,000-3,000 properties by just paying off the association's lien for unpaid assessments, fees, and costs. But the 9th Circuit left them in limbo when they declared the statute unconstitutional. Then the Nevada SC rode to the rescue again and said the statute is just fine. I'm curious as to what is going on now. Can the investors sell these properties with clear title, or is there still confusion or uncertainty about whether the purchases by these investors can be rescinded and the banks' first mortgages restored? Does anybody know?
See the post below. This article explains that the real beneficiaries of the Nevada Supreme Court's decision regarding the superlien statute are investors who acquired an estimated 2,000-3,000 properties by just paying off the association's lien for unpaid assessments, fees, and costs. But the 9th Circuit left them in limbo when they declared the statute unconstitutional. Then the Nevada SC rode to the rescue again and said the statute is just fine. I'm curious as to what is going on now. Can the investors sell these properties with clear title, or is there still confusion or uncertainty about whether the purchases by these investors can be rescinded and the banks' first mortgages restored? Does anybody know?
The Super-Priority Saga Continues – Nevada Supreme Court Holds That NRS 116’s Notice Provisions Are Constitutional | Financial Services Perspectives
The Super-Priority Saga Continues – Nevada Supreme Court Holds That NRS 116’s Notice Provisions Are Constitutional | Financial Services Perspectives:
Yes, indeed. The saga continues. To recap:
1. In SFR Investments Pool v. US Bank, the Nevada Supreme Court ruled on 9/18/2104 that an HOA nonjudicial foreclosure on their "superlien" for unpaid assessments extinguishes a first mortgage. The bank said that they had been denied due process of law because they didn't have adequate notice of the NJF.
2. But then on 8/15/2016, the 9th Circuit Court of Appeals ruled in Bourne Valley Court Trust v. Wells Fargo Bank that this law violates the due process rights of the bank holding the first mortgage. Where is the state action that gives rise to a due process claim? It lies in the state legislature enacting the statute that gives the HOA the right to do this. What is the denial of DP? It relates to the adequacy of the notice to the first lienholder that the statute requires.
3. But stop the music: The Nevada Supreme Court struck again. On 1/26/2017, they ruled in Saticoy Bay LLC v Wells Fargo bank that there is no state action, and thus no constitutional claim for deprivation of due process.
The Nevada Supreme Court and the federal 9th Circuit Court of Appeals have different rulings on the same statute. So, what does this mean? I think it probably means that the choice of courts makes all the difference. In Nevada state courts, the Nevada Supreme Court is the final authority. But if the case is in federal court, the 9th Circuit's ruling is the law.
In situations like this, the US Supreme Court has been known to grant certiorari in order to decide which interpretation should prevail. Rule 10 of the USSC Rules provides that they are more likely to take a case if "(b) a state court of last resort has decided an important federal question in a way that conflicts with the decision of another state court of last resort or of a United States court of appeals," which is just the situation. But somebody has to present this issue to them in a real case, and I do not know if that is in the works or not.
And the statute in question was amended after the SFR case, so I defer to NV lawyers as to how big an issue this will be going forward. The language in the amendment requires more detailed notice, and includes this: "(II) If, not later than 5 days before the date of the sale, the holder of the first security interest on the unit satisfies the amount of the association’s lien that is prior to that first security interest pursuant to subsection 3 of NRS 116.3116 and, not later than 2 days before the date of the sale, a record of such satisfaction is recorded in the office of the recorder of the county in which the unit is located, the association may foreclose its lien by sale but the sale may not extinguish the first security interest as to the unit." So now (if I am reading all this correctly) the bank gets more detailed notice and has a chance to pay off the delinquent assessments so their lien doesn't get extinguished.
Yes, indeed. The saga continues. To recap:
1. In SFR Investments Pool v. US Bank, the Nevada Supreme Court ruled on 9/18/2104 that an HOA nonjudicial foreclosure on their "superlien" for unpaid assessments extinguishes a first mortgage. The bank said that they had been denied due process of law because they didn't have adequate notice of the NJF.
2. But then on 8/15/2016, the 9th Circuit Court of Appeals ruled in Bourne Valley Court Trust v. Wells Fargo Bank that this law violates the due process rights of the bank holding the first mortgage. Where is the state action that gives rise to a due process claim? It lies in the state legislature enacting the statute that gives the HOA the right to do this. What is the denial of DP? It relates to the adequacy of the notice to the first lienholder that the statute requires.
3. But stop the music: The Nevada Supreme Court struck again. On 1/26/2017, they ruled in Saticoy Bay LLC v Wells Fargo bank that there is no state action, and thus no constitutional claim for deprivation of due process.
The Nevada Supreme Court and the federal 9th Circuit Court of Appeals have different rulings on the same statute. So, what does this mean? I think it probably means that the choice of courts makes all the difference. In Nevada state courts, the Nevada Supreme Court is the final authority. But if the case is in federal court, the 9th Circuit's ruling is the law.
In situations like this, the US Supreme Court has been known to grant certiorari in order to decide which interpretation should prevail. Rule 10 of the USSC Rules provides that they are more likely to take a case if "(b) a state court of last resort has decided an important federal question in a way that conflicts with the decision of another state court of last resort or of a United States court of appeals," which is just the situation. But somebody has to present this issue to them in a real case, and I do not know if that is in the works or not.
And the statute in question was amended after the SFR case, so I defer to NV lawyers as to how big an issue this will be going forward. The language in the amendment requires more detailed notice, and includes this: "(II) If, not later than 5 days before the date of the sale, the holder of the first security interest on the unit satisfies the amount of the association’s lien that is prior to that first security interest pursuant to subsection 3 of NRS 116.3116 and, not later than 2 days before the date of the sale, a record of such satisfaction is recorded in the office of the recorder of the county in which the unit is located, the association may foreclose its lien by sale but the sale may not extinguish the first security interest as to the unit." So now (if I am reading all this correctly) the bank gets more detailed notice and has a chance to pay off the delinquent assessments so their lien doesn't get extinguished.
Thursday, February 02, 2017
Georgia accountant charged in $100K homeowners association theft
Georgia accountant charged in $100K homeowners association theft:
There have been so many cases like this that I can't keep count anymore.
There have been so many cases like this that I can't keep count anymore.
South Florida man accused of smearing feces on HOA president's...
South Florida man accused of smearing feces on HOA president's...:
It would be hard not to take this as a form of criticism.
It would be hard not to take this as a form of criticism.
Thursday, January 26, 2017
Survive the coming apocalypse inside a big pipe buried underground / Boing Boing
Survive the coming apocalypse inside a big pipe buried underground / Boing Boing
"Atlas Survival Shelters sells huge corrugated pipe shelters outfitted for living with air filtration systems, Co2 scrubbers, and power generators. A 10' x 20' shelter goes for $30-$40,000 and the "Hillside Retreat," a 10' x 51', runs as high as $109,000. Options include a big screen TV, electric fireplace, oak flooring, hatch camouflaged as a boulder, and many other fine amenities."
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As long as nobody figures out that the boulder is a hatch, you are on easy street.
"Atlas Survival Shelters sells huge corrugated pipe shelters outfitted for living with air filtration systems, Co2 scrubbers, and power generators. A 10' x 20' shelter goes for $30-$40,000 and the "Hillside Retreat," a 10' x 51', runs as high as $109,000. Options include a big screen TV, electric fireplace, oak flooring, hatch camouflaged as a boulder, and many other fine amenities."
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As long as nobody figures out that the boulder is a hatch, you are on easy street.
Tuesday, January 24, 2017
In a community of million-dollar homes, a fight over a $500 mailbox ends in court - The Washington Post
In a community of million-dollar homes, a fight over a $500 mailbox ends in court - The Washington Post:
"The $35 wooden mailbox Keith Strong bought in 2009 seemed charming and functional for the home he shared with his wife in a posh golf community in the suburbs of Washington. It was a newer version of the mailbox the homeowners association previously approved and had sat at the end of their driveway since the couple moved to their Bowie-area home four years earlier. But no more than two months after Strong installed his new mailbox, he received an order to dump it — for a $500 mailbox upgrade. The board of the homeowners association voted to require all residents in the Woodmore golf community to buy metal mailboxes, monogrammed with the letter “W” and mounted on a decorative post. The $500 mailbox mandate angered Strong and others in the community, launching him into a seven-year fight that finally ended this month when a Prince George’s County judge signed, sealed and delivered a ruling that the board of the Pleasant Prospect Home Owners’ Association overstepped its bounds with its postal pronouncements. It’s a victory that cost Strong $33,000 in legal fees — roughly the price of 66 of the new bronze-colored mailboxes"
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This Washington Post story highlights several common features of HOA litigation: the triviality of so many of these disputes; the cost of using the court system that we all pay for to litigate them; and the way owners have to spend a fortune to contest association decisions;
"The $35 wooden mailbox Keith Strong bought in 2009 seemed charming and functional for the home he shared with his wife in a posh golf community in the suburbs of Washington. It was a newer version of the mailbox the homeowners association previously approved and had sat at the end of their driveway since the couple moved to their Bowie-area home four years earlier. But no more than two months after Strong installed his new mailbox, he received an order to dump it — for a $500 mailbox upgrade. The board of the homeowners association voted to require all residents in the Woodmore golf community to buy metal mailboxes, monogrammed with the letter “W” and mounted on a decorative post. The $500 mailbox mandate angered Strong and others in the community, launching him into a seven-year fight that finally ended this month when a Prince George’s County judge signed, sealed and delivered a ruling that the board of the Pleasant Prospect Home Owners’ Association overstepped its bounds with its postal pronouncements. It’s a victory that cost Strong $33,000 in legal fees — roughly the price of 66 of the new bronze-colored mailboxes"
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This Washington Post story highlights several common features of HOA litigation: the triviality of so many of these disputes; the cost of using the court system that we all pay for to litigate them; and the way owners have to spend a fortune to contest association decisions;
Wednesday, January 11, 2017
Associa PCM's Wendy Bucknum Sworn in as Mayor of Mission Viejo
Associa PCM's Wendy Bucknum Sworn in as Mayor of Mission Viejo:
'via Blog this'
Eliminating the middleman, so to speak, property management giant Associa now has one of its own installed as the Mayor of a real city--Mission Viejo, CA.
'via Blog this'
Eliminating the middleman, so to speak, property management giant Associa now has one of its own installed as the Mayor of a real city--Mission Viejo, CA.
Monday, December 19, 2016
North Carolina: Wake DA says Investigating HOA embezzlement case took time :: WRAL.com
Wake DA: Investigating HOA embezzlement case took time :: WRAL.com
"Authorities said Kelly is suspected of stealing as much as $800,000 from the HOAs. She was released from the Wake County jail Tuesday night after posting a $500,000 bond."
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"Authorities said Kelly is suspected of stealing as much as $800,000 from the HOAs. She was released from the Wake County jail Tuesday night after posting a $500,000 bond."
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Central Florida family fights HOA over Christmas lights
Central Florida family fights HOA over Christmas lights
Happens every year. I saw a huge house in Tinley Park, IL, last night that had so many lights I don't see how there was any electricity left for the neighbors.
Happens every year. I saw a huge house in Tinley Park, IL, last night that had so many lights I don't see how there was any electricity left for the neighbors.
Philippines: Antipolo homeowners' president gunned down in Christmas party | ABS-CBN News
Antipolo homeowners'association president gunned down in Christmas party | ABS-CBN News
"Investigators are eyeing land dispute and politics as the possible motive behind the killing."
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"Investigators are eyeing land dispute and politics as the possible motive behind the killing."
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Wednesday, November 02, 2016
Unsigned Postcards Ask Homeowners To Take Down Campaign Signs « CBS Pittsburgh
Unsigned Postcards Ask Homeowners To Take Down Campaign Signs « CBS Pittsburgh: "PITTSBURGH (KDKA) — Some homeowners in the quiet Murdoch Farms section of Pittsburgh’s Squirrel Hill neighborhood are angry after getting postcards in the mail asking them to take down campaign signs in their yards.
The cards say in part, “If you feel strongly about your candidates, then talk to your neighbors, use other channels, like the Internet, and consider taking down the signs that are distracting from our beautiful neighborhood.”"
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While I understand the importance of political expression, I do understand why people get frustrated when they are everywhere. I have a neighbor who is a political activist. His yard is festooned with signs for every candidate for his party from president to dogcatcher. He goes door-to-door and pesters people to put up signs, too. This happens in every election cycle. The neighborhood is normally beautiful in the fall, with all the leaves changing, but instead we have garish signs everywhere.
But polite requests are just about the only way to address this issue. The Supreme Court ruled in the Ledou v. Gilleo case that political yard signs are protected by the First Amendment and cannot be banned by local ordinance, although they can be regulated. Many HOAs and condo associations have strict rules that go beyond what a municipality could do, which I guess responds to concerns like those voiced in this article.
The cards say in part, “If you feel strongly about your candidates, then talk to your neighbors, use other channels, like the Internet, and consider taking down the signs that are distracting from our beautiful neighborhood.”"
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While I understand the importance of political expression, I do understand why people get frustrated when they are everywhere. I have a neighbor who is a political activist. His yard is festooned with signs for every candidate for his party from president to dogcatcher. He goes door-to-door and pesters people to put up signs, too. This happens in every election cycle. The neighborhood is normally beautiful in the fall, with all the leaves changing, but instead we have garish signs everywhere.
But polite requests are just about the only way to address this issue. The Supreme Court ruled in the Ledou v. Gilleo case that political yard signs are protected by the First Amendment and cannot be banned by local ordinance, although they can be regulated. Many HOAs and condo associations have strict rules that go beyond what a municipality could do, which I guess responds to concerns like those voiced in this article.
HOA Horrors: Few checks and balances puts residents at whim of boards, covenants | 11alive.com
HOA Horrors: Few checks and balances puts residents at whim of boards, covenants | 11alive.com: "For years, 11Alive received a steady stream of tips from viewers, frustrated by the action of their HOA board. When our 11Alive Investigator Rebecca Lindstrom started digging, she found cases of favoritism, bullying, embezzlement – and very few checks and balances to make sure decisions came coupled with common sense.
More than two million people live in a neighborhood with an HOA and the numbers, with every new construction project around metro Atlanta, are growing. "
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I must have read about 500 of these breathless "crack investigative reporter discovers problems with HOAs" stories. You'd think they just found Bigfoot.
More than two million people live in a neighborhood with an HOA and the numbers, with every new construction project around metro Atlanta, are growing. "
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I must have read about 500 of these breathless "crack investigative reporter discovers problems with HOAs" stories. You'd think they just found Bigfoot.
Tuesday, November 01, 2016
Videos show events before B.C. RCMP arrest of elderly couple | CTV News
Videos show events before B.C. RCMP arrest of elderly couple | CTV News: "The RCMP officers called to the scene of a raucous condo meeting in Coquitlam, B.C. are under investigation for their actions in the arrest of an elderly couple. The contents of a jarring cellphone video showing the elderly man dragged down a flight of stairs prompted not only an internal RCMP investigation, but also external investigations by an outside police force and a civilian review board. But new footage has emerged showing pieces of the scene leading up to the arrest.
The annual general meeting was held on Oct. 27, held at a Best Western in the Vancouver suburb, heated up over, what appears to be, the results an election."
The annual general meeting was held on Oct. 27, held at a Best Western in the Vancouver suburb, heated up over, what appears to be, the results an election."
HOA management company owner: Don’t confuse compliance with punishment - VEGAS INC
HOA management company owner: Don’t confuse compliance with punishment - VEGAS INC:
Ah, I see. Thanks for clarifying that distinction. But isn't a fine a punishment that is used to get compliance?
Ah, I see. Thanks for clarifying that distinction. But isn't a fine a punishment that is used to get compliance?
Grand Island Homeowners Association to file lawsuit against Lee Commission | Local News | albanyherald.com
Grand Island Homeowners Association to file lawsuit against Lee Commission | Local News | albanyherald.com: "LEESBURG — Plans to move forward with the proposed construction of a new 50-bed private hospital at the Grand Island Golf Course property in southern Lee County could take a hit this week once the Grand Island Subdivision Homeowners Association files a planned lawsuit against the Lee County Board of Commissioners.
Homeowners Association president and local obstetrician Dr. John G. Ricketson confirmed Monday that the property-owner group is planning to file a lawsuit some time this week alleging that the construction of the $50 million hospital would violate an easement set up by Grand Island developer John Gay in 1995.
According to Ricketson, a perpetual easement was granted by the developer to the property owners stating that “no natural or artificial barriers blocking the view or sight from the adjacent properties shall be constructed or created on the golf course property without the written permission of all the property owners.”
“(The easement) says perpetuity, which means forever; it will provide for the preservation and enhancement of the adjacent properties,” said Ricketson. “We feel that’s any obstacle and that includes a three-story hospital.”"
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It would be quite a task, but I would love to know what percentage of HOA litigation is NIMBY lawsuits like this.
Homeowners Association president and local obstetrician Dr. John G. Ricketson confirmed Monday that the property-owner group is planning to file a lawsuit some time this week alleging that the construction of the $50 million hospital would violate an easement set up by Grand Island developer John Gay in 1995.
According to Ricketson, a perpetual easement was granted by the developer to the property owners stating that “no natural or artificial barriers blocking the view or sight from the adjacent properties shall be constructed or created on the golf course property without the written permission of all the property owners.”
“(The easement) says perpetuity, which means forever; it will provide for the preservation and enhancement of the adjacent properties,” said Ricketson. “We feel that’s any obstacle and that includes a three-story hospital.”"
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It would be quite a task, but I would love to know what percentage of HOA litigation is NIMBY lawsuits like this.
Tuesday, October 25, 2016
‘Failed experiment:’ Veterans’ homes bills raise privatization concerns | Fox17
‘Failed experiment:’ Veterans’ homes bills raise privatization concerns | Fox17: "GRAND RAPIDS, Mich. — A proposal meant to improve care for veterans in Michigan could prove to be a sweeping overhaul of how health care for veterans is managed statewide.
But critics worry this latest effort by lawmakers to fix the state's veterans health care system will only continue to push state workers out in favor of more privatized care."
But critics worry this latest effort by lawmakers to fix the state's veterans health care system will only continue to push state workers out in favor of more privatized care."
Privatization ‘Disproportionately Hurts Poor Individuals and Families’ | The Nation
Privatization ‘Disproportionately Hurts Poor Individuals and Families’ | The Nation: "In a compendium of privatization disasters, the watchdog group In the Public Interest (ITPI) concludes that “government privatization disproportionately hurts poor individuals and families.” By shifting social costs onto the public, the market logic of “personal responsibility” serves as a pretext for a self-perpetuating spiral of social disinvestment.
One way privatization fleeces the poor is by making basic public services cost more. "
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Privatization is not all good or all bad. Selling off government-owned enterprises, like car companies, airlines, and steel mills, may have worked pretty well in Europe, but privatization in Russia was a massive disaster that created the oligarchs and destroyed the Russian economy. It went from being a major industrial powerhouse to a third world exporter of petroleum products. The big question is how you measure success. Advocates of privatization always talk about economic efficiency, but this is often just rhetoric. In reality, many times all they do is fire government employees and replace them with lower-paid private employees who don't get decent benefits. Then they pocket the savings instead of passing them along to the taxpayers/consumers. And you have to consider accountability--how do you make sure the function is performed properly. So I realize that this report from ITPI is rhetorical as well--the organization is funded by public employee unions, but we do need to look hard at these fast-tracked, take-it-or-leave-it, privatization deals that so many people think are the solution to all problems.
One way privatization fleeces the poor is by making basic public services cost more. "
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Privatization is not all good or all bad. Selling off government-owned enterprises, like car companies, airlines, and steel mills, may have worked pretty well in Europe, but privatization in Russia was a massive disaster that created the oligarchs and destroyed the Russian economy. It went from being a major industrial powerhouse to a third world exporter of petroleum products. The big question is how you measure success. Advocates of privatization always talk about economic efficiency, but this is often just rhetoric. In reality, many times all they do is fire government employees and replace them with lower-paid private employees who don't get decent benefits. Then they pocket the savings instead of passing them along to the taxpayers/consumers. And you have to consider accountability--how do you make sure the function is performed properly. So I realize that this report from ITPI is rhetorical as well--the organization is funded by public employee unions, but we do need to look hard at these fast-tracked, take-it-or-leave-it, privatization deals that so many people think are the solution to all problems.
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