Selling More CDS on Europe Debt Raises Risk for U.S. Banks - Bloomberg
U.S. banks increased sales of insurance against credit losses to holders of Greek, Portuguese, Irish, Spanish and Italian debt in the first half of 2011, boosting the risk of payouts in the event of defaults.
Guarantees provided by U.S. lenders on government, bank and corporate debt in those countries rose by $80.7 billion to $518 billion, according to the Bank for International Settlements. Almost all of those are credit-default swaps, said two people familiar with the numbers, accounting for two-thirds of the total related to the five nations, BIS data show.
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This is amazing. US banks are going long on European debt by writing $500 billion in credit default swaps on it. The "too big to fail" US banks, having been told by Dodd-Frank that there is no more "too big to fail," are setting themselves up to demand another bailout if they have to pay gazillions to holders of European debt. This redefines the word "arrogance."
Thursday, November 17, 2011
Wednesday, November 16, 2011
Minnesota town privatizing police force
Hard times forcing desperate measures
The central Minnesota town of Foley tried having its own police department and contracting with the county sheriff's department for law enforcement.
Now, in an effort to save money, the town with a population of 2600 is making a controversial move: it plans to employ a private security company to patrol its streets.
Nationwide, other cities have supplemented traditional police with contracted officers, said John Firman, director of research for the International Association of Chiefs of Police.
Read more: http://www.theage.com.au/world/hard-times-forcing-desperate-measures-20111115-1nh3o.html#ixzz1dvPbytSS
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What I find amusing about all these "effort to save money" schemes is that they have a peculiar way of costing a whole lot of money down the road. Ask Jefferson County, Alabama, where they tried to pay for the most expensive sewer system in the galaxy through some neat money-saving tricks recommended to them by JP Morgan Chase. The county just filed for bankruptcy.
The central Minnesota town of Foley tried having its own police department and contracting with the county sheriff's department for law enforcement.
Now, in an effort to save money, the town with a population of 2600 is making a controversial move: it plans to employ a private security company to patrol its streets.
Nationwide, other cities have supplemented traditional police with contracted officers, said John Firman, director of research for the International Association of Chiefs of Police.
Read more: http://www.theage.com.au/world/hard-times-forcing-desperate-measures-20111115-1nh3o.html#ixzz1dvPbytSS
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What I find amusing about all these "effort to save money" schemes is that they have a peculiar way of costing a whole lot of money down the road. Ask Jefferson County, Alabama, where they tried to pay for the most expensive sewer system in the galaxy through some neat money-saving tricks recommended to them by JP Morgan Chase. The county just filed for bankruptcy.
Newt Gingrich Freddie Mac Fees: Former House Speaker Reportedly Received At Least $1.6 Million From Housing Giant
Newt Gingrich Freddie Mac Fees: Former House Speaker Reportedly Received At Least $1.6 Million From Housing Giant
In recent months, GOP presidential candidate Newt Gingrich has strongly criticized Freddie Mac and sister company Fannie Mae, as well as Democrats in Congress that he claims played a key role in the collapse of the housing market. And yet two former Freddie Mac officials recently told Bloomberg that Gingrich made between $1.6 million and $1.8 million in consulting fees from the mortgage company.
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Does that make the Pillsbury Doughboy a hypocrite? Actually that horse ran out of the barn back in the 1990s, when he was cheating on his wife while persecuting Bill Clinton for cheating on his wife.
In recent months, GOP presidential candidate Newt Gingrich has strongly criticized Freddie Mac and sister company Fannie Mae, as well as Democrats in Congress that he claims played a key role in the collapse of the housing market. And yet two former Freddie Mac officials recently told Bloomberg that Gingrich made between $1.6 million and $1.8 million in consulting fees from the mortgage company.
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Does that make the Pillsbury Doughboy a hypocrite? Actually that horse ran out of the barn back in the 1990s, when he was cheating on his wife while persecuting Bill Clinton for cheating on his wife.
High-rise Chicago condo goes bankrupt
Hard sell for high-end senior living projects - Chicago Sun-Times
The Clare at Water Tower, a high-rise that opened in 2008 at 55 E. Pearson, filed for bankruptcy Monday. Its owner, the nonprofit Franciscan Sisters of Chicago Service Corp., defaulted on about $216 million in debt because only about a third of its 248 independent living condos are occupied. A spokeswoman said the sisters hope to keep control of the project. The bankruptcy filing said the sisters have secured about $12 million in financing for interim operations. Judy Amiano, president of the corporation, said “resident and health care services will continue uninterrupted” during the bankruptcy.
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I am compiling a list of all the condo projects and HOAs in the US that have filed for bankruptcy. If any of you out there in cyberspace have the names and locations of any such associations, please send them to me at ecmlaw@gmail.com or send them in a comment.
The Clare at Water Tower, a high-rise that opened in 2008 at 55 E. Pearson, filed for bankruptcy Monday. Its owner, the nonprofit Franciscan Sisters of Chicago Service Corp., defaulted on about $216 million in debt because only about a third of its 248 independent living condos are occupied. A spokeswoman said the sisters hope to keep control of the project. The bankruptcy filing said the sisters have secured about $12 million in financing for interim operations. Judy Amiano, president of the corporation, said “resident and health care services will continue uninterrupted” during the bankruptcy.
=========
I am compiling a list of all the condo projects and HOAs in the US that have filed for bankruptcy. If any of you out there in cyberspace have the names and locations of any such associations, please send them to me at ecmlaw@gmail.com or send them in a comment.
Tuesday, November 15, 2011
Dennis Blackmon: Georgia Judge Mocks U.S. Bank Over Denied Mortgage Modification
Dennis Blackmon: Georgia Judge Mocks U.S. Bank Over Denied Mortgage Modification
Georgia Judge Dennis Blackmon is fed up with bailed-out banks refusing to help strapped homeowners.
"Sometimes, only the courts of law stand to protect the taxpayer. Somewhere, someone has to stand up," Blackmon wrote in a five-page Nov. 2 order in Carroll County Superior Court. "Well, sometimes is now, and the place is the Great State of Georgia. The defendant's motion to dismiss is hereby denied."
Blackmon's order shot down U.S. Bank's request to throw out a complaint from Georgia homeowner Otis Wayne Phillips, who had tried to get a mortgage modification from the bank. Phillips could not be reached for this story.
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Here and there you can see signs that some judges are just fed up with the perjury, fraud, and arrogance of the mortgage foreclosure firms.
Georgia Judge Dennis Blackmon is fed up with bailed-out banks refusing to help strapped homeowners.
"Sometimes, only the courts of law stand to protect the taxpayer. Somewhere, someone has to stand up," Blackmon wrote in a five-page Nov. 2 order in Carroll County Superior Court. "Well, sometimes is now, and the place is the Great State of Georgia. The defendant's motion to dismiss is hereby denied."
Blackmon's order shot down U.S. Bank's request to throw out a complaint from Georgia homeowner Otis Wayne Phillips, who had tried to get a mortgage modification from the bank. Phillips could not be reached for this story.
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Here and there you can see signs that some judges are just fed up with the perjury, fraud, and arrogance of the mortgage foreclosure firms.
Monday, November 14, 2011
A Town in New York Creates Its Own Department Store - NYTimes.com
A Town in New York Creates Its Own Department Store - NYTimes.com
Shares in the store, priced at $100 each, were marketed to local residents as a way to “take control of our future and help our community,” said Melinda Little, a Saranac Lake resident who has been involved in the effort from the start. “The idea was, this is an investment in the community as well as the store.”
It took nearly five years — the recession added to the challenge — but the organizers reached their $500,000 goal last spring. By then, some 600 people had chipped in an average of $800 each. And so, on Oct. 29, as an early winter storm threatened the region, the Saranac Lake Community Store opened its doors to the public for the first time. By 9:30 in the morning, the store, in a former restaurant space on Main Street opposite the Hotel Saranac, was packed with shoppers, well-wishers and the curious.
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This is what "voluntary" looks like. Real people make a real decision to commit $100 per share to start their own real community department store. It is essentially the 180 degree opposite of the corporate paternalism that brings so-called "community associations" into existence. Without the paternalism, we would have a much smaller number of common interest housing developments, but they would be real.
Shares in the store, priced at $100 each, were marketed to local residents as a way to “take control of our future and help our community,” said Melinda Little, a Saranac Lake resident who has been involved in the effort from the start. “The idea was, this is an investment in the community as well as the store.”
It took nearly five years — the recession added to the challenge — but the organizers reached their $500,000 goal last spring. By then, some 600 people had chipped in an average of $800 each. And so, on Oct. 29, as an early winter storm threatened the region, the Saranac Lake Community Store opened its doors to the public for the first time. By 9:30 in the morning, the store, in a former restaurant space on Main Street opposite the Hotel Saranac, was packed with shoppers, well-wishers and the curious.
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This is what "voluntary" looks like. Real people make a real decision to commit $100 per share to start their own real community department store. It is essentially the 180 degree opposite of the corporate paternalism that brings so-called "community associations" into existence. Without the paternalism, we would have a much smaller number of common interest housing developments, but they would be real.
Sunday, November 13, 2011
Occupy Homes: New Coalition Links Homeowners, Activists in Direct Action to Halt Foreclosures | Truthout
Occupy Homes: New Coalition Links Homeowners, Activists in Direct Action to Halt Foreclosures | Truthout
A loose-knit coalition of activists known as "Occupy Homes" is working to stave off pending evictions by occupying homes at risk of foreclosure when tenants enlist its support.
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This could get interesting.
A loose-knit coalition of activists known as "Occupy Homes" is working to stave off pending evictions by occupying homes at risk of foreclosure when tenants enlist its support.
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This could get interesting.
Robo-signed mortgage docs date back to late 1990s - Yahoo! Finance
Robo-signed mortgage docs date back to late 1990s - Yahoo! Finance
Companies that process mortgages said they were so overwhelmed with paperwork that they cut corners.But now, as county officials review years' worth of mortgage paperwork, in some cases combing through one page at a time, they are finding suspect signatures -- either signed with the same name by dozens of different people, improperly notarized or signed without a review of the facts in the paperwork -- on all sorts of mortgage documents, dating as far back as 1998, The Associated Press has found."Because of these bad titles, property owners can't prove they own the properties they think they bought, and banks can't prove they had the right to sell them," says Jeff Thigpen, the registrar of deeds in Guilford County, N.C.In Guilford County, where Greensboro is located, a sample of 6,100 mortgage documents filed since 2006 turned up 74 percent with questionable signatures.
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Isn't this special? Turns out perjury and falsification of evidence were standard operating procedure long before the subprime explosion.
Companies that process mortgages said they were so overwhelmed with paperwork that they cut corners.But now, as county officials review years' worth of mortgage paperwork, in some cases combing through one page at a time, they are finding suspect signatures -- either signed with the same name by dozens of different people, improperly notarized or signed without a review of the facts in the paperwork -- on all sorts of mortgage documents, dating as far back as 1998, The Associated Press has found."Because of these bad titles, property owners can't prove they own the properties they think they bought, and banks can't prove they had the right to sell them," says Jeff Thigpen, the registrar of deeds in Guilford County, N.C.In Guilford County, where Greensboro is located, a sample of 6,100 mortgage documents filed since 2006 turned up 74 percent with questionable signatures.
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Isn't this special? Turns out perjury and falsification of evidence were standard operating procedure long before the subprime explosion.
Homework and Jacuzzis as Dorms Move to McMansions in California - NYTimes.com
Homework and Jacuzzis as Dorms Move to McMansions in California - NYTimes.com
Here in Merced, a city in the heart of the San Joaquin Valley and one of the country’s hardest hit by home foreclosures, the downturn in the real estate market has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities.
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This is better than having drug dealers grow pot in them (see below)...although with college students living in these units, that is probably going on as well.
Here in Merced, a city in the heart of the San Joaquin Valley and one of the country’s hardest hit by home foreclosures, the downturn in the real estate market has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities.
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This is better than having drug dealers grow pot in them (see below)...although with college students living in these units, that is probably going on as well.
Vacant House Targeted by Squatters, Scammers and Thieves | AOL Real Estate
Vacant House Targeted by Squatters, Scammers and Thieves | AOL Real Estate
Empty houses -- those either awaiting foreclosure or where the owners have moved out for other reasons -- might as well have a "kick me" sign on them. Actually, make that "vandalize me" sign. They are frequently the targets of squatters who move in illegally, scammers who claim they own them and rent them out to unsuspecting tenants, or just plain old garden variety thieves who break in and steal the valuables right down to the copper plumbing and refrigerator.
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The foreclosure tsunami has caused many neighborhoods to collapse socially, taking down many a condo association or HOA with it. These neighborhoods are now disaster areas.
Empty houses -- those either awaiting foreclosure or where the owners have moved out for other reasons -- might as well have a "kick me" sign on them. Actually, make that "vandalize me" sign. They are frequently the targets of squatters who move in illegally, scammers who claim they own them and rent them out to unsuspecting tenants, or just plain old garden variety thieves who break in and steal the valuables right down to the copper plumbing and refrigerator.
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The foreclosure tsunami has caused many neighborhoods to collapse socially, taking down many a condo association or HOA with it. These neighborhoods are now disaster areas.
Dramatic uptick in Sarasota foreclosure filings | November 7, 2011 | Michael Braga | Inside Real Estate
Dramatic uptick in Sarasota foreclosure filings | November 7, 2011 | Michael Braga | Inside Real Estate
Top lenders in Sarasota county filed 102 more early stage or lis pendens filings in October than filed the month before – a whopping 46 percent increase and clear sign that lenders are putting their robo-signing problems behind them.
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This came from foreclosure defense attorney April Charney by way of Shu Bartholomew. It appears that the foreclosure mill is about to crank itself back into high gear. If it is happening in Florida, it will soon be happening everywhere else.
Top lenders in Sarasota county filed 102 more early stage or lis pendens filings in October than filed the month before – a whopping 46 percent increase and clear sign that lenders are putting their robo-signing problems behind them.
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This came from foreclosure defense attorney April Charney by way of Shu Bartholomew. It appears that the foreclosure mill is about to crank itself back into high gear. If it is happening in Florida, it will soon be happening everywhere else.
Pot growers see opportunity in empty Las Vegas homes - latimes.com
Pot growers see opportunity in empty Las Vegas homes - latimes.com
Las Vegas has a pot home problem. And like many of the region's maladies, it's tied to the housing slump.
Last year, authorities took down 153 indoor grow sites in Nevada and seized more than 13,000 plants, compared with 18 sites and 1,000 plants in 2005, the U.S. Drug Enforcement Administration said. (By comparison, California busted 791 indoor sites last year.)
"You can't have crime without opportunity," said William Sousa, a criminologist at the University of Nevada, Las Vegas. "And all those empty homes present an opportunity for criminal activity."
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You have to admire that American entrepreneurial spirit. When life gives you lemons, make lemonade. When the subprime mortgage crash gives you thousands of empty foreclosed homes, turn them into marijuana greenhouses.
Las Vegas has a pot home problem. And like many of the region's maladies, it's tied to the housing slump.
Last year, authorities took down 153 indoor grow sites in Nevada and seized more than 13,000 plants, compared with 18 sites and 1,000 plants in 2005, the U.S. Drug Enforcement Administration said. (By comparison, California busted 791 indoor sites last year.)
"You can't have crime without opportunity," said William Sousa, a criminologist at the University of Nevada, Las Vegas. "And all those empty homes present an opportunity for criminal activity."
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You have to admire that American entrepreneurial spirit. When life gives you lemons, make lemonade. When the subprime mortgage crash gives you thousands of empty foreclosed homes, turn them into marijuana greenhouses.
Saturday, November 12, 2011
U.S. Will Remain a Nation of Homeowners...OH RILLY??
U.S. Will Remain a Nation of Homeowners
That's what the National Association of Realtors would like you to believe. Follow the link and see for yourself.
I don't buy that. Here is a different perspective. At a recent Americatalyst conference they had real experts who are NOT directly trying to sell you a home, and who DO NOT constantly, relentlessly claim that NOW is the perfect time to buy...and they came up with this nugget:
Over the past two years, increasing demands for a national rental housing policy finally gained traction in Washington in 2010 with a groundbreaking conference supported by the White House and the Departments of HUD, Treasury and Agriculture. On Aug. 10 of this year, FHFA issued a public Request for Information to solicit ideas for sales, joint ventures or other strategies to augment or enhance the current and future disposition of REO properties, including their transition to rental housing. While the public dialogue moves toward balance between homeownership and rental policies, the debate over the definition, models, incentives and implementation of rental policy has only just begun
I think the federal government's role in promoting home ownership is in serious retrenchment. Permanently. And the banks who made those mortgage-backed loans are in major trouble--all of them. And the market for mortgage-backed securities is basically just the GSEs now. Nobody wants to buy private ones anymore, for good reason. So who is going to pay for all those homes that the realtors claim we are going to buy, because real estate is SUCH a great deal?
It is more likely that we are going to see plans for turning condos into apartment buildings.
Thanks to Fred Pilot for this link.
That's what the National Association of Realtors would like you to believe. Follow the link and see for yourself.
I don't buy that. Here is a different perspective. At a recent Americatalyst conference they had real experts who are NOT directly trying to sell you a home, and who DO NOT constantly, relentlessly claim that NOW is the perfect time to buy...and they came up with this nugget:
Over the past two years, increasing demands for a national rental housing policy finally gained traction in Washington in 2010 with a groundbreaking conference supported by the White House and the Departments of HUD, Treasury and Agriculture. On Aug. 10 of this year, FHFA issued a public Request for Information to solicit ideas for sales, joint ventures or other strategies to augment or enhance the current and future disposition of REO properties, including their transition to rental housing. While the public dialogue moves toward balance between homeownership and rental policies, the debate over the definition, models, incentives and implementation of rental policy has only just begun
I think the federal government's role in promoting home ownership is in serious retrenchment. Permanently. And the banks who made those mortgage-backed loans are in major trouble--all of them. And the market for mortgage-backed securities is basically just the GSEs now. Nobody wants to buy private ones anymore, for good reason. So who is going to pay for all those homes that the realtors claim we are going to buy, because real estate is SUCH a great deal?
It is more likely that we are going to see plans for turning condos into apartment buildings.
Thanks to Fred Pilot for this link.
Alabama county files biggest municipal bankruptcy | Reuters
Alabama county files biggest municipal bankruptcy | Reuters
Alabama's Jefferson County filed for bankruptcy court protection on Wednesday in the biggest municipal bankruptcy in U.S. history.
Commissioners for the county, which is home to Birmingham, the state's biggest city and economic powerhouse, voted 4-1 to declare bankruptcy after meeting behind closed doors for two days in a last ditch-attempt to restructure its debt out of court.
A tentative deal reached with creditors in September to settle $3.14 billion in red ink had been widely expected to avert bankruptcy. But the deal fell apart over what the commission described as creditors' refusal to meet the terms of previously agreed economic concessions.
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The creditors, who are JP Morgan and other investors, want the county to sewer-charge the living daylights out of the citizens and that's the sticking point. What happened? JP Morgan Chase arranged some really neat financial deals for Jefferson County to finance their sewer system, including linking the county's floating rate securities to interest rate swaps. When the subprime meltdown happened, those clever investment ideas proved disastrous. The county's interest charges went way up and then investors started demanding to be paid off early. The county didn't have the money and defaulted. The cost of refinancing was enormous.
Oh...and two former JP Morgan bankers are facing court allegations over paying $8 million to "friends" of the commissioners in order to get the deal, in addition to JP Morgan itself settling with the SEC for $722 million, without admitting to bribery, you understand...JP Morgan even charged the $8 mill back to the county. Is that nerve, or what?
Alabama's Jefferson County filed for bankruptcy court protection on Wednesday in the biggest municipal bankruptcy in U.S. history.
Commissioners for the county, which is home to Birmingham, the state's biggest city and economic powerhouse, voted 4-1 to declare bankruptcy after meeting behind closed doors for two days in a last ditch-attempt to restructure its debt out of court.
A tentative deal reached with creditors in September to settle $3.14 billion in red ink had been widely expected to avert bankruptcy. But the deal fell apart over what the commission described as creditors' refusal to meet the terms of previously agreed economic concessions.
------------------
The creditors, who are JP Morgan and other investors, want the county to sewer-charge the living daylights out of the citizens and that's the sticking point. What happened? JP Morgan Chase arranged some really neat financial deals for Jefferson County to finance their sewer system, including linking the county's floating rate securities to interest rate swaps. When the subprime meltdown happened, those clever investment ideas proved disastrous. The county's interest charges went way up and then investors started demanding to be paid off early. The county didn't have the money and defaulted. The cost of refinancing was enormous.
Oh...and two former JP Morgan bankers are facing court allegations over paying $8 million to "friends" of the commissioners in order to get the deal, in addition to JP Morgan itself settling with the SEC for $722 million, without admitting to bribery, you understand...JP Morgan even charged the $8 mill back to the county. Is that nerve, or what?
OCC: Correcting Foreclosure Practices
OCC: Correcting Foreclosure Practices
On April 13, 2011, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision announced enforcement actions against 14 large residential mortgage servicers and two third-party vendors for unsafe and unsound practices related to residential mortgage servicing and foreclosure processing.
Independent Foreclosure Review
As part of those consent orders, federal regulators required servicers to engage independent firms to conduct a multi-faceted review of foreclosure actions in process in 2009 and 2010. Under the orders, independent consultants are charged with evaluating whether borrowers suffered financial injury through errors, misrepresentations, or other deficiencies in foreclosure practices and determining appropriate remediation for those customers. Where a borrower suffered financial injury as a result of such practices, the agencies’ orders require financial remediation to be provided.
As part of that program, the 14 mortgage servicers covered by the enforcement actions will begin mailings November 1, 2011 that will continue through the end of the year. The mailings are intended to provide information to potentially eligible borrowers on how to request a review of their case if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings related to their primary residence between January 1, 2009 and December 31, 2010. The mailings will include a request for review form.
Borrowers may also visit www.IndependentForeclosureReview.com for more information about the review and claim process. Assistance with the form and answers to questions about the process are available at 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET).
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On April 13, 2011, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision announced enforcement actions against 14 large residential mortgage servicers and two third-party vendors for unsafe and unsound practices related to residential mortgage servicing and foreclosure processing.
Independent Foreclosure Review
As part of those consent orders, federal regulators required servicers to engage independent firms to conduct a multi-faceted review of foreclosure actions in process in 2009 and 2010. Under the orders, independent consultants are charged with evaluating whether borrowers suffered financial injury through errors, misrepresentations, or other deficiencies in foreclosure practices and determining appropriate remediation for those customers. Where a borrower suffered financial injury as a result of such practices, the agencies’ orders require financial remediation to be provided.
As part of that program, the 14 mortgage servicers covered by the enforcement actions will begin mailings November 1, 2011 that will continue through the end of the year. The mailings are intended to provide information to potentially eligible borrowers on how to request a review of their case if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings related to their primary residence between January 1, 2009 and December 31, 2010. The mailings will include a request for review form.
Borrowers may also visit www.IndependentForeclosureReview.com for more information about the review and claim process. Assistance with the form and answers to questions about the process are available at 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET).
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Friday, November 11, 2011
The Multistate Foreclosure Settlement - Credit Slips
The Multistate Foreclosure Settlement - Credit Slips
The housing market is too-big-to-fail. It's true. The problem is that it has failed, and the proposed multi-state deal doesn't fix the market. The deal simply isn't broad enough to put all the housing market concerns to rest. The deal doesn't buy peace for the banks or stability for the US housing market. It just blows the government's last wad on a sideshow issue, robosigning. Consider all the critical issues the settlement does not (and cannot) address:
The $700B in negative equity in the US.
Clouded title from MERS
Clouded title from wrongful foreclosrues
Billions in investor putback and securities fraud claims
Investor suits against trustee banks
Disposal of the REO inventory and the shadow REO inventory
Foreclosures
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I think this is about right. Here is one example of a major unresolved issue that is now in the courts. The putback litigation is practically unknown to the public, but it has been described by knowledgeable insiders as a "systemic risk" to Bank of America, the other major banks, and by extension the entire financial system. I have read some of the complaints in the putback cases and the facts and the numbers are stunning. How big is the risk? Bank of America's entire market capitalization is $63 billion. In other words, with that much money you could buy every single share of their stock. But BOA bought Countrywide Mortgage, once upon a time the nation's leading subprime lender, and a company that appears to have committed systematic, serious violations of their securitization agreements. The institutional investors (Fannie and Freddie, pension funds, unions, hedge funds, whoever) who bought those mortgage backed securities (much of which is utterly worthless) have sued BOA and other big banks to force them to buy back those securities at full value (hence the term "putback"). That could end up costing hundreds of billions of dollars. I could go, but the point is that the housing market is a disaster area, not just at the bottom where we little folks have seen our equity vanish and watched our neighbors get foreclosed on, but at the very top where the "too big to fail" institutions roam. There are policies all over the place that smart people have come up with to fix things, but they aren't on the radar screen of Congress or the President, it seems.
The housing market is too-big-to-fail. It's true. The problem is that it has failed, and the proposed multi-state deal doesn't fix the market. The deal simply isn't broad enough to put all the housing market concerns to rest. The deal doesn't buy peace for the banks or stability for the US housing market. It just blows the government's last wad on a sideshow issue, robosigning. Consider all the critical issues the settlement does not (and cannot) address:
The $700B in negative equity in the US.
Clouded title from MERS
Clouded title from wrongful foreclosrues
Billions in investor putback and securities fraud claims
Investor suits against trustee banks
Disposal of the REO inventory and the shadow REO inventory
Foreclosures
-------------------
I think this is about right. Here is one example of a major unresolved issue that is now in the courts. The putback litigation is practically unknown to the public, but it has been described by knowledgeable insiders as a "systemic risk" to Bank of America, the other major banks, and by extension the entire financial system. I have read some of the complaints in the putback cases and the facts and the numbers are stunning. How big is the risk? Bank of America's entire market capitalization is $63 billion. In other words, with that much money you could buy every single share of their stock. But BOA bought Countrywide Mortgage, once upon a time the nation's leading subprime lender, and a company that appears to have committed systematic, serious violations of their securitization agreements. The institutional investors (Fannie and Freddie, pension funds, unions, hedge funds, whoever) who bought those mortgage backed securities (much of which is utterly worthless) have sued BOA and other big banks to force them to buy back those securities at full value (hence the term "putback"). That could end up costing hundreds of billions of dollars. I could go, but the point is that the housing market is a disaster area, not just at the bottom where we little folks have seen our equity vanish and watched our neighbors get foreclosed on, but at the very top where the "too big to fail" institutions roam. There are policies all over the place that smart people have come up with to fix things, but they aren't on the radar screen of Congress or the President, it seems.
The US's Missing Housing Policy - Credit Slips
The US's Missing Housing Policy - Credit Slips
From Adam Levitin:
Once upon a time, the US had a housing policy. It was focused on increasing homeownership. It might have been a misguided policy or at least a policy taken too far, but it was a policy and everyone understood that. It meant that programs were designed to work toward that goal.
Today, 4 years into a housing crisis, we still have no housing policy. There's no plan to clean up the legacy of the housing bubble and no plan to build the future of housing finance. This sad state reflects a singular failure of political leadership. It also reflects a deeply fragmented housing finance world in which no one is in a position to call the shots.
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This is true. And there seems to be no inclination to develop one. But I would say this is because the policy of expanding home ownership (starting in 1935) was not really developed by legislators or bureaucrats. It was invented by the real estate industry. That is, it was never really a public policy to begin with. It was a massive subsidy program aimed at the financial and real estate development industries. It was premised on having all of us go deeply into debt to benefit those industries. And now there is so much debt, private and public, that the economy is strangling on it. So...where do we go from here?
My vote: forgive massive amounts of debt. Write down mortgages, credit card debt, and student loan debt by about 25%.
From Adam Levitin:
Once upon a time, the US had a housing policy. It was focused on increasing homeownership. It might have been a misguided policy or at least a policy taken too far, but it was a policy and everyone understood that. It meant that programs were designed to work toward that goal.
Today, 4 years into a housing crisis, we still have no housing policy. There's no plan to clean up the legacy of the housing bubble and no plan to build the future of housing finance. This sad state reflects a singular failure of political leadership. It also reflects a deeply fragmented housing finance world in which no one is in a position to call the shots.
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This is true. And there seems to be no inclination to develop one. But I would say this is because the policy of expanding home ownership (starting in 1935) was not really developed by legislators or bureaucrats. It was invented by the real estate industry. That is, it was never really a public policy to begin with. It was a massive subsidy program aimed at the financial and real estate development industries. It was premised on having all of us go deeply into debt to benefit those industries. And now there is so much debt, private and public, that the economy is strangling on it. So...where do we go from here?
My vote: forgive massive amounts of debt. Write down mortgages, credit card debt, and student loan debt by about 25%.
CAI criticizes FHA standards for condo loans
From a recent CAI Press Release:
CAI Applauds Congressional Input on Mortgage Issues
FALLS CHURCH, VA, NOV. 10, 2011—Congressional leaders are expressing serious reservations about Federal Housing Administration’s (FHA) mortgage-approval policies for condominiums—policies that are the source of mounting confusion and angst for condominium boards, homeowners and real estate agents nationwide.
Community Associations Institute (CAI) says these policies are preventing many potential buyers from obtaining FHA-backed loans to purchase homes in those communities, putting entire condominium associations at risk and further worsening the already dismal residential real estate market.
While acknowledging the need for thoughtful and financially sound lending criteria, the 31,000-member organization has expressed public concern about past FHA lending guidance that has created continued “confusion and frustration” in the marketplace. That’s why CAI sought to bring Congressional attention to the issue.
“There seems to be an invisible barrier between FHA and condominium associations,” Sen. Scott Brown (D-Mass.) said in a recent letter to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development (HUD). FHA falls under HUD’s jurisdiction.
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I think there is no doubt that FHA, and Fannie and Freddie, are taking a harder look at loans to buy condos. Why wouldn't they? Many projects are in big financial trouble due to owners being in foreclosure and not paying assessments, and banks holding units and simply refusing to pay assessments. Add to that the fact that these building need maintenance and the reserves are not there, typically, and even more so now that solvent owners are getting squeezed harder than ever. But if FHA is going to guarantee the loan, or if Fannie or Freddie are going to buy the loan, they have to be careful. The taxpayers have already sunk a fortune into Fannie and Freddie since 2008 to pay for their purchase of bad mortgage backed securities. They don't want to get stuck with bailing out the nation's condo associations, especially if the entire institution is of questionable sustainability (as I have been arguing for years.)
Oh, and one suggestion for CAI: Scott Brown is not a Democrat. He is a Republican. Maybe you should correct that.
CAI Applauds Congressional Input on Mortgage Issues
FALLS CHURCH, VA, NOV. 10, 2011—Congressional leaders are expressing serious reservations about Federal Housing Administration’s (FHA) mortgage-approval policies for condominiums—policies that are the source of mounting confusion and angst for condominium boards, homeowners and real estate agents nationwide.
Community Associations Institute (CAI) says these policies are preventing many potential buyers from obtaining FHA-backed loans to purchase homes in those communities, putting entire condominium associations at risk and further worsening the already dismal residential real estate market.
While acknowledging the need for thoughtful and financially sound lending criteria, the 31,000-member organization has expressed public concern about past FHA lending guidance that has created continued “confusion and frustration” in the marketplace. That’s why CAI sought to bring Congressional attention to the issue.
“There seems to be an invisible barrier between FHA and condominium associations,” Sen. Scott Brown (D-Mass.) said in a recent letter to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development (HUD). FHA falls under HUD’s jurisdiction.
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I think there is no doubt that FHA, and Fannie and Freddie, are taking a harder look at loans to buy condos. Why wouldn't they? Many projects are in big financial trouble due to owners being in foreclosure and not paying assessments, and banks holding units and simply refusing to pay assessments. Add to that the fact that these building need maintenance and the reserves are not there, typically, and even more so now that solvent owners are getting squeezed harder than ever. But if FHA is going to guarantee the loan, or if Fannie or Freddie are going to buy the loan, they have to be careful. The taxpayers have already sunk a fortune into Fannie and Freddie since 2008 to pay for their purchase of bad mortgage backed securities. They don't want to get stuck with bailing out the nation's condo associations, especially if the entire institution is of questionable sustainability (as I have been arguing for years.)
Oh, and one suggestion for CAI: Scott Brown is not a Democrat. He is a Republican. Maybe you should correct that.
Property manager pleads guilty in Vegas HOA fraud scheme - FOX5 Vegas - KVVU
Property manager pleads guilty in Vegas HOA fraud scheme - FOX5 Vegas - KVVU
LAS VEGAS (FOX5) -
A tenth person has pleaded guilty to a Las Vegas condominium homeowner association fraud scheme.
44-year-old Denise Keser entered her guilty plea to one count of conspiracy to commit mail and wire fraud Thursday.
Keser and her co-conspirators attempted to gain control of the condo homeowner associations in order to steer business to certain construction companies and a law firm.
Keser was a property manager at the Chateau Nouveau condominium complex and used her position to send email messages to homeowners to smear HOA board members in an attempt to take control of those boards.
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Another one bites the dust. How many more will fall, and how high will this go? Thanks to Shu for the link.
LAS VEGAS (FOX5) -
A tenth person has pleaded guilty to a Las Vegas condominium homeowner association fraud scheme.
44-year-old Denise Keser entered her guilty plea to one count of conspiracy to commit mail and wire fraud Thursday.
Keser and her co-conspirators attempted to gain control of the condo homeowner associations in order to steer business to certain construction companies and a law firm.
Keser was a property manager at the Chateau Nouveau condominium complex and used her position to send email messages to homeowners to smear HOA board members in an attempt to take control of those boards.
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Another one bites the dust. How many more will fall, and how high will this go? Thanks to Shu for the link.
Wednesday, November 09, 2011
GOP Rep. Joe Walsh Melts Down, Screams At Constituents: 'Dont Blame Banks!...I Am Tired Of Hearing That Crap!' | ThinkProgress
GOP Rep. Joe Walsh Melts Down, Screams At Constituents: 'Dont Blame Banks!...I Am Tired Of Hearing That Crap!' | ThinkProgress
Freshman Rep. Joe Walsh (R-IL) is known for his anti-Obama rhetoric on cable television and his inability to pay his child support payments. But during a recent meeting with constituents in his Chicago-area suburban district, Walsh lost his cool when several attendees asked about why banks have so much power in government. At one point, Walsh even threatened to eject a man who asked Walsh about the revolving door of bank lobbyists infiltrating Congress and financial regulatory agencies.
Walsh at one point screamed, “don’t blame the banks … this pisses me off!”
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That's today's Republican Party for you. The nation's most famous deadbeat dad, who just got an award from the Family Research Council for his "unwavering support" of families. Except his own--he is being sued for over $100,000 in unpaid child support. Now he is defending the banks that crashed our economy against constituents who raised the entirely reasonable question of why these banks have so much political power. The answer, of course, is simple: they have purchased the entire Republican congressional delegation and many of the Democrats.
Freshman Rep. Joe Walsh (R-IL) is known for his anti-Obama rhetoric on cable television and his inability to pay his child support payments. But during a recent meeting with constituents in his Chicago-area suburban district, Walsh lost his cool when several attendees asked about why banks have so much power in government. At one point, Walsh even threatened to eject a man who asked Walsh about the revolving door of bank lobbyists infiltrating Congress and financial regulatory agencies.
Walsh at one point screamed, “don’t blame the banks … this pisses me off!”
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That's today's Republican Party for you. The nation's most famous deadbeat dad, who just got an award from the Family Research Council for his "unwavering support" of families. Except his own--he is being sued for over $100,000 in unpaid child support. Now he is defending the banks that crashed our economy against constituents who raised the entirely reasonable question of why these banks have so much political power. The answer, of course, is simple: they have purchased the entire Republican congressional delegation and many of the Democrats.
Vacant House Yields Late Owner's Stash of Cash | AOL Real Estate
Vacant House Yields Late Owner's Stash of Cash | AOL Real Estate
A plumber in Florida who found $20,000 in a vacant home and turned the money over to police is being credited for his honesty.
Jerry LaLiberte, 62, of Holmes Beach, was working in the home last month when he discovered two foil-wrapped packets of cash that were hidden in an air duct, WFTS-TV Tampa reports.
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I hear that a lot of people do this "packets of cash" thing. I, on the other hand, have "packets of bills" scattered around the house. I keep hoping somebody will find them and pay them, but so far nobody has. Not event the plumber.
A plumber in Florida who found $20,000 in a vacant home and turned the money over to police is being credited for his honesty.
Jerry LaLiberte, 62, of Holmes Beach, was working in the home last month when he discovered two foil-wrapped packets of cash that were hidden in an air duct, WFTS-TV Tampa reports.
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I hear that a lot of people do this "packets of cash" thing. I, on the other hand, have "packets of bills" scattered around the house. I keep hoping somebody will find them and pay them, but so far nobody has. Not event the plumber.
Tuesday, November 08, 2011
Proposal could ban condos from assessing paying owners extra
State law requires shared communities — including homeowners and co-operatives — to pay the bills that keep a community operating. That includes paying vendors, such as security, landscapers and cable companies, so it not uncommon for boards to raise regular assessments to cover the difference of owners who stop paying fees.
But Smith contends pushing the financial burden to owners already doing the right thing by paying their fees is unfair and reckless.
"My bill came from a Lauderhill constituent who is getting pummeled by these assessments because her community has a lot of foreclosures and vacancies," Smith said. "Those who are not in foreclosure are having to pay for those who are not paying assessments and the price is getting high on them."
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Things are tough all over...especially if you live in a Florida condo.
Retirement Crisis Closes In on Baby Boomers
"Florida has always counted on a big chunk of the baby boomers retiring down here and buying property over the next 20 years," said Jack McCabe, a veteran Florida-based real estate analyst.
"We're not going to see this big influx of full-time senior citizen residents," McCabe said. "Home builders may need to re-analyze what they see as demand over the next five to 10 years."
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Florida has served as one of Privatopia's most important states in the five-decade-old boom of privatized local government in the form of mandatory membership HOAs. According to this account, that boom may no longer be sustainable as Baby Boomers can't be counted on to retire to a Florida HOA.
Chris Brown -- Neighbors Say He's a Nightmare | TMZ.com
Chris Brown -- Neighbors Say He's a Nightmare | TMZ.com
Chris Brown is at war with his fellow West Hollywood condo owners, who claim the rapper is the neighbor from hell, parking in handicapped spaces, blasting music, and racing dogs in hallways.
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Is Mr. Brown one of those people who thinks his home is his castle and he should be able to do whatever he wants without his Nazi condo board bossing him around?
Chris Brown is at war with his fellow West Hollywood condo owners, who claim the rapper is the neighbor from hell, parking in handicapped spaces, blasting music, and racing dogs in hallways.
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Is Mr. Brown one of those people who thinks his home is his castle and he should be able to do whatever he wants without his Nazi condo board bossing him around?
Chicago area home values at 2000 levels, report says - Lake County News-Sun
Chicago area home values at 2000 levels, report says - Lake County News-Sun
A new report shows 46.2 percent of single-family homeowners in the Chicago metropolitan area in the third quarter had negative equity, meaning homeowners owed more on their mortgages than their homes were worth.
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Eleven years down the drain?
A new report shows 46.2 percent of single-family homeowners in the Chicago metropolitan area in the third quarter had negative equity, meaning homeowners owed more on their mortgages than their homes were worth.
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Eleven years down the drain?
Mortgage delinquencies rise unexpectedly in Q3 – USATODAY.com
Mortgage delinquencies rise unexpectedly in Q3 – USATODAY.com
The rate at which mortgage holders were late with their payments by 60 days or more rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion. The credit reporting agency said 5.88% of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.82% in the second quarter. The increase surprised TransUnion researchers, who had expected late payments, or delinquencies, to fall for the quarter.
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The experts are surprised because delinquencies to up when housing prices go down and/or unemployment goes up. But during that quarter neither of those things happened. So why are delinquencies up, even though housing prices went up a little, and unemployment went down a little? Likely explanation: many people who are underwater on their homes, but have been dutifully paying their mortgage in the expectation that prices would head back up, are looking at the overall economy and giving up on that hope. They have decided to walk.
The rate at which mortgage holders were late with their payments by 60 days or more rose in the June-to-September period for the first time since the last three months of 2009, according to TransUnion. The credit reporting agency said 5.88% of homeowners missed two or more payments, an early sign of possible foreclosure. That was up from 5.82% in the second quarter. The increase surprised TransUnion researchers, who had expected late payments, or delinquencies, to fall for the quarter.
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The experts are surprised because delinquencies to up when housing prices go down and/or unemployment goes up. But during that quarter neither of those things happened. So why are delinquencies up, even though housing prices went up a little, and unemployment went down a little? Likely explanation: many people who are underwater on their homes, but have been dutifully paying their mortgage in the expectation that prices would head back up, are looking at the overall economy and giving up on that hope. They have decided to walk.
Sunday, November 06, 2011
Out of Balance: Homeowner Rights vs. Responsibilities | jrogerwoodlaw.com
Out of Balance: Homeowner Rights vs. Responsibilities | jrogerwoodlaw.com
Attorney Roger Wood, formerly of the firm of Carpenter Hazelwood, has now declared his independence and presents himself an advocate of the homeowner. This is producing some controversy, as one might expect. Scott Carpenter's firm figures prominently in many of the Arizona stories of owners crushed to a pulp by the industry, and in the minds of many owners' rights advocates there is no stronger advocate of absolute board authority over owners than Scott Carpenter. So--this is quite a defection.
Attorney Roger Wood, formerly of the firm of Carpenter Hazelwood, has now declared his independence and presents himself an advocate of the homeowner. This is producing some controversy, as one might expect. Scott Carpenter's firm figures prominently in many of the Arizona stories of owners crushed to a pulp by the industry, and in the minds of many owners' rights advocates there is no stronger advocate of absolute board authority over owners than Scott Carpenter. So--this is quite a defection.
Sprawl's spread speeds up - Sacramento Business, Housing Market News | Sacramento Bee
Sprawl's spread speeds up - Sacramento Business, Housing Market News | Sacramento Bee
All told, more than half the population growth in the region during the last decade occurred in freshly converted farmland. The region's urban footprint – areas with at least 1,000 people per square mile – nearly doubled from 1980 to 2010. Only 1 percent of last decade's population growth took place in the urban core that existed before 1980.
Regional planners expect the next census report in 2020 to be different. They have spent years hammering out a blueprint that would encourage high-density growth in already-established areas. Local governments across the region back the plan.
"We project a land-use pattern that's going to flip the old pattern on its head," said Mike McKeever, executive director of the Sacramento Area Council of Governments. "Seventy percent of new housing will be attached or small lot."
Read more: http://www.sacbee.com/2011/11/05/4033576/sprawls-spread-speeds-up.html#ixzz1czcNDCzd
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And of course "attached or small lot" means condos, townhomes, and HOAs. In other words, that high-density land-use pattern will be entirely dependent on the institution of common interest housing. That is the plan. So, while CID owners' rights advocates make their case to state legislators, and while condo associations and HOAs face impending collapse due to foreclosures, local governments are planning a new era of growth based on condos and HOAs and townhomes. Think that one over.
Thanks to Fred Pilot for this link.
All told, more than half the population growth in the region during the last decade occurred in freshly converted farmland. The region's urban footprint – areas with at least 1,000 people per square mile – nearly doubled from 1980 to 2010. Only 1 percent of last decade's population growth took place in the urban core that existed before 1980.
Regional planners expect the next census report in 2020 to be different. They have spent years hammering out a blueprint that would encourage high-density growth in already-established areas. Local governments across the region back the plan.
"We project a land-use pattern that's going to flip the old pattern on its head," said Mike McKeever, executive director of the Sacramento Area Council of Governments. "Seventy percent of new housing will be attached or small lot."
Read more: http://www.sacbee.com/2011/11/05/4033576/sprawls-spread-speeds-up.html#ixzz1czcNDCzd
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And of course "attached or small lot" means condos, townhomes, and HOAs. In other words, that high-density land-use pattern will be entirely dependent on the institution of common interest housing. That is the plan. So, while CID owners' rights advocates make their case to state legislators, and while condo associations and HOAs face impending collapse due to foreclosures, local governments are planning a new era of growth based on condos and HOAs and townhomes. Think that one over.
Thanks to Fred Pilot for this link.
Saturday, November 05, 2011
A Creditor’s Playland, or: Cato on Housing Crisis Policy | Rortybomb
A Creditor’s Playland, or: Cato on Housing Crisis Policy | Rortybomb
Mike Konczal demolishes the right-wing think tank Cato Institute for their unique brand of free-market capitalism: "I like this form of libertarianism, where policy is simply the things that defend the power and hierarchy of creditors, the rich and the elite, much better than the normal 'gee whiz markets are cool' kind. There’s almost a Nietzschean zeal for the wonk world to first and foremost accept creditors as a master class to whom all policy bends."
In this piece, Konczal is taking apart Cato's bank-friendly, consumer-hostile prescriptions for the housing market. Predictably, Cato wants to rush all the foreclosures to conclusion, never mind the fraudulent or nonexistent proof, and the banks should get deficiency judgments against people who strategically default. Public policy needs to be concerned about moral hazard you see...unless it is the banks who have the moral problems.
Mike Konczal demolishes the right-wing think tank Cato Institute for their unique brand of free-market capitalism: "I like this form of libertarianism, where policy is simply the things that defend the power and hierarchy of creditors, the rich and the elite, much better than the normal 'gee whiz markets are cool' kind. There’s almost a Nietzschean zeal for the wonk world to first and foremost accept creditors as a master class to whom all policy bends."
In this piece, Konczal is taking apart Cato's bank-friendly, consumer-hostile prescriptions for the housing market. Predictably, Cato wants to rush all the foreclosures to conclusion, never mind the fraudulent or nonexistent proof, and the banks should get deficiency judgments against people who strategically default. Public policy needs to be concerned about moral hazard you see...unless it is the banks who have the moral problems.
Thursday, November 03, 2011
Freddie Mac CEO to Step Down - WSJ.com
Freddie Mac CEO to Step Down - WSJ.com
Freddie and its larger sibling Fannie Mae face growing scrutiny as the government's cost of the 2008 takeovers mounts and the housing market faces prolonged weakness. The FHFA's inspector general, along with several lawmakers, have criticized several key decisions made by Freddie, Fannie and their regulator. Current and former employees have said that has led to a difficult work environment, where decision-making is often frustrated by second guessing. Last month, for example, the inspector general alleged that Freddie Mac had left money on the table when it agreed to a $1.3 billion settlement with Bank of America Corp. over faulty mortgages. It also issued a report criticizing the FHFA's decision to award multi-million-dollar pay packages to senior executives...Freddie Mac has taken nearly $52 billion in government aid to stay afloat, though for the past four quarters it has returned more money to the Treasury than it has taken. Fannie has cost taxpayers $89 billion. The firms own or guarantee nearly half of all U.S. home loans outstanding.
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Fannie and Freddie have received over $140 billion from the taxpayers since they were placed in conservatorship. That was done, you will recall, after the debacle that ensued while they were privatized, when their CEO's tried to compete with a private mortgage securitization market that was in the process, we know know, of committing suicide. But the problems with the GSE's conduct these days are different. They are coddling the big banks and playing the hardest of hardball with struggling homeowners. Read Maureen Tkacik's two part series on this. See Jennifer Dixon's three-part series on how Fannie and Freddie are encouraging foreclosure in Detroit.
As part of Obama's pre-election shift to the ever-so-slightly left of center, he is trying to address criticisms that his housing policies have been a flop. Changes of leadership at the top might be part of that. But Tkakic thinks Ed DeMarco, the conservator of the GSE's, may be fired for his own sudden shift toward holding banks accountable. The putback litigation by the GSEs and a host of private investors in mortgage-backed securities could be a huge blow to Bank of America and perhaps other huge banks. B of A bought Countrywide, a company that engaged in horrifically shoddy securitization practices, and under the pooling and securitization agreements the remedy for their transgressions is forced buyback of the (now largely worthless) loans. The exposure is potentially in the hundreds of billions of dollars.
Freddie and its larger sibling Fannie Mae face growing scrutiny as the government's cost of the 2008 takeovers mounts and the housing market faces prolonged weakness. The FHFA's inspector general, along with several lawmakers, have criticized several key decisions made by Freddie, Fannie and their regulator. Current and former employees have said that has led to a difficult work environment, where decision-making is often frustrated by second guessing. Last month, for example, the inspector general alleged that Freddie Mac had left money on the table when it agreed to a $1.3 billion settlement with Bank of America Corp. over faulty mortgages. It also issued a report criticizing the FHFA's decision to award multi-million-dollar pay packages to senior executives...Freddie Mac has taken nearly $52 billion in government aid to stay afloat, though for the past four quarters it has returned more money to the Treasury than it has taken. Fannie has cost taxpayers $89 billion. The firms own or guarantee nearly half of all U.S. home loans outstanding.
----------------
Fannie and Freddie have received over $140 billion from the taxpayers since they were placed in conservatorship. That was done, you will recall, after the debacle that ensued while they were privatized, when their CEO's tried to compete with a private mortgage securitization market that was in the process, we know know, of committing suicide. But the problems with the GSE's conduct these days are different. They are coddling the big banks and playing the hardest of hardball with struggling homeowners. Read Maureen Tkacik's two part series on this. See Jennifer Dixon's three-part series on how Fannie and Freddie are encouraging foreclosure in Detroit.
As part of Obama's pre-election shift to the ever-so-slightly left of center, he is trying to address criticisms that his housing policies have been a flop. Changes of leadership at the top might be part of that. But Tkakic thinks Ed DeMarco, the conservator of the GSE's, may be fired for his own sudden shift toward holding banks accountable. The putback litigation by the GSEs and a host of private investors in mortgage-backed securities could be a huge blow to Bank of America and perhaps other huge banks. B of A bought Countrywide, a company that engaged in horrifically shoddy securitization practices, and under the pooling and securitization agreements the remedy for their transgressions is forced buyback of the (now largely worthless) loans. The exposure is potentially in the hundreds of billions of dollars.
Compton finds itself in full financial meltdown - latimes.com
Compton finds itself in full financial meltdown - latimes.com
Compton's finances are in such disarray that the city amassed $369,000 in late fees over the last year because it could not pay its policing contract with the Los Angeles County Sheriff's Department on time. The city has already laid off about 15% of its workforce, and city leaders warn that more cuts may be on the way. City Hall has slashed spending, even canceling the city's popular gospel concert. But most disconcerting is the city's looming deficit of $39 million, a sum that represents about 80% of its annual general fund budget. Standard & Poor this summer lowered the rating of some of Compton's bonds to just above junk status. City officials said they're hoping for a short-term loan or line of credit to get through the year and vowed not to file for bankruptcy.
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Short term loan? Can you imagine what the interest rate would be on that?
Compton's finances are in such disarray that the city amassed $369,000 in late fees over the last year because it could not pay its policing contract with the Los Angeles County Sheriff's Department on time. The city has already laid off about 15% of its workforce, and city leaders warn that more cuts may be on the way. City Hall has slashed spending, even canceling the city's popular gospel concert. But most disconcerting is the city's looming deficit of $39 million, a sum that represents about 80% of its annual general fund budget. Standard & Poor this summer lowered the rating of some of Compton's bonds to just above junk status. City officials said they're hoping for a short-term loan or line of credit to get through the year and vowed not to file for bankruptcy.
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Short term loan? Can you imagine what the interest rate would be on that?
Wednesday, November 02, 2011
Forcing Banks to Secure Foreclosed Homes - Housing - The Atlantic Cities
Forcing Banks to Secure Foreclosed Homes - Housing - The Atlantic Cities
It is unusual to see any public official at any level demanding anything of banks, so Chicago Alderman Robert Fioretti has distinguished himself.
It is unusual to see any public official at any level demanding anything of banks, so Chicago Alderman Robert Fioretti has distinguished himself.
US Marshals turned loose to collect $63,720.80 from Righthaven
US Marshals turned loose to collect $63,720.80 from Righthaven
Looks like it's time to turn out the lights on Righthaven. The US Marshal for the District of Nevada has just been authorized by a federal court to use "reasonable force" to seize $63,720.80 in cash and/or assets from the Las Vegas copyright troll after Righthaven failed to pay a court judgment from August 15.
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Thanks to Tom Skiba for this piece of good news. Bye bye Righthaven, good riddance, don't let the door hit you where the dog should have bit you.
Looks like it's time to turn out the lights on Righthaven. The US Marshal for the District of Nevada has just been authorized by a federal court to use "reasonable force" to seize $63,720.80 in cash and/or assets from the Las Vegas copyright troll after Righthaven failed to pay a court judgment from August 15.
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Thanks to Tom Skiba for this piece of good news. Bye bye Righthaven, good riddance, don't let the door hit you where the dog should have bit you.
Cary News | Attempted board change roils HOA
Cary News | Attempted board change roils HOA
I wouldn't even attempt to summarize this situation. Thanks to Fred Pilot for the link.
I wouldn't even attempt to summarize this situation. Thanks to Fred Pilot for the link.
Dolphin Tower board criticized for its handling of building crisis | HeraldTribune.com
Dolphin Tower board criticized for its handling of building crisis | HeraldTribune.com
Dolphin Towers in downtown Sarasota has structural problems that forced all residents out in 2010. The residents have been in a legal fight with their insurer, which has denied claims for money to repair the building. Meanwhile, the number of owners refusing to pay the assessments needed to keep up the fight and pay for repair costs at the 117-unit tower is now up to about three dozen.
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What an awful situation these folks are in. And now they are fighting among themselves. Thanks to Fred Pilot for the link.
Dolphin Towers in downtown Sarasota has structural problems that forced all residents out in 2010. The residents have been in a legal fight with their insurer, which has denied claims for money to repair the building. Meanwhile, the number of owners refusing to pay the assessments needed to keep up the fight and pay for repair costs at the 117-unit tower is now up to about three dozen.
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What an awful situation these folks are in. And now they are fighting among themselves. Thanks to Fred Pilot for the link.
Feds: Mafia Affiliates Took Over, Looted $12 Million From Texas Mortgage Company | TPMMuckraker
Feds: Mafia Affiliates Took Over, Looted $12 Million From Texas Mortgage Company | TPMMuckraker
Law enforcement officials charged 13 people — including an alleged member and another associate of the Lucchese family — on racketeering and related offenses in an alleged scheme to take over and loot the Texas-based FirstPlus Financial Group Inc. (FPFG) through extortion. Ten defendants are already in custody, one is expected to surrender and two are still at large.
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I wonder how the FBI was able to distinguish between organized crime and the normal course of business for the mortgage industry. If you made a Venn diagram the two circles would be one on top of the other.
Law enforcement officials charged 13 people — including an alleged member and another associate of the Lucchese family — on racketeering and related offenses in an alleged scheme to take over and loot the Texas-based FirstPlus Financial Group Inc. (FPFG) through extortion. Ten defendants are already in custody, one is expected to surrender and two are still at large.
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I wonder how the FBI was able to distinguish between organized crime and the normal course of business for the mortgage industry. If you made a Venn diagram the two circles would be one on top of the other.
Tuesday, November 01, 2011
Investors place big bets on Buy Here Pay Here used-car dealers - latimes.com
Investors place big bets on Buy Here Pay Here used-car dealers - latimes.com
Loans on decade-old clunkers are being bundled into securities, just as subprime mortgages were a few years ago. In the last two years, investors have bought more than $15 billion in subprime auto securities.
Although they're backed mainly by installment contracts signed by people who can't even qualify for a credit card, most of these bonds have been rated investment grade. Many have received the highest rating: AAA.
That's because rating firms believe that with tens of thousands of loans lumped together, the securities are safe even if some of the loans prove worthless.
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This is not from The Onion. It's the Los Angeles Times. This is really happening. They are securitizing subprime auto loans. But don't worry--some of them are rated AAA. That means...nothing could possibly go wrong!!
Loans on decade-old clunkers are being bundled into securities, just as subprime mortgages were a few years ago. In the last two years, investors have bought more than $15 billion in subprime auto securities.
Although they're backed mainly by installment contracts signed by people who can't even qualify for a credit card, most of these bonds have been rated investment grade. Many have received the highest rating: AAA.
That's because rating firms believe that with tens of thousands of loans lumped together, the securities are safe even if some of the loans prove worthless.
---------------
This is not from The Onion. It's the Los Angeles Times. This is really happening. They are securitizing subprime auto loans. But don't worry--some of them are rated AAA. That means...nothing could possibly go wrong!!
Romney Tells State With Country's Highest Foreclosure Rate 'Don't Try And Stop The Foreclosure Process' | ThinkProgress
Romney Tells State With Country's Highest Foreclosure Rate 'Don't Try And Stop The Foreclosure Process' | ThinkProgress
I may have posted this before, but it is worth repeating. The likely Republican presidential nominee is on record saying the government should do nothing about foreclosures. Just let them happen.
I may have posted this before, but it is worth repeating. The likely Republican presidential nominee is on record saying the government should do nothing about foreclosures. Just let them happen.
Home prices heading for triple-dip - Oct. 31, 2011
Home prices heading for triple-dip - Oct. 31, 2011
Naples, Fla., for example, is expected to take the biggest hit of any metro area, a price drop of another 18.9% by the end of next June, according to Fiserv. Home prices in the area have already fallen 61% from the peak.
Other cities expected to be hit hard include the not-so-lucky Las Vegas, which is expected to see home prices fall another 15.9% for a total loss of 66%; Riverside, Calif., is projected to fall another 14.8% (for a total decline of 61%); Miami is expected to decline by 13.2% (total loss: 57%), and Salinas, Calif. could drop by another 13% (for a total loss of 66%).
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What we are experiencing is not a recession. It is a mortgage debt-driven collapse of the financial and housing industries that is far from over. Before it is finished, it will wreak havoc with state and local governments and the nation's HOAs and condo associations. Thanks to Fred Pilot for the link.
Naples, Fla., for example, is expected to take the biggest hit of any metro area, a price drop of another 18.9% by the end of next June, according to Fiserv. Home prices in the area have already fallen 61% from the peak.
Other cities expected to be hit hard include the not-so-lucky Las Vegas, which is expected to see home prices fall another 15.9% for a total loss of 66%; Riverside, Calif., is projected to fall another 14.8% (for a total decline of 61%); Miami is expected to decline by 13.2% (total loss: 57%), and Salinas, Calif. could drop by another 13% (for a total loss of 66%).
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What we are experiencing is not a recession. It is a mortgage debt-driven collapse of the financial and housing industries that is far from over. Before it is finished, it will wreak havoc with state and local governments and the nation's HOAs and condo associations. Thanks to Fred Pilot for the link.
Sunday, October 30, 2011
Washington Supreme Court: Honking at neighbor who reported poultry to HOA is free speech
When you drive past another vehicle with a bumper sticker that urges you to honk if you love Jesus or the Zags or any number of other potential objects of affection, you might honk if so moved.
In all cases, you are exercising your First Amendment rights. At least in Washington state.
That’s what the state Supreme Court said last week in the somewhat interesting, somewhat bizarre case of State v. Helen Immelt, a Snohomish County woman who was ticketed for honking her horn in anger at her neighbor in 2006, in a dispute over chickens.
Immelt lived in a cul-de-sac that was part of a homeowners association, although she reportedly was unaware of the association’s covenants that banned the raising of chickens. She had some chicks in her garage; her neighbor, the association president, saw them and the group sent her a letter to get rid of the birds.
She figured out the neighbor was the one who turned her in, and the next morning drove by his house around 6 a.m. and blew her horn for a period of time described in court papers as five to 10 minutes. The honked-off neighbor called the sheriff’s office, which sent out a deputy to take the complaint and happened to be there when Immelt drove by again, and honked three times more. He gave chase, pulled her over and gave her a ticket for violating the county’s noise ordinance, which bans “noise which is a public disturbance” including “sounding of vehicle horns for purposes other than public safety.”
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This isn't an HOA case per se, but has its origins in a petty Privatopian dispute.
Saturday, October 29, 2011
Morgan Stanley predicts foreclosed homeowners will pay $72B in rent annually « HousingWire
Morgan Stanley predicts foreclosed homeowners will pay $72B in rent annually « HousingWire
The millions of homeowners facing default on their mortgages will likely become renters once their home is foreclosed. Investment bank Morgan Stanley (MS: 19.31 -0.52%) crunched the numbers and said the boost to the multifamily segment, that arm of commercial real estate that includes apartment buildings, will most likely see a multibillion-dollar boost from the looming migration.
Oliver Chang, a housing and securitized products analyst at Morgan Stanley, the lead author of a report released this week, detailed the migration of ownership to rentals. He expects a drop in the U.S. homeownership rate to 60% in the coming years from 69% at its peak.
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That's why the only construction sector showing an increase in activity is "multifamily residential." It isn't condos. It's apartment buildings. The building industry expects these folks who lost their homes in foreclosure to join the ranks of renters...permanently. And with the horrible job market and the crushing burden of student loans, many young people will find it impossible to get financially established and buy anything for many years, if ever.
The millions of homeowners facing default on their mortgages will likely become renters once their home is foreclosed. Investment bank Morgan Stanley (MS: 19.31 -0.52%) crunched the numbers and said the boost to the multifamily segment, that arm of commercial real estate that includes apartment buildings, will most likely see a multibillion-dollar boost from the looming migration.
Oliver Chang, a housing and securitized products analyst at Morgan Stanley, the lead author of a report released this week, detailed the migration of ownership to rentals. He expects a drop in the U.S. homeownership rate to 60% in the coming years from 69% at its peak.
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That's why the only construction sector showing an increase in activity is "multifamily residential." It isn't condos. It's apartment buildings. The building industry expects these folks who lost their homes in foreclosure to join the ranks of renters...permanently. And with the horrible job market and the crushing burden of student loans, many young people will find it impossible to get financially established and buy anything for many years, if ever.
Top US foreclosure law firm threw Halloween party where staff dressed as homeless, foreclosed-upon Americans - Boing Boing
Top US foreclosure law firm threw Halloween party where staff dressed as homeless, foreclosed-upon Americans - Boing Boing
On Friday, the law firm of Steven J. Baum threw a Halloween party. The firm, which is located near Buffalo, is what is commonly referred to as a “foreclosure mill” firm, meaning it represents banks and mortgage servicers as they attempt to foreclose on homeowners and evict them from their homes. Steven J. Baum is, in fact, the largest such firm in New York; it represents virtually all the giant mortgage lenders, including Citigroup, JPMorgan Chase, Bank of America and Wells Fargo.
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Thanks to Mystery Reader for this link. I guess you can tell a lot about people by what they think is hilarious.
On Friday, the law firm of Steven J. Baum threw a Halloween party. The firm, which is located near Buffalo, is what is commonly referred to as a “foreclosure mill” firm, meaning it represents banks and mortgage servicers as they attempt to foreclose on homeowners and evict them from their homes. Steven J. Baum is, in fact, the largest such firm in New York; it represents virtually all the giant mortgage lenders, including Citigroup, JPMorgan Chase, Bank of America and Wells Fargo.
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Thanks to Mystery Reader for this link. I guess you can tell a lot about people by what they think is hilarious.
Friday, October 28, 2011
Why a Mortgage Cramdown Bill Is Still the Best Bet to Save the Economy | Truthout
Why a Mortgage Cramdown Bill Is Still the Best Bet to Save the Economy | Truthout
With the mortgage meltdown showing no signs of abating, it is the time to set the record straight on the best plan we have had for reviving the housing market: the 2009 bankruptcy reform bill known as the cram-down bill. That controversial piece of legislation would have given bankruptcy judges the authority to write down mortgages on a primary residence to the current fair-market price of the property. In addition, cram-downs would have enabled bankruptcy judges to monitor and stop some of the widespread robo-signing abuses—where banks have been using fraudulent documents to foreclose on homeowners.
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See below--this policy would allow BK judges to reduce the principal on mortages in Chapter 13 proceedings.
With the mortgage meltdown showing no signs of abating, it is the time to set the record straight on the best plan we have had for reviving the housing market: the 2009 bankruptcy reform bill known as the cram-down bill. That controversial piece of legislation would have given bankruptcy judges the authority to write down mortgages on a primary residence to the current fair-market price of the property. In addition, cram-downs would have enabled bankruptcy judges to monitor and stop some of the widespread robo-signing abuses—where banks have been using fraudulent documents to foreclose on homeowners.
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See below--this policy would allow BK judges to reduce the principal on mortages in Chapter 13 proceedings.
It's Time for Debt Forgiveness, American-Style | The Nation
It's Time for Debt Forgiveness, American-Style | The Nation
Write down the principal they owe on their mortgage to match the current market value of their home, so they will no longer be underwater. Refinance the loan with a reduced interest rate, so the monthly payment is at a level that the struggling homeowner can handle. This keeps families in their homes, with a renewed stake in the future. It gives homeowners incentive to keep up their payments, because once again they have some equity and the opportunity to accumulate much more.
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I think Greider is right. If this doesn't happen, it won't be just owners who suffer. Local governments and CIDs will be under increasing financial stress. There may be another 10 million foreclosures before all this is over, and when people think they are going to be foreclosed on they stop paying property taxes and HOA/condo fees.
Write down the principal they owe on their mortgage to match the current market value of their home, so they will no longer be underwater. Refinance the loan with a reduced interest rate, so the monthly payment is at a level that the struggling homeowner can handle. This keeps families in their homes, with a renewed stake in the future. It gives homeowners incentive to keep up their payments, because once again they have some equity and the opportunity to accumulate much more.
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I think Greider is right. If this doesn't happen, it won't be just owners who suffer. Local governments and CIDs will be under increasing financial stress. There may be another 10 million foreclosures before all this is over, and when people think they are going to be foreclosed on they stop paying property taxes and HOA/condo fees.
If you thought HOAs were bad now, just wait - Friday, Oct. 28, 2011 | 2 a.m. - Las Vegas Sun
If you thought HOAs were bad now, just wait - Friday, Oct. 28, 2011 | 2 a.m. - Las Vegas Sun
“Stuff falls apart. It’s inevitable. And I know we’re not prepared for it.”
That’s Evan McKenzie, lawyer and political scientist at the University of Illinois at Chicago and the foremost expert on HOAs. He wrote the book on them, aptly titled, “Privatopia.”
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“Stuff falls apart. It’s inevitable. And I know we’re not prepared for it.”
That’s Evan McKenzie, lawyer and political scientist at the University of Illinois at Chicago and the foremost expert on HOAs. He wrote the book on them, aptly titled, “Privatopia.”
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Thursday, October 27, 2011
Americans Staying Put More Than At Any Time Since WWII: Census
Americans Staying Put More Than At Any Time Since WWII: Census
Americans are staying put more than at any time since World War II, as the housing bust and unemployment keep young adults at home and thwart older Americans' plans for a beachfront or lakeside retirement.
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Add to that the fact that moving doesn't make a whole lot of sense if you can't sell your house and can't get a new job.
Americans are staying put more than at any time since World War II, as the housing bust and unemployment keep young adults at home and thwart older Americans' plans for a beachfront or lakeside retirement.
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Add to that the fact that moving doesn't make a whole lot of sense if you can't sell your house and can't get a new job.
Wednesday, October 26, 2011
A 53% Surge in Poverty Rate Is Reshaping Suburbs - NYTimes.com
A 53% Surge in Poverty Rate Is Reshaping Suburbs - NYTimes.com
PARMA HEIGHTS, Ohio — The poor population in America’s suburbs — long a symbol of a stable and prosperous American middle class — rose by more than half after 2000, forcing suburban communities across the country to re-evaluate their identities and how they serve their populations.
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Remember the same stories from the 2001-02 recession? And the 1991-92 recession? Periodically the New York Times discovers that there are poor people in suburbia.
PARMA HEIGHTS, Ohio — The poor population in America’s suburbs — long a symbol of a stable and prosperous American middle class — rose by more than half after 2000, forcing suburban communities across the country to re-evaluate their identities and how they serve their populations.
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Remember the same stories from the 2001-02 recession? And the 1991-92 recession? Periodically the New York Times discovers that there are poor people in suburbia.
Tuesday, October 25, 2011
Oklahoma City homeowners association president arrested after argument
A 73-year-old man was arrested on multiple complaints including assault with a dangerous weapon after he and a neighbor got into a dispute about their homeowners association, Oklahoma City police said Monday.
A.B. Simpson was arrested on complaints of assault and battery, assault with a dangerous weapon and pointing a firearm after the altercation Thursday.
According to a police report, Simpson, the president of a homeowners association, got into an argument with another member of the association's board, Bivian Cox, 79, inside Simpson's home.
Cox told police Simpson pulled a silver revolver on him and hit him several times. Cox had minor injuries, including a cut on his right hand.
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A few weeks back, a Philippine HOA prez who made a point of letting one of his unhappy constituents know he packed an AK-47 was mentioned on this blog. "And you thought your HOA president was bad?" the good perfessor asked rhetorically. In at least one HOA, it could indeed be worse if this account is accurate.
Monday, October 24, 2011
Capitol Alert: Report: Cal HFA foreclosing on borrowers current on loans
Capitol Alert: Report: Cal HFA foreclosing on borrowers current on loans
Thanks to Fred Pilot for sending me the strangest link I have seen in years.
Thanks to Fred Pilot for sending me the strangest link I have seen in years.
Saturday, October 22, 2011
Could cougar be lurking near the Chicago Bears’ lair? - Lake County News-Sun
Could cougar be lurking near the Chicago Bears’ lair? - Lake County News-Sun
LAKE FOREST— There’s a lion stalking the fields not far from the home of the Chicago Bears, neighbors say.
At least three residents in Lake Forest have reported seeing what they think was a cougar or a mountain lion, in the last two weeks, said Phil Duncan, property manager for Conway Farms Homeowners Association, which is across the road from the Bears practice facility.
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This is turning into wild animal day.
LAKE FOREST— There’s a lion stalking the fields not far from the home of the Chicago Bears, neighbors say.
At least three residents in Lake Forest have reported seeing what they think was a cougar or a mountain lion, in the last two weeks, said Phil Duncan, property manager for Conway Farms Homeowners Association, which is across the road from the Bears practice facility.
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This is turning into wild animal day.
Real Estate | New rule a major condo headache | Seattle Times Newspaper
Real Estate | New rule a major condo headache | Seattle Times Newspaper
FHA says the rule changes it has adopted, which focus on project budgets, insurance and financial reserves, have been prudent and are designed to avert losses from delinquencies and foreclosures. But the agency confirms that thousands of condo projects have failed to obtain or apply for required recertifications under the new rules.
Out of approximately 25,000 condo projects nationwide with expiration dates for FHA eligibility between last December and Sept. 30 of this year, only 2,100 — just 8.4 percent — have been approved or recertified by the agency, according to Lemar Wooley, an agency spokesman.
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These rules force condo associations to collect assessments aggressively and fund reserves, among other things. There are many signs pointing to the same conclusion: many condo associations are in significant financial distress.
FHA says the rule changes it has adopted, which focus on project budgets, insurance and financial reserves, have been prudent and are designed to avert losses from delinquencies and foreclosures. But the agency confirms that thousands of condo projects have failed to obtain or apply for required recertifications under the new rules.
Out of approximately 25,000 condo projects nationwide with expiration dates for FHA eligibility between last December and Sept. 30 of this year, only 2,100 — just 8.4 percent — have been approved or recertified by the agency, according to Lemar Wooley, an agency spokesman.
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These rules force condo associations to collect assessments aggressively and fund reserves, among other things. There are many signs pointing to the same conclusion: many condo associations are in significant financial distress.
Gwyneth Williams's family sues homeowners' association after she's eaten by alligator | Mail Online
Gwyneth Williams's family sues homeowners' association after she's eaten by alligator | Mail Online
The family of an 83-year-old woman have sued a homeowners' association after she was killed by an alligator while swimming in a lagoon. Gwyneth Williams had been house-sitting for her daughter-in-law at their home in the swampy Savannah-area coastal development known as the Landings, Georgia. The pensioner had been walking near the subdivision's golf course in the evening when she was attacked by an 8ft alligator, which bit off both her hands and her right foot...The case at Georgia Supreme Court will hinge on whether the homeowners' association should be shielded from the lawsuit under a doctrine known as 'animals ferae naturae.'
Read more: http://www.dailymail.co.uk/news/article-2051296/Gwyneth-Williamss-family-sues-homeowners-association-shes-eaten-alligator.html#ixzz1bWzej8lR
Read more: http://www.dailymail.co.uk/news/article-2051296/Gwyneth-Williamss-family-sues-homeowners-association-shes-eaten-alligator.html#ixzz1bWzVWFp0
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Thanks to Fred Pilot for this link.
The family of an 83-year-old woman have sued a homeowners' association after she was killed by an alligator while swimming in a lagoon. Gwyneth Williams had been house-sitting for her daughter-in-law at their home in the swampy Savannah-area coastal development known as the Landings, Georgia. The pensioner had been walking near the subdivision's golf course in the evening when she was attacked by an 8ft alligator, which bit off both her hands and her right foot...The case at Georgia Supreme Court will hinge on whether the homeowners' association should be shielded from the lawsuit under a doctrine known as 'animals ferae naturae.'
Read more: http://www.dailymail.co.uk/news/article-2051296/Gwyneth-Williamss-family-sues-homeowners-association-shes-eaten-alligator.html#ixzz1bWzej8lR
Read more: http://www.dailymail.co.uk/news/article-2051296/Gwyneth-Williamss-family-sues-homeowners-association-shes-eaten-alligator.html#ixzz1bWzVWFp0
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Thanks to Fred Pilot for this link.
Thursday, October 20, 2011
California reportedly subpoenas BofA over toxic securities - latimes.com
California reportedly subpoenas BofA over toxic securities - latimes.com
Investigators with the state attorney general's office have subpoenaed Bank of America Corp. in connection with the sale and marketing of troubled mortgage-backed securities to California investors, according to a person familiar with the probe.
The state is trying to determine whether the bank and its Countrywide Financial subsidiary sold investments backed by risky mortgages to institutional and private investors in California under false pretenses, according to the person, who was not authorized to speak publicly and requested confidentiality.
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Gee...how could anybody suspect such a thing?
Investigators with the state attorney general's office have subpoenaed Bank of America Corp. in connection with the sale and marketing of troubled mortgage-backed securities to California investors, according to a person familiar with the probe.
The state is trying to determine whether the bank and its Countrywide Financial subsidiary sold investments backed by risky mortgages to institutional and private investors in California under false pretenses, according to the person, who was not authorized to speak publicly and requested confidentiality.
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Gee...how could anybody suspect such a thing?
UPDATE 2-US states near foreclosure deal with banks | Reuters
UPDATE 2-US states near foreclosure deal with banks | Reuters
Under the proposed terms of the settlement -- which could total $25 billion -- banks would get a broader relief from potential state civil lawsuits in exchange for refinancing underwater loans, those mortgages where borrowers owe more than their homes are worth, the sources said.
The deal could provide some relief to the battered U.S. housing market and clear up some uncertainty about banks' legal exposure that has been a drag on their shares.
Banks have been holding out on a multi-billion-dollar settlement because they wanted broader legal protection than state attorneys general were prepared to offer.
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Is anybody but me sick and tired of all the solicitude about these predatory banks and their precious stock prices? They plunged this economy into a depression. When are some of these bank CEOs going to be frog-marched down the steps and into a police car?
Under the proposed terms of the settlement -- which could total $25 billion -- banks would get a broader relief from potential state civil lawsuits in exchange for refinancing underwater loans, those mortgages where borrowers owe more than their homes are worth, the sources said.
The deal could provide some relief to the battered U.S. housing market and clear up some uncertainty about banks' legal exposure that has been a drag on their shares.
Banks have been holding out on a multi-billion-dollar settlement because they wanted broader legal protection than state attorneys general were prepared to offer.
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Is anybody but me sick and tired of all the solicitude about these predatory banks and their precious stock prices? They plunged this economy into a depression. When are some of these bank CEOs going to be frog-marched down the steps and into a police car?
Wednesday, October 19, 2011
The Volokh Conspiracy » A Real Live Violation of the Third Amendment
The Volokh Conspiracy » A Real Live Violation of the Third Amendment
The libertarian law profs at The Volokh Conspiracy have a story about the US military violating the Third Amendment (no quartering of troops in homes) during World War Two. Thanks to Mystery Reader for the link.
The libertarian law profs at The Volokh Conspiracy have a story about the US military violating the Third Amendment (no quartering of troops in homes) during World War Two. Thanks to Mystery Reader for the link.
Tuesday, October 18, 2011
Romney’s Foreclosure Plan: Faster Foreclosures | FDL News Desk
Romney’s Foreclosure Plan: Faster Foreclosures | FDL News Desk
Saith Lord Romney: "ROMNEY: Are there things that you can do to encourage housing. One is, don’t try and stop the foreclosure process. Let it run its course and hit the bottom, allow investors to buy homes, put renters in them, fix the homes up and let it turn around and come back up. The Obama Administration has slow-walked the foreclosure processes that have long existed, and as a result we still have a foreclosure overhang."
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Note that Lord Romney has not a word to say about the people who bought and live in those homes with their spouses and children. He is concerned about the Important People. That would be the "investors." This guy has zero compassion. People keep joking about him being animatronic, and I'm starting to wonder about that myself.
Saith Lord Romney: "ROMNEY: Are there things that you can do to encourage housing. One is, don’t try and stop the foreclosure process. Let it run its course and hit the bottom, allow investors to buy homes, put renters in them, fix the homes up and let it turn around and come back up. The Obama Administration has slow-walked the foreclosure processes that have long existed, and as a result we still have a foreclosure overhang."
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Note that Lord Romney has not a word to say about the people who bought and live in those homes with their spouses and children. He is concerned about the Important People. That would be the "investors." This guy has zero compassion. People keep joking about him being animatronic, and I'm starting to wonder about that myself.
House Prices and Birth Rates: The Impact of the Real Estate Market on the Decision to Have a Baby
House Prices and Birth Rates: The Impact of the Real Estate Market on the Decision to Have a Baby
Our estimates suggest that a 10 percent increase in house prices would lead to a 4 percent increase in births among home owners, and a roughly one percent decrease among non-owners. The net effect of house price changes on birth rates varies across demographic groups based on rates of home ownership. Our paper provides evidence that homeowners use some of their increased housing wealth, coming from increases in local area house prices, to fund their childbearing goals. More generally, the finding of a “home equity effect” demonstrates empirically that imperfect credit markets affect fertility timing.
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So then when the prices fall do people put their kids up for adoption?
Our estimates suggest that a 10 percent increase in house prices would lead to a 4 percent increase in births among home owners, and a roughly one percent decrease among non-owners. The net effect of house price changes on birth rates varies across demographic groups based on rates of home ownership. Our paper provides evidence that homeowners use some of their increased housing wealth, coming from increases in local area house prices, to fund their childbearing goals. More generally, the finding of a “home equity effect” demonstrates empirically that imperfect credit markets affect fertility timing.
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So then when the prices fall do people put their kids up for adoption?
Monday, October 17, 2011
Chicago's Great Migration: Blacks Leaving Historic Neighborhoods For Less Windy Cities
Chicago's Great Migration: Blacks Leaving Historic Neighborhoods For Less Windy Cities
Chicago has lost about 181,000 African Americans over the past decade, a drop of 17 percent. Many have fled to the Chicago suburbs. But to a greater extent, who is leaving and where they're going is difficult to determine, according to demographers. But Brookings Institute reports that these new migrants tend to be financially stable and more educated. Many are students, professionals or retirees.
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For decades, African-Americans were moving out of the rural South and into northern and western cities. Now there is a reverse migration of middle-class African-Americans to southern cities and suburbs, with the Atlanta area being especially popular. If this continues it will change the politics of all the the metro areas involved, on both ends.
Chicago has lost about 181,000 African Americans over the past decade, a drop of 17 percent. Many have fled to the Chicago suburbs. But to a greater extent, who is leaving and where they're going is difficult to determine, according to demographers. But Brookings Institute reports that these new migrants tend to be financially stable and more educated. Many are students, professionals or retirees.
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For decades, African-Americans were moving out of the rural South and into northern and western cities. Now there is a reverse migration of middle-class African-Americans to southern cities and suburbs, with the Atlanta area being especially popular. If this continues it will change the politics of all the the metro areas involved, on both ends.
Woman taps 'Occupy' protest to avoid foreclosure - US news - Life - msnbc.com
Woman taps 'Occupy' protest to avoid foreclosure - US news - Life - msnbc.com
“(The bank) kept saying we can’t do anything. Your case is closed,” said Gudiel. “Our stand was, ‘No, we’re not leaving. This is our home. We worked hard for it and we’re just not going to leave.’”
But instead of the anticipated confrontation, there was a dramatic reversal of fortune. Fanny Mae canceled the eviction notice and offered the Gudiels a loan modification that could enable them keep their home.
Why? Fannie Mae and loan servicer OneWest won’t discuss the case. But nonprofit advocates say a series of bold protests — with reinforcements from the “Occupy Wall Street” movement — and a spate of media interest put Rose in the limelight and forced the banks to back down.
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Interesting development, isn't it? There is so much blatant illegality going on with bank foreclosures and the phony "mortage rescue" solicitations that concerted political action is probably the most effective course of action. Few people can afford lawyers to force these institutions to obey the law.
“(The bank) kept saying we can’t do anything. Your case is closed,” said Gudiel. “Our stand was, ‘No, we’re not leaving. This is our home. We worked hard for it and we’re just not going to leave.’”
But instead of the anticipated confrontation, there was a dramatic reversal of fortune. Fanny Mae canceled the eviction notice and offered the Gudiels a loan modification that could enable them keep their home.
Why? Fannie Mae and loan servicer OneWest won’t discuss the case. But nonprofit advocates say a series of bold protests — with reinforcements from the “Occupy Wall Street” movement — and a spate of media interest put Rose in the limelight and forced the banks to back down.
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Interesting development, isn't it? There is so much blatant illegality going on with bank foreclosures and the phony "mortage rescue" solicitations that concerted political action is probably the most effective course of action. Few people can afford lawyers to force these institutions to obey the law.
How California Was Diminished by 1978 Tax Revolt - Bloomberg
How California Was Diminished by 1978 Tax Revolt - Bloomberg
California voters approved Proposition 13 to rein in property taxes that had doubled in 10 years. More than three decades later, that rebellion has mortgaged the state’s future, saddling it with the nation’s highest debt and lowest credit rating.
The measure led to reductions that dropped per-student school spending from seventh to 29th nationally, prompted cities to pursue sprawling retail development to compensate for lost revenue, and pushed the state into budget gridlock, including a $705 million revenue shortfall announced Oct. 10, by requiring two-thirds approval for any tax increase.
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In 1978, conservatives told us that Proposition 13 would be the greatest thing that ever happened to California. Now the state's public institutions are disintegrating and maybe even Republicans will eventually come to understand how important public schools, colleges, parks, streets, highways, and other systems are to the functioning of an economy.
Thanks to Fred Pilot for the link.
California voters approved Proposition 13 to rein in property taxes that had doubled in 10 years. More than three decades later, that rebellion has mortgaged the state’s future, saddling it with the nation’s highest debt and lowest credit rating.
The measure led to reductions that dropped per-student school spending from seventh to 29th nationally, prompted cities to pursue sprawling retail development to compensate for lost revenue, and pushed the state into budget gridlock, including a $705 million revenue shortfall announced Oct. 10, by requiring two-thirds approval for any tax increase.
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In 1978, conservatives told us that Proposition 13 would be the greatest thing that ever happened to California. Now the state's public institutions are disintegrating and maybe even Republicans will eventually come to understand how important public schools, colleges, parks, streets, highways, and other systems are to the functioning of an economy.
Thanks to Fred Pilot for the link.
Sunday, October 16, 2011
"Broadband Blindness" trailer...starring Fred Pilot
Broadband Blindness
Chances are, your internet connection is running out of capacity. But what can you do? Maybe you’re happy right now. But with streaming Netflix and YouTube and photo album downloading, and...the list goes on...all of this is putting severe strains on the cable TV and telephone companies. Their answer is usually to throttle the network or charge you more for usage. And yet when they do, there’s no guarantee they’ll increase capacity to your home. End result? You’re screwed.
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Fred is interviewed in this film, and you can get a good sense of what the film is about right here.
Chances are, your internet connection is running out of capacity. But what can you do? Maybe you’re happy right now. But with streaming Netflix and YouTube and photo album downloading, and...the list goes on...all of this is putting severe strains on the cable TV and telephone companies. Their answer is usually to throttle the network or charge you more for usage. And yet when they do, there’s no guarantee they’ll increase capacity to your home. End result? You’re screwed.
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Fred is interviewed in this film, and you can get a good sense of what the film is about right here.
Mexico’s newest export to US may be water
Mexico’s newest export to US may be water
Western states are looking south of the border for water to fill drinking glasses, flush toilets and sprinkle lawns, as four major U.S. water districts help plan one of two huge desalination plant proposals in Playas de Rosarito, about 15 miles south of San Diego. Combined, they would produce 150 million gallons a day, enough to supply more than 300,000 homes on both sides of the border.
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I gather that the plan is to put these desalination plants in Mexico so US corporations can avoid environmental regulations. On Fred Pilot's recommendation I just watched National Geographic's Collapse, a documentary on how and why our civilization may collapse. Just some light Sunday morning viewing. I have read a bunch of books about this, so it wasn't new material, but it is an excellent 90 minute summary of the situation we face. And of course we here in the US are busy debating evolution.
Western states are looking south of the border for water to fill drinking glasses, flush toilets and sprinkle lawns, as four major U.S. water districts help plan one of two huge desalination plant proposals in Playas de Rosarito, about 15 miles south of San Diego. Combined, they would produce 150 million gallons a day, enough to supply more than 300,000 homes on both sides of the border.
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I gather that the plan is to put these desalination plants in Mexico so US corporations can avoid environmental regulations. On Fred Pilot's recommendation I just watched National Geographic's Collapse, a documentary on how and why our civilization may collapse. Just some light Sunday morning viewing. I have read a bunch of books about this, so it wasn't new material, but it is an excellent 90 minute summary of the situation we face. And of course we here in the US are busy debating evolution.
Banks turn to demolition of foreclosed properties to ease housing-market pressures - The Washington Post
Banks turn to demolition of foreclosed properties to ease housing-market pressures - The Washington Post
The banks have even been footing the bill for the demolitions — as much as $7,500 a pop. Four years into the housing crisis, the ongoing expense of upkeep and taxes, along with costly code violations and the price of marketing the properties, has saddled banks with a heavy burden. It often has become cheaper to knock down decaying homes no one wants.
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Think about that.
The banks have even been footing the bill for the demolitions — as much as $7,500 a pop. Four years into the housing crisis, the ongoing expense of upkeep and taxes, along with costly code violations and the price of marketing the properties, has saddled banks with a heavy burden. It often has become cheaper to knock down decaying homes no one wants.
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Think about that.
‘Shadow inventory’ of homes could topple real-estate recovery - Business - MiamiHerald.com
‘Shadow inventory’ of homes could topple real-estate recovery - Business - MiamiHerald.com
Officially, there are 3.5 million homes for sale nationwide. But there are millions more lurking in the shadows — hidden neatly away on banks’ balance sheets, stalled in foreclosure court proceedings, or simply occupied by nonpaying owners as lenders wait months or years before taking action.
Read more: http://www.miamiherald.com/2011/10/15/v-fullstory/2456154/shadow-inventory-of-homes-could.html#ixzz1awa0ifi1
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Thanks to Fred Pilot for this link. This article documents what many people in the real estate industry are talking about among themselves. I spoke with one attorney Friday who said he thinks it will be seven years before housing prices start going up and construction of new homes takes off again. Check out the map that accompanies the article. It's perfect for Halloween--Attack of the Zombie Real Estate.
Officially, there are 3.5 million homes for sale nationwide. But there are millions more lurking in the shadows — hidden neatly away on banks’ balance sheets, stalled in foreclosure court proceedings, or simply occupied by nonpaying owners as lenders wait months or years before taking action.
Read more: http://www.miamiherald.com/2011/10/15/v-fullstory/2456154/shadow-inventory-of-homes-could.html#ixzz1awa0ifi1
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Thanks to Fred Pilot for this link. This article documents what many people in the real estate industry are talking about among themselves. I spoke with one attorney Friday who said he thinks it will be seven years before housing prices start going up and construction of new homes takes off again. Check out the map that accompanies the article. It's perfect for Halloween--Attack of the Zombie Real Estate.
Two charged with stealing Lawrence County bridge
Two charged with stealing Lawrence County bridge
Police said that Benjamin Arthur Jones, 24, and Alexander William Jones, 25, used a torch to tear apart the Covert's Crossing Bridge late last month or early this month. The bridge had been in North Beaver Township since at least the early 1900s and was worth an estimated $100,000.
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Read more: http://www.postgazette.com/pg/11288/1182400-100.stm#ixzz1awT3uddW
There's a headline you don't see every day. The thing is, our infrastructure is in such a state of disrepair that it's hard to see how anybody could make a buck by stealing it.
Police said that Benjamin Arthur Jones, 24, and Alexander William Jones, 25, used a torch to tear apart the Covert's Crossing Bridge late last month or early this month. The bridge had been in North Beaver Township since at least the early 1900s and was worth an estimated $100,000.
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Read more: http://www.postgazette.com/pg/11288/1182400-100.stm#ixzz1awT3uddW
There's a headline you don't see every day. The thing is, our infrastructure is in such a state of disrepair that it's hard to see how anybody could make a buck by stealing it.
Friday, October 14, 2011
Pa. parents of boy who needs shade sue over awning
The parents of a Pittsburgh boy who has health aversions to sunlight are suing their homeowners' association for permission to add a retractable awning to the front of their home.
Dan and Jaime Snyder's federal lawsuit says an awning would provide a shady place for 18-month-old Jonah to play. But the Summerset Neighborhood Association says awnings don't fit the designs of single-family homes in the plan.
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Awnings are popular on Pittsburgh area homes. In another less litigious time, a case like this would have been unimaginable.
Another Example of The Laws Just Ignored- Object to Powers of Attorney in All Foreclosure Cases….. | Matt Weidner - Candidate For The American People
Another Example of The Laws Just Ignored- Object to Powers of Attorney in All Foreclosure Cases….. | Matt Weidner - Candidate For The American People
Says foreclosure defense attorney Matt Weidner: "At some point in time I should just give up on thinking our laws in this country matter anymore because in the context of foreclosures, the laws are so violently and flagrantly ignored that we just might as well dispense with the whole fiction of a court process and just turn the homes over to the banks…..(Oh right, we’re already doing that in expedited foreclosure proceedings and there’s a HUGE move ahead to institutionalize this with the passage of Florida’s (un)Fair Foreclosure Act.)"
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That proposed law would bring non-judicial foreclosure to the state of Florida. I think NJF is a major league anti-consumer practice that should not be allowed, ever.
Says foreclosure defense attorney Matt Weidner: "At some point in time I should just give up on thinking our laws in this country matter anymore because in the context of foreclosures, the laws are so violently and flagrantly ignored that we just might as well dispense with the whole fiction of a court process and just turn the homes over to the banks…..(Oh right, we’re already doing that in expedited foreclosure proceedings and there’s a HUGE move ahead to institutionalize this with the passage of Florida’s (un)Fair Foreclosure Act.)"
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That proposed law would bring non-judicial foreclosure to the state of Florida. I think NJF is a major league anti-consumer practice that should not be allowed, ever.
Clayton Cramer's Blog: Righthaven Pleading For Mercy
Clayton Cramer's Blog: Righthaven Pleading For Mercy
I look forward to the day that Righthaven's CEO, Steve Gibson, is held personally liable for the actions of Righthaven, loses his fancy car, his home, and all of his other assets. After all: that's what he was trying to do to others who innocently stumbled into the Righthaven scheme. I can't think of a more deserving lawyer.
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Clayton Cramer socks it to the Righthaven copyright trolls and those who lurk behind them. Thanks to Bill Davis for the link.
I look forward to the day that Righthaven's CEO, Steve Gibson, is held personally liable for the actions of Righthaven, loses his fancy car, his home, and all of his other assets. After all: that's what he was trying to do to others who innocently stumbled into the Righthaven scheme. I can't think of a more deserving lawyer.
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Clayton Cramer socks it to the Righthaven copyright trolls and those who lurk behind them. Thanks to Bill Davis for the link.
Thursday, October 13, 2011
Congresswoman Susan Davis Introduces Bill to Help Homeowners Avoid Foreclosure | California RealEstateRama
Congresswoman Susan Davis Introduces Bill to Help Homeowners Avoid Foreclosure | California RealEstateRama
As homeowners in San Diego and across the nation continue to tangle with banks, Congresswoman Susan Davis (D-San Diego) introduced legislation to give people another tool to avoid foreclosure and the subsequent damage to the their credit rating. The Short Sale Transparency Act will require Fannie Mae and Freddie Mac to disclose the minimum asking price they are willing to accept for a short sale if the first offer is rejected.
“People deserve a real chance to avoid foreclosure. It is unfair to expect someone to complete a short sale instead of abandoning their home to foreclosure, if the banks don’t meet them half way,” said Davis. “So many homeowners are willing, even eager, to work with banks to get out from under the mortgage and protect their credit rating. But far too often, they find themselves in a guessing game as to what dollar amount will complete the sale.”
As homeowners in San Diego and across the nation continue to tangle with banks, Congresswoman Susan Davis (D-San Diego) introduced legislation to give people another tool to avoid foreclosure and the subsequent damage to the their credit rating. The Short Sale Transparency Act will require Fannie Mae and Freddie Mac to disclose the minimum asking price they are willing to accept for a short sale if the first offer is rejected.
“People deserve a real chance to avoid foreclosure. It is unfair to expect someone to complete a short sale instead of abandoning their home to foreclosure, if the banks don’t meet them half way,” said Davis. “So many homeowners are willing, even eager, to work with banks to get out from under the mortgage and protect their credit rating. But far too often, they find themselves in a guessing game as to what dollar amount will complete the sale.”
Barbara Lee, California Democratic Congressional Delegation Call on President Obama to Act on Housing | California RealEstateRama
Barbara Lee, California Democratic Congressional Delegation Call on President Obama to Act on Housing | California RealEstateRama
Specifically, the letter calls on President Obama to:
· Urge the Federal Housing Finance Agency to establish a plan to refinance all mortgages owned or guaranteed by Fannie Mae and Freddie Mac.
· Push for a major principal reduction plan for underwater homeowners, such as modifications in coordination with Chapter 13 bankruptcy filings.
· Institute a “Homeowner’s Bill Of Rights” that would apply to HAMP, FHFA, HUD, VA and private servicer modification programs
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No kidding. This should have been done three years ago. We bailed out the banks, the insurance companies, and General Motors and the economy still won't get moving. If the debt overload in the housing market could be reduced it might help turn things around, and it would certainly relieve some of the misery.
Specifically, the letter calls on President Obama to:
· Urge the Federal Housing Finance Agency to establish a plan to refinance all mortgages owned or guaranteed by Fannie Mae and Freddie Mac.
· Push for a major principal reduction plan for underwater homeowners, such as modifications in coordination with Chapter 13 bankruptcy filings.
· Institute a “Homeowner’s Bill Of Rights” that would apply to HAMP, FHFA, HUD, VA and private servicer modification programs
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No kidding. This should have been done three years ago. We bailed out the banks, the insurance companies, and General Motors and the economy still won't get moving. If the debt overload in the housing market could be reduced it might help turn things around, and it would certainly relieve some of the misery.
Parsing U.S. Poverty at the Metropolitan Level - Up Front Blog - Brookings Institution
Parsing U.S. Poverty at the Metropolitan Level - Up Front Blog - Brookings Institution
This is the study referenced in the post below. If you click the map you can see how far incomes dropped in the metro areas. Looking at this, I wonder how a pick-yourself-up-by-your-bootstraps message like some of the Republican presidential candidates (such as Perry, Bachmann, Gingrich, and Cain) are running could possibly play favorably.
This is the study referenced in the post below. If you click the map you can see how far incomes dropped in the metro areas. Looking at this, I wonder how a pick-yourself-up-by-your-bootstraps message like some of the Republican presidential candidates (such as Perry, Bachmann, Gingrich, and Cain) are running could possibly play favorably.
Soaring Suburban Poverty Catches Communities Unprepared
Soaring Suburban Poverty Catches Communities Unprepared
Though cities still have nearly double the rate of poverty as suburban areas, the number of people living in poverty in the suburbs of major metropolitan areas increased by 53 percent between 2000 and 2010, as compared to an increase of 23 percent among city-dwellers, according to a Brookings Institution analysis of recently released census data. In 16 metropolitan areas, including Atlanta, Dallas and Milwaukee, the suburban poor has more than doubled over the last decade.
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I have been saying for a long time that the stereotype of rich suburbanites is greatly exaggerated. Suburbia is much more diverse, ethnically and economically, than many urban dwellers realize. Cities at least have some support institutions for the poor--suburbs typically have none. You are on your own.
Though cities still have nearly double the rate of poverty as suburban areas, the number of people living in poverty in the suburbs of major metropolitan areas increased by 53 percent between 2000 and 2010, as compared to an increase of 23 percent among city-dwellers, according to a Brookings Institution analysis of recently released census data. In 16 metropolitan areas, including Atlanta, Dallas and Milwaukee, the suburban poor has more than doubled over the last decade.
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I have been saying for a long time that the stereotype of rich suburbanites is greatly exaggerated. Suburbia is much more diverse, ethnically and economically, than many urban dwellers realize. Cities at least have some support institutions for the poor--suburbs typically have none. You are on your own.
Chris Tucker foreclosure: Chris Tucker's home in foreclosure in Central Florida - OrlandoSentinel.com
Chris Tucker foreclosure: Chris Tucker's home in foreclosure in Central Florida - OrlandoSentinel.com
Tucker, 39, bought the 10,000-square-foot waterfront home on Lake Apopka in the pricey Bella Collina community in 2007 for $6 million but owes more than $4.4 million to SunTrust Bank, according to foreclosure papers filed in Circuit Court in Lake County.
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Things are tough all over.
Tucker, 39, bought the 10,000-square-foot waterfront home on Lake Apopka in the pricey Bella Collina community in 2007 for $6 million but owes more than $4.4 million to SunTrust Bank, according to foreclosure papers filed in Circuit Court in Lake County.
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Things are tough all over.
Sharp rise in foreclosures as banks move in - Business - Real estate - msnbc.com
Sharp rise in foreclosures as banks move in - Business - Real estate - msnbc.com
More U.S. homes are entering the foreclosure process, but they're taking ever longer to get sold or repossessed by lenders.
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This will make things even worse for the condo associations and HOAs, because (as I heard from yet another condo resident yesterday) banks frequently stiff the association if they buy up their own foreclosed properties at the sale. Like any owner, the banks are supposed to pay the assessments from the point of sale forward, but they often just refuse to do it. I have even heard of condo associations that foreclosed on the bank!
More U.S. homes are entering the foreclosure process, but they're taking ever longer to get sold or repossessed by lenders.
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This will make things even worse for the condo associations and HOAs, because (as I heard from yet another condo resident yesterday) banks frequently stiff the association if they buy up their own foreclosed properties at the sale. Like any owner, the banks are supposed to pay the assessments from the point of sale forward, but they often just refuse to do it. I have even heard of condo associations that foreclosed on the bank!
Another HOA activist website springs up in Nevada: HOA Corruption
This web site is DEDICATED to restoring Civil and Constitutional rights to all individuals living in Common Interest Communities in Nevada and elsewhere as provided under the United States Constitution and Federal Laws, to change State Statutes through the legislative process, to stop intrusive and punitive actions, stop misuse of and to protect homeowners funds, limit the powers of abusive Board of Directors in Associations and expose abuses to homeowners.
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This site is the second new site this year on problems with Nevada HOAs. Early this year, HOA Busters appeared -- its name possibly inspired by the late Las Vegas HOA critic Phil "The Ghostbuster" Testa -- but the site is now apparently out of commission.
Oak Park looks at crackdown on distracted drivers - chicagotribune.com
Oak Park looks at crackdown on distracted drivers - chicagotribune.com
If Oak Park enacts an outright ban on eating while driving, it might become one of the first in the nation to do so. Experts were unaware Wednesday of any community that has such a law.
Oak Park village trustee Colette Lueck, who is initiating the push against distracted driving, said she would like to ban drinking or applying makeup, in addition to eating and cellphone use.
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Oak Park is an ultra-liberal Chicago suburb that has banned guns, nuclear weapons, and the Boy Scouts. Now they are cracking down these idiots who try to drive while eating a Big Mac, drinking a latte, and talking on their cell phone.
If Oak Park enacts an outright ban on eating while driving, it might become one of the first in the nation to do so. Experts were unaware Wednesday of any community that has such a law.
Oak Park village trustee Colette Lueck, who is initiating the push against distracted driving, said she would like to ban drinking or applying makeup, in addition to eating and cellphone use.
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Oak Park is an ultra-liberal Chicago suburb that has banned guns, nuclear weapons, and the Boy Scouts. Now they are cracking down these idiots who try to drive while eating a Big Mac, drinking a latte, and talking on their cell phone.
Wednesday, October 12, 2011
HUD CHARGES UTAH HOMEOWNER ASSOCIATION, CONDO OWNERS WITH DISCRIMINATING AGAINST VETERAN WITH A DISABILITY | RealEstateRama
HUD CHARGES UTAH HOMEOWNER ASSOCIATION, CONDO OWNERS WITH DISCRIMINATING AGAINST VETERAN WITH A DISABILITY | RealEstateRama
The U.S. Department of Housing and Urban Development (HUD) today announced it is charging a Park City, Utah homeowner association, property management company, and a group of condominium owners with violating the Fair Housing Act for refusing to accommodate a tenant who required an emotional support dog because of a disability. HUD brings the charges on behalf of the tenant, a Gulf War veteran with a disability.
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Thanks to Shu Bartholomew for this link. The pettiness of some HOA boards and managers never ceases to amaze me.
The U.S. Department of Housing and Urban Development (HUD) today announced it is charging a Park City, Utah homeowner association, property management company, and a group of condominium owners with violating the Fair Housing Act for refusing to accommodate a tenant who required an emotional support dog because of a disability. HUD brings the charges on behalf of the tenant, a Gulf War veteran with a disability.
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Thanks to Shu Bartholomew for this link. The pettiness of some HOA boards and managers never ceases to amaze me.
Tuesday, October 11, 2011
Take our roads -- please!
EATONTOWN— ParkerVillage residents have petitioned the borough to assume control of the development’s roads, a move that touched off a heated discussion at the Borough Council workshop meeting Oct. 5.
Bruce Friedman, the attorney representing Parker Village Homeowners Association, asked the council to support the dedication of the Parker Village roads to help reduce some of the costs residents must bear.
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Yet another privatopian enclave seeks relief from the burden of double taxation.
Monday, October 10, 2011
New law alters local-government bankruptcy process - latimes.com
New law alters local-government bankruptcy process - latimes.com
Under the new law, written by Assemblyman Bob Wieckowski (D-Fremont), cities would have undergo an evaluation from a neutral third party or declare a fiscal emergency, stating it will default on its bills within 60 days before it can claim insolvency.
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This is the latest in the conflict between a number of California cities and the public employee unions. In Chapter Nine proceedings the cities can do away with the obligations of their contracts with the unions, and the threat of doing that has become a bargaining chip in negotiations. Thanks to Fred Pilot for the link.
Under the new law, written by Assemblyman Bob Wieckowski (D-Fremont), cities would have undergo an evaluation from a neutral third party or declare a fiscal emergency, stating it will default on its bills within 60 days before it can claim insolvency.
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This is the latest in the conflict between a number of California cities and the public employee unions. In Chapter Nine proceedings the cities can do away with the obligations of their contracts with the unions, and the threat of doing that has become a bargaining chip in negotiations. Thanks to Fred Pilot for the link.
Sunday, October 09, 2011
Could this time have been different? - The Washington Post
Could this time have been different? - The Washington Post
The stimulus was a bet that we could get out of this recession through the one path everyone can agree on: growth. The bet was pretty much all-in, and it failed. Reinhart and Rogoff are not particularly surprised. It’s hard to get through a debt-driven crisis without doing anything about, well, debt.
In our crisis, the “debt” in question is housing debt...
In late 2008, when the economy was cratering, Holtz-Eakin convinced McCain that the way out of a housing crisis was to tackle housing debt directly. “What we proposed at the time was to buy up the troubled mortgages, pay them off and let people refinance at the lower rates,” he recalls. “That would have filled up the negative equity and healed bank balance sheets.”
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But of course the politics of that proposal--the one that probably would have prevented the long-term catastrophe were are now living through--were "hideous." If you have time, read this. Ezra Klein has written the best single piece on why the economy is still in the ditch, despite everything the Obama administration has done, that has been published to date.
The stimulus was a bet that we could get out of this recession through the one path everyone can agree on: growth. The bet was pretty much all-in, and it failed. Reinhart and Rogoff are not particularly surprised. It’s hard to get through a debt-driven crisis without doing anything about, well, debt.
In our crisis, the “debt” in question is housing debt...
In late 2008, when the economy was cratering, Holtz-Eakin convinced McCain that the way out of a housing crisis was to tackle housing debt directly. “What we proposed at the time was to buy up the troubled mortgages, pay them off and let people refinance at the lower rates,” he recalls. “That would have filled up the negative equity and healed bank balance sheets.”
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But of course the politics of that proposal--the one that probably would have prevented the long-term catastrophe were are now living through--were "hideous." If you have time, read this. Ezra Klein has written the best single piece on why the economy is still in the ditch, despite everything the Obama administration has done, that has been published to date.
Saturday, October 08, 2011
China 'faces subprime credit bubble crisis' - Telegraph
China 'faces subprime credit bubble crisis' - Telegraph
Monetary tightening in China threatens to pop the $1.7 trillion (£1.07 trillion) credit bubble in local government finance and expose the country's simmering "subprime" crisis, according to the Communist Party's economic guru.
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Did you know that virtually all the new housing being constructed in China is in private communities? And this is a source of massive corruption, because developers pay off the local government officials, who control all the land. Reading on:
"The audit office said the loans have reached $1.7 trillion (£1 trillion). While some of the money has been used to finance much-needed investments in water systems and roads, a large part has fuelled unbridled construction with a dubious rate of return. The local governments depend on land sales for 40pc of their revenue so the process has become incestuous and self-feeding. Such reliance on property sales revenues has greatly aggravated the post-bubble crisis in Ireland."
Monetary tightening in China threatens to pop the $1.7 trillion (£1.07 trillion) credit bubble in local government finance and expose the country's simmering "subprime" crisis, according to the Communist Party's economic guru.
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Did you know that virtually all the new housing being constructed in China is in private communities? And this is a source of massive corruption, because developers pay off the local government officials, who control all the land. Reading on:
"The audit office said the loans have reached $1.7 trillion (£1 trillion). While some of the money has been used to finance much-needed investments in water systems and roads, a large part has fuelled unbridled construction with a dubious rate of return. The local governments depend on land sales for 40pc of their revenue so the process has become incestuous and self-feeding. Such reliance on property sales revenues has greatly aggravated the post-bubble crisis in Ireland."
Thursday, October 06, 2011
Biggest drop in home ownership rate since Great Depression
News from The Associated Press
WASHINGTON (AP) -- The American dream of homeownership has felt its biggest drop since the Great Depression, according to new 2010 census figures released Thursday.
The analysis by the Census Bureau found the homeownership rate fell to 65.1 percent last year. While that level remains the second highest decennial rate, analysts say the U.S. may never return to its mid-decade housing boom peak in which nearly 70 percent of occupied households were owned by their residents.
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Part of the reason is that from 1995 to 2008 the rate increased so much. The National Home Ownership Strategy that began in 1995 was intended to expand home ownership, based on the fear that it was falling. However, the subprime fiasco jacked the rate way up to 70%, and it has fallen as the foreclosure crisis threw people from owner to renter (or homeless) status. Will it ever go back to 70% again? I doubt it--at least not in the forseeable future. But I don't think that's a bad thing in itself. We don't all need to be home owners, and in fact lots of condo buildings should and will become apartment building in the years to come.
WASHINGTON (AP) -- The American dream of homeownership has felt its biggest drop since the Great Depression, according to new 2010 census figures released Thursday.
The analysis by the Census Bureau found the homeownership rate fell to 65.1 percent last year. While that level remains the second highest decennial rate, analysts say the U.S. may never return to its mid-decade housing boom peak in which nearly 70 percent of occupied households were owned by their residents.
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Part of the reason is that from 1995 to 2008 the rate increased so much. The National Home Ownership Strategy that began in 1995 was intended to expand home ownership, based on the fear that it was falling. However, the subprime fiasco jacked the rate way up to 70%, and it has fallen as the foreclosure crisis threw people from owner to renter (or homeless) status. Will it ever go back to 70% again? I doubt it--at least not in the forseeable future. But I don't think that's a bad thing in itself. We don't all need to be home owners, and in fact lots of condo buildings should and will become apartment building in the years to come.
Attorneys General Settlement: The Next Big Bank Bailout? | Matt Taibbi | Rolling Stone
Attorneys General Settlement: The Next Big Bank Bailout? | Matt Taibbi | Rolling Stone
In fact, any federal foreclosure settlement along the lines of what’s been proposed will amount to a last round of post-2008-crisis bailouts. I talked to one foreclosure activist over the weekend who put it this way: “[The AG settlement] will be a bigger bailout than TARP.”
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I have been reading up on foreclosure abuse recently and spent yesterday morning talking with some attorneys who do a lot of work with people who have been victimized by these sleazy practices. There are so many scams going on that you can't keep track of them. Remember all those fly-by-night subprime mortgage companies that went out of business? They sent out zillions of colorful postcards offering all these great mortgages, with no down payment, teaser rates, negative amortization loans, selling subprime mortgages to people who would have qualified for conventional ones, and getting paid by the bank for doing it, and so forth? Well, guess what? Lots of them have a new gig and are sending out zillions of new postcards. They have re-emerged from the sewer as "mortgage rescue" companies. That's right. After sticking people with exploding mortgages that were bound to explode in their faces, now they offer their services as the folks who will save you from the consequences of those very same toxic deals. The first round of these scams involved the mortgage rescue artist finding an "investor" who will help you out. But the investor is really one of their cronies who will get title to your house and then lease it back to you while you get back on your feet. But in the meantime the rescuer and the investor will strip any equity out of the house and stick you with payments so high that you will never be able to get your house back. They have other scams for owner who don't have any equity to strip, mainly involving a lot of up-front attorney fees that skirt the prohibition on taking up-front mortgage rescue fees and then producing nothing.
Fannie Mae knew that mortgage foreclosure fraud was being committed by their own retained attorney network as early as 2003 and did nothing about it. Read the report from the Inspector General.
In fact, any federal foreclosure settlement along the lines of what’s been proposed will amount to a last round of post-2008-crisis bailouts. I talked to one foreclosure activist over the weekend who put it this way: “[The AG settlement] will be a bigger bailout than TARP.”
----------
I have been reading up on foreclosure abuse recently and spent yesterday morning talking with some attorneys who do a lot of work with people who have been victimized by these sleazy practices. There are so many scams going on that you can't keep track of them. Remember all those fly-by-night subprime mortgage companies that went out of business? They sent out zillions of colorful postcards offering all these great mortgages, with no down payment, teaser rates, negative amortization loans, selling subprime mortgages to people who would have qualified for conventional ones, and getting paid by the bank for doing it, and so forth? Well, guess what? Lots of them have a new gig and are sending out zillions of new postcards. They have re-emerged from the sewer as "mortgage rescue" companies. That's right. After sticking people with exploding mortgages that were bound to explode in their faces, now they offer their services as the folks who will save you from the consequences of those very same toxic deals. The first round of these scams involved the mortgage rescue artist finding an "investor" who will help you out. But the investor is really one of their cronies who will get title to your house and then lease it back to you while you get back on your feet. But in the meantime the rescuer and the investor will strip any equity out of the house and stick you with payments so high that you will never be able to get your house back. They have other scams for owner who don't have any equity to strip, mainly involving a lot of up-front attorney fees that skirt the prohibition on taking up-front mortgage rescue fees and then producing nothing.
Fannie Mae knew that mortgage foreclosure fraud was being committed by their own retained attorney network as early as 2003 and did nothing about it. Read the report from the Inspector General.
The Chicago Model | ThinkProgress
The Chicago Model | ThinkProgress
Chicago, though by no means perfect, is largely doing real estate development policy right. It’s a city that’s both sprawling and dense. It has its share of heavy rail transit serving the center of the city, and downtown where land is expensive the buildings get very tall. At the same time, it also spreads out a great deal since lots of people have a perfectly authentic preference for single family homes and varying degrees of low density neighborhoods.
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It's a good point. And if you live in the suburbs you can take the commuter rail system, METRA. I have used either the CTA or METRA to get to work since 1994.
Chicago, though by no means perfect, is largely doing real estate development policy right. It’s a city that’s both sprawling and dense. It has its share of heavy rail transit serving the center of the city, and downtown where land is expensive the buildings get very tall. At the same time, it also spreads out a great deal since lots of people have a perfectly authentic preference for single family homes and varying degrees of low density neighborhoods.
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It's a good point. And if you live in the suburbs you can take the commuter rail system, METRA. I have used either the CTA or METRA to get to work since 1994.
Wednesday, October 05, 2011
Principal reduction plan for struggling homeowners could be part of settlement between lenders and states
Principal reduction plan for struggling homeowners could be part of settlement between lenders and states
Florida homeowners facing foreclosure could see their debt reduced by banks under a proposal being negotiated this week by state attorneys general. In return for cutting loan balances, banks would pay less in penalties for foreclosure and mortgage-related wrongdoing. The principal reduction plan, which is being discussed as part of a settlement agreement between lenders and states, would accompany a second program that would provide funding to states to pay for their own foreclosure-rescue activity.
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It's about time somebody took this approach seriously. How can the housing market recover with 25% of the nation's mortgages underwater?
Florida homeowners facing foreclosure could see their debt reduced by banks under a proposal being negotiated this week by state attorneys general. In return for cutting loan balances, banks would pay less in penalties for foreclosure and mortgage-related wrongdoing. The principal reduction plan, which is being discussed as part of a settlement agreement between lenders and states, would accompany a second program that would provide funding to states to pay for their own foreclosure-rescue activity.
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It's about time somebody took this approach seriously. How can the housing market recover with 25% of the nation's mortgages underwater?
Tuesday, October 04, 2011
Bruce Bartlett: Misrepresentations, Regulations and Jobs - NYTimes.com
Bruce Bartlett: Misrepresentations, Regulations and Jobs - NYTimes.com
Lifelong Republican and Reagan, Bush, Kemp, and Ron Paul advisor Bruce Bartlett says:
"As one can see, the number of layoffs nationwide caused by government regulation is minuscule and shows no evidence of getting worse during the Obama administration. Lack of demand for business products and services is vastly more important."
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Lifelong Republican and Reagan, Bush, Kemp, and Ron Paul advisor Bruce Bartlett says:
"As one can see, the number of layoffs nationwide caused by government regulation is minuscule and shows no evidence of getting worse during the Obama administration. Lack of demand for business products and services is vastly more important."
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Fannie Mae Ignored Foreclosure Misdeeds, Report Says - NYTimes.com
Fannie Mae Ignored Foreclosure Misdeeds, Report Says - NYTimes.com
Fannie Mae, the mortgage finance giant, learned as early as 2003 of extensive foreclosure abuses among the law firms it had hired to remove troubled borrowers from their homes. But the company did little to correct the firms’ practices, according to a report issued Tuesday.
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If your engine isn't started yet, this story should do it.
Fannie Mae, the mortgage finance giant, learned as early as 2003 of extensive foreclosure abuses among the law firms it had hired to remove troubled borrowers from their homes. But the company did little to correct the firms’ practices, according to a report issued Tuesday.
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If your engine isn't started yet, this story should do it.
Monday, October 03, 2011
California and Bust | Business | Vanity Fair
California and Bust | Business | Vanity Fair
The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.
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Long article, but full of details. Worth a read.
The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.
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Long article, but full of details. Worth a read.
Grandmother nearly loses condo to foreclosure after $4.70 fee balloons to nearly $3,000 | FLORIDA TODAY | floridatoday.com
Grandmother nearly loses condo to foreclosure after $4.70 fee balloons to nearly $3,000 | FLORIDA TODAY | floridatoday.com
Well, they quoted me, but they didn't use anything I said about abuses of the foreclosure power.
Well, they quoted me, but they didn't use anything I said about abuses of the foreclosure power.
USA, 250,000 empty public properties should be used to address the housing crisis / Inhabitants of Americas / News / Home - International Alliance of Inhabitants
USA, 250,000 empty public properties should be used to address the housing crisis / Inhabitants of Americas / News / Home - International Alliance of Inhabitants
Now, the FHFA, the Treasury and HUD are looking to get rid of yet another huge supply of viable homes and quickly. The proposal: large bulk sales of the foreclosed homes they have collected throughout to foreclosure crisis to “market participants” with the “financial capacity” to buy in bulk and ensure the properties’ “productive use.” ...We believe that the nearly 250,000 properties currently in the hands of the U.S. government should be used as part of the solution to the massive human right to housing crisis. In particular, we call upon the FHFA, the Treasury and HUD to challenge the conditions that lead to homelessness, serial displacement, and extreme rent burdens, and to protect the right to housing, by issuing an entirely new RFI that ensures policies and practices meet the following principles:
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So now there is a global association representing "inhabitants," and opposing the bank-centered housing policies.
Now, the FHFA, the Treasury and HUD are looking to get rid of yet another huge supply of viable homes and quickly. The proposal: large bulk sales of the foreclosed homes they have collected throughout to foreclosure crisis to “market participants” with the “financial capacity” to buy in bulk and ensure the properties’ “productive use.” ...We believe that the nearly 250,000 properties currently in the hands of the U.S. government should be used as part of the solution to the massive human right to housing crisis. In particular, we call upon the FHFA, the Treasury and HUD to challenge the conditions that lead to homelessness, serial displacement, and extreme rent burdens, and to protect the right to housing, by issuing an entirely new RFI that ensures policies and practices meet the following principles:
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So now there is a global association representing "inhabitants," and opposing the bank-centered housing policies.
HUD asks Congress to restore housing counselor funding « HousingWire
HUD asks Congress to restore housing counselor funding « HousingWire
In April, Congress cut all $88 million in HUD nonprofit counseling funds appropriated for 2011 as part of the budget negotiations. Last week, the department tapped $10 million in unspent funds from the year before to be used for the program.
Deborah Holston, acting deputy assistant secretary for single family housing at HUD, told a House subcommittee Wednesday in 2012, counseling agencies will face a gap in funding going forward.
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This is one of the cuts that Obama went along with to avoid a government shutdown, during one of those Republican-created hostage crises. There is zero money in the 2012 budget for this as well. It is hard to imagine a stupider or more heartless budget cut. These foreclosures are wrecking any chance of an economic recovery. The federal and state programs to help people facing foreclosure are premised on the availability of counseling. HUD's list of approved counselors includes only the non-profits, because the for-profit counselors include a lot of predators who want to get title to people's homes (among other shady practices). The non-profits depend to a sizable extent on HUD funds. They also get money from the banks, but not enough for them to keep operating. Even the banks want the funding restored. But with the Tea Party Caucus running the House of Representatives, the only way this can happen is if it is "balanced" by taking away money for handicapped children or people with Alzheimer's or otherwise making life miserable for somebody with no political power.
But in the meantime, the federal government will continue to provide vast quantities of taxpayer-subsidized super-cheap water to right-wing Republican, Tea Party-loving, corporate farmers in Arizona and Utah so they can grow crops in a desert. Not to mention the giant HOA-run subdivisions in the Phoenix and Tucson areas that wouldn't even exist except for the water welfare we have been giving them since the Central Arizona Project was built.
In April, Congress cut all $88 million in HUD nonprofit counseling funds appropriated for 2011 as part of the budget negotiations. Last week, the department tapped $10 million in unspent funds from the year before to be used for the program.
Deborah Holston, acting deputy assistant secretary for single family housing at HUD, told a House subcommittee Wednesday in 2012, counseling agencies will face a gap in funding going forward.
------------------------------
This is one of the cuts that Obama went along with to avoid a government shutdown, during one of those Republican-created hostage crises. There is zero money in the 2012 budget for this as well. It is hard to imagine a stupider or more heartless budget cut. These foreclosures are wrecking any chance of an economic recovery. The federal and state programs to help people facing foreclosure are premised on the availability of counseling. HUD's list of approved counselors includes only the non-profits, because the for-profit counselors include a lot of predators who want to get title to people's homes (among other shady practices). The non-profits depend to a sizable extent on HUD funds. They also get money from the banks, but not enough for them to keep operating. Even the banks want the funding restored. But with the Tea Party Caucus running the House of Representatives, the only way this can happen is if it is "balanced" by taking away money for handicapped children or people with Alzheimer's or otherwise making life miserable for somebody with no political power.
But in the meantime, the federal government will continue to provide vast quantities of taxpayer-subsidized super-cheap water to right-wing Republican, Tea Party-loving, corporate farmers in Arizona and Utah so they can grow crops in a desert. Not to mention the giant HOA-run subdivisions in the Phoenix and Tucson areas that wouldn't even exist except for the water welfare we have been giving them since the Central Arizona Project was built.
Sunday, October 02, 2011
The Long Arm of Debt Stretches into Condo Fees, Car Repos - Deal Journal - WSJ
The Long Arm of Debt Stretches into Condo Fees, Car Repos - Deal Journal - WSJ
But deficiency judgments aren’t just for soured mortgages.
Lawsuits are also piling up against borrowers who still owe money to the bank after their car is repossessed, according to lawyers for people sued by lenders. In addition, homeowners living in condominium complexes battered by foreclosures are going after unpaid condo-association fees.
“We help homeowners so they aren’t left holding the bag for deadbeats,” says Ben Solomon, a partner at Association Law Group, a law firm in Miami that has received more than 500 requests in the past year from condo complexes trying to recover fees from homeowners whose condos went into foreclosure.
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These collections lawyers are such charmers. Some poor slob who lost his job, can't find another one, and lost his condo to the bank is a "deadbeat." Right.
Thanks to Fred Pilot for this link. Yet another chapter in the sorry history of "affordable mortgages."
But deficiency judgments aren’t just for soured mortgages.
Lawsuits are also piling up against borrowers who still owe money to the bank after their car is repossessed, according to lawyers for people sued by lenders. In addition, homeowners living in condominium complexes battered by foreclosures are going after unpaid condo-association fees.
“We help homeowners so they aren’t left holding the bag for deadbeats,” says Ben Solomon, a partner at Association Law Group, a law firm in Miami that has received more than 500 requests in the past year from condo complexes trying to recover fees from homeowners whose condos went into foreclosure.
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These collections lawyers are such charmers. Some poor slob who lost his job, can't find another one, and lost his condo to the bank is a "deadbeat." Right.
Thanks to Fred Pilot for this link. Yet another chapter in the sorry history of "affordable mortgages."
Florida homeowners facing foreclosure could be stripped of their homes faster - Sun Sentinel
Florida homeowners facing foreclosure could be stripped of their homes faster - Sun Sentinel
So...the mortgage foreclosure industry is trying to get nonjudicial foreclosure adopted in Florida. Look--the evidence that foreclosure mills and mortgage servicers, etc., have engaged in widespread predatory foreclosure practices is overwhelming. Having a judge oversee the process is the only hope anybody has to hold these people to any standards of honesty. How can any public officials even seriously consider making it easier for them to run these scams on people? Read Nye Lavalle's description of what he has learned--and he is the one who saw all this coming in 1999. I found this link on the web page of attorney Thomas Ice of Florida, where there are many linked articles and videos on foreclosure abuse.
So...the mortgage foreclosure industry is trying to get nonjudicial foreclosure adopted in Florida. Look--the evidence that foreclosure mills and mortgage servicers, etc., have engaged in widespread predatory foreclosure practices is overwhelming. Having a judge oversee the process is the only hope anybody has to hold these people to any standards of honesty. How can any public officials even seriously consider making it easier for them to run these scams on people? Read Nye Lavalle's description of what he has learned--and he is the one who saw all this coming in 1999. I found this link on the web page of attorney Thomas Ice of Florida, where there are many linked articles and videos on foreclosure abuse.
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