Limited HOA reforms likely in North Carolina

The study committee's recommendations would provide more protections for homeowner by requiring that no liens lead to foreclosure unless assessments have gone unpaid for at least 90 days. Homeowners would also be allowed to pay late assessments in installments and must be mailed a copy of an offer to make the late payments.

Homeowners would be given more power to force homeowner association boards to meet openly and remove board members who fail to abide by the law or association bylaws. Associations financial records would also be open to review.

The catch is that state lawmakers can't force these rules down the throats of existing homeowners associations if current contracts and covenants call for something different. The regulations, if they become law, would only apply in total to new homeowners associations or those that agree to accept them.

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Read more about the state's pending "HOA reform lite" here.

Clackamas County considers ban on signs, added restrictions

Clackamas County considers ban on signs, added restrictions: "A local expert in constitutional law believes that Clackamas County will have to significantly alter its draft resolution that proposed banning signs, clapping and personal insults, while giving “authority to enforce reasonable restrictions” on the times the public would be allowed to speak, and on the use of video recording equipment."
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Another example of cities emulating HOAs?

Condo Owners: pay up!

BostonHerald.com - Blogs: Getting Real» Blog Archive » Condo owners beware: pay up!: "Sid Shulman, homeowner at International Village, has taken matters into his own hands.

Near the mailbox of each condo building he posted a list of residents delinquent on their maintenance fees, with the message “Pay up or move out” and the same in Spanish, Pague O Mudese. He also tried, unsuccessfully, to get the cable company to cut off service to nonpayers.

The association has gone so far as to install a fingerprint scanner at the entrance to its community center, in order to keep non-payers from gaining access."
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Thanks to Fred Pilot for this link. Pay or else.

California HOA cracks down on hoarders

Once a hoarding complaint is filed, an inspection could be ordered. The board must get residents' permission to enter units. Residents who refuse inspections will be called before the board for a disciplinary hearing.

If the board determines the hoarding policy has been violated, the resident would have 15 days to remove the clutter. If a resident refuses, the board could seek a court order to force the resident to remove the clutter, fine the resident, suspend the resident's privileges in the community or proceed with eviction.

Read the story here.
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The HOA better get permission. The California Court of Appeal ruled a dozen years ago that another Southern California HOA could not enter the unit of a merchant marine while he was away at sea to police what it saw as an excessively cluttered unit, which the appellate court equated to nanny state governance.

The coming muni meltdown--Charles Gasparino - NYPOST.com

The coming muni meltdown--Charles Gasparino - NYPOST.com:
"The municipal-bond market is in crisis, with prices fall ing and investors running for cover -- and for good reason. Munis -- bonds sold by states, cities, counties and other localities to finance government operations -- are in trouble because the Ponzi scheme of Big Government is coming unglued. The markets are merely reflecting this reality, as they always do. The $3 trillion muni market was once regarded as the safest of all investments because the bonds are backed by government taxes. Now it's showing all the earmarks of the 2007-08 meltdown."

Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/muni_meltdown_10IepFWdpphKZrTnoxftBK#ixzz1BJhQQEj2

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But the economy is recovering. Just ask Ben Bernanke.

SIDE STREETS: HOA at Satellite Hotel is veering out of orbit

Ugly allegations have surfaced as residents fight for control of the homeowners association that runs the Satellite Hotel, a “futuristic” 14-story, three-winged hotel/condo hybrid built in 1969.

The HOA president and her officers portray board newcomer Hayward Rigano as a bully who has used threats and intimidation in his quest for power over the 300 or so who live in the Satellite’s 241 condos.

Rigano denies the allegations, describing himself as simply trying to do what’s right for the Satellite, which sits along South Academy Boulevard at Airport Road.

Read more: http://www.gazette.com/articles/vogrin-111178-side-streets.html#ixzz1BFux6kuD

Secret GOP plan: Push states to declare bankruptcy and smash unions | Analysis & Opinion |

Secret GOP plan: Push states to declare bankruptcy and smash unions | Analysis & Opinion |:

Long economic downturn paints grim future for Privatopia

As the owner of this blog has observed, there's years more excess to be wrung out of the real estate bubble that burst five years ago.

Before it's done, it could take down a lot of HOAs with it. Witness the "the fading fortunes of gated communities and condominiums" in Florida as the Palm Beach Post put it in this article, where desperate HOAs have resorted to locking out inmates behind on their assessments and removing the doors of their mailboxes.

Hot topics for community associations in 2011 - chicagotribune.com

Hot topics for community associations in 2011 - chicagotribune.com:
Pamela McKuen of the Chicago Tribune focuses on the financial problems of associations. Thanks to my student, Brittany Ryan, for this link.

Over 1 million Americans seen losing homes in 2011 - Yahoo! News

Over 1 million Americans seen losing homes in 2011 - Yahoo! News: "The bleakest year in the foreclosure crisis has only just begun. Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and industry experts say more people will miss payments because of job losses and also loans that exceed the value of the homes they are living in. '2011 is going to be the peak,' said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. The firm predicts 1.2 million homes will be repossessed this year."
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Bucking the trend, I managed to conclude the refinancing of my home yesterday. I feel like the guy who gets onto the spaceship last just before the door closes, and it flies away, and the meteor crashes into the earth.

Interest rates are going up and the banks are behaving like complete idiots (i.e., taking zillions in cheap money from the taxpayers and then refusing to lend it). During 2011 they will drop the hammer on the huge backlog in foreclosures that accumulated during the "robo-signer" scandal.

Housing and Economy: Housing Market Slips Into Depression Territory - CNBC

Housing and Economy: Housing Market Slips Into Depression Territory - CNBC:
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported. November marked the 53rd consecutive month (4 ½ years) that home values have fallen. What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won't recover until the job market improves.
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And in other news, the Democrats who control the Illinois state legislature just raised the state income tax by 67%, corporate taxes by over 40%, and continued their 8 year refusal to address their over-spending.

This is the first of many state and local tax increases to come. California and other big states are going to jack up taxes.

How anybody can talk about economic recovery now is just beyond me. The housing market is still deteriorating, unemployment remains high, and the crisis state of government financing at all levels is getting worse.

Illinois Review: Gov. Mitch Daniels: Illinois tax hikes good for Indiana

Illinois Review: Gov. Mitch Daniels: Illinois tax hikes good for Indiana:
That's because Daniels is the Governor of Indiana. If the Democrats in Springfield raise the personal income tax here in Illinois by 75% (from a flat rate of 3% to 5.25% of income, with practically no deductions or exemptions), and if they raise the corporate income tax by 75% as well (from 4.8% to 8.4%), businesses will relocate to Indiana. This state is run by a corrupt political machine that is arrogant and cynical beyond belief. They are doing this after the election, and before the new legislature is seated. They figure that in two years enough "voters" (and I use the word with some doubt as to whether it really applies) will forget that the Democrats did this. Maybe they are right.

Of course, something has to be done to raise revenues and cut spending because Illinois is insolvent. But the lack of a two-party system here is the main problem. A tax increase was in the cards. You can count on the Democrats for that, and they waited until the election was over to do it so they could keep their control of the legislature. But what about budget-cutting? That's where some Republican influence would make a difference. We need both. Instead the Democrats want to increase the money being shoveled into the maw of the teachers' unions, and because they control the entire state, that's what we will get: more taxes, more spending, and empty promises of budget-cutting to come.

Banks lose key foreclosure ruling in top Massachusetts court | Reuters

Banks lose key foreclosure ruling in top Massachusetts court | Reuters:
In a decision that may slow foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.
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I am nearing the end of a three month effort to refinance my house. The banks and title companies are over-compensating for their slovenly ways during the housing bubble. Now you have to prove everything about yourself and your house beyond any possible or imaginary doubt. But when they want to foreclose, and they have to produce proof that they own the house, why, then things are different. Suddenly anything goes.

Vegas HOA takes Floyd Mayweather to court

LAS VEGAS, Nevada (AFP) — Unbeaten boxer Floyd Mayweather has been threatening employees of the homeowners association in the development where he lives, according to officials who have gone to court to stop him.

A complaint by Southern Highlands Estates in Clark District Court seeks $10,000 in damages and an injunction to limit contact between Mayweather and employees of the gated community south of the glitzy Las Vegas Strip.

Mayweather, 33, already faces misdemeanor battery charges from a December 16 incident in which he allegedly poked a security guard in the face outside his home over complaints about parking.

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Read story here.

Homeowner tells HOA: You're messing with the wrong Marine

Marine battles homeowners association over flag pole

Merola said he went through the proper channels to ask for permission to put up a 20-foot flag pole, but permission was denied. The HOA told him he was welcome to attach a small flag pole to his house.

An attorney representing the Lakeland Village Community Association said homeowners are encouraged to display American flags, if they want to, but that freestanding flag poles are just not allowed.

Merola said the homeowners association is going too far and has hired his own lawyers.

"Being a marine, this is a battle I’m willing to fight," Merola said.
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UPDATE 1/7/11:

Group plans to take on HOAs over flags

Merola's battle with his HOA could be the last of its kind. A group in Austin tired of hearing about these flag flaps is introducing a flag display bill in the upcoming Texas legislature, stipulating that HOAs cannot prohibit flags on free standing poles.

"From experience in dealing with homeowner associations, if it's not in black and white and it says you must permit or you may not prohibit, then they won't do it," said John Stratton, attorney for American Radio Relay League.

Who you gonna call? HOA Busters!

Are you fed up with your homeowner association?

Feel you're being targeted and fined by people overstepping their bounds and you have little to no recourse?

Homeowners who want to fight back against their HOA's have a new coach in their corner.

It's a group called HOA Busters and they're gearing up for battle in the wake of a Contact 13 investigation.
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The HOA inmates are revolting in Las Vegas. Get the scoop on HOA Busters in this story from KNTV Las Vegas 13 Action News.

GOP gets cold feet on ending bailout of Fannie Mae and Freddie Mac - Yahoo! News

GOP gets cold feet on ending bailout of Fannie Mae and Freddie Mac - Yahoo! News
With the housing market getting soft(er) yet again, it looks like continued government support of Fannie and Freddie will continue at least another year.

Housing Distress Pits Neighbor Against Neighbor - WSJ.com

Housing Distress Pits Neighbor Against Neighbor - WSJ.com
Yes, it certainly does.

Contact 13 Investigates: HOA Hall of Shame

Contact 13 Chief Investigator Darcy Spears takes us down that hall, so you can decide whether it's shame on the homeowners or shame on the HOAs. "It's a sickness. It's a cancer on our society," says self-appointed homeowner advocate Jonathan Friedrich.

The concept of an HOA--keeping property values up and neighborhoods looking nice--is a good one, but the reality can be a nightmare. "Extremely, extremely bad," sighs frustrated homeowner Brigitte Porter.

And for Dr. Robin Huhn, "It has tainted the home for me." "It almost becomes like a Gestapo where everybody's spying on everybody else," adds Friedrich.
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13 Action News of Las Vegas reports on the goings on in private local government that often resemble something out of Peyton Place and Lord of the Flies.

American English Dialects

American English Dialects:

Check this out. It is amazing.

HOA Drives Down Property Values | RumorMiller

HOA Drives Down Property Values | RumorMiller
An interesting case in point...

The Fallacy of a Pain-Free Path to a Healthy Housing Market - Economic Letter, December 2010 - FRB Dallas

The Fallacy of a Pain-Free Path to a Healthy Housing Market - Economic Letter, December 2010 - FRB Dallas: "The Fallacy of a Pain-Free Path to a Healthy Housing Market"

"As gauged by an aggregate of housing indexes dating to 1890, real home prices rose 85 percent to their highest level in August 2006. They have since declined 33 percent, falling short of most predictions for a cumulative correction of at least 40 percent.[1] In fact, home prices still must fall 23 percent if they are to revert to their long-term mean."

What's next for minimalist houses? How about a subdivision of tiny houses in Eastern Oregon? | OregonLive.com

What's next for minimalist houses? How about a subdivision of tiny houses in Eastern Oregon? | OregonLive.com: "Now the 50-year-old builder has come up with an idea that may prove both brilliant and quixotic: a subdivision for 50 to 100 pint-sized homes geared to folks hurt by the real estate bust, jobless or on fixed incomes. Increasingly, he's approached by people desperate to cut their living expenses, he said."
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Yes, I think an 8 1/2 foot wide house qualifies as tiny.

Arizona lawmaker proposes barring HOA "auto liens," foreclosures to secure fines

A local homeowners association’s management company is pushing state lawmakers to defeat a legislative bill that would make it impossible to foreclose on a home for non-payment of assessment fines.

The Arizona Association of Community Management (AACM), the HOA political arm of Associated Asset Management (AAM), is lobbying the state Legislature to defeat House Bill 2307, sponsored by Rep. Eddie Farnsworth, R-Gilbert, which is designed to restrict HOAs from foreclosing on a property owner’s home for non-payment of assessment fines using a legal tool called an “auto-lien.”

The auto-lien is a provision in the Covenants, Conditions and Restrictions (CC&Rs under Arizona real estate law. The CC&R is a document that is signed during the closing of sale of a home and states that a homeowner who buys a home in a deed-restricted property must join an HOA. AAM and AACM are also dues-paying members of the Community Association Institute, a national HOA membership organization that oversees the operations of HOAs.
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This is an ongoing battle in the Grand Canyon State dating back to at least the mid 1990s involving a familiar legislator (Eddie Farnsworth, who argues the bar on HOAs placing automatic liens for fines protects property rights) longtime HOA member rights advocate Pat Haruff and of course the usual wall of opposition from the private local government lobby. Read the story here.

A California Bankruptcy, Dictatorship, and the Guarantee Clause - ProfessorBainbridge.com

A California Bankruptcy, Dictatorship, and the Guarantee Clause - ProfessorBainbridge.com
Great post by Professor Bainbridge.

Lakemoor woman can use toilets as planters - Chicago Breaking News

Lakemoor woman can use toilets as planters - Chicago Breaking News
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Justice prevails in McHenry County, IL.

Why I haven't been posting for the last few weeks

I am sicker than I have ever been in my life. I've been sick since about November 20. I have pertussis, better known as "whooping cough." And yes, I was vaccinated when I was a kid. But I have learned that these vaccinations wear off, so by the time you are in your teens you need a booster. My shot wore off long ago, I never had a booster, and I was hit so hard that I spent two days in the hospital. I am recovering now but recovery from pertussis takes some time.

If you haven't had a pertussis booster shot, my advice is: run, don't walk, to your local medical center and ask for one. This was once practically eradicated and now it's going around. There are outbreaks in Ohio, Illinois, Texas, and California, and perhaps elsewhere.

Believe me--you do not, repeat DO NOT, want to get pertussis. Just take my word for it.

Virginia HOA locked into long term contract with telecom provider; Congressman writes FCC

In a letter dated Tuesday, Dec. 7, U.S. Rep. Frank R. Wolf (R-10-VA) reached out to Julius Genachowski, chairman of the FCC, about the informal complaint filed by lawyers on behalf of the 1,117 residents of Southern Walk at Broadlands and its homeowners association. The residents first reached out to Wolf's office in the fall, and have been in communication with him regarding their concerns and their legal efforts since that time.

Wolf's letter states that the concerns of a residents "merit serious consideration" by the commission. "The complaint raises serious concerns about the fairness of a developer committing my constituents to a multi-generational obligation with a pre-selected communications provider," the letter reads.

Leesburg Today has the rest of the story.
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There is a way to avoid these kinds of locked in deals. Developers can build open access fiber networks owned by the homeowners rather than a private vendor. Apparently the developer of the HOA involved here didn't go that route -- most likely because there was more money for the developer in having a for profit company provide the service. Another example of why privatizing local government is poor public policy.

Mounting State Debts Stoke Fears of a Looming Crisis

Mounting State Debts Stoke Fears of a Looming Crisis

Municipal bankruptcies or defaults have been extremely rare — no state has defaulted since the Great Depression, and only a handful of cities have declared bankruptcy or are considering doing so.

But the finances of some state and local governments are so distressed that some analysts say they are reminded of the run-up to the subprime mortgage meltdown or of the debt crisis hitting nations in Europe.

Analysts fear that at some point — no one knows when — investors could balk at lending to the weakest states, setting off a crisis that could spread to the stronger ones, much as the turmoil in Europe has spread from country to country.
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Governments in Europe and at all levels in the U.S. are reeling in red ink. While economic observers note consumer confidence and retail spending are up, reports like these as well as continued high unemployment demonstrate the ongoing powerful gravitational drag exerted by the implosion of the real estate bubble into a massive financial black hole in 2008.

First responders delayed by padlocked gates of Privatopian enclave

HOUSTON – A group of northeast Houston residents say they are holding a rally to protest the mismanagement of their neighborhood’s homeowners association.

The resident’s main concern is the locks that were placed on the subdivision’s gates that possibly created a delay for first responders.

Blouis Gipson, who recently lost his wife to a heart attack, said he wonders what would have happened if the Pine Village North subdivision had a different lock on the gates.

“I tried CPR and I called 911 immediately,” said Gipson.

But help was held up because the homeowners association had the gate chained shut with a lock, he said. A report from the fire department said the crew had to cut the lock off of the gate.

“By the time EMS got here, she had died,” said Gipson

There was a fire a few months ago that destroyed several town homes and the fire department was locked out, the residents said.
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Rest of the story here.

Sovereign Privatopia: Arizona HOAs claim jurisdiction over public streets

Homeowners and HOA Headaches

State Representative Nancy Barto describes HOAs as quasi-governments with deep pockets, lots of authority and little oversight. She tried to pass a bill to clarify who owns public streets: cities or HOAs.

"A lot of HOAs are run very well. This is not about most HOAs. This is about many HOAs," says Barto. "It becomes very evident that there's not enough oversight whenever there's a dispute, because homeowners have nowhere to go to solve these problems."

Attorney Scott Carpenter represents 3,000 HOAs and worked against Nancy Barto's bill.

"There is no story or evidence or statistics that I've seen that back up the assertion that associations are using fines for vehicles parked in public streets as a revenue generator," says Carpenter.

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This is one of the most nonsensical circumstances I've read emanating from Privatopia. A bill to determine whether municipalities or HOAs own public streets? Clearly the former; curious minds want to know why the state Legislature would be called upon to resolve that question. And why the munis don't take overreaching HOAs asserting bogus claims of jurisdiction over public rights of way to court and get a judge to order them to butt out.

HOA Activist Phil Testa murders wife, kills himself

Vegas Man Dies After Shooting Wife, Self - Las Vegas News Story - KVVU Las Vegas: "A Las Vegas man who shot himself after killing his wife was identified Monday as 74-year-old Phil Testa.
Testa died at University Medical Center after he was rushed to the hospital Saturday night.
Authorities said Testa shot his 79-year-old wife, Angelina, at the couple’s home on Maryland Parkway near Flamingo Road. He then called 911, saying he had killed his wife and was going to kill himself, according to police."
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And then he did kill himself.

Phil Testa was a long-time Las Vegas area HOA activist who at one time had a radio show there. He was fond of calling people crooks and other names, making thinly veiled threats, and claiming to have some sort of organized crime background. He liked to bum rush the stage whenever he could and snatch microphones from people's hands--things like that.

UPS Has Homeowners Upset In Seminole Neighborhood - News Story - WFTV Orlando

UPS Has Homeowners Upset In Seminole Neighborhood - News Story - WFTV Orlando: "SEMINOLE COUNTY, Fla. -- Some Seminole County residents are furious that a major U.S. corporation set up shop right in the middle of their neighborhood.
Homeowners in Deer Run say the UPS delivery service has leased a house along Augusta way (see map). The delivery company is now using the home to collect and deliver packages for the entire neighborhood.
You wouldn't know it from the outside but neighbors say the owner of the home might as well put up a big UPS sign right out front."
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How convenient. And yes, there is an HOA, and yes, it seems to be a violation of the governing documents. Ho, ho, ho. Merry Christmas!

Chicago set coyotes loose on the streets to hunt for rats

Chicago set coyotes loose on the streets to hunt for rats

Still, it seems a rather desperate throwback to frontier-style husbandry for a major American metropolis to unleash sharp-fanged predators to roam freely through its streets to contain the growing rat menace. But that's what the city of Chicago has done with its latest, innovative effort in rat control: the coyote solution.

The city's program evidently came to light when numerous concerned citizens reported seeing a coyote running down one of the city's main drags, weaving in, out and around passing vehicles. But the city's animal welfare department told a local media outlet that there was nothing out of the ordinary about this at all.
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Somehow I doubt this would fly in Privatopia.

Is Your New Neighbor a Squatter? | NBC Los Angeles

Is Your New Neighbor a Squatter? | NBC Los Angeles: "Prosecutors say this is happening across Southern California.
They've caught squatters illegally living in homes in Bel-Air, Marina Del Rey and Winnetka.
'It's a huge problem and growing every day,' says Los Angeles City Attorney Maureen Rodriguez."
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New homes sales in another big dip - Nov. 24, 2010

New homes sales in another big dip - Nov. 24, 2010: "New home sales dropped to an annual pace of just 283,000, according to the Commerce Department. That was down 8.1% from a slow September and 28.5% from 12 months ago when the annualized sales rate was at 430,000."
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That's pathetic. If we were in a real recovery, instead of this fake one we are being asked to believe in, it would be at least a million units per year.

Think you've read the worst about foreclosures? Read this | McClatchy

Think you've read the worst about foreclosures? Read this | McClatchy: "Hall's foreclosure defense lawyers, in what has become a booming -- and sometimes predatory -- business, charged her more than $20,000 while regularly failing to show up in court. One lawyer charged Hall $2,800 for work he did trying to withdraw himself from the case.

Law enforcement officers are scheduled to come to Hall's house to evict her and her family next week, nearly five years after a mortgage broker showed up on her doorstep unannounced, pitching a stress-free refinance."
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According to the story, this woman has fallen into every one of a long series of pitfalls that lie in wait for those who took out subprime loans. If you want to read a real-life horror story, check out Our Lot: How Real Estate Came to Own Us, by Alyssa Katz. She tells the whole story of the subprime catastrophe.

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

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

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

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

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

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

Condo associations may be coming to an end | WBEZ

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

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

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

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

Report: Foreclosure mess could threaten banks - Yahoo! Finance

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

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

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

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

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

HOAs give lenders ultimatum; Florida courts bless strategy

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

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

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

---------------------------------------------

Click here for The L.A. Times story.

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

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

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

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

Election Spells Doom for Fannie and Freddie - UPI.com

Election Spells Doom for Fannie and Freddie - UPI.com: "The Republican landslide that swept through the House ensures that the outcome will be a radical policy change that will rely much more on the private sector, especially lenders and investors, and less upon Federal support. Fannie and Freddie will certainly cease to exist in their current forms and government exposure to the risks involved in financing mortgages will be reduced."
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If that happens, mortgage interest rates will go through the roof.

The Monkey Cage

The Monkey Cage: "The replacement effect of the 2010 Midterm Elections is unlike anything in recent memory. The shift in the House median is two and a half times what was observed after the 1994 Election, wiping out the effect of Democratic gains in the previous two elections and then some. The 111th was the most liberal Congress in the past three decades; the 112th will be the most conservative.... The 2010 Elections [also] had a profound effect on congressional polarization. Not only will the 112th House be the most polarized on record; 2010 will surpass 1994 as the most polarizing election cycle."
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And this Congress is the one that has to pull the country's chestnuts out of the fire.

Foreclosure Lawyers Put Second Mortgages on Clients' Homes - NYTimes.com

Foreclosure Lawyers Put Second Mortgages on Clients' Homes - NYTimes.com: "“We thought, ‘Why don’t we use a bit of ingenuity to find an affordable way to represent them?’ ” said Peter Ticktin of the Ticktin Law Group in Deerfield Beach, Fla. “It’s a new model, a new paradigm.”

Foreclosure defense is a new legal specialty whose strategies and techniques are still being worked out. Mr. Ticktin, who has some 3,000 foreclosure clients, says his plan to collect fees by taking another mortgage on his clients’ properties has already been copied by other firms."
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On your left: the frying pan.
On your right: the fire.

Take your pick.

Michael Gerson - Blue-state budget crises spell more trouble for Democrats

Michael Gerson - Blue-state budget crises spell more trouble for Democrats: "Having experienced the revolt of red America, Democrats must now deal with the fiscal crisis of blue America."
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Yes, because a number of the states that the Democrats continue to run are economic basket cases. And what will those voters be thinking of the Democrats in 2012? Here in Illinois the state legislature and Governor are still Democrats. Tax hikes are on the table. Where are the spending cuts? The unwillingness of Democrats to cut spending, and their enthusiasm for tax hikes, may mean that these states will be in a "throw the bums out" mind set when Obama comes up for re-election. On the other hand, presidents who seek a second term usually get it. The GOP has to come up with a strong candidate. That may prove impossible if the loony right continues to be the dominant force in the party. Lunatic fringe ideas are fine for winning congressional districts in some places, but at the state level you need substance.

Punches fly in Privatopia

HOUSTON - Bet you've never seen a Homeowner Association Meeting like this one. This homeowner says he's speaking for the majority of residents who live in the Catalina Square Subdivision.

All the board members were voted out and told to immediately turn over all records and any other property belonging to the Catalina Square Improvement Committee.

"Our president came towards him to try to shut him down and told him he couldn't do that," homeowner Pat Martin said.

Suddenly the meeting turns violent.

"They got physical, our president (William Harris) swung at one of the homeowners," Martin said.

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Fox 26 in Houston has the story. And it reports it is looking into lots of HOA horror stories here.

Sadly, we're likely to see more fisticuffs in Privatopia amid growing tensions brought on by assessment shortfalls as the seemingly never ending train of foreclosures keeps rolling down the tracks.

O Canada: HOA flag flap erupts north of the border

An Ontario couple said they will not give in to their neighborhood association's demand to remove a Canadian flag from their garage unless ordered by a judge.

Brian Cassidy, 63, and wife Linda-Lee Cassidy, 61, of the Mill Retirement Community in Lakeshore, said the homeowners' association told them the flag must be removed from its perch in front of their garage because neighbors had complained about the 8-foot flagpole "changing the architecture" of the house's exterior, a violation of neighborhood bylaws, the Windsor Star reported Thursday.

The homeowners' association said the couple will not be allowed to vote at meetings until the flagpole is removed, but Brian Cassidy said he will not be swayed.

"I put that flag up to stay up," he said. "It's not coming down. I take pride in my country and my flag."
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So there! Rest of the story here.

What part of PRIVATE in private local government don't you understand?

A law giving a state agency purview to resolve disputes between property owners and their homeowners associations is illegal, the Arizona Court of Appeals has ruled.

The judges said the Legislature never gave the Department of Fire, Building and Life Safety regulatory authority over homeowners associations. In fact, the judges said, lawmakers provided no such oversight by any state agency.

That, they said, makes unconstitutional a 2006 decision by legislators establishing a hearing process to deal with conflicts between homeowners associations and the governing boards of their planned communities.

Unless overturned by the Arizona Supreme Court, or unless the problem is fixed by the Legislature, the ruling leaves no administrative-review process for such disputes. That makes filing a lawsuit - a far more expensive process - as the only remaining option.

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The implicit public policy statement being made here by the Arizona Court of Appeals is "What part of PRIVATE in private local HOA government don't you understand?" The court is saying that private local government means just that: no public oversight or regulation from the executive branch. HOA exceeding its authority? Lawyer up and tell it to the judge.

Read more: http://www.azcentral.com/business/abg/articles/2010/11/11/20101111abg-fischer1111.html#ixzz150pMq6E7

Owners fight the condo blues with go-go dance and grit | WBEZ

Owners fight the condo blues with go-go dance and grit | WBEZ
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I am interviewed in this story about a busted condo association that does some creative fund-raising.

Unfortunately, a Bleak Winter Ahead for the Housing Market: Zillow Q3 Real Estate Market Reports | Zillow Blog - Real Estate Market Stats, Celebrity Real Estate, and Zillow News

Unfortunately, a Bleak Winter Ahead for the Housing Market: Zillow Q3 Real Estate Market Reports | Zillow Blog - Real Estate Market Stats, Celebrity Real Estate, and Zillow News
And on top of this, in the worst housing price crash since the Great Depression, the President's commission on solving our national budget woes wants to cut or eliminate the mortgage interest deduction.

Millions of homeowners keep paying on underwater mortgages - latimes.com

Millions of homeowners keep paying on underwater mortgages - latimes.com: "...payments on mortgages that are underwater could absorb billions of dollars that might be used for other forms of consumer spending — a drag on family finances, the housing market and the overall economy."
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So hurry up and lose your home so you can divert that underwater mortgage payment to buying a plasma TV? That's the socially productive course of action?

BeExposed! Presents Hunter McKenzie | Expose Kenosha Sites

BeExposed! Presents Hunter McKenzie | Expose Kenosha Sites
That's my son.

Bradenton couple finds thousands of bees in their backyard

Bradenton couple finds thousands of bees in their backyard

The homeowners association said they plan to check on all the trees to make sure there aren't any more of those hives.
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And a letter will likely be issued to property owners harboring giant beehives warning of daily fines if the hives remain.

Freddie Mac posts $4.1B loss for Q3 - Business - msnbc.com

Freddie Mac posts $4.1B loss for Q3 - Business - msnbc.com
And on it goes. If you want to see where the whole housing market catastrophe started, here it is.

The Monkey Cage: The Forecasts and The Outcome

The Monkey Cage: The Forecasts and The Outcome
How all the political scientists fared in predicting the election results.

News Brief From Center for California Homeowner Association Law

From Marjorie Murray at CCHA:

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Since we’re going to the polls today,   we thought this would be a good time to post the lawsuit brought two weeks ago by the ACLU to force a homeowner association and its property manager to keep their mitts off the HOA resident exercising his constitutional right to post political signs.

Here’s the link to the ACLU lawsuit on the CCHAL website: http://www.calhomelaw.org/doc.asp?id=1246.  Keep this link handy in case someone tells you that you can’t post a political sign during an election.

Hassling homeowners over political signs could easily happen again.  The entire association industry was opposed to the Longville bill, AB1525, when it was going through the policy committees in the California Legislature.  Here’s the list of registered opponents from the Senate analysis right before the bill went to the Governor’s desk: http://leginfo.ca.gov/pub/03-04/bill/asm/ab_1501-1550/ab_1525_cfa_20030902_095635_sen_floor.html

OPPOSITION: (Verified  8/25/03)

Community Associations Institute, unless amended

Executive Council of Homeowners, unless amended

California Association of Community Managers

On the list are the three trade groups that collect homeowner money and then use it to lobby against homeowner rights in Sacramento – like homeowners’ right to constitutionally protected free speech.

If the trade groups want to lobby in Sacramento on behalf of their members, we absolutely support their constitutional right to political free expression.  

But we sure wish they’d quit using homeowner money in Sacramento to dismantle the Bill of Rights.  

CCHAL NewsBrief

November 2, 2010

Marjorie Murray, President

Center for California Homeowner Association Law

1305 Franklin Street, Suite 201

Oakland, California 94612

www.calhomelaw.org

HOAs don't enjoy blanket immunity for maintenance decisions, California Court of Appeal rules

In a ruling filed filed Oct. 29 in Affan et al v. Portofino Cove Homeowners Association, G041379, the Fourth District of the California Court of Appeal overturned a trial court ruling dismissing claims brought against a condo HOA and its management company by an owner alleging the defendants breached their duty to maintain and repair the common area plumbing, causing sewage to back up into the plaintiff's unit.

The trial court dismissed the suit citing a 1999 ruling by the California Supreme Court in Lamden v. La Jolla Shores Clubdominium Homeowners Assn. (1999) 21 Cal.4th 249. In that case, the California high court applied the business judgment rule to HOAs, holding that courts are to defer to the "presumed expertise" of HOA boards when it comes to their decisions on maintaining common areas. That means these decisions by HOA boards are not subject to second guessing by the courts when owners challenge them.

But in Affan, the Court of Appeal found the HOA failed to establish the factual prerequisites for applying the deference rule. In addition, it held, since the HOA manager is not the HOA, the rule does not apply to the manager.

Here's a key excerpt from the ruling:

It is important to note the narrow scope of the Lamden rule. It is a rule of deference to the reasoned decisionmaking of homeowners association boards concerning ordinary maintenance. It does not create a blanket immunity for all the decisions and actions of a homeowners association. The Supreme Court's precise articulation of the rule makes clear that the rule of deference applies only when a homeowner sues an association over a maintenance decision that meets the enumerated criteria.

The full decision can be read here.

Team 4: Debt Collectors Accused Of Fake Courtroom, Judge - News Story - WTAE Pittsburgh

Team 4: Debt Collectors Accused Of Fake Courtroom, Judge - News Story - WTAE Pittsburgh

I expect this idea may catch on soon with the HOA/condo bill collector law firms.

'Halloween House' in Surprise drawing boos from neighbors, HOA

'Halloween House' in Surprise drawing boos from neighbors, HOA

Neat house, although it has so many lights that it looks like it's on fire.

Getting balmy in Palm Beach

PALM BEACH GARDENS — To some people they were just ducks. To Robert and Blain Aymond they were feces-spewing, orchid-eating disease bags with wings.

The webbed-foot menaces tore up the lawn and pool screens at their lakefront home in the Frenchman's Landing community near Palm Beach Gardens, defecating, copulating and squawking with brazen aplomb.

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The horror! If it seems that people who live in Privatopia have too much time on their hands and need to get a life, this story only reinforces that perception. Where else do neighbors fight each other over a bunch of ducks?

Read the rest of this story here.

There better be skin: Nudist HOA claims resident clothed too much

LUTZ, Fla., Oct. 25 (UPI) -- The homeowners association of a Florida nudist park wants to evict a disabled resident said to be disruptive and not nude often enough.
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You can't make up some of the stuff like this that comes out of Privatopia. Read the rest of the story here.

Residential mortgage market meltdown: the Halloween sequel

The first part of this story involved lenders issuing mortgages without adequate underwriting, producing a lot of non-performing loans. When those loans were packaged and sold as securities, financial markets realized that lots of paper bags filled with excrement were ablaze on their doorstep. That largely prompted the financial market meltdown in 2008 from which the economy is still struggling to recover.

Just in time for Halloween comes the sequel in this financial horror story. As this New York Times article points out, the devil is in trying to unwind these bad debts and repossess the underlying properties. No easy feat considering that those stinky sacks of crap passed through a lot of hands, making it very difficult to sort out the individual notes in each bag.

Update 10/29: American Public Media's Marketplace radio program did a segment on today's show on the difficulty matching the notes in these troubled mortgage backed securities to the actual properties securing them, effectively rendering these securities worthless "zombie bonds" and setting the stage for litigation brought by understandably unhappy investors. Check out Marketplace's story here accompanied by lots of Halloween screams and howls.

Psychologist defines the HOA Syndrome caused by oppressive HOAs � HOA Constitutional Government

Psychologist defines the HOA Syndrome caused by oppressive HOAs � HOA Constitutional Government

Sounds like a pandemic. But is it contagious? I also see that some Florida HOA attorney is making fun of this situation. George Staropoli wants to have him keelhauled or at least disbarred for insensitivity, but I think making attempted jokes with no punch line is a worse offense.

The big picture, though, is grim for the condo sector, in Florida and elsewhere. The association lawyer-lobbyist crowd is getting desperate because on one hand they have to fight off state legislators and on the other hand they are watching condo developments melt down all around them. So far most of the demands for state regulation have been based mainly on abuse of power and incompetence by boards and their hired guns. Soon the issue in state legislatures--and maybe even federal agencies--may be what to do about the economic collapse of condo associations and HOAs.

Who knows? Soon some of these attorneys may have to find a specialty where they actually have to go up against other lawyers, instead of beating up on unrepresented homeowners.

NC may examine powers of HOAs next year

Candidates would consider limiting powers of homeowner associations

A local lawmaker and state senate candidate say they want to look at issues involving homeowners associations during the next General Assembly session, which begins Jan. 26.

“I suspect we will be looking into that because we’ve got some homeowners associations that are completely out of control,” said Rep. Danny McComas, R-New Hanover. “I do feel that finding a means to control some of these HOAs is going to be necessary.”
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This is a wasted endeavor at best and a cynical political ploy at worst.

If legislators and candidates truly believe that non condo HOAs have the power of municipalities without checks and balances on their powers, they should deprivatize them and take them out of state nonprofit corporations codes and instead bring them under government codes.

HOA developers cut long term deals with Internet service providers at inmates' expense

Living in Privatopia could mean paying for telecommunications services provided by your HOA, even if you choose another provider as this broadbandreports.com item explains.

The problem is developers sign long term contracts with a single Internet Service Provider instead of putting in open access fiber owned by the HOA. Good for the developer prince but not the HOA serfs. An open access fiber to the premises infrastructure would give residents a true choice of ISPs since any number could choose to offer services to the residents.

HOA takes issue with homeowner's landscaping

HOA takes issue with homeowner's landscaping

FOX 35 asked the HOA president, Bill Herring what was wrong with O'Connor's landscaping. "Look at all the dead stuff, dead vines dead limbs in the trees," said Bill Herring. "We didn't find any of that," said FOX 35 Reporter Holly Bristow. "Well you ain't looking very well," said Herring who then said to contact the HOA attorney. The HOA's attorney has not yet returned our call. According to Mo O'Connor, the HOA attorney wants to go to formal mediation with her. She says she's already done informal mediation with the HOA . Mo O'Connor says since state statute protects her Florida friendly lawn, she's not changing it.
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Yet another episode of ambulance chasing, HOA style. Film at 11.

Payments average 18 months past due on Palm Beach County's foreclosed homes

Payments average 18 months past due on Palm Beach County's foreclosed homes

And that county has almost 46, 000 homes in foreclosure. How's that for a recovery? Let's just give these policies some time to work, OK people?

Seriously--the cyclical aspect of this recession ended a year ago according to all the experts. What we have now is something else, and I've shifted over to the camp that says the policies of this administration may be preventing the employment situation from improving and holding the housing market back. At this point there won't be a cyclical recovery at all. Something has to change in Washington. We may have divided government starting in January, and that will produce either compromise (maybe a good thing) or gridlock (probably disastrous). A great deal may depend on personalities. Just getting that gavel out of Nancy Pelosi's hand would make a big difference.

Buyers of foreclosed homes may face big problems

Buyers of foreclosed homes may face big problems:

"“Anyone who’s purchased a foreclosed property in the last three years should really be concerned,” says George Babcock, a Providence lawyer who represents homeowners who have been foreclosed on."

-------------------

This is why banks are freezing the foreclosure process. If the mortgagee uses sketchy practices to to prove they have the right to foreclose, then sells it to a new owner, that new owner may not really have title to the property. Lawyers being the opportunistic types they are, you can then have an interesting situation. What if the former owner (the original mortgagor) shows up and claims the house? Title insurance should protect the new owner, but this is yet another permutation in the unfolding weirdness of the post-crash housing market.

Delusional Thieves Caught Stealing Entire Mansions - The Consumerist

Delusional Thieves Caught Stealing Entire Mansions - The Consumerist: "A ring of confused folk in Georgia are stealing entire million-dollar homes, deeding themselves the property with bogus paperwork and squatting inside."

----------------

I'm not sure "confused" is the right word. Thanks to Mystery Reader for this fascinating story.

As Mountain Of Foreclosure Fraud Evidence Grows, National Media Has Decided It's Really More Of An "Oops!" | Crooks and Liars

As Mountain Of Foreclosure Fraud Evidence Grows, National Media Has Decided It's Really More Of An "Oops!" | Crooks and Liars

This link from Mystery Reader asks why banks can commit what appear to be crimes and nobody goes to jail, and in fact the national media don't seem to see much of a problem.

Banks Hired "Burger King Kids" To Process Mortgages - The Consumerist

Banks Hired "Burger King Kids" To Process Mortgages - The Consumerist

Mystery Reader strikes again. You wonder when the people who did these things will end up behind bars.

Bankers: We Wouldn't Hire Unqualified Robo-Signers If You Just Paid Your Mortgage - The Consumerist

Bankers: We Wouldn't Hire Unqualified Robo-Signers If You Just Paid Your Mortgage - The Consumerist

Thanks to Mystery Reader for this educational link. Why don't we just see the error of our ways and fall prostrate before the financial gods?

20 Unusual Houses That Are Now Tourist Attractions (PHOTOS)

20 Unusual Houses That Are Now Tourist Attractions (PHOTOS)

And no HOAs.

Yet another HOA flag flap -- film at 11

Fan takes flack for flying sports flag

ALBUQUERQUE (KRQE) - A flap over a flag is brewing in an Albuquerque neighborhood after the Ventana Ranch Homeowners' Association ordered a resident to take down his Pittsburgh Steelers flag.

Ronnie Martinez said he couldn’t believe it when he got a violation notice, or “friendly reminder,” in the mail two weeks ago.

“They're saying it’s a friendly reminder but,” Martinez said

That friendly reminder is ordering him to fold up a flag bearing the name of his favorite NFL team, the Pittsburgh Steelers, because signs are forbidden under Ventana Ranch HOA’s covenant.

Philly Suburb Considers Fining Those Who Don't Lock Cars | NBC Philadelphia

Philly Suburb Considers Fining Those Who Don't Lock Cars | NBC Philadelphia

Next: fines for people who don't say "excuse me" after they sneeze.

Homeowners association sues its own members, racks up $80,000 legal bill

Homeowners association sues its own members, racks up $80,000 legal bill

SAN ANTONIO - A fight between a Northeast Side homeowners association and their members has turned into an all-out war. It led to a lawsuit that has already cost more than $80,000 in legal fees. These fees will have to be paid by the HOA.

To some in the neighborhood the president of the Ventura HOA, Lisa Pfeiffer, is a bully. Eight of her neighbors say she is suing them because they tried to kick her out of office. It all started when they called a special meeting to kick out board president Pfeiffer after they became unhappy with how she was running things for the HOA.

“It's a classic example of intimidating -- picking a few people to intimidate the rest of the association, so that no one challenges them any further,” said Brenda Johnson.

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It's been said that in a democratic government, voters and not guns determine who governs. Apparently the latter is called upon to decide in Privatopia -- not weapons but hired guns in the form of attorneys.

Robo-signers: Mortgage experience not necessary

Robo-signers: Mortgage experience not necessary

NEW YORK – In an effort to rush through thousands of home foreclosures since 2007, financial institutions and their mortgage servicing departments hired hair stylists, Walmart floor workers and people who had worked on assembly lines and installed them in "foreclosure expert" jobs with no formal training, a Florida lawyer says.

In depositions released Tuesday, many of those workers testified that they barely knew what a mortgage was. Some couldn't define the word "affidavit." Others didn't know what a complaint was, or even what was meant by personal property. Most troubling, several said they knew they were lying when they signed the foreclosure affidavits and that they agreed with the defense lawyers' accusations about document fraud.

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The Great Depression began in October 1929 with the collapse of the stock market bubble, inflated by everyone and their cousin buying stock on easy credit with the expectation that the market could go no where but up.

The current economic downturn -- often compared to the 1930s -- will likely be remembered similarly. Mortgage lenders tossed underwriting standards out the window and extended mortgages to anyone who could fog a mirror holding the same "sky's the limit" expectations of residential real estate. The sad story continues to unfold, with mortgage servicers reportedly setting minimal qualifications for those who process foreclosures.

Sleazy Real Estate Developers' Latest Scam Could Skim 5 Percent Off Your Home's Value | | AlterNet

Sleazy Real Estate Developers' Latest Scam Could Skim 5 Percent Off Your Home's Value | | AlterNet

And of course they are talking about private transfer fees, as we have been doing here for some time.

BofA halts foreclosure sales in 50 states

BofA halts foreclosure sales in 50 states

Charlotte, N.C.-based Bank of America Corp., the nation's largest bank, said Friday it would stop sales of foreclosed homes in all 50 states as it reviews documents used to process foreclosures. A week earlier, the company had said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.

"We will stop foreclosure sales until our assessment has been satisfactorily completed," company spokesman Dan Frahm said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate."

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This appears to be the beginnings of a foreclosure holiday with lenders finally realizing that mass foreclosures aren't benefiting anyone and may well exacerbate and extend weak economic conditions, leading to even more non performing mortgages in a classic unvirtuous cycle. The legal brouhaha over the validity of foreclosure documents provides a convenient and face saving rationale for a hiatus on foreclosures. Lenders may also be realizing that their notes could be more easily recoverable and worth more in the future when the legal and economic climate is less uncertain.

The other foreclosure crisis gets more press

Fox Business: Can my homeowners association really foreclose on my home?

In California, for example, associations may begin the foreclosure process only 75 days after a missed payment was first due, while a tax collector must wait five years before beginning the foreclosure process for a tax lien. Associations are not required to go through a court to foreclose, as a property owner would to evict a tenant. Also, homeowners do not receive the benefit of the homestead exemption when their house is foreclosed upon by an association, as they would in the case of any other money judgment.
---------------------------------------------------
Yes, it can. The mortgage foreclosure crisis has gotten a lot of press. Now so are foreclosures by HOAs, which by comparison to lender foreclosures come far faster and less mercifully -- and well before the tax man comes calling for delinquent property taxes.

Nonprofits Unable To Keep Up With Growing Suburban Poverty, New Reports Say

Nonprofits Unable To Keep Up With Growing Suburban Poverty, New Reports Say: "two analyses released this week by the Brookings Institution show suburban poverty has skyrocketed in recent years and the way in which social services are lagging behind this shift."

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Nobody likes the suburbs except suburbanites...who are the majority of the US population.

Obama won't sign bill that would affect foreclosure proceedings

Obama won't sign bill that would affect foreclosure proceedings: "At least 10 states - with Iowa and Delaware being the latest - are seeking to expand a voluntary freeze on foreclosures by some of the nation's largest mortgage lenders to include more companies and more regions. And calls have increased for a nationwide moratorium - a move that could deal a blow to the earnings of big banks and grind to a halt the sale of millions of properties in foreclosure."

------------------

I hear from real estate attorneys that banks have been holding off on foreclosing because they have too much REO property already and they can't sell it, so they don't want to acquire more and put it on the market, which would only drive prices down further. But even with that voluntary restraint, the foreclosure process is hopelessly glutted and gridlocked.

Suburbs take hit as US poverty climbs in downturn

Suburbs take hit as US poverty climbs in downturn

More than half, or 57, of the 100 largest U.S. metro areas had substantial increases in poverty. They were most evident in Sun Belt suburban areas including Modesto and Riverside, both in California, as well as Lakeland, Fla.; Orlando; Miami and Tampa, which had seen large population gains during the housing boom.
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That's Privatopia and this negative trend may at least partly explain why lots of HOAs are coming up short on assessments.

Madison: Gated City?

Madison: Gated City?

Madison Mayor Mary Hawkins Butler’s recent strategy to keep outsiders from attending a city festival is consistent with the city’s history of enforcing strict neighborhood covenants and zoning regulations that restrict rental properties in the city. Madison has long promoted itself as more of a club than a city, but last week, after Hawkins Butler cited Franklin, Tenn., as a model city for a residents-only festival, Franklin officials said they had never heard of such a practice.

Hawkins Butler told the Madison County Herald Sept. 18 that the city was cancelling this year’s annual family fall festival, FreedomFest, because of unexpected budget expenditures and the high number of non-Madison residents who attended the event in the past.

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Another example of what the perfessor would say illustrates how municipalities are adopting restrictive, HOA-like behaviors.

Privatization as a plutocratic plot: They Want To Privatize Everything | California Progress Report

They Want To Privatize Everything | California Progress Report

One of the most important trends afoot right now is the move to privatize as many government services as possible. Billionaires like Bill Gates, along with hedge funds, are pushing an agenda of privatizing public schools, and funding a PR push in support of that cause with films like "Waiting for Superman" and the NBC "Education Nation" that included a panel with the title "Does Education Need a Katrina?".

This trend is fueled by the desire of the richest Americans to seek new income streams. Instead of spending their cash hoard on innovating new products or businesses that can create jobs and lasting economic activity, they're engaged in a process of rent seeking, which has no productive value. By taking tax dollars that currently provide public services and channeling them to the private sector, which contracts to provide the service at lower cost - and therefore at lower quality - these wealthy individuals can add new income streams while also blunting any effort to raise their taxes to provide these services.

Police: Conn. man stole flag, put up hippo toy

Police: Conn. man stole flag, put up hippo toy

WATERBURY, Conn. – Call it the case of the flying hippo. Connecticut police said a man stole an American flag from Waterbury's Town Plot Park and hoisted a stuffed hippopotamus toy in its place. Twenty-three-year-old Jeffrey Kovic, of Waterbury, was arrested and was being held in lieu of $100,000 bail on misdemeanor larceny, criminal mischief and conspiracy charges.

--------------------------------------------------
Good thing he didn't fly the hippo from a pole in Privatopia or he would have faced both public and private prosecution.

Ozone layer 'is no longer disappearing and will return to full strength by 2048' | Mail Online

Ozone layer 'is no longer disappearing and will return to full strength by 2048' | Mail Online

"The ozone layer is no longer disappearing and could be back to full strength by the middle of this century, UN scientists have confirmed.

The phasing out of nearly 100 substances once used in products like refrigerators and aerosols has stopped the ozone layer being depleted further, although it is not yet increasing, according to a new United Nations report released last week.

Read more: http://www.dailymail.co.uk/sciencetech/article-1313599/Ozone-layer-longer-disappearing-return-strength-2048.html#ixzz108BleiJP

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About time we had some good news, isn't it?

Banks win delay in demolition of abandoned Fort Lauderdale condo complex

Debris is strewn across the 58-unit complex along the north fork of the New River. The doors and windows have been stripped away. Vandals have destroyed walls and ripped out copper wiring and plumbing. The city has been paying for metal shutters to keep away squatters.
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Ever wonder what happens when an association goes defunct? It is not pretty.
And what happens to all those property values that were being protected?

When a municipal election resembles Privatopia

Here's a story of a city council election out of Isleton, California, population 820, that might just as easily been about an HOA election. The incumbents are running unchallenged because the few candidates who considered running were apparently not sufficiently motivated to serve to even make sure their candidacy papers were in good order.

Yellow mailboxes latest symbol of anti-HOA protest

Mailbox battle in Chesterfield's Brandermill brings protest

Day by day, more of the yellow boxes are popping up. In fact, one more for our camera early this morning. They are standing out in a community making a big visual statement about a decision that hits their wallet. But it's a decision that the community association board says has been publicized for months, like in the community newspaper.

They are hard to miss -- one yellow box after another. When-Dee Morrison spearheaded this protest. "They definitely stand out. It doesn't go with our park-like setting," Morrison said. This, just days after the Brandermill Community Association decided each home in this community must get this new mailbox. Those boxes would cost $155.
________________________________
As political scientists are wont to do, Evan McKenzie, the owner of this plot of cyberspace real estate, has labeled the yet unorganized political movement that rejects the authority of private HOA governance (but oddly doesn't lobby states to repeal HOA enabling statutes) as the Pink Flamingos.

That token of expressing discontent and defiance arose out of HOAs going after inmates who dared to plant the tacky pink plastic avian decorations on their front lawns, potentially driving down property values faster than a trailer park full of deteriorating double wide FEMA trailers.

Now another symbol of protest against dictatorial, unresponsive Privatopian government has emerged: the yellow mailbox. Perhaps not coincidentally the same color of the Gadsen "Don't Tread on Me" flag that has become the symbol of a somewhat more organized political movement called the Tea Party.

Rule breakers, beware: New law gives homeowners' associations more muscle - Home & Garden - MiamiHerald.com

Rule breakers, beware: New law gives homeowners' associations more muscle - Home & Garden - MiamiHerald.com

Fred Pilot sent this link-seems that Florida is giving HOAs fining and even foreclosure power for rule violations.

Homeowner's Association Uses Chopper To Find Violations - Local 2 Investigates News Story - KPRC Houston

Homeowner's Association Uses Chopper To Find Violations - Local 2 Investigates News Story - KPRC Houston

I'm posting this because an anonymous poster copied and pasted a huge part of the story into a comment. I'm deleting the comment and posting the link to the story.

Folks, we need to be a lot more careful about using big blocks of text from copyrighted on line news stories. There is a "fair use" doctrine that allows posting a little bit of these stories and then commenting, but just putting in all or most of a news story is copyright infringement. There are lawsuits going on against bloggers right now, for doing exactly that--even if the source was cited.

So please avoid this, OK? Keep the story snippets short and always include the source and hyperlink.

Big Brother is searching you - Computerworld

Big Brother is searching you - Computerworld

"The town of Riverhead on Long Island usedGoogle Earth to search all back yards in the town for illegal swimming pools.

They found about 250 pools built without permits and collected about $75,000 in fines."

--------------------

This came from Mystery Reader. I remember prosecuting drug cases where the search warrant was based on aerial surveillance, and the Supreme Court ruled on issues such as how high the plane had to be, etc. But now government can use Google Earth and zoom right in.

FT.com / US / Economy & Fed - US state steps in to meet city’s debt cost

FT.com / US / Economy & Fed - US state steps in to meet city’s debt cost

The state of Pennsylvania has stepped in to help its capital city Harrisburg avoid a default by advancing next year’s state aid so that the money can be used to make a $3.3m bond interest payment due this week.

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It seems to me that the policy makers of this country and the educated population ought to be figuring out how to restructure the financing of state and local governments, before we have a housing-industry-style, sector-wide, meltdown. Doesn't seem to be a major concern, though.

SIDE STREETS: HOA acting squirrelly at Lexington Park and everyone appears to be nuts

SIDE STREETS: HOA acting squirrelly at Lexington Park and everyone appears to be nuts

It sounded too wild to be true: A woman claimed her efforts to rescue a squirrel had incited the wrath of her homeowners association board and led to harassment, hundreds of dollars in fines, and even allegations of felony theft lodged against her with police.

So I contacted the president of the Lexington Park Townhomes HOA figuring I’d clear it up and move on.

But Chad Farris, the HOA president, declined to talk to me. Ordered me not to use his name. Wanted me to meet him “in a public place with my attorney present.”

Hmm. Maybe the squirrel lady isn’t nuts, after all.

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Indeed. And kudos to the writer of the headline for this tale of HOA insanity.