Monday, December 26, 2011

Desert Underwater


Las Vegas, used to decades of continuous building and growth, is now in the middle of an unprecedented housing crisis. With unemployment over 13 percent and thousands of homes underwater and going into foreclosure every month, Southern Nevadans are wondering how we can possibly find our way out of the worst economic predicament in the state's history.

----------------------
Las Vegas TV investigative reporter and Coast to Coast AM guest host George Knapp's series on the foreclosure-fueled implosion of the housing market of this region -- one of the most HOA dense in the nation.

Town concerned over condominiums’ serious fire-safety violations | recordonline.com

Town concerned over condominiums’ serious fire-safety violations | recordonline.com
FALLSBURG — The Town of Fallsburg is pushing the Grandview Palace condominiums’ homeowners association to correct fire-safety violations so serious that town officials have weighed the option of condemning the 396-unit complex as unsafe.
Grandview representatives met Thursday with officials from the county, town and the Loch Sheldrake Fire Department to forge a plan to correct a number of unspecified violations, said Fallsburg Supervisor Steve Vegliante.
The hope is to avoid having to evacuate residents – a mix of owners and renters – at the development, which thrived in the famed Borscht Belt era as Brown’s Hotel before it was rescued from bankruptcy and converted into condos.

-----------------
This is another CID headed for the long dirt nap by the sound of this article. Thanks to Fred Pilot for the link.

Georgia sheriffs deputy orders HOA to unblock road


Other incidents in the West Jackson area reported to the Jackson County Sheriff’s Office last week included:
•civil dispute at a Woods Creek Road, Jefferson, address, where two men from a homeowners association blocked access to a road because two dump trucks were driving through the subdivision. A man with the dump truck company said he had permission from Jackson County to use the road to dump dirt for another person, according to an incident report. A deputy told one of the men from the subdivision that if they didn’t move their vehicles, they would be towed for blocking a public road. The man was told to call the Jackson County Road Department of the commissioner’s office for questions.
-------------------
You boys gonna be in a heap o trouble if you don't unblock this here road right quick.

False Foreclosure? Occupy the Bank, Romney Says - NYTimes.com

False Foreclosure? Occupy the Bank, Romney Says - NYTimes.com
ROMNEY: That might be something to go down to their office — big office in Boston — go sit in their front lobby and say ‘I’m gonna sit here until you sit down with me and look at these documents.”

PYRA: Occupy Bank of America?

ROMNEY: “Yeah, exactly. Yeah. If you are in the right, and you’ve got the documents to prove it, I’d go after them. The other thing you can do is file a suit against them.

PYRA: I can’t afford a lawyer, so –

ROMNEY: Ah, just file it in small claims court.

-------------------
The Mittster goes radical.

Saturday, December 24, 2011

New-home sales up in Nov. but 2011 figures dismal

News from The Associated Press
Americans bought slightly more new homes in November, but 2011 will likely end up as the worst year for sales in history.

The Commerce Department says new-home sales rose 1.6 percent last month to a seasonally adjusted annual rate of 315,000. That's less than half the 700,000 new homes that economists say should be sold to sustain a healthy housing market.

It's also below the 323,000 homes sold last year - the worst year for sales on records dating back to 1963.

Admitting failure, Florida Supreme Court ends foreclosure mediation program

Admitting failure, Florida Supreme Court ends foreclosure mediation program
Florida's foreclosure crisis lives on, but a statewide mediation program for troubled borrowers is dead.

Florida Supreme Court Chief Justice Charles T. Canady issued an order Monday ending the effort to encourage lenders and borrowers to avoid foreclosure.

The program was a flop. Only 3.6 percent of cases referred to mediation statewide yielded a written agreement between the lender and homeowner. In Palm Beach County, which began its program in July 2010, a mere 1.6 percent of the 4,632 cases sent to mediation resulted in a written agreement.

----------------------
Mortgage foreclosure defense attorney Thomas Ice says: "It wasn't real mediation," Ice said. "It was a loan-mod opportunity which was often lost because of paperwork problems. You could never get the actual owner of the note at the table. At best, you could get the servicer on the phone."

Friday, December 23, 2011

HOA threatens to fine Wellington family for Christmas decorations

WELLINGTON — Davin Armstrong is facing his own version of the Grinch this year: a homeowners association that wants to snuff out his Christmas decorations.

Armstrong, 35, and his wife, Amber Hersh, 34, have won the town of Wellington’s Christmas lights display two years in a row, but in June, his Buffalo Creek subdivision HOA passed a rule limiting the amount of permissible lawn ornaments to three, he said.

The HOA is now threatening to fine the family $25 every two weeks until they take the lights down, he said. His display, which has become a neighborhood favorite, exceeds the rule by more than 20.
------------------
Merry Christmas from Privatopia, where they're making a list and checking it twice.

Thursday, December 22, 2011

The Fine Print Society

As I go over all the bills and statements and announcements and changes to this or that plan or arrangement or contract that have flooded into my mailbox recently, it occurs to me that this is a form of concerted action. Corporate managers have collectively determined to overwhelm us with fine print. We can't possibly read all this crap, much less meditate like some 18th century aristocrat on the implications of the content. Yet we can't do so much as download an update to Adobe Acrobat without "signing" a contract. We are conclusively presumed to have read, understood, and agreed to every lawyer-drafted word, and yet everybody knows that none of us reads this. Not even Ron Paul--so don't start with me. And the more of these contracts we get, the less likely it is that we will read any of them. So corporations have an incentive to send more of them and make them longer and more verbose. This is a collective decision on their part, and it is working, and they know it.

Nearly all of this stuff is enforceable, as many an HOA or condo unit owner has discovered, and it makes citizens relatively powerless. The private logic of contact law structures the relationship as individual consumer vs. big corporation with government as the enforcer of the contract, instead of citizens vs. powerful private organizations, with government as policy maker holding jurisdiction over the relationship.

The law calls these boilerplate documents "contracts of adhesion," but the days are long past when judges were willing to throw them out because they were drafted by one party and imposed on the other, there was gross inequality of bargaining power, and there was no real assent to the terms. Now they are deemed essential to the free flow of modern commerce.

My view has always been that policy makers should be willing to step in and reform these relationships if they become predatory or destructive. But there is little stomach for that presently.

Ft. Lauderdale To Offer Homeless Free Rides Out Of Town « CBS Miami

Ft. Lauderdale To Offer Homeless Free Rides Out Of Town « CBS Miami
On Tuesday, the city’s commission approved a $25,000 program which will buy them one-way bus tickets out of town. The program won’t cost taxpayers a dime. It’s being paid for by the Florida Law Enforcement Trust Fund, which is money confiscated from criminals.
---------------
Hey, how about a free visit to your relatives, on us. Just don't come back. The Christmas spirit is at work.

The Value(s) of Foreclosure Law Reform? - Credit Slips

The Value(s) of Foreclosure Law Reform? - Credit Slips
...it seems impossible to treat foreclosure law as entirely distinct from broader questions of housing policy and community development. Incorporating these broader questions means asking about the shelter needs of foreclosure defendants, the disruption in education for kids in enrolled in public schools, and externalities such as neighbors' property values, declines in local tax revenues, and other community effects.
------------------
Law prof Melissa Jacoby is talking about mortgage foreclosure, but I think the same thing should be said about HOA/condo foreclosure. There is more at stake than bill collection.

Tuesday, December 20, 2011

Hovnanian Enterprises' CEO Discusses Q4 2011 Results - Earnings Call Transcript - Seeking Alpha

Hovnanian Enterprises' CEO Discusses Q4 2011 Results - Earnings Call Transcript - Seeking Alpha
As you can see on Slide 6, we ended the year at 21.3 net contracts per community just slightly below the level of the past 2 years with a slower beginning of the year and a better ending. For each of the past 4 years, our average sales per community per year is up by more than 50%, compared to our historical normalized average pace of about 45 contracts per year.

These low absorption rates make it more challenging to return to profitability. Nonetheless, we believe we can achieve profitability before sales pays returns to normalized levels.

------------------
Hovnanian Enterprises is a major builder of HOA-run subdivisions. On July 15, 2005, their stock peaked at $70.92 per share. Today it closed at $1.50 per share. The transcript from this presentation by CEO Ara Hovnanian is lengthy and detailed, but if you read it carefully you will get a sense of the total devastation that has hit the home building industry. Historically they sell 45 homes per year per subdivision. Last year they averaged 23.3 units sold per subdivision. And check out this sentence: "Our internal projections for the next 2 years assume no improvement in market conditions, so any comp line growth is driven by community count growth." This reminds me of the old joke that "we will lose money on every unit we sell, but we will make it up in volume."

Seattle cracks down on houseboat-like boats - seattlepi.com

Seattle cracks down on houseboat-like boats - seattlepi.com
For months, the city has been updating its shoreline rules, guided by a policy that takes a dim view of living on water. It's believed that floating homes are bad for salmon and other aquatic life, and that they diminish public access to shorelines.

Already, the city has proposed a ban on new houseboats. But the latest draft would also ban new boats that masquerade as floating homes, and would impose some environmental rules on existing ones. That's causing angst among Seattle's eclectic community of liveaboards who bob on the city's lakes and bays.

Read more: http://www.seattlepi.com/local/article/Seattle-cracks-down-on-houseboat-like-boats-2400872.php#ixzz1h7M5RFDu

----------
This is a bit arcane for me. I never saw "Sleepless in Seattle." There seem to be differences between "house barges" and "floating homes." Thanks to Mystery Reader, who also helpfully supplied this irreverent blog post that explains it.

Knobley Estates president demands apology from sheriff - Ripley, WV - Jackson Newspapers

Knobley Estates president demands apology from sheriff - Ripley, WV - Jackson Newspapers
Folmer is employed at the Western Maryland Correctional Institute in Cresaptown. Since he was elected president of the homeowners association last spring, there has been some discord among residents of the subdivision located near Ridgeley who have disagreed on several issues, including a ban on school buses entering the subdivision to pick up children.
Tuesday, Fraley explained to the commission that he had been told by some of the residents that Folmer was “wearing his uniform around to intimidate people,” and he had simply called the prison to inquire about the policy for wearing uniforms during off-duty hours.

-----------
Shu Bartholomew sent this link to a slice of life. Moral of the story: do you really want to elect a prison guard president of the HOA? Just a thought.

Property Manager Pleads Guilty to Stealing Condo Association Fees - Freehold, NJ Patch

Property Manager Pleads Guilty to Stealing Condo Association Fees - Freehold, NJ Patch
An Oakhurst woman pleaded to guilty to embezzling over $400,000 from a Freehold Township homeowners association, according to a press release from the Monmouth County Prosecutor’s Office.

Theresa Tierney, 60, entered the guilty plea Thursday before Monmouth County Superior Court Judge Richard W. English.

Tierney was the property manager at Strickland Farms Condominiums when she stole the funds, prosecutors said.

---------------
Yet another one of those "isolated examples" of property manager embezzlement. Thanks to Shu Bartholomew for the link and the holiday wishes.

Madigan sues 3 local firms over mortgage modifications - chicagotribune.com

Madigan sues 3 local firms over mortgage modifications - chicagotribune.com
The state attorney general's office filed suit Monday against three Chicago-area firms and their principals who allegedly operated mortgage rescue schemes that conned homeowners out of more than $44,000 in upfront fees and provided them with little or no help.

The cases share many similarities, including preying on consumers for whom English is a second language, collecting upfront fees and telling consumers to ignore any mail sent to them by their mortgage companies.

In Illinois, it is illegal to charge consumers upfront fees for loan modification services not yet provided. In at least one of the cases, a homeowner lost his home to foreclosure as a result of the purported fraud.

---------------
Thanks to Brian White for the link. Mortgage rescue fraud has been rampant since 2007 and some of their practices, including these up-front fees, are blatantly illegal. But is a total of 50 suits, with 28 injunctions, enough?

Monday, December 19, 2011

Palos Verdes Estates HOA Wants $200 For Solar Panel Sign-Off

We've got all the makings of a classic NIMBY tale down in the Palos Verdes Estates, where a snooty homeowners association is doing battle with a tenacious solar panel peddler. Bradley Bartz owns ABC Solar, and he objects to the policies of the "quasi-governmental" Palos Verdes Homes Association ("considered by many to be stodgy"), which require a $200 fee and a review by the architects of the "infamously fussy art jury" for any homeowner who wants to install solar panels on his house, reports the Daily Breeze.
----------------
Sunlight may be free. But capturing it costs in Privatopia.

Trash Can Tickets In Queens

Trash Can Tickets In Queens
The scrooge award goes to the New York City Sanitation Department for the $100 tickets.

Raymond Janson says he received the $100 fine for putting his garbage cans at the curb 30 minutes early.

Read more: http://www.myfoxny.com/dpp/news/trash-can-tickets-in-queens-20111219-lgf#ixzz1h2yg2tH3

------------------
When I say that cities are acting like HOAs, this is what I mean: they have discovered how much $$$ there is in abusing your authority by creating all sorts of absurd rules and then soaking people with fines for violating them. The police power becomes a revenue source. The same thing happened when cities discovered that mandating HOA and condo development was lucrative, which amounts to misusing the power to control land use and turning it into a revenue source instead of thinking about how best to develop the area under their jurisdiction. The political process, especially at the local level, is supposed to reflect and embody many values. Unfortunately in this country the political process has become an appendage of the market.

Growth of large private water companies brings higher water rates, little recourse for consumers

Growth of large private water companies brings higher water rates, little recourse for consumers
Across the state, a growing number of suburban Texans are getting their water from large, private corporations owned by investors seeking to profit off the sale of an essential resource. State figures show private companies are seeking more price increases every year, and many are substantial. The Texas Commission on Environmental Quality, which regulates water and sewer rates for nonmunicipal customers, doesn't keep numbers, but "their rate increases tend to be 40 and 60 percent," said Doug Holcomb, who oversees the agency's water utilities division. For years, small private companies have played a crucial role in Texas, providing water and sewer service in new developments outside of cities. Analysts say private companies will continue to fill an essential need in the future, when public money is projected to be insufficient to make the billions of dollars in costly upgrades needed in water and sewer systems. Increasingly, however, the companies are neither small nor local.
---------------
This story is from Texas, but I think this is where things may be headed across much of the Sun Belt. There is nothing private corporations love more than a monopoly over something you absolutely have to buy. All that propaganda about capitalism being about competition is claptrap.

Sunday, December 18, 2011

Slab City, Calif.: HOA Free Zone

There are no municipal services, no streetlights and no water or sewage services. But nobody charges rent or collects fees or tries to impose homeowner covenants.

Several hundred people — ranging from the free-spirited young, retired "snowbirds" from colder climes and the tight-money crowd of all ages — live in a ramshackle collection of tents, trailers, aging mobile homes and other ad hoc dwellings. But this unlikely community appears to be growing, perhaps because of the troubled economy.

"It has a post-apocalyptic look and we like it that way," said Don Case, 41, who worked as a chef in Colorado and is planning to move to Alaska — someday. "It's peaceful here, people have it together."

Modification blunders bedevil U.S. housing recovery - Yahoo! News

Modification blunders bedevil U.S. housing recovery - Yahoo! News
Three years after the foreclosure crisis began, the process to apply for a loan modification remains a bureaucratic nightmare that is complicating the housing recovery and could dull the impact of any Obama administration initiatives in the works.

The administration's biggest foreclosure-prevention effort, the Home Affordable Modification Program (HAMP), targeted to help 3 million to 4 million homeowners, has reached only about a quarter of that since its 2009 inception.

--------------------
Thanks to Fred Pilot for the link to this update on the failed HAMP program. The basic premise of this approach was that the banks would voluntarily enter into loan modifications if the government gave them monetary incentives to do so. That premise has proved to be mistaken. There is no way banks will do anything voluntarily unless it makes them bigger and richer. The fact that they have been bailed out by the taxpayers from the costs of their own mistakes is of no consequence to them. They just want more.

Friday, December 16, 2011

Occupy your HOA!

Yes! Eliminate the grief and injustices within your HOA! Eliminate your HOA BULLY BOARD! Help change Nevada's NRS116 Laws to make them more: "HOME-OWNER FRIENDLY"! By E-Mailing our State Legislatures by the Tens of Thousands of 'Nevada' Homeowners! Demand your HOA show complete Transparency! DO NOT let your 'Royal' Board Members dictate policy that is most times unfair and vindictive! DEMAND that ALL Governing Documents and Financial Reports be posted on your Community Website so that you......The HOMEOWNER....can study them, print them.....at YOUR LEISURE! Demand that you as a Homeowner.........gets to have a 'say' in your HOA 24/7 365 days a year, from the convenience of your Home Computer! You need never again attend a 'lame' HOA Meeting where you struggle to hear what is being said? And then are allowed only TWO MINUTES TO SPEAK! Demand that you, as a HOMEOWNER, gets to have 'Informational Voting Rights' in your HOA from the convenience of Your Home Computer 24/7 365 days a year! Yes!

OCCUPY YOUR HOA!

-----------------
The "occupy" movement is becoming synonymous with any kind of organized protest. Including this one in Nevada protesting HOA "bully boards." These occupiers also want to be able to avoid occupying the HOA club room for "lame" HOA meetings and are calling for more transparent government in Privatopia. Seems to me that's achievable with current technology and doesn't require an act of the legislature.

HOA uses DNA tests to target dog owners who don't scoop poop

Through a program called PooPrints, the doggie DNA goes into a world pet registry that the company says can be used as a "whodunnit tool."

When a pet owner leaves their pooch's package behind, for $60 per poop, the HOA collects and sends a sample to a lab in Knoxville, Tennessee.

"Dogs defecate and you should pick up after your dog, but, I mean, DNA testing to solve the 'crime' is going too far," Justin says.

Dog owners were given no choice in the matter.

"Basically, if you don't do it you're gonna get fined."

------------------------
Another clash between condo life and canines.

Associations can benefit from short sales vs. foreclosures - chicagotribune.com

Associations can benefit from short sales vs. foreclosures - chicagotribune.com
Foreclosures are an unfortunate circumstance for borrowers and lenders, but community associations also take a hit. Struggling owners who owe more than their homes are worth often are behind in their assessments as well as their mortgages. Associations are lean operations, and when just a few owners don't pay, the rest must make up the difference or leave bills unpaid.

A short sale can be a satisfying resolution for all parties, say many real estate and association professionals.

---------------
True, but the association has no power to make a short sale happen. That is between the owner in default on the mortgage and the bank. And check out this statement: "Lenders prefer short sales over foreclosures because foreclosures are more expensive and time-consuming, said Eric Hamilton, a mortgage consultant with Wells Fargo Home Mortgage in Aurora." With no disrespect meant to Mr. Hamilton, this is not what is happening. It is very difficult to arrange a short sale because the "lender" won't agree to it. The reason is that this term "lender" is a misnomer. Mortgages are not owned by actual lenders. Mortgages are sold by originators, who then may or may not become the "servicer" of the loan. Mortgages are owned by investment trusts who buy residential mortgage backed securities. The servicer collects the payments and sends them to the trust, and handes the foreclosure. These servicers do not want to spend time and energy negotiating short sales. They want to prosecute foreclosures, because that's how they get paid. Many of the servicers are banks that hold second mortgages which would be wiped out in a short sale, a conflict of interest that is preventing short sales.

Now That the Factories Are Closed, It’s Tee Time in Benton Harbor, Mich. - NYTimes.com

Now That the Factories Are Closed, It’s Tee Time in Benton Harbor, Mich. - NYTimes.com
All over Michigan, counties are scrambling to find ways to reinvent their outdated economies. Two recurring themes in this effort have been attracting tourism and retaining corporations. Michigan’s Republican governor, Rick Snyder, a former venture capitalist, recently signed an overhaul of the state tax code that cuts business taxes by $1.7 billion, while committing $25 million to the “Pure Michigan” advertising campaign, which features local celebrities like Tim Allen urging people to visit the state. In this context, the goings-on in Benton Harbor make a certain kind of sense — not just Harbor Shores, which was intended to lure weekenders from Chicago, roughly two hours away by car, but the other major construction project under way in town: a new, heavily tax-incentivized, $68 million, 270,000-square-foot corporate campus for Whirlpool. The juxtaposition of Benton Harbor’s impoverished population and its two rising monuments to wealth — all wedged into a little more than four square miles — make it almost a caricature of economic disparity in America. But at the same time, it offers a window into one possible future for towns across the country, places that can no longer support their own economies or take care of their citizens and may ultimately have no choice but to turn their fate over to private industry and nonprofits. The way things are going, more and more states may start to look like Michigan, and more and more towns may start to look like Benton Harbor.
-----------
The general idea is that public local governments get so impoverished due to loss of their tax base that they give suicidal tax breaks to corporate overlords who build playgrounds for the rich, all in the hope of attracting tourists who will buy stuff in town.

Thursday, December 15, 2011

BBC News - The scandal of the Alabama poor cut off from water

BBC News - The scandal of the Alabama poor cut off from water
Banks stand to lose millions of dollars in debt repayments if the biggest municipal bankruptcy in American history is allowed to proceed.

But the real victims of the financial collapse in the US state of Alabama's most populous county are its poorest residents - forced to bathe in bottled water and use portable toilets after being cut off from the mains supply.

And there is widespread anger in Jefferson County that swingeing sewerage rate hikes could have been avoided but for the greed, corruption and incompetence of local politicians, government officials and Wall Street financiers.

----------------
The bankruptcy of Jefferson County was caused by a toxic stew of local government corruption and Wall Street greed. The county bought a gold-plated sewer system and then was encouraged by JP Morgan to get all creative with paying for it. The result? "The facility, which has been under construction since 1996, was meant to cost about $300m. But the bill soared to $3.1bn after construction problems and a series of bond and derivatives deals that went sour in the financial meltdown of 2008. Investment bank JP Morgan Securities and two of its former directors have been fined for offering bribes to Jefferson County workers and politicians to win business financing the sewer upgrade."

Meter company sends city $13.5 million bill for disabled parking - Chicago Sun-Times

Meter company sends city $13.5 million bill for disabled parking - Chicago Sun-Times
Chicago Parking Meters LLC sent the city a $13.5 million bill to cover losses from people who used disability placards or license plates to park for free in metered spots between Feb. 28, 2010, and Feb. 28, 2011, records show. The parking-meter company didn’t gauge how many of those drivers were legitimately disabled — though its surveys have city officials convinced that fraud played a major role in the bill being that high.
--------
Here is the latest insult on top of injury from the mysterious combine that owns Chicago's parking meters. Former Mayor Daley jammed through the Bozo the Clown city council what is probably the stupidest privatization arrangement in the history of any major city, and it just keeps on giving and giving--problems, that is. Nobody can really figure out who actually owns the meters during this long-term lease. This LLC is just a front for some weird combination of investor groups--apparently the main investors are sovereign wealth funds from the Middle East.

City Saves Snoopy House Christmas Display Amid Foreclosure - The Consumerist

City Saves Snoopy House Christmas Display Amid Foreclosure - The Consumerist
After a homeowner lost his family house to foreclosure, he was threatened with also taking away a neighborhood tradition, in the form of a sprawling Snoopy Christmas display. But the community isn't letting that happen.
------
Thanks to Mystery Reader for this semi-heart-warming story.

Mortgage rates fall to record lows - Dec. 15, 2011

Mortgage rates fall to record lows - Dec. 15, 2011
Hey--better rush right out and buy a condo. It's the perfect time to buy--didn't you hear?

Wednesday, December 14, 2011

Realtors: We Overcounted Home Sales for Five Years - US Business News - CNBC

Realtors: We Overcounted Home Sales for Five Years - US Business News - CNBC
Data on sales of previously owned U.S. homes from 2007 through October this year will be revised down next week because of double counting, indicating a much weaker housing market than previously thought...Early this year, the Realtors group was accused of overcounting existing homes sales, with California-based real estate analysis firm CoreLogic claiming sales could have been overstated by as much as 20 percent.
--------------
So the National Association of Realtors got caught by CoreLogic cooking the numbers, and now they admit double counting. Add this to the endless list of lies, mistakes, and fraud in the real estate market. Mortgage companies, banks, appraisers, realtors, the ratings agencies, investment banks, mortgage servicers, mortgage "rescue" companies, HOAs and condo associations, and on and on...is there anybody in the whole system you can trust? Given the centrality of this industry to the economy, one would think somebody would clean house and try to restore some credibility, but all I see is a boundless concern for the health of the financial sector.

Tuesday, December 13, 2011

Report: Sacramento-area housing shift seen as suburban spreads lose appeal

The report released this week by the Urban Land Institute contends that Sacramento and other California metropolitan areas are about to discover they have an "oversupply" of classic subdivision housing, thanks to a sea change in what buyers want and can afford.

Younger people are postponing homebuying, the report says, and when they do buy, more of them will opt for denser, urban-style housing, including small-lot homes, town houses and condominiums near transit, jobs, nightlife and other amenities. A higher percentage are likely to rent indefinitely because they cannot afford a home. At the same time, more baby boomers will seek buyers for their suburban spreads.

If the ULI's view holds true, some middle class neighborhoods already hit by recession and foreclosures could deteriorate further. One local planner says he fears an end result could be community blight.

-------------------------
Jack Lessinger's 1990 prediction of downscaled suburban hoods along with the perfessor's prognostication that Privatopia will go condo. Especially in California, where condos have historically comprised the bulk of common interest developments versus planned unit developments. One homebuilder group however questions the report as ULI propaganda to promote urban infill development.

China's housing bubble deflating - latimes.com

China's housing bubble deflating - latimes.com
Home prices and sales plunge after China's government intentionally slams on the brakes. Some recent buyers stage demonstrations, destroy real estate offices and demand refunds of up to 40%.

---------------
And remember: nearly all the new housing in China is in CIDs--condos and HOAs. And their management companies make ours look like pussy cats. They hire security firms that actually beat people up for complaining.

Monday, December 12, 2011

Nevada Foreclosure Filings Drop After Anti-Fraud Law Takes Effect

Nevada Foreclosure Filings Drop After Anti-Fraud Law Takes Effect
This is from a month ago but I think I missed it somehow, and it is important:

Foreclosure filings have fallen off sharply in Nevada, just one month after a state law designed to cut down on foreclosure fraud took effect.

Nevada has long been an epicenter of the national foreclosure crisis, with thousands or tens of thousands of distressed properties entering the foreclosure process every month for years. The sudden drop in foreclosure filings with the advent of the new law suggests that shoddy bookkeeping and conflicts of interest may have been widespread, raising concerns on the national level.

According to HousingWire, the new law imposes a $5,000 fine on fraudulent practices like robo-signing, the term for when banks cut corners while processing mortgage paperwork, often by signing it without reading it first.

NPR Reports that Debtors Prisons Are Alive and Well - Credit Slips

NPR Reports that Debtors Prisons Are Alive and Well - Credit Slips
NPR tells the story of Illinois debtor Robin Sanders in Illinois, who was stopped by police for a loud muffler but taken directly to jail on an arrest warrant for failure to appear at a hearing on an unpaid medical bill, all in a lawsuit she was unaware of. Similar stories have been reported in Indiana, Tennessee and Washington, and all involve selling debt to a collection agency, that then files a lawsuit against the debtor requiring a court appearance. A notice to appear in court is supposed to be given to the debtor. If they fail to show up, a warrant is issued for their arrest. According to the story, despite that debtor’s prisons were outlawed early in our country’s history, one-third of all states still allow people who have not paid bills to be jailed.
---------------
The Republicans must love this. We are rocketing forward into the 18th century.

Sunday, December 11, 2011

Privatization and Oligarchy | Firedoglake

Privatization and Oligarchy | Firedoglake
Another great way to make money risk-free is to tap into taxpayers through privatization. The idea is that government provides necessary services, paid for by taxes. If you can get the government to bow out, you can put that tax money into your own wallet. For-profit proprietary schools, which let you tap into the flood of student loan money Uncle Sam offers to those trying to better themselves, are a great example, as we learn in the New York Times.
---------------------
A pithy statement of the situation we face. Financiers and profiteers have their eyes on, and in some cases their hooks already in, everything government does or owns. They want to turn everything into a commodity that they can force us to pay them for. Water, clean air, the mail, parks, streets, schools, pensions, health care--you name it, they want it to be provided by private corporations on a for-profit basis. Government, for them, is just a competitor to be crushed.

Require homeowners associations (HOAs) to be subject to the Constitution

Are we united or are there two forms of political government within this great country? If America is to remain a united people, it is time that the US prohibits the writing of private contracts, Declarations of CC&Rs, subject to common law servitudes in order to subvert the application of the US Constitution. It is time that these private local governments be made subject to the US Constitution and stop being treated as independent principalities.

By virtue of an unconscionable adhesion private contract favoring the subdivision developer and HOA board of directors, homeowners associations are allowed to deny constitutional protections and the application of the laws of the land. Over 20% of Americans, who are homeowners living in these private governments, live at the “suffrage of the board,” with state laws that do not punish board violations of the laws or of the governing HOA documents.
---------------------------
George Staropoli of Arizona-based Citizens for Constitutional Local Government has for more than a decade argued that Privatopia is an extra-constitutional form of local government that's prone to abuse of power and thus a danger to civil and property rights. Now he's drafted a petition to the White House urging that Privatopia be deprivatized and subject to constitutional restraints.

It's not clear from the petition how this is to be accomplished. For example, by preempting state enabling statutes that allow the formation of mandatory membership HOAs? The aim of this petition could also be achieved at the state level by repealing HOA authorizing statutes and subjecting existing and future HOAs to state government codes as special districts or taxing authorities.

Saturday, December 10, 2011

Condo Owners Miffed By Removal Of Virgin Mary Statue

Papers from the homeowners association indicate the Vaskos were fined for every month they violated policy by having the statue outside illegally. That fine is now more than $4,000.

There’s more. Because they haven’t paid the fine, the homeowners association is holding the statue and has just taken away the couple’s rights for them to park on the property.

“This is religious persecution. This is discrimination. Is it a losing battle to hold your ground? No.

“If you are, then we might as well all quit as Americans and say, ‘Have a nice day, bye.’”

Glendale bans fake grass

Glendale bans fake grass
The Los Angeles suburb claims it adopted the ban because of dangers posed by chemicals, toxins and plastics present in artificial turf. Might there perhaps be an alternative motive, that of policing residents’ aesthetic taste in landscaping? Well, the ban applies only to front yards: “When asked why the fake grass would continue to be allowed in backyards, officials had no answer.”
-------------------
Thanks to Mystery Reader for this story about Glendale turning itself into an HOA.

Mortgage Foreclosure project: National Law Commissioners

Mortgage Foreclosure
Take a look at this--if you follow the link to the first document they have listed you see some of the things they will be doing. The entire question of judicial vs nonjudicial is central. That's why even though this is about mortgage foreclosure it could have spillover effects for condo/hoa foreclosure.

• Who can commence foreclosure?
• What evidentiary proof is required to commence a foreclosure?
• What pre-foreclosure notices must the mortgagee provide?
• What is the appropriate time and place in the foreclosure process for alternative
dispute resolution?
• To what extent are statutory redemption periods warranted?
• To what extent do current foreclosure processes impose unwarranted costs that
inhibit a borrower’s potential ability to redeem?
• To what extent may private actors fulfill the role of government officials in the
foreclosure process?
• What post-sale court process, if any, is required to confirm the sale, and for what
purpose?
• To what extent is the purchaser at a nonjudicial sale entitled to a presumption of the sale’s validity
based on the trustee’s representations of compliance with the state’s nonjudicial foreclosure
statute?

Laboratories of Democracy and the Commissioners of Uniformity - Credit Slips

Laboratories of Democracy and the Commissioners of Uniformity - Credit Slips
The Uniform Law Commission, who bring you the Uniform Commercial Code and other model state laws, is launching a project to consider drafting a uniform foreclosure law for the 50 states. The study group consists of professors, judges, and lawyers, but notably absent is any member who could be regarded as a consumer or homeowner advocate or even sympathizer. Interested parties may request to participate as observers, and I am told that observers have had some influence on these uniform law projects in the past. Of course, whatever the ULC drafts does not become law until a state legislature chooses to adopt it.
----------------
This is something to keep track of, I would say.

Friday, December 09, 2011

MF Global and the great Wall St re-hypothecation scandal

MF Global and the great Wall St re-hypothecation scandal
A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients.

MF Global's bankruptcy revelations concerning missing client money suggest that funds were not inadvertently misplaced or gobbled up in MF’s dying hours, but were instead appropriated as part of a mass Wall St manipulation of brokerage rules that allowed for the wholesale acquisition and sale of client funds through re-hypothecation. A loophole appears to have allowed MF Global, and many others, to use its own clients’ funds to finance an enormous $6.2 billion Eurozone repo bet.

-----------------
If it becomes widely known that money put in banks and brokerage houses is being "rehypothecated" and maybe lost forever, what happens to the banking system? I call that a systemic risk. We will be taking our money out and hiding it under the mattress.

Class action alleges B of A scam

Courthouse News Service
SAN DIEGO (CN) - Bank of America found a new way to illegally extract money from customers, according to a federal class action: deduct taxes and insurance from mortgage payments, even though the homebuyers make those payments themselves, then call the mortgage in default for the unauthorized deductions, and charge late fees and penalties.

EconoMonitor : Great Leap Forward » BERNANKE’S OBFUSCATION CONTINUES: THE FED’S $29 TRILLION BAIL-OUT OF WALL STREET

EconoMonitor : Great Leap Forward » BERNANKE’S OBFUSCATION CONTINUES: THE FED’S $29 TRILLION BAIL-OUT OF WALL STREET
This explains why Ben Bernanke's denials of the Bloomberg story about the size of the bailout are basically nonsense.

Thursday, December 08, 2011

CAI Survey: HOAs Still Reeling from Economic Slump

CAI Survey: HOAs Still Reeling from Economic Slump
This is a CAI press release on the results of a survey they did. Among other findings, "Forty-six percent of community managers say their client associations face “serious” problems as a result of the housing and economic downturn, while 10 percent describe the impact as severe...About a quarter of community managers say more than 5 percent of their units are vacant. This is largely due to foreclosures, the inability of nonresident owners to sell or rent their properties or owners simply walking away from their mortgages—and homes. Another 30 percent of managers report vacancy rates of 3 to 5 percent."

I just gave a couple of presentations to Chicago-area attorneys on this general subject, before seeing these results, and I was (as usual) pessimistic about the financial situation condo and HOA projects are in.

Thanks to Shu for flagging this.

Austin uses new financial technique to spur private development

Austin uses new financial technique to spur private development
For five years, developers and city officials have wrestled with how the city could control development along Texas 130 without having to dedicate scarce tax dollars to provide municipal services through full annexation.

The City of Austin last month sold about $40 million in bonds to finance initial construction of new roads, parks, and water and wastewater facilities upfront. The bonds are secured by the value of the raw land — not by the city — and are to be repaid with assessments on property owners in those developments, which carry a special designation: public improvement district, or PID.

Austin, which created the district, regulates development through a limited-purpose annexation.

Developers and city officials hailed the arrangement as a first in Texas, one that could be a blueprint for financially spurring future developments in a lending environment that can be hostile to large projects.

---------------------
Bill Davis sent this along. Here we have yet another municipal shortcut to get around what was once considered the normal process of development: annexation and construction of public infrastructure in exchange for the right to collect property taxes from the new city residents. Instead we have this quasi-annexation that leaves the new owners shoveling tax dollars to the city without really being annexed into the city. And Bill points out that there will end up being HOA government to take another cut.

USA Police caught testing new City Spy Drones - Rapid Denial and Washover - YouTube

USA Police caught testing new City Spy Drones - Rapid Denial and Washover - YouTube
This link goes to a YouTube video of a Houston area local news story about a new HPD project: unmanned spy drones. Add this to the unrestricted powers of your HOA.

Dispute over child's playhouse becomes an international story | Fayette County | Kentucky.com


Dispute over child's playhouse becomes an international story | Fayette County | Kentucky.com
But the story of 3-year-old Cooper Veloudis' playhouse has created a buzz from coast to coast and has even made it overseas. Links to stories and blog posts about the playhouse — which Cooper's family says is instrumental in his physical therapy for cerebral palsy — have fueled online debates that have evolved into phone calls and letters that vilify the Andover Forest Homeowners Association, the organization that ordered the Veloudis family to remove the playhouse because it violates deed restrictions.

Read more: http://www.kentucky.com/2011/12/07/1986693/dispute-over-childs-playhouse.html#ixzz1fwWp8rv6

-----------------
Thanks to Shu for this follow up story.

Wednesday, December 07, 2011

Construction defects law under the microscope - Wednesday, Dec. 7, 2011 | 2 a.m. - Las Vegas Sun

Construction defects law under the microscope - Wednesday, Dec. 7, 2011 | 2 a.m. - Las Vegas Sun
The Nevada construction industry is using the horrible corruption scandal in Vegas HOAs as a lever to pressure the legislature for "reforms" that would restrict construction defect litigation. This was bound to happen. It would be unfortunate if people lost their ability to sue when they get stuck with defective original construction. There are many examples of legitimate litigation (by way of disclosure, I did construction defect litigation back in the 1990s) along with some frivolous or just ill-considered suits.
Thanks to Fred Pilot for the link.

Municipal Finance in the Face of Falling Property Values :: Thomas J. Fitzpatrick IV and Mary Zenker :: Economic Commentary :: 12.06.11 :: Federal Reserve Bank of Cleveland

Municipal Finance in the Face of Falling Property Values :: Thomas J. Fitzpatrick IV and Mary Zenker :: Economic Commentary :: 12.06.11 :: Federal Reserve Bank of Cleveland
The fall in property values associated with the recent recession has caused a decline in property taxes which may be amplifying local government budget crises across the country. Cuyahoga County is set to reappraise property values in 2012, and when it does it may only then absorb the full force of the housing market losses caused by the recession. We estimate the potential losses in property values and the county’s tax base and find that the impact could be significant.
-------------
Using data from the Cleveland area the authors predict: "If creative ways to make up for this lack of revenue are not found, local governments may face the undesirable choice of either raising property taxes or reducing funding for essential services. Both actions may make the municipality a less desirable place for new home owners to locate. Weakening housing demand may lead to further declines in property values. In any case, it appears that the dramatic fall in property values across the country will accelerate the financial distress of municipalities in the wake of the Great Recession."

My research shows that fiscal distress leads local governments to encourage or mandate CIDs in new housing, because it allows them the "double taxation" windfall. So, when housing construction kicks up again, it will be overwhelmingly in CIDs.

Tennessee family home burns while firefighters watch | The Sideshow - Yahoo! News

Tennessee family home burns while firefighters watch | The Sideshow - Yahoo! News
A Tennessee couple helplessly watched their home burn to the ground, along with all of their possessions, because they did not pay a $75 annual fee to the local fire department.
--------------
Another example of public governments behaving like private corporations. Might as well go back to the 19th century, when there were private fire departments that would let your house burn if you didn't pay.

Monday, December 05, 2011

HOA suing family for forgetting $120 fee

BOCA RATON, FL (WFLX) It may not sound like a lot of money, but an unpaid $120 bill could force a Boca Raton family out of their home.

Asher Essebag has lived in a Boca Del Mar home for 12 years with his family, but by next month they could be forced out. He's up to date on his mortgage, but Essebag and his family are haunted by a Homeowners' Association fee he forgot to pay earlier this year.

"Next thing I know, I have a police officer at my door serving me with a summons," said Essebag.

The summons read that if the fee isn't paid to the Boca Del Mar Improvement Association, he'll be foreclosed on. Essebag didn't think that would be a problem, since the fee was just $120. But it grew over time to twenty times more. Now that the Association is suing to collect the bill, it skyrocketed to $2400 to include legal fees.
------------------
Welcome to Privatopia...where the legal fees come first.

Ex-Countrywide Exec Blows The Lid Off The Systemic Fraud At The Company

Ex-Countrywide Exec Blows The Lid Off The Systemic Fraud At The Company
This is not news, of course. You can read about it any of six or seven books, such as Matt Taibbi's Griftopia and Michael Lewis' The Big Short. But I guess for people who just watch TV it is news. The big question is why hundreds of these crooks aren't doing time in a federal prison. Until that happens nothing will change.

Video-Banks In Cahoots With Payday Loan Businesses | PaydayLoanIndustryBlog

Video-Banks In Cahoots With Payday Loan Businesses | PaydayLoanIndustryBlog
If you have two minutes to spare, watch this cartoon.

Sunday, December 04, 2011

#OccupyYourHomes: Homeowners Facing Foreclosure Speak Out | Occupy America

#OccupyYourHomes: Homeowners Facing Foreclosure Speak Out | Occupy America
Two homeowners, Jean Cassine of Queens Village and Mimi Pierre Johnson of Elmont, describe how the foreclosure crisis has caused angst and frustation for themselves, as well as their communities. They have been fighting for years to keep their homes and see the Occupy movement as an opportunity for others to do the same.

Homeowners who are struggling to modify their mortgages, interest rates, etc and the bank is threatening to evict, do not leave your homes!

“On December 6, the Occupy Wall Street movement will join the national fight against foreclosure with a big day of action.”

EVENT IN NYC:
facebook.com/events/325958404097476/

---------------------
Thanks to Mystery Reader for this link--are we about to see a new chapter in the story of the "Occupy" movement? I think this beats sleeping in the park during the winter.

Florida high court to decide whether developers are liable for defective HOA common areas, roads

The Florida Home Builders Association is concerned that, if the Supreme Court upholds the appellate-level decision, builders could be forced to fix a subdivision's problematic streets and common areas even though engineering firms and other contractors designed, constructed and inspected them.

"In the home, if something breaks, the builder has to fix it," said David Carter, president of the builders' trade group, which has filed briefs in the case. "But now, with all the entities that are involved, there's an effort to push the blame and responsibility to the builder/developer [for things outside the house] when there are other professionals who have responsibility for what they designed, inspected and certified."
-------------------------
Local governments been privatizing public infrastructure for decades by requiring residential projects be under the jurisdiction of a mandatory membership homeowners association. Now Florida's top court will decide whether developers who build that infrastructure are responsible when it turns out to be defective.

This case has wide implications and as the story indicates could require developers to spend more on infrastructure. Frequently when there are problems with roads and storm water systems, property owners turn to local governments to take them over or impose property tax assessments to pay for maintenance and repairs, so they also have an interest in the outcome.

How unemployment is tearing America apart

Having such a large army of semi-permanent unemployed workers will leave Americans poorer for years to come. “It not only affects your social fabric and creates social tensions, but it also has a fundamental impact on the long-term potential economic growth of the country,” he says. “What that means over time is a lower standard of living for everybody.” The downgrade in living standards is already underway in some unlikely places: America’s decaying suburbs. For decades the ’burbs represented the American dream for the middle class—white picket fences, two cars in the garage and a quiet cul-de-sac for the kids to play in. Yet today poverty in the suburbs is growing twice as fast as in cities, according to a recent analysis by the Brookings Institution.
----------------------------
As go the burbs, so goes Privatopia. Having only been around in significant numbers since the 1970s, HOAs have never had to weather a long economic storm. As the good perfessor recently noted, consequently they aren't prepared to cope with such adversity. Foreclosure and job loss strangle the lifeblood of assessment revenue. Adding to the pain is HOAs have far fewer households to pick up the slack like larger municipalities and counties.

This article points out the speculation and leverage led downturn that began in 2008 that shaved eight percent off the U.S. economy cannot be directly compared to the Great Depression of the 1930s, in which the economy contracted by nearly one third and far in excess of the 10 percent drop in GDP that defines a depression. But anemic recovery since 2009 has been so weak for so long that it is transfiguring the economy because so many have been out of work for six months or longer.

Postal cuts to slow delivery of first-class mail - Yahoo! News

Postal cuts to slow delivery of first-class mail - Yahoo! News
WASHINGTON (AP) — Facing bankruptcy, the U.S. Postal Service is pushing ahead with unprecedented cuts to first-class mail next spring that will slow delivery and, for the first time in 40 years, eliminate the chance for stamped letters to arrive the next day.

The estimated $3 billion in reductions, to be announced in broader detail on Monday, are part of a wide-ranging effort by the cash-strapped Postal Service to quickly trim costs, seeing no immediate help from Congress.

The changes would provide short-term relief, but ultimately could prove counterproductive, pushing more of America's business onto the Internet. They could slow everything from check payments to Netflix's DVDs-by-mail, add costs to mail-order prescription drugs, and threaten the existence of newspapers and time-sensitive magazines delivered by postal carrier to far-flung suburban and rural communities.

------------
Congress caused this by ordaining in 2006 that the Postal Service had to prepay 50 years of its future pension obligations. Obviously the internet cut into postal revenues as well, but this present crisis was induced in order to justify privatizing the postal service entirely. A large segment of the American public is so ignorant, and determined to stay that way, that this strategy may work. Thanks to Fred Pilot for the link.

Saturday, December 03, 2011

A Credit Score That Tracks You More Closely

This week, a company called CoreLogic introduced a new type of credit file, which is based on the giant repository of consumer data it maintains on just about everything that most of the traditional credit bureaus do not: missed rental payments that have gone into collection, any evictions or child support judgments, as well as any applications for payday loans, along with your repayment history.

The new report also includes any property tax liens and whether you’ve fallen behind on your homeowner’s association dues. It may reflect that you now owe more than your house is worth or if you own any other real estate properties outright. It also is supposed to catch mortgages made by smaller lenders that the big credit bureaus may have missed.
-------------------------------------------
Delinquent HOA and property tax assessment payments will make you less creditworthy under this new credit scoring scheme.

Homeowner's Association May Consider Private Hearing In Wake Of Playhouse Controversy | LEX18.com | Lexington, Kentucky

Homeowner's Association May Consider Private Hearing In Wake Of Playhouse Controversy | LEX18.com | Lexington, Kentucky
An official for the Andover Forest Homeowner's Association in Lexington said Friday that the association is considering a private hearing concerning a playhouse for a three-year-old with cerebral palsy. The story stirred controversy after it was revealed the association told the homeowners they had to remove the playhouse.

The story of the family fighting to keep their son's playhouse has received a lot of attention since LEX 18 first reported it on Thursday's 6 p.m. newscast. Three-year-old Cooper Veloudis has cerebral palsy and uses that house as part of his therapy, but the neighborhood homeowner's association says it has to go.

Despite an overwhelming output of support for Cooper, Ernie Stamper, one of seven people who represent the Andover Forest Subdivision, says the playhouse violates association rules, and they are fining the family every day the playhouse remains.

---------------------
Another unbelievable but true story from HOA Hell, as it is sometimes called. Thanks to Shu for the link.

Friday, December 02, 2011

The Greatest Hoax in the History of Money: The Fed, The Banks, The Lies | Crooks and Liars

The Greatest Hoax in the History of Money: The Fed, The Banks, The Lies | Crooks and Liars
It took the journalists at Bloomberg News two years - and presumably lots of legal fees - to pry information out of the Federal Reserve that should have been made public long ago. We now know that the Fed's secret $7.7 trillion lending program wasn't just the most massive bank bailout ever seen, and it wasn't just free money for mega-bankers - though it was certainly both of those things. It was also the greatest hoax in stock market history.

No, scratch that. It was the greatest hoax in the history of money. And it was built on lies. How many? Let us count the ways.

---------------------------
The Fed printed trillions of dollars so they could lend it to the banks that crashed our economy at 0.01% interest (also to foreign banks and a number of very wealthy individuals). I think I could make a profit with that money. Don't you? How hard would it be to find somebody who wanted to borrow it at, oh, say 2.0%? Then the Fed kept it a secret. Not even Congress knew about it. When Bernie Sanders and a few other members of the US Congress had the temerity to ask for an audit of the Fed, they were told that such an idea was horrifying and would compromise the independence of the Fed. But a partial audit was ordered and done and it turned up this gigantic stinking obscenity.

But even so, what percentage of the public has read the news coverage of this? Compare that number with the percentage who know all the remaining contestants on the most popular reality show (whatever that is), or who know the current win-loss records of all NFL teams?

Thanks to Mystery Reader for this link.

Wednesday, November 30, 2011

Reporter Investigating Foreclosure Fraud Finds Out He's A Victim Of Foreclosure Fraud - The Consumerist

Reporter Investigating Foreclosure Fraud Finds Out He's A Victim Of Foreclosure Fraud - The Consumerist
Three years ago reporter George Knapp of KLAS-TV purchased a foreclosed-upon house. Or at least he thought he'd purchased the home. As part of his interview with a local lawyer, Knapp gave the attorney his home address to see what, if any, mistakes had been made during the foreclosure and subsequent sale.

Turned out it was a a little more than a mistake. After the attorney quickly discovered an error in the chain of title for the property, Knapp contacted the Nevada Attorney General's office, which confirmed he did not actually own the house because of fake signatures and improper filings.

-------------------
Thanks to Mystery Reader for this ironic tale. I have been reading a number of books and reports on the subprime meltdown and the foreclosure tsunami, and there is a consistent theme in all of these accounts. For about five or six years, nobody in the financial sector was doing things by the book. It was rampant criminality. Financial institutions large and small, from the world's biggest investment banks all the way down to the smallest mortgage originators, were cheating people, cutting corners, falsifying documents, lying, claiming they believed things they knew were lies, and then lying again in order to blame it all on poor people while expecting the taxpayers to bail them out one way or another. Now the mortgage servicers are lying and cheating so they can foreclose without even proving they own the note, and former subprime lenders have become "mortgage rescue" specialists who take people's money for nothing or steal the title to their homes.

And the rule of thumbs seems to be that you don't go to jail for any of this.

HARP's Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages - Credit Slips

HARP's Dirty Little Secret: Most HARP Refis are of Positive Equity Mortgages - Credit Slips
. As of 2Q 2011, 92% of HARP refinancings (776,009 of 838,441) were of loans between 80% LTV and 105% LTV. Only 62,432 refis were between 105% and 125% LTV. In other words, HARP has provided very little help for underwater borrowers.
---------------
But on the bright side, the federal government has provided trillions to the big banks to help them out. Too bad homeowners aren't "too big to fail."

Notary who blew whistle on foreclosure fraud found dead - My News 3 - KSNV, Las Vegas, NV

Notary who blew whistle on foreclosure fraud found dead - My News 3 - KSNV, Las Vegas, NV
LAS VEGAS (KSNV MyNews3) -- The notary who signed tens of thousands of false documents in a massive robo-signing scandal case was found dead in her home on Monday.

The notary, 43-year-old Tracy Lawrence, was supposed to be in court at 8:30 Monday morning for her sentencing hearing.

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

Homeowners Association Won't Allow Blinking Or Colored Holiday Lights

Homeowners Association Won't Allow Blinking Or Colored Holiday Lights
The dispute is happening right now in Doylestown around Avalon Court and Rolling Hill Boulevard.

Jennifer Brown's development, Doylestown Station, bans colored lights and even blinking lights. That's why she started a petition with the minimum 62 signatures the homeowner's association requires to even discuss the issue.

-------------------
Every year you can count on some association around the nation putting on its Grinch outfit and trying to steal Christmas. Thanks to Shu for the link.

Monday, November 28, 2011

Social Market Housing for the USA: Dream or Nightmare? | Newgeography.com

Social Market Housing for the USA: Dream or Nightmare? | Newgeography.com
Imagine a future America where the home ownership rate climbs from the current 65%1 to 87%2. Libertarians as well as many social democrats would be cheering. Imagine that this rate was achieved by the state itself acting as the builder of 88%3 of the housing. Imagine also that the state imposes rules on home purchases to favor first time buyers and young families. “Progressives”, increasingly tilted towards the unmarried and childless, would bristile. Imagine racial diversity rules that restrict who you can sell your home to. Time for libertarians to shudder.

Most Americans would probably say such a concept is “Utopian” but serious policy makers should reflect that the word “Utopia” literally means “nowhere”. But Social Market Housing is alive and well in Singapore...There is no problem with runaway maintenance fees. HDB owners do not pay associations dues...you can build an HDB block next to a private condominium and you cannot tell which is which...

------------------
When you step outside the American way of doing things you see that there are some alternative approaches being tried in other nations.

Sunday, November 27, 2011

Tennessee constables aren't salaried, but they can make money » Knoxville News Sentinel

Tennessee constables aren't salaried, but they can make money » Knoxville News Sentinel
Constables are elected officials who operate as officers at no cost to the county. But they get a kickback from the state for writing citations, making arrests and serving court summonses. The state-based fees for each service are $1 per citation, $40 per arrest and $20 per summons. The money comes out of court costs paid by a defendant or party.
-------------
What could possibly go wrong with this creative privatization scheme, that enlists the wonderful power of The Market to solve yet another problem?

HOA scheme victims say plea deals ignore them - News - ReviewJournal.com

HOA scheme victims say plea deals ignore them - News - ReviewJournal.com
I have a policy of never linking to the Las Vegas Review Journal because of their contemptible and now destroyed relationship with the ruined copyright troll firm RightHaven, but the work of the LVJR reporters on the Las Vegas HOA fraud case is so good and so important that I have to reconsider. No quotations--links only.

Examining the big lie: How the facts of the economic crisis stack up | The Big Picture

Examining the big lie: How the facts of the economic crisis stack up | The Big Picture
You may have heard people blame the economic crash of 2008 on government policies that "forced" banks to give mortgage loans to low-income people who couldn't afford to make the payments. New York Mayor Bloomberg said it a couple of weeks ago. This is a "big lie," as Barry Ritholtz, author of Bailout Nation, explains once and for all, in this long and devastating piece.

Hudson Reporter - Website revels in condo controversies Guttenberg man butts heads with Galaxy Towers board

Hudson Reporter - Website revels in condo controversies Guttenberg man butts heads with Galaxy Towers board
Mike Deluca, a resident and former board member at the Galaxy Towers condominiums – which contain most of the population of the tiny waterfront town of Guttenberg – is fully aware of the extent of the controversy his community website encounters.

A computer programmer, Deluca says he created GalaxyFacts.com in 2006 after he felt that he wasn’t given the chance to defend himself at Galaxy Towers Condo Association board meetings.

Read more: Hudson Reporter - Website revels in condo controversies Guttenberg man butts heads with Galaxy Towers board

-----------
Thanks to Shu Bartholomew for this link.

How Online Learning Companies Bought America's Schools | The Nation

How Online Learning Companies Bought America's Schools | The Nation
The frenzy to privatize America’s K-12 education system, under the banner of high-tech progress and cost-saving efficiency, speaks to the stunning success of a public relations and lobbying campaign by industry, particularly tech companies.
--------
Think of the money to be made by privatizing public education. And that's being pushed very hard across the nation, in an organized campaign.

Kamala Harris is key in mortgage settlement with banks - latimes.com

Kamala Harris is key in mortgage settlement with banks - latimes.com
Even as Occupy Wall Street protests have turned America's attention to the economic inequality that has soared as banks have come to dominate our economy, those banks have been quietly working to cut themselves still one more sweet deal. Whether they get away with it may ultimately depend on California Atty. Gen. Kamala D. Harris.
-----
Good article that explains the nature of the proposed settlement and the politics behind Harris' refusal to go along with it.

Saturday, November 26, 2011

Meet with HOA? That'll be $650 for our legal counsel

For years, the simple cedar birdhouses that Gregg Harcus hung in the trees behind his town home in Eden Prairie attracted wrens and other small birds.

Now they've landed him $650 in legal fees.

The homeowner's association that oversees Bluff Country Village Townhomes, where Harcus has lived with his wife since 2002, notified Harcus that his birdhouses violated association rules and had to be removed.

Harcus, who resigned in protest from the association's board of directors earlier this year, was surprised that his birdhouses ruffled someone's feathers. He said they have been in place for at least seven years and no neighbors have complained. Harcus said the violation notice came amid a simmering conflict between him and the new management company.
-------------------------------------
So much for the notion that private HOA government is superior to municipal government because it's closer to and more responsive to constituents. Who ever heard of getting a bill from the city attorney to discuss an ordinance compliance matter? And all of this over a few birdhouses? This HOA has gone bananas.

Thursday, November 24, 2011

US Judge Calls Harrisburg Bankruptcy Filing Illegal - US Business News - CNBC

US Judge Calls Harrisburg Bankruptcy Filing Illegal - US Business News - CNBC
While admitting that she typically doesn't consider matters of state and constitutional law, France had questioned Wednesday whether a four-month-old state law designed to temporarily prohibit a bankruptcy filing by Harrisburg had met state constitutional standards that demand transparency in the passage of legislation.

In the end, she said it did.

She also questioned whether a divided Harrisburg City Council indeed had the authority to go over the mayor's head and file for bankruptcy. After the arguments, she said it didn't.

--------------
This whole debacle goes back to a botched effort to rehab an ancient incinerator. The city went $300 million in debt over this project.

Wednesday, November 23, 2011

President of homeowners association accused of embezzlement

President of homeowners association accused of embezzlement
NORTH FORT MYERS, Fla.- Board members of the Sabal Springs Golf and Raquet Club filed charges Wednesday against the former president of the homeowners association, claiming he embezzled more than a $1 million over the last 3 years.
------------------
Another isolated example. I am shocked. Shocked!

Texas Couple Fined $7,000 for Posting Sign in Yard

When Johnnie and Clara Russell posted a small yard sign on their own North Texas property outside Ft. Worth several years ago, they did not expect that they would have to seek government permission first. The sign, which promoted an event called “Wake Up America” for conservative pundit Glenn Beck’s “9/12 Project,” provoked the ire of one of their neighbors, who complained to authorities.

The Blaze reports:

Apparently the sign violated the rules of the Homeowners Association (HOA) that governed the subdivision where the Russells lived. And although Mr. & Mrs. Russell claim they never joined the association, never paid dues to the association, and never signed any papers acknowledging the association as a governing body with rules over their property, they were sued for violating the rules.

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

Read the story. Another HOA inmate ground to fine dust in the courts.

Tuesday, November 22, 2011

As the World Crumbles: the ECB spins, FED smirks, and US Banks Pillage - Thoughts - Nomi Prins

As the World Crumbles: the ECB spins, FED smirks, and US Banks Pillage - Thoughts - Nomi Prins
The US subprime crisis wasn’t so much about people defaulting on loans, but the mega-magnified effects of those defaults on a $14 trillion asset pyramid created by the banks. (Those assets were subsequently sold, and used as collateral for other borrowing and esoteric derivatives combinations, to create a global $140 trillion debt binge.) As I detail in It Takes Pillage, the biggest US banks manufactured more than 75% of those $14 trillion of assets. A significant portion was sold in Europe – to local banks, municipalities, and pension funds – as lovely AAA morsels against which more debt, or leverage, could be incurred. And even thought the assets died, the debts remained.
-----------
Which is why the European sovereign debt crisis is yet another stage in the unfolding catastrophe that started with the US mortgage market.

Monday, November 21, 2011

Foreclosure law firm famed for mocking the foreclosed-on will close; world's tiniest violin plays sad song - Boing Boing

Foreclosure law firm famed for mocking the foreclosed-on will close; world's tiniest violin plays sad song - Boing Boing
The firm last month agreed to pay a $2 million fine and change its practices to settle a federal investigation by the U.S. Justice Department, but it's also under investigation by New York Attorney General Eric Schneiderman, who has subpoenaed the firm and people associated with it. Most recently, Cong. Elijah Cummings, D-Md., and ranking member of the House Oversight and Government Reform Committee, launched an investigation into Baum, and wrote to the firm to request documents.
--------
Allegations of robo-signing, bogus assignments, sloppy work, mocking the people they were making miserable...good riddance. Thanks to Mystery Reader for the link.

Why cities should dismantle highways | SmartPlanet

Why cities should dismantle highways | SmartPlanet
Interesting set of examples. Obviously we need highways to connect cities with each other and span the country, but is it a good idea to plan for commuting and other routine transportation within a metro area premised on millions of individuals driving gasoline-powered private vehicles?

Sunday, November 20, 2011

Chickens stir up legal trouble between Round Rock homeowners association and residents


Chickens stir up legal trouble between Round Rock homeowners association and residents
First, Andrea and Martin Feher, residents of Round Rock Ranch, filed suit in September against PS Property Management Co., saying it violated their privacy by taking pictures of them, their five children and their chickens in their backyard as it investigated reports of the rule-breaking fowl.

The Round Rock Ranch Phase One Homeowners Association, which employs PS Property Management, then sued the Fehers this month, saying the family was refusing to get rid of their chickens even though they had been told it was a violation of the bylaws to keep them.

-----------------
They had one third of a turducken dinner all lined up, but the family got rid of their chickens. Thanks to Bill Davis for the link.