BlueKennel » Why Non-Suburbanites Distrust Suburbanites
However, people move to suburbs not just to get things, like bigger houses and yards, but to get away from things in their old neighborhood: crime, traffic, and bad schools [if they’re not religious, they are likely to assume that the public schools in the suburbs are 'good']. And how to keep the bad things from following them? They have to be able to control the neighborhoods around them. This means, of course, either through the power of the state, or through the power of covenants and deed restrictions that create a quasi-state. One major city, Houston, relies exclusively on private covenants to control land use, other than ‘health and safety’ regulations; they have not even had zoning, much less the Conditional Use Permit system that has replaced zoning in many parts of California. It is popular in conservative circles, especially, to talk about ‘smaller government,’ but ‘smaller government’ is the last thing that suburbanites want if it means that whatever they were trying to leave behind can come into their neighborhood. And we tend to think of suburbanization as a conservatizing force!
Interestingly enough, local governments have started to imitate homeowners’ associations, in that they claim the right to compel neatness and other things that traditionally a civil government did not claim beyond a demonstrable health or safety standard. And also, city residents often regard themselves as having a property right in the ‘General Plan’ of the city in the way that they would in the CC&Rs of an association.
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It's nice to see people thinking about things in 2011 that you wrote about in 1985. It would be nice if they didn't think they were intellectual pioneers, but still--it is good to see that people are catching on.
Saturday, September 10, 2011
A Huge Housing Bargain -- but Not for You - TheStreet
A Huge Housing Bargain -- but Not for You - TheStreet
NEW YORK (RealMoney) -- The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.
These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.
You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs(GS_) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.
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Awesome. Socialism for the rich, free market capitalism for everybody else.
NEW YORK (RealMoney) -- The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.
These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.
You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs(GS_) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.
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Awesome. Socialism for the rich, free market capitalism for everybody else.
Kinde Durkee 'Nearly Wiped Out' Loretta Sanchez's Campaign Fund | TPMMuckraker
Kinde Durkee 'Nearly Wiped Out' Loretta Sanchez's Campaign Fund | TPMMuckraker
Durkee was arrested by the FBI on Friday on mail fraud charges. The feds said she used campaign funds for her own personal purposes, including paying her mortgage; her mother's nursing home costs; and credit card charges for cosmetics and ice cream.
A major player in the California campaign finance world, Durkee had an extensive list of clients in California, according to the Secretary of State's office. On the federal level, Federal Election Commission records show she was treasurer for 161 various committees over the course of her career.
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Interesting that a member of Congress could be bilked this way. The same thing has happened in condo and HOA developments across the nation.
Durkee was arrested by the FBI on Friday on mail fraud charges. The feds said she used campaign funds for her own personal purposes, including paying her mortgage; her mother's nursing home costs; and credit card charges for cosmetics and ice cream.
A major player in the California campaign finance world, Durkee had an extensive list of clients in California, according to the Secretary of State's office. On the federal level, Federal Election Commission records show she was treasurer for 161 various committees over the course of her career.
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Interesting that a member of Congress could be bilked this way. The same thing has happened in condo and HOA developments across the nation.
Squatters are shot where my wife comes from: Doctor whose £1m home was taken over by spongers hits out at the law | Mail Online
Squatters are shot where my wife comes from: Doctor whose £1m home was taken over by spongers hits out at the law | Mail Online
His story started when squatters took over the five-bedroom Edwardian home he and his heavily pregnant wife planned to move into in time for the birth of their first child.
The raggle-taggle group of foreigners and drop-outs ignored his repeated pleas to leave the West London property despite telling them that his 35-year-old wife Kaltun was being put under emotional strain and the ordeal was placing their unborn baby at risk.
Read more: http://www.dailymail.co.uk/news/article-2035699/Squatters-shot-wife-comes-Doctor-1m-home-taken-spongers-hits-law.html#ixzz1XaSNZi9H
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And you think your HOA board of directors is hard to deal with...
His story started when squatters took over the five-bedroom Edwardian home he and his heavily pregnant wife planned to move into in time for the birth of their first child.
The raggle-taggle group of foreigners and drop-outs ignored his repeated pleas to leave the West London property despite telling them that his 35-year-old wife Kaltun was being put under emotional strain and the ordeal was placing their unborn baby at risk.
Read more: http://www.dailymail.co.uk/news/article-2035699/Squatters-shot-wife-comes-Doctor-1m-home-taken-spongers-hits-law.html#ixzz1XaSNZi9H
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And you think your HOA board of directors is hard to deal with...
Obama's new plan for underwater mortgages may be too little too late | iWatch News
Obama's new plan for underwater mortgages may be too little too late | iWatch News
It was almost a blink-and-you-miss-it moment in President Barack Obama’s jobs speech, but for about 20 seconds—after he urged Congress to pass his $447 billion economic stimulus bill—he offered a quick sketch of a plan to aid struggling homeowners.
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Washington fell all over itself to help the banks that caused all this by passing TARP. But the people who had these exploding mortgages? Back of the line, Buster.
It was almost a blink-and-you-miss-it moment in President Barack Obama’s jobs speech, but for about 20 seconds—after he urged Congress to pass his $447 billion economic stimulus bill—he offered a quick sketch of a plan to aid struggling homeowners.
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Washington fell all over itself to help the banks that caused all this by passing TARP. But the people who had these exploding mortgages? Back of the line, Buster.
Friday, September 09, 2011
Righthaven says it might have to file for bankruptcy - VEGAS INC
Righthaven says it might have to file for bankruptcy - VEGAS INC
Despite its backing by the billionaire Warren Stephens family, Las Vegas copyright lawsuit filer Righthaven LLC warned today it may have to file for bankruptcy because of a series of setbacks in its litigation campaign.
The warning came in an emergency request by Righthaven to a federal judge in Las Vegas that he stay his order that Righthaven pay $34,045 in legal fees to attorneys who successfully defended Kentucky message board poster Wayne Hoehn against a Righthaven lawsuit.
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Righthaven is the copyright troll firm that the Las Vegas Review Journal hired to file ridiculous copyright infringement suits against bloggers who quoted LVRJ articles. The "setbacks" are slapdowns from judges who would not allow the federal court system to be misused in this fashion. This is why I never link to anything from the LVRJ. It's a shame that the executives did such a dumb thing, because some of the LVRJ reporters do great work (including their work on the blockbuster federal investigation of fraud involving HOAs, attorneys, and others) that should be publicized on the web to generate comment and inform people in a wider circle.
Despite its backing by the billionaire Warren Stephens family, Las Vegas copyright lawsuit filer Righthaven LLC warned today it may have to file for bankruptcy because of a series of setbacks in its litigation campaign.
The warning came in an emergency request by Righthaven to a federal judge in Las Vegas that he stay his order that Righthaven pay $34,045 in legal fees to attorneys who successfully defended Kentucky message board poster Wayne Hoehn against a Righthaven lawsuit.
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Righthaven is the copyright troll firm that the Las Vegas Review Journal hired to file ridiculous copyright infringement suits against bloggers who quoted LVRJ articles. The "setbacks" are slapdowns from judges who would not allow the federal court system to be misused in this fashion. This is why I never link to anything from the LVRJ. It's a shame that the executives did such a dumb thing, because some of the LVRJ reporters do great work (including their work on the blockbuster federal investigation of fraud involving HOAs, attorneys, and others) that should be publicized on the web to generate comment and inform people in a wider circle.
Tuesday, September 06, 2011
In E-Mail Age, Postal Service Struggles to Avoid a Default - NYTimes.com
In E-Mail Age, Postal Service Struggles to Avoid a Default - NYTimes.com
The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.
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I meant to post this over the weekend. Thanks to Fred Pilot for reminding me. Right wingers and libertarians have salivated for decades over the prospect of privatizing the US Postal Service. They make the usual claims of government inefficiency. But the postal service is tasked with delivering first class mail to all locations in the nation with equal speed at the same price. It costs 44 cents to send a letter from one block in downtown Chicago to the next block, or from one remote rural location in Maine to another remote rural location in the state of Washington. Does anybody think that things will stay that way if the Republicans stage another game of chicken and threaten to let the postal service go into default and out of business, unless Obama and the Democrats agree to privatize it? Here in Chicago parking rates doubled when Daley privatized the parking meters; same with tolls on the Skyway. Some tasks are not very profitable, and businesses don't want to do those things.
The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.
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I meant to post this over the weekend. Thanks to Fred Pilot for reminding me. Right wingers and libertarians have salivated for decades over the prospect of privatizing the US Postal Service. They make the usual claims of government inefficiency. But the postal service is tasked with delivering first class mail to all locations in the nation with equal speed at the same price. It costs 44 cents to send a letter from one block in downtown Chicago to the next block, or from one remote rural location in Maine to another remote rural location in the state of Washington. Does anybody think that things will stay that way if the Republicans stage another game of chicken and threaten to let the postal service go into default and out of business, unless Obama and the Democrats agree to privatize it? Here in Chicago parking rates doubled when Daley privatized the parking meters; same with tolls on the Skyway. Some tasks are not very profitable, and businesses don't want to do those things.
Monday, September 05, 2011
HOAs as destroyers of community
HOAs are often referred to by the community association industry as its name suggests, communities. Veteran HOA critic George Staropoli however has a different perspective, asserting in a white paper that HOAs starve communities of the social capital they need to develop true community:
These associations do not create positive social capital consisting of social networks and connections with reciprocal relationships, social interactions, trustworthiness and mutual obligations between the powerful boards and the rank and file homeowners. Rather, HOAs are a major cause of the destruction of social capital within the subdivision community. And as HOAs have become institutionalized — being accepted without question as “that’s the way it is” — they have made a substantial contribution to the decline in social capital in America.
Recovery In the Housing Market Does Not Mean Higher Prices: Is the Post Still Listening to David Lereah? | Beat the Press
Recovery In the Housing Market Does Not Mean Higher Prices: Is the Post Still Listening to David Lereah? | Beat the Press
It seems that the Post still doesn't understand that there was a housing bubble. This means that prices fell from bubble-inflated levels and that they are not comming back. This is just like the NASDAQ which peaked at over 5000 in March of 2000. More than 10 year later it stands at less than half this level.
It's the same story with house prices. They peaked at levels that were more than 70 percent above their long-term trend. They still have not fully returned to their trend levels, having about 10 percent more to decline. There is absolutely zero reason to think that nationwide house prices will rise from current levels.
There continues to be an enormous excess supply of housing which can be most directly demonstrated by the fact that the housing vacancy rate remains near the record high set in 2010. There is nothing in the fundamentals of the supply and demand of the housing market that would indicate that we should expect house prices to rise from their long-term trend.
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From Dean Baker, who is constantly correcting the nonsensical econo-speak emanating from the media.
It seems that the Post still doesn't understand that there was a housing bubble. This means that prices fell from bubble-inflated levels and that they are not comming back. This is just like the NASDAQ which peaked at over 5000 in March of 2000. More than 10 year later it stands at less than half this level.
It's the same story with house prices. They peaked at levels that were more than 70 percent above their long-term trend. They still have not fully returned to their trend levels, having about 10 percent more to decline. There is absolutely zero reason to think that nationwide house prices will rise from current levels.
There continues to be an enormous excess supply of housing which can be most directly demonstrated by the fact that the housing vacancy rate remains near the record high set in 2010. There is nothing in the fundamentals of the supply and demand of the housing market that would indicate that we should expect house prices to rise from their long-term trend.
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From Dean Baker, who is constantly correcting the nonsensical econo-speak emanating from the media.
Is Phoenix an Example of Good Housing Policy? | Beat the Press
Is Phoenix an Example of Good Housing Policy? | Beat the Press
It is not clear that the pattern in Phoenix's housing market is one that many cities would want to emulate.
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Really. Take a look at the graph. And of course it is wall to wall CIDs.
It is not clear that the pattern in Phoenix's housing market is one that many cities would want to emulate.
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Really. Take a look at the graph. And of course it is wall to wall CIDs.
Sunday, September 04, 2011
Bank of America 'called grieving widow 48 times a day to remind her of husband's debt' | Mail Online
Bank of America 'called grieving widow 48 times a day to remind her of husband's debt' | Mail Online
Bank of America bombarded a grieving widow with calls up to 48 times a day to remind her that her recently deceased husband had missed a mortgage payment, it is claimed.
Deborah Crabtree, from Honolulu, Hawaii, is suing the bank after she said she was called by debt collectors as often as every 15 minutes including during the wake for her husband.
Read more: http://www.dailymail.co.uk/news/article-2033465/Bank-America-called-grieving-widow-48-times-day-remind-husbands-debt.html#ixzz1X0rHIhPi
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Stay classy, Bank of America.
Bank of America bombarded a grieving widow with calls up to 48 times a day to remind her that her recently deceased husband had missed a mortgage payment, it is claimed.
Deborah Crabtree, from Honolulu, Hawaii, is suing the bank after she said she was called by debt collectors as often as every 15 minutes including during the wake for her husband.
Read more: http://www.dailymail.co.uk/news/article-2033465/Bank-America-called-grieving-widow-48-times-day-remind-husbands-debt.html#ixzz1X0rHIhPi
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Stay classy, Bank of America.
US Real Estate: The Housing Market is Shrinking - CNBC
US Real Estate: The Housing Market is Shrinking - CNBC
The granular, organic, whatever you want to call it…non-distressed market is withering away. Sellers are afraid to put their homes on the market for fear of losing too much equity, which means there are fewer potential move-up buyers. First time buyers are choosing to rent in droves, as unemployment and the wider economy recover far more slowly than expected.
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One third of home sales in the second quarter of this year were foreclosures and short sales. But the bigger problem, says real estate writer Diana Olick, is that the number of non-distressed sales fell.
People keep talking about "when the housing market comes back," but it seems more likely that we have entered a new era in housing in this country. The old days are not coming back at all. The home ownership rate may go down permanently with young people renting instead of aspiring to ownership. The days of your home being your main investment may be over. Housing prices may never climb dependably again. And if gasoline costs ten bucks a gallon (which I think we will see within 5 to 10 years) suburban and exurban housing as we know it won't work for most people. We have far too many houses and condo units already. There are millions of foreclosures yet to be done. And the entire institution of common interest housing rests on the over-estimated abilities of the average middle-class homeowner to fund and operate a homeowner or condominium association in perpetuity.
The granular, organic, whatever you want to call it…non-distressed market is withering away. Sellers are afraid to put their homes on the market for fear of losing too much equity, which means there are fewer potential move-up buyers. First time buyers are choosing to rent in droves, as unemployment and the wider economy recover far more slowly than expected.
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One third of home sales in the second quarter of this year were foreclosures and short sales. But the bigger problem, says real estate writer Diana Olick, is that the number of non-distressed sales fell.
People keep talking about "when the housing market comes back," but it seems more likely that we have entered a new era in housing in this country. The old days are not coming back at all. The home ownership rate may go down permanently with young people renting instead of aspiring to ownership. The days of your home being your main investment may be over. Housing prices may never climb dependably again. And if gasoline costs ten bucks a gallon (which I think we will see within 5 to 10 years) suburban and exurban housing as we know it won't work for most people. We have far too many houses and condo units already. There are millions of foreclosures yet to be done. And the entire institution of common interest housing rests on the over-estimated abilities of the average middle-class homeowner to fund and operate a homeowner or condominium association in perpetuity.
Saturday, September 03, 2011
Central Florida's smaller cities look for nickel-and-dime budget cuts
Having weathered four years of declining property values, local governments have whittled spending to essential services, and some have spent reserve funds, according to city managers and finance directors.
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It's all the fault of Privatopia for failing to preserve property values.
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It's all the fault of Privatopia for failing to preserve property values.
Friday, September 02, 2011
The $4 Trillion Dollar Question | The Big Picture
The $4 Trillion Dollar Question | The Big Picture
This analysis is by Dhaval Joshi, a financial analyst, reprinted on Barry Ritholtz's blog (highly recommended). It appeared in June 2010 but I just ran across it. Here's the lead:
"Can the US economy really return to “business as usual” when it has 4 million houses surplus to requirement, when 1 out of 4 mortgages are in negative equity, and when by our calculation, it is burdened with $4 trillion of excess mortgage debt, equivalent to 30% of GDP?"
This analysis is by Dhaval Joshi, a financial analyst, reprinted on Barry Ritholtz's blog (highly recommended). It appeared in June 2010 but I just ran across it. Here's the lead:
"Can the US economy really return to “business as usual” when it has 4 million houses surplus to requirement, when 1 out of 4 mortgages are in negative equity, and when by our calculation, it is burdened with $4 trillion of excess mortgage debt, equivalent to 30% of GDP?"
Robo-signed mortgage docs date back to late 1990s - Yahoo! News
Robo-signed mortgage docs date back to late 1990s - Yahoo! News
Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.
The suspect documents could create legal trouble for homeowners for years.
Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.
The suspect documents could create legal trouble for homeowners for years.
The Real Deal on HOAs - RE/MAX Baja Realty
The Real Deal on HOAs - RE/MAX Baja Realty
"The City Council is working on setting up a new department to coordinate the HOA of the different developments, to solve internal problems between residents, the HOA and the developer. Before the developer establishes the HOA the new department appointed by the City Council will check the regulations and then give its authorization to go ahead and establish it. Raúl Aragón, council member of Rosarito and businessman has made a lot of effort for this to happen; he is also assisting the Rosarito Realtors Association and obtaining a licensed requirement to practice real estate in the city of Rosarito." Gustavo Torres, President of AMPI, commented on the subject. The new department will have the obligations to create reorganization and modernizing programs, annual income and expense reports, administrative manuals, it will keep a statistical control, impose sanctions in case of violation of the law, inspections and notices when applicable, it will supervise the appointment of board members, security and management; it will also establish the budget for common expenses, types of payment and a reserve fund.
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Thanks to Robert Rancansky for this interesting link. The writer doesn't understand why associations are proliferating and explains that all wrong, but this last paragraph is worth noting. This is in Baja California, Mexico, where apparently they have some concept of the need to keep track of association affairs. I guess Milton Friedman didn't get around to preaching his gospel there.
"The City Council is working on setting up a new department to coordinate the HOA of the different developments, to solve internal problems between residents, the HOA and the developer. Before the developer establishes the HOA the new department appointed by the City Council will check the regulations and then give its authorization to go ahead and establish it. Raúl Aragón, council member of Rosarito and businessman has made a lot of effort for this to happen; he is also assisting the Rosarito Realtors Association and obtaining a licensed requirement to practice real estate in the city of Rosarito." Gustavo Torres, President of AMPI, commented on the subject. The new department will have the obligations to create reorganization and modernizing programs, annual income and expense reports, administrative manuals, it will keep a statistical control, impose sanctions in case of violation of the law, inspections and notices when applicable, it will supervise the appointment of board members, security and management; it will also establish the budget for common expenses, types of payment and a reserve fund.
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Thanks to Robert Rancansky for this interesting link. The writer doesn't understand why associations are proliferating and explains that all wrong, but this last paragraph is worth noting. This is in Baja California, Mexico, where apparently they have some concept of the need to keep track of association affairs. I guess Milton Friedman didn't get around to preaching his gospel there.
Calculated Risk: Lawler: Census 2010: Homeownership Rates by Selected Age Groups
Calculated Risk: Lawler: Census 2010: Homeownership Rates by Selected Age Groups
Homeownership rates for those under the age of 55 have fallen dramatically since 1980, according to the Census.
Homeownership rates for those under the age of 55 have fallen dramatically since 1980, according to the Census.
Wednesday, August 31, 2011
Oregon Foreclosures Appear Likely to Shift to the Courts | LoanSafe.org
Oregon Foreclosures Appear Likely to Shift to the Courts | LoanSafe.org
For half a century, the vast majority of the state’s residential foreclosures have occurred without a judge’s involvement. Oregon is one of 24 states that allow nonjudicial foreclosures, provided lenders give borrowers proper notice, publicize the sale and abide by other requirements.
But late last year, federal judges began blocking them, ruling that lenders had failed to follow one of those requirements: filing the mortgage’s ownership history in county records.
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I have said many times that nonjudicial foreclosure is a terrible thing, whether done by CIDs or banks. Here is some reconsideration of the practice taking place in Oregon.
For half a century, the vast majority of the state’s residential foreclosures have occurred without a judge’s involvement. Oregon is one of 24 states that allow nonjudicial foreclosures, provided lenders give borrowers proper notice, publicize the sale and abide by other requirements.
But late last year, federal judges began blocking them, ruling that lenders had failed to follow one of those requirements: filing the mortgage’s ownership history in county records.
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I have said many times that nonjudicial foreclosure is a terrible thing, whether done by CIDs or banks. Here is some reconsideration of the practice taking place in Oregon.
The Home Equity Theft Reporter: May 1, 2011
The Home Equity Theft Reporter: May 1, 2011
Ohio Supremes To Decide Whether Foreclosing Party Must Own Both Note, Mortgage At The Time Complaint Is Filed
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Interesting blog--and looks like a big case.
Ohio Supremes To Decide Whether Foreclosing Party Must Own Both Note, Mortgage At The Time Complaint Is Filed
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Interesting blog--and looks like a big case.
Guilty plea in homeowners association scheme - Houston Chronicle
Guilty plea in homeowners association scheme - Houston Chronicle
LAS VEGAS (AP) — A Las Vegas political consultant pleaded guilty Tuesday in federal court to taking part in a scheme to control condominium homeowners associations and steer business to favored companies in southern Nevada.
Steven Wark, 54, admitted in a plea agreement that in 2005 he joined an effort to control homeowners association boards of directors to send legal work and building contracts to a law firm and construction company designated by his co-conspirators, prosecutors said.
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Thanks to Bill Davis for the link. Others sent me a link to the Las Vegas Review-Journal version, but I never quote anything from that newspaper because they sued people for doing it.
LAS VEGAS (AP) — A Las Vegas political consultant pleaded guilty Tuesday in federal court to taking part in a scheme to control condominium homeowners associations and steer business to favored companies in southern Nevada.
Steven Wark, 54, admitted in a plea agreement that in 2005 he joined an effort to control homeowners association boards of directors to send legal work and building contracts to a law firm and construction company designated by his co-conspirators, prosecutors said.
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Thanks to Bill Davis for the link. Others sent me a link to the Las Vegas Review-Journal version, but I never quote anything from that newspaper because they sued people for doing it.
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