Tuesday, August 24, 2010
Sunday, August 22, 2010
Foreclosure Mills: Wall Street’s Latest Fraud Scheme � SpeakEasy
Foreclosure Mills: Wall Street’s Latest Fraud Scheme SpeakEasy: "Foreclosure Mills: Wall Street’s Latest Fraud Scheme
Financial giants have figured out yet another way to profit from fraud. After devastating communities across the country with shady subprime loans, the mortgage industry has launched a new assault on America’s neighborhoods. Big banks are now outsourcing their foreclosure processing to shady law firms with a history of breaking the law for a quick buck. These foreclosure scammers forge documents, backdate signatures, slap families with thousands of dollars in illegal fees and even foreclosure on borrowers who haven’t missed a payment."
Financial giants have figured out yet another way to profit from fraud. After devastating communities across the country with shady subprime loans, the mortgage industry has launched a new assault on America’s neighborhoods. Big banks are now outsourcing their foreclosure processing to shady law firms with a history of breaking the law for a quick buck. These foreclosure scammers forge documents, backdate signatures, slap families with thousands of dollars in illegal fees and even foreclosure on borrowers who haven’t missed a payment."
Saturday, August 21, 2010
All you (n)ever wanted to know about Ridgecrest (Los Angeles: fit in, transplants) - California (CA) - City-Data Forum
All you (n)ever wanted to know about Ridgecrest (Los Angeles: fit in, transplants) - California (CA) - City-Data Forum: "All you (n)ever wanted to know about Ridgecrest
Overview
Ridgecrest revolves around China Lake. Everybody works there, or works in support of it. It is simply known as 'The Base'. Coming from a large city, the people of Ridgecrest will surprise you. Many residents of the area have lived there their entire lives, many of whom dropped out of high school, had 3 kids before age 21, can't keep steady work etc, and have not experienced much outside of Ridgecrest. There are many deeply entrenched families in town, and after living there a few months you will know who they are. The other half of the population are transplants, either folks who moved there to work on base, got stationed at China Lake while in the Navy, retirees, people who moved up there for cost of living, a few LA transplants etc. It seems big at 25,000, but when you realize that there is no other large population center for 90 miles in any direction, the isolation becomes apparent. Valley fever can set in, and sometimes you'll wonder if there's anything beyond those mountains. Ridgecrest can seem like its own little world in that way."
Overview
Ridgecrest revolves around China Lake. Everybody works there, or works in support of it. It is simply known as 'The Base'. Coming from a large city, the people of Ridgecrest will surprise you. Many residents of the area have lived there their entire lives, many of whom dropped out of high school, had 3 kids before age 21, can't keep steady work etc, and have not experienced much outside of Ridgecrest. There are many deeply entrenched families in town, and after living there a few months you will know who they are. The other half of the population are transplants, either folks who moved there to work on base, got stationed at China Lake while in the Navy, retirees, people who moved up there for cost of living, a few LA transplants etc. It seems big at 25,000, but when you realize that there is no other large population center for 90 miles in any direction, the isolation becomes apparent. Valley fever can set in, and sometimes you'll wonder if there's anything beyond those mountains. Ridgecrest can seem like its own little world in that way."
Friday, August 20, 2010
2010 New Laws
2010 New Laws: "HOA� AB 313
(eff. 1-1-10)
Assessments�
AB 313 prohibits an HOA from making assessments on separate interests within the common interest development based on the taxable value of the separate interests according to the local assessor’s office, unless the association was already doing so on or before December 31, 2009, in accordance with its governing documents.� An association that is responsible for paying taxes on the separate interests within the common interest development is not subject to this prohibition.
Adds Section 1366.4 to the CA Civil Code.���
HOA� AB 899�
(eff. 1-1-10)
Disclosures�
AB 899 requires an HOA to include in the Assessment and Reserve Funding Disclosure Summary a specified statement regarding the interest rate earned on reserve funds and the assumed inflation rate applied to major component repair and replacement costs.� The HOA must also provide, at an owner’s request, a new Disclosure Document Index.� Furthermore, all the disclosure documents on this Index can be provided electronically (e-mail, fax, etc.).�
Amends Sections 1350.7 and 1365.2.5 and adds Section 1363.005 of the CA Civil Code.�"
(eff. 1-1-10)
Assessments�
AB 313 prohibits an HOA from making assessments on separate interests within the common interest development based on the taxable value of the separate interests according to the local assessor’s office, unless the association was already doing so on or before December 31, 2009, in accordance with its governing documents.� An association that is responsible for paying taxes on the separate interests within the common interest development is not subject to this prohibition.
Adds Section 1366.4 to the CA Civil Code.���
HOA� AB 899�
(eff. 1-1-10)
Disclosures�
AB 899 requires an HOA to include in the Assessment and Reserve Funding Disclosure Summary a specified statement regarding the interest rate earned on reserve funds and the assumed inflation rate applied to major component repair and replacement costs.� The HOA must also provide, at an owner’s request, a new Disclosure Document Index.� Furthermore, all the disclosure documents on this Index can be provided electronically (e-mail, fax, etc.).�
Amends Sections 1350.7 and 1365.2.5 and adds Section 1363.005 of the CA Civil Code.�"
Credit After Foreclosure, Bankruptcy, or Short Sale
Credit After Foreclosure, Bankruptcy, or Short Sale: "Credit After Foreclosure, Bankruptcy, or Short Sale
One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a 'preforeclosure sale' by Fannie Mae when the owner is in default) is the ability to obtain credit to purchase another home.� Fannie Mae has updated its credit guidelines in the FNMA Selling Guide, June 30, 2010. [ Note:�This is a 1,234 page�PDF document that takes a long time to download.]� This legal article summarizes those guidelines in Part I.� In addition, since lenders use FICO scores�in order to determine the creditworthiness of a borrower, this article covers the impact of a bankruptcy, foreclosure or short sale on FICO scores in Part II.�"
One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a 'preforeclosure sale' by Fannie Mae when the owner is in default) is the ability to obtain credit to purchase another home.� Fannie Mae has updated its credit guidelines in the FNMA Selling Guide, June 30, 2010. [ Note:�This is a 1,234 page�PDF document that takes a long time to download.]� This legal article summarizes those guidelines in Part I.� In addition, since lenders use FICO scores�in order to determine the creditworthiness of a borrower, this article covers the impact of a bankruptcy, foreclosure or short sale on FICO scores in Part II.�"
Fannie Mae DO - HCLTV to 100%
Fannie Mae DO - HCLTV to 100%: "HCLTV refers to the amount that a HELOC 2nd is set up for at closing, not the amount drawn.
LTV- 1st
CLTV- amount drawn on 2nd at closing
HCLTV- total availablity of credit after closing."
LTV- 1st
CLTV- amount drawn on 2nd at closing
HCLTV- total availablity of credit after closing."
Thursday, August 19, 2010
Gmail - Market Matters Weekly Advisory - ridgecrestrealty@gmail.com
Gmail - Market Matters Weekly Advisory - ridgecrestrealty@gmail.com
Sacramento Bee
Appraisal sites on Net often fail to pin down accurate prices
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.
MAKING SENSE OF THE STORY FOR CONSUMERS
Housing Crash Continues
Housing Crash Continues: "The only true sign of a bottom is a price low enough so that you could rent out the house and make a profit. Then you'll know it's safe to buy for yourself because then rent could cover the mortgage and all expenses if necessary, eliminating most of your risk. The basic buying safety rule is to divide annual rent by the purchase price for the house:
annual rent / purchase price = 3% means do not buy
annual rent / purchase price = 6% means borderline
annual rent / purchase price = 9% means ok to buy"
annual rent / purchase price = 3% means do not buy
annual rent / purchase price = 6% means borderline
annual rent / purchase price = 9% means ok to buy"
Housing Crash Continues
Housing Crash Continues: "Housing Crash Continues -- It's Still A Terrible Time To Buy
Why?
By Patrick Killelea
Last updated 29 June 2010 (minor changes)
Because house prices will keep falling in most places. Prices are still dangerously high compared to incomes and rents. Banks say a safe mortgage is a maximum of 3 times the buyer's annual income with 20% downpayment. Landlords say a safe price is a maximum of 15 times the house's annual rent. Yet on the coasts, both those safety rules are still being violated. Buyers are still borrowing 6 times their income and putting only 3% down, and sellers are still asking 30 times annual rent, even after recent price declines."
Why?
By Patrick Killelea
Last updated 29 June 2010 (minor changes)
Because house prices will keep falling in most places. Prices are still dangerously high compared to incomes and rents. Banks say a safe mortgage is a maximum of 3 times the buyer's annual income with 20% downpayment. Landlords say a safe price is a maximum of 15 times the house's annual rent. Yet on the coasts, both those safety rules are still being violated. Buyers are still borrowing 6 times their income and putting only 3% down, and sellers are still asking 30 times annual rent, even after recent price declines."
Saturday, August 14, 2010
Magazine-Daily News-Decision on Fannie and Freddie May Come Soon
Magazine-Daily News-Decision on Fannie and Freddie May Come Soon: "Decision on Fannie and Freddie May Come Soon
Government and banking experts meet next week to decide the future of Fannie Mae and Freddie Mac.
The likeliest solution is a complex one. The Mortgage Bankers Association is proposing a system where risk-based fees on a class of mortgage-backed securities would be charged in exchange for a government guarantee against losses.
Whatever the outcome, it is unlikely that Fannie and Freddie will be able to pay back the nearly $150 billion in taxpayer bailout money t"
Government and banking experts meet next week to decide the future of Fannie Mae and Freddie Mac.
The likeliest solution is a complex one. The Mortgage Bankers Association is proposing a system where risk-based fees on a class of mortgage-backed securities would be charged in exchange for a government guarantee against losses.
Whatever the outcome, it is unlikely that Fannie and Freddie will be able to pay back the nearly $150 billion in taxpayer bailout money t"
Thursday, August 12, 2010
Short sales soar in California, U.S. - latimes.com
Short sales soar in California, U.S. - latimes.com: "Short sales soar in California, U.S.
Real estate deals in which lenders agree to take less for a property than the balance on the mortgage have tripled since 2008, a report says."
Real estate deals in which lenders agree to take less for a property than the balance on the mortgage have tripled since 2008, a report says."
Wednesday, August 11, 2010
2010 Tax Credit for New Home / First-Time Buyer Frequently Asked Questions
2010 Tax Credit for New Home / First-Time Buyer Frequently Asked Questions: "How do I reserve a New Home Credit?
Buyers who will qualify for the New Home Credit and enter into an enforceable contract on or after May 1, 2010 to purchase a new home may apply for a reservation using FTB 3549-RR, Reservation Request for New Home Credit. Both the buyer and seller must certify on the form that they have entered into an enforceable contract. Specific pages of the purchase agreement must be faxed to FTB along with the reservation request so FTB can verify the information. FTB will send the buyer a letter stating whether the reservation request is approved, revised, or denied."
Buyers who will qualify for the New Home Credit and enter into an enforceable contract on or after May 1, 2010 to purchase a new home may apply for a reservation using FTB 3549-RR, Reservation Request for New Home Credit. Both the buyer and seller must certify on the form that they have entered into an enforceable contract. Specific pages of the purchase agreement must be faxed to FTB along with the reservation request so FTB can verify the information. FTB will send the buyer a letter stating whether the reservation request is approved, revised, or denied."
Tuesday, August 3, 2010
Dead Peasants Insurance FAQ : Questions & Answers about Corporate Owned Life Insurance (COLI), Janitor Insurance
Dead Peasants Insurance FAQ : Questions & Answers about Corporate Owned Life Insurance (COLI), Janitor Insurance: "What is “Dead Peasant” Insurance?
Dead Peasant Insurance is sometimes used as a shorthand reference for life insurance policies that insure a company’s rank-and-file employees and name the company as the beneficiary. This means that the company receives the life insurance benefits when the covered employees die. This insurance may also be called “janitor insurance,”…"
Dead Peasant Insurance is sometimes used as a shorthand reference for life insurance policies that insure a company’s rank-and-file employees and name the company as the beneficiary. This means that the company receives the life insurance benefits when the covered employees die. This insurance may also be called “janitor insurance,”…"
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