I checked with the Realtor’s legal hotline the other day. Tenants have 90 days to stay in the house after the house has ACTUALLY BEEN SOLD ON THE COURTHOUSE STEPS. That can easily take a year or more. AND IF THE PURCHASERS THEMSELVES ARE NOT MOVING INTO THE HOME, (purchasing it as a second home or investment) YOUR LEASE MUST BE HONORED if it goes beyond the 90 days.
If you are a well qualified renter with a clean history, I can work with you to find a real bargain home to rent. No trailer trash or scam artists please.
If you have just been served with a LIS PENDENS, contact me about finding a good tenant and keeping the rent money.
Check out this info gathered in response to Wells Fargo’s aggressive tactics to get renters of houses in foreclosure to move out. Then drop me a line in the comments section below. Maybe we can work together.
“Wells Fargo Bank is committed to following all rules that protect tenants who are living in foreclosures, spokesman Jason Menke said. At the same time, Wells Fargo is in the business of lending money for home purchases, not in managing rentals, he said.
“Generally, it’s our object to get a new owner into the house as quickly as possible,” Menke said. “It’s in our best interest and that of the community to return properties to the market.”
California Attorney General Jerry Brown launched an investigation into the issue last month, partly in response to the Tenants Together report. Brown sent a letter in June to California banks, lenders, investors and law firms asking them to explain their procedures for dealing with tenants in foreclosed properties in an effort to find out whether laws are being broken.
Tenants are protected by a 2009 federal law that allows them to stay in their units for 90 days after a foreclosure notice is posted, but they have other rights as well:
• Renters can insist on staying in their units until the end of their leases, except when the new owner of a single-family home wants to move in.
• They can require banks and their agents to put all communication in writing.
• They are not required to take cash incentives to move out before the law requires.”
• Harassment, such as changing locks without a court order, entering the home without permission or shutting off utilities, is illegal.
Wednesday, August 25, 2010
BACK TO BUNGALOWS?
The market for resale homes new construction suggests we may need a new kind of house. One that conforms better to our recent decimation of what once was a large middle class and our new rush into poverty.
I subscribe to a newsletter that sometimes has very interesting stuff. It is written by Joe Keller, Senior Loan Consultant at Prospect Mortgage in Newtown, PA. http://bit.ly/bcYAjL
The first house my parent purchased was a small, two bedroom bungalow. I still drive by it when I am in my hometown and think about how Dad shoveled coal into the furnace and took out the ashes. All within my generation!
"The American Bungalow
The American Bungalow, or Craftsman home, grew out of the Arts and Crafts Movement of the late 19th century. The movement rejected the Industrial Revolution's increasingly ornate machine-made products and the overly decorated, impractical architecture of the Victorian era.
The word "bungalow" originates in India and refers to a simple, low-built structure with porches on the outside. The American Bungalow emphasized a visibly sturdy structure, clean lines, natural materials, simplicity and efficiency. Use of space was maximized by clustering the kitchen, dining area, bedrooms and bathrooms around a central living area.
The American Bungalow also reflected a changing America — members of a growing middle class who sought an affordable home of their own where they could raise a family. This meant a floor plan integrating the kitchen with the common areas providing easy sight lines of the dining and living rooms so one could easily watch the children while preparing meals.
The American Bungalow was immensely popular. Kit homes that suppliers could ship anywhere in the country led to "bungalow mania" in the 1910s and 1920s. Sears was the most prominent supplier of these kits and reportedly sold more than 100,000 homes between 1908 and 1940. Sears bungalows are now highly prized by bungalow enthusiasts.
The American Bungalow has a distinctive style: a low, gently slopping roof, usually one story (some Bungalows have attics and dormer windows), wide overhanging eaves, exposed rafters (rafter tails), an incised porch (set beneath the roof) and tapered or square pillars (corbels) supporting the roof. Throughout the interior, designers showcased the wooden craftsmanship with exposed beam ceilings and built-in cabinetry, shelves and benches."
Want one of the least expensive homes in the US in one of the best places to live?
Move to Palm Coast...Talk To Ted!
I subscribe to a newsletter that sometimes has very interesting stuff. It is written by Joe Keller, Senior Loan Consultant at Prospect Mortgage in Newtown, PA. http://bit.ly/bcYAjL
The first house my parent purchased was a small, two bedroom bungalow. I still drive by it when I am in my hometown and think about how Dad shoveled coal into the furnace and took out the ashes. All within my generation!
"The American Bungalow
The American Bungalow, or Craftsman home, grew out of the Arts and Crafts Movement of the late 19th century. The movement rejected the Industrial Revolution's increasingly ornate machine-made products and the overly decorated, impractical architecture of the Victorian era.
The word "bungalow" originates in India and refers to a simple, low-built structure with porches on the outside. The American Bungalow emphasized a visibly sturdy structure, clean lines, natural materials, simplicity and efficiency. Use of space was maximized by clustering the kitchen, dining area, bedrooms and bathrooms around a central living area.
The American Bungalow also reflected a changing America — members of a growing middle class who sought an affordable home of their own where they could raise a family. This meant a floor plan integrating the kitchen with the common areas providing easy sight lines of the dining and living rooms so one could easily watch the children while preparing meals.
The American Bungalow was immensely popular. Kit homes that suppliers could ship anywhere in the country led to "bungalow mania" in the 1910s and 1920s. Sears was the most prominent supplier of these kits and reportedly sold more than 100,000 homes between 1908 and 1940. Sears bungalows are now highly prized by bungalow enthusiasts.
The American Bungalow has a distinctive style: a low, gently slopping roof, usually one story (some Bungalows have attics and dormer windows), wide overhanging eaves, exposed rafters (rafter tails), an incised porch (set beneath the roof) and tapered or square pillars (corbels) supporting the roof. Throughout the interior, designers showcased the wooden craftsmanship with exposed beam ceilings and built-in cabinetry, shelves and benches."
Want one of the least expensive homes in the US in one of the best places to live?
Move to Palm Coast...Talk To Ted!
Monday, August 23, 2010
Humm...OM, Aum...Pork U.
I found this on a tattoo blog I follow…note at the end, she isn’t sure the tattoo is correct! All the more reason for the government to support research on temporary tattoo ink! Maybe one of my elected congressmen will append a research grant for temporary tattoo ink onto the next defense funding bill and include a provision the research be conducted in his home district. I support pork and no term limits!
“Om and Aum are the same thing; it's just written two different ways. Think of "Om" as the phonetic spelling and "Aum" as the actual spelling. The sound of "Aum" - the slow, calming chant many associate with the word, is the sound that was made when all of creation came into existence. The essence of the universe and all creation, wrapped up in one unimaginable and indescribable aggregate (for lack of a better term), is known as Brahman. The "Om" represents the four divine states of Brahman - metta (loving kindness), karuna (compassion), mudita (sympathetic joy), and upekkha (equanimity). Brahman is actually a core belief system in both Hinduism and Buddhism, both of which use Om regularly in their daily life. (Feel free to research further on this with the links below - it's quite fascinating.)
So, just the sound of "Aum" is so beyond human comprehension that it boggles the mind, and then there is the symbol as well. Just as Brahma is the culmination of everything, so is the Om symbol. It's written in Sanskrit, and each part of the symbol has a very significant purpose. The two curls on top of each other (that sort of look like the number 3), with the downward curl that spirals out from the "3" shape, each represent a state of consciousness. The large, bottom curl stands for the normal state of being awake, which you probably are in right now. The curl above it stands for deep sleep, while the curl emanating out from the center of the two represents the dream state. Those are the states of consciousness that every human on earth experiences. But the dot and the open curve above that is what elevates the symbol to a much higher and more sacred meaning. The dot represents absolute consciousness; that's not the same as merely being awake, but it means being fully aware of yourself and everything around you. The open curve that cradles the dot represents an infinitely open mind, which is required to achieve that level of absolute consciousness.* (See note below)
As you can see, it's not just a soothing chant or a pretty symbol. If you plan to place an "Om" on your body, you need to understand and embrace all that it stands for.
Note: After my own personal research on this symbol, it occurs to me that the symbol in the tattoo seen here may actually be incorrect as it's missing the dream state curl to the right of the "3" shape. I'm not knowledgeable enough on the subject to know if this is an acceptable variation to those in the various faiths that hold the "Om" in great esteem. I'm going to continue doing some research and will hopefully have more information to add in coming weeks. There are, however, known acceptable variations: the Jain Om, the Tibetan Om, the Vedic Om, and the Sikh Ek Onkar.”
“Om and Aum are the same thing; it's just written two different ways. Think of "Om" as the phonetic spelling and "Aum" as the actual spelling. The sound of "Aum" - the slow, calming chant many associate with the word, is the sound that was made when all of creation came into existence. The essence of the universe and all creation, wrapped up in one unimaginable and indescribable aggregate (for lack of a better term), is known as Brahman. The "Om" represents the four divine states of Brahman - metta (loving kindness), karuna (compassion), mudita (sympathetic joy), and upekkha (equanimity). Brahman is actually a core belief system in both Hinduism and Buddhism, both of which use Om regularly in their daily life. (Feel free to research further on this with the links below - it's quite fascinating.)
So, just the sound of "Aum" is so beyond human comprehension that it boggles the mind, and then there is the symbol as well. Just as Brahma is the culmination of everything, so is the Om symbol. It's written in Sanskrit, and each part of the symbol has a very significant purpose. The two curls on top of each other (that sort of look like the number 3), with the downward curl that spirals out from the "3" shape, each represent a state of consciousness. The large, bottom curl stands for the normal state of being awake, which you probably are in right now. The curl above it stands for deep sleep, while the curl emanating out from the center of the two represents the dream state. Those are the states of consciousness that every human on earth experiences. But the dot and the open curve above that is what elevates the symbol to a much higher and more sacred meaning. The dot represents absolute consciousness; that's not the same as merely being awake, but it means being fully aware of yourself and everything around you. The open curve that cradles the dot represents an infinitely open mind, which is required to achieve that level of absolute consciousness.* (See note below)
As you can see, it's not just a soothing chant or a pretty symbol. If you plan to place an "Om" on your body, you need to understand and embrace all that it stands for.
Note: After my own personal research on this symbol, it occurs to me that the symbol in the tattoo seen here may actually be incorrect as it's missing the dream state curl to the right of the "3" shape. I'm not knowledgeable enough on the subject to know if this is an acceptable variation to those in the various faiths that hold the "Om" in great esteem. I'm going to continue doing some research and will hopefully have more information to add in coming weeks. There are, however, known acceptable variations: the Jain Om, the Tibetan Om, the Vedic Om, and the Sikh Ek Onkar.”
Wednesday, August 18, 2010
I TOLD YOU…THE U.S. GOVERNMENT WILL SOON OWN LOTS OF HOUSES!
Hot off the Florida Realtors newsletter is this quote from a meeting Obama just had with a bunch of big bankers: “Bill Gross, the managing director for bond giant Pimco, suggested Fannie and Freddie should be formally merged into the government. He also called on the administration to allow millions of homeowners to automatically refinance their loans to help stimulate the economy.”
Others were a bit more coy about it…”A more widely held view at the conference is for the government to do away with Fannie and Freddie, and instead provide a guarantee that mortgage investors get paid even if borrowers default in droves.”
To read the entire article go to http://bit.ly/cqKvM2
Others were a bit more coy about it…”A more widely held view at the conference is for the government to do away with Fannie and Freddie, and instead provide a guarantee that mortgage investors get paid even if borrowers default in droves.”
To read the entire article go to http://bit.ly/cqKvM2
PALM COAST RUSSIANS (Ukraine)
This video is being promoted on YouTube. It’s about Kiev and Odessa’s sex problem. It’s very long, but you might be interested. It would be nice to see an outreach from the Palm Coast Russian community to the street kids. Some groups are mentioned in the video-you might try contacting them. http://www.youtube.com/watch?v=oL-Y-W59BFo
If you have a Russian relative or friend who wants to move here. Talk ToTed ! I use my next door neighbor, Janna, to translate. (Also use other next door neighbor, Alex, for my Haircuts!)
If you have a Russian relative or friend who wants to move here. Talk ToTed ! I use my next door neighbor, Janna, to translate. (Also use other next door neighbor, Alex, for my Haircuts!)
DEMOCRACY HAS A PROBLEM
I went to a “Meet the Candidates” night last night. I had attended one a few weeks ago. Want to become more politically active and informed. Think the country is at a tipping point.
The Problem: too many choices, too little information, no organization of content. We are having a primary election here on August 24. The sample ballot had 78 names on it; some of them duplicated in the “Nonpartisan” sections. And the labels: "Circuit Judge, 7th Circuit, Group 3" Define that for me please??
You can’t do good research on all these candidates. The best I can do is get a quick first impression or take some partisan’s word that their guy is best…and not too many of my friends-one’s whose political judgment I respect and feel akin to-are political partisans.
I have put “Campaign Financing” at the top of my list of priorities for the country. This is one area where the government does have to step in. Integrating and evaluating info from my internet, TV, print, and radio sources is impossible for me to do well. We need an effective system in place that makes it easy to become educated on issues and to learn where candidates stand.
I will take a shot and vote in this election, but who I vote for will depend more on the Holy Spirit than my reasoning capacity, and I am not sure God wants to take a position for me.
Term Limits is second on my list of political priorities. But if I can’t figure out who to vote for in the first place; why worry more about term limits.
Since I can’t make a well-informed decision on who to vote for, I offered to sign an absentee ballot for $10 for anyone who wants my vote. I think that would be a better way to buy votes than spending money on all those negative, Taqiyya and Kitmun television ads that are driving me crazy. Can I do that legally?
The Problem: too many choices, too little information, no organization of content. We are having a primary election here on August 24. The sample ballot had 78 names on it; some of them duplicated in the “Nonpartisan” sections. And the labels: "Circuit Judge, 7th Circuit, Group 3" Define that for me please??
You can’t do good research on all these candidates. The best I can do is get a quick first impression or take some partisan’s word that their guy is best…and not too many of my friends-one’s whose political judgment I respect and feel akin to-are political partisans.
I have put “Campaign Financing” at the top of my list of priorities for the country. This is one area where the government does have to step in. Integrating and evaluating info from my internet, TV, print, and radio sources is impossible for me to do well. We need an effective system in place that makes it easy to become educated on issues and to learn where candidates stand.
I will take a shot and vote in this election, but who I vote for will depend more on the Holy Spirit than my reasoning capacity, and I am not sure God wants to take a position for me.
Term Limits is second on my list of political priorities. But if I can’t figure out who to vote for in the first place; why worry more about term limits.
Since I can’t make a well-informed decision on who to vote for, I offered to sign an absentee ballot for $10 for anyone who wants my vote. I think that would be a better way to buy votes than spending money on all those negative, Taqiyya and Kitmun television ads that are driving me crazy. Can I do that legally?
Sunday, August 15, 2010
Know what a Twelver is?
O'Bama opted out from opening a discussion about whether CAIR and the NY Mosque Muslims are a religious movement or a political movement.
I don't know much about the nuances of Islam. I wanted to know about the 'Twelvers'. My Wikipedia-derived explaination (a) taught me a little and (b) gave me a glimpse of how much division there is among Muslims.
TWELVERS:
"Twelver or Imami Shīa Islam is the largest branch of Shī‘ī (Shi'a) Islam. Adherents of Twelver Shī‘ism are commonly referred to as Twelvers, which is derived from their belief in twelve divinely ordained leaders, known as the Twelve Imāms and their belief that the Mahdi will be none other than the returned Twelfth Imam that disappeared and is believed by Twelvers to be in occultation. Approximately 85% of Shī‘a are Twelvers, and the term Shi'a Muslim as commonly used in English usually refers to Twelver Shī‘a Muslims only."
Twelvers share many tenets of Shī‘ism with related sects, such as the belief in Imāms, but the Ismā‘īlī and Zaydī Shī‘ī sects each believe in a different number of Imāms and for the most part, a different path of succession regarding the Imāmate. They also differ in the role and overall definition of an Imām. The Shia Muslims believe that following the Prophet Muhammad's death, leadership should have passed directly to his cousin/son-in-law, Ali.
The Twelver faith is predominantly found in Iran, Azerbaijan, Bahrain, Iraq, Lebanon, ((Afghanistan)) and Kuwait. It also forms a large minority in India, Pakistan and Saudi Arabia.
Throughout history, Shia Muslims have not recognized the authority of elected Muslim leaders, choosing instead to follow a line of Imams which they believe have been appointed by the Prophet Muhammad or God Himself.
WHAT ABOUT SUNNI'S?
"The division between Shia and Sunni dates back to the death of the Prophet Muhammad, and the question of who was to take over the leadership of the Muslim nation. Sunni Muslims agree with the position taken by many of the Prophet's companions, that the new leader should be elected from among those capable of the job. This is what was done, and the Prophet Muhammad's close friend and advisor, Abu Bakr, became the first Caliph of the Islamic nation. The word "Sunni" in Arabic comes from a word meaning "one who follows the traditions of the Prophet."
Sunni Muslims make up the majority (85%) of Muslims all over the world.
THE GREAT DIVIDE BETWEEN SUNNI AND SHIITE: Shiite Muslims share the belief that leadership should have stayed within the Prophet's own family, among those specifically appointed by him, or among Imams appointed by God Himself.
NOW I KNOW THAT...SO WHO IS COMMITTED TO KILLING ME; A KUFAR? ALL OF THEM?
I don't know much about the nuances of Islam. I wanted to know about the 'Twelvers'. My Wikipedia-derived explaination (a) taught me a little and (b) gave me a glimpse of how much division there is among Muslims.
TWELVERS:
"Twelver or Imami Shīa Islam is the largest branch of Shī‘ī (Shi'a) Islam. Adherents of Twelver Shī‘ism are commonly referred to as Twelvers, which is derived from their belief in twelve divinely ordained leaders, known as the Twelve Imāms and their belief that the Mahdi will be none other than the returned Twelfth Imam that disappeared and is believed by Twelvers to be in occultation. Approximately 85% of Shī‘a are Twelvers, and the term Shi'a Muslim as commonly used in English usually refers to Twelver Shī‘a Muslims only."
Twelvers share many tenets of Shī‘ism with related sects, such as the belief in Imāms, but the Ismā‘īlī and Zaydī Shī‘ī sects each believe in a different number of Imāms and for the most part, a different path of succession regarding the Imāmate. They also differ in the role and overall definition of an Imām. The Shia Muslims believe that following the Prophet Muhammad's death, leadership should have passed directly to his cousin/son-in-law, Ali.
The Twelver faith is predominantly found in Iran, Azerbaijan, Bahrain, Iraq, Lebanon, ((Afghanistan)) and Kuwait. It also forms a large minority in India, Pakistan and Saudi Arabia.
Throughout history, Shia Muslims have not recognized the authority of elected Muslim leaders, choosing instead to follow a line of Imams which they believe have been appointed by the Prophet Muhammad or God Himself.
WHAT ABOUT SUNNI'S?
"The division between Shia and Sunni dates back to the death of the Prophet Muhammad, and the question of who was to take over the leadership of the Muslim nation. Sunni Muslims agree with the position taken by many of the Prophet's companions, that the new leader should be elected from among those capable of the job. This is what was done, and the Prophet Muhammad's close friend and advisor, Abu Bakr, became the first Caliph of the Islamic nation. The word "Sunni" in Arabic comes from a word meaning "one who follows the traditions of the Prophet."
Sunni Muslims make up the majority (85%) of Muslims all over the world.
THE GREAT DIVIDE BETWEEN SUNNI AND SHIITE: Shiite Muslims share the belief that leadership should have stayed within the Prophet's own family, among those specifically appointed by him, or among Imams appointed by God Himself.
NOW I KNOW THAT...SO WHO IS COMMITTED TO KILLING ME; A KUFAR? ALL OF THEM?
Friday, August 13, 2010
Palm Coast Florida Houses Are Selling for Half What Was Paid
Want a quick look at our real estate market? Without struggling through lots of who, what, when, where info?
I just read a Real Estate Transactions article in our weekly Palm Coast Observer newspaper (Great new paper!) where they gave a report on all the real estate transactions recorded for the week of July 19-23. The data was comprehensive by neighborhood, houses and condos. Toby Tobin of GoToby.com helped to compile it.
To give you some idea of the housing bargains here the $625K house that sold for $350 is in Palm Coast Plantation, a gated community on the Intracoastal. It has a pool that features an island with a palm tree on it and 2457 sq ft of living area.
MY LIST: I took just the amount the property sold for and the amount the sellers paid for it and made this list:
PAID/SOLD
$625,000-$350,000
231,000-113,000
499,000-215,000
177,000-168,500
290,000-120,000
136,000-95,000
358,000-120,000
254,000-116,000
290,000-139,900
92,000-54,000
430,000-208,600
47,500-95,000
415,000-213,700
149,900-55,000
164,900-175,000
314,000-120,000
?-110,000
242,600-110,000
183,700-109,000
148,500-135,000
?-112,000
248,000-127,500
257,000-125,000
258,000-125,000
145,000-170,000
285,000-132,000
There has never been a better time to buy a home in Florida. For the best deal, Talk To Ted ! (me). tedleshersr@gmail.com
I just read a Real Estate Transactions article in our weekly Palm Coast Observer newspaper (Great new paper!) where they gave a report on all the real estate transactions recorded for the week of July 19-23. The data was comprehensive by neighborhood, houses and condos. Toby Tobin of GoToby.com helped to compile it.
To give you some idea of the housing bargains here the $625K house that sold for $350 is in Palm Coast Plantation, a gated community on the Intracoastal. It has a pool that features an island with a palm tree on it and 2457 sq ft of living area.
MY LIST: I took just the amount the property sold for and the amount the sellers paid for it and made this list:
PAID/SOLD
$625,000-$350,000
231,000-113,000
499,000-215,000
177,000-168,500
290,000-120,000
136,000-95,000
358,000-120,000
254,000-116,000
290,000-139,900
92,000-54,000
430,000-208,600
47,500-95,000
415,000-213,700
149,900-55,000
164,900-175,000
314,000-120,000
?-110,000
242,600-110,000
183,700-109,000
148,500-135,000
?-112,000
248,000-127,500
257,000-125,000
258,000-125,000
145,000-170,000
285,000-132,000
There has never been a better time to buy a home in Florida. For the best deal, Talk To Ted ! (me). tedleshersr@gmail.com
Wednesday, August 11, 2010
It's Time To Stop Losing Money On That 'Investment' House
South Florida home values see nation’s biggest drop in a year. Yes, this is SOUTH FLORIDA, but we are not doing any better, just not big enough to get headlines.
"MIAMI – Aug. 10, 2010 – South Florida home values suffered the worst decline of 25 large metropolitan areas in the second quarter of this year, falling 15 percent compared with 2009, according to a national real estate report.
The data, released Monday by analysts at Zillow, found that the median home value in Palm Beach, Broward and Miami-Dade counties fell to $146,500, down nearly 7 percent from the beginning of this year and a whopping 52 percent from housing’s peak values in 2006.
Nationally, median home value, including townhomes and condominiums, dipped 3.2 percent from the same time in 2009"
AND THE “OIL BELOW THE SURFACE: “Zillow found that 44 percent of South Florida single-family homes with mortgages are underwater – real estate slang for owing more on a loan than the home is worth.”
TALK TO TED If you are sitting on an investment property, waiting for the price to come back up or if you have an “Over-Priced Turkey” listed way above what the Flagler Property Appraiser says is it’s “Just Market Value” you are making a mistake. ‘Talk To Ted’ about a strategic default or a for-sale-by-owner at the market price to limit your loss on this fast-depreciating asset.
"MIAMI – Aug. 10, 2010 – South Florida home values suffered the worst decline of 25 large metropolitan areas in the second quarter of this year, falling 15 percent compared with 2009, according to a national real estate report.
The data, released Monday by analysts at Zillow, found that the median home value in Palm Beach, Broward and Miami-Dade counties fell to $146,500, down nearly 7 percent from the beginning of this year and a whopping 52 percent from housing’s peak values in 2006.
Nationally, median home value, including townhomes and condominiums, dipped 3.2 percent from the same time in 2009"
AND THE “OIL BELOW THE SURFACE: “Zillow found that 44 percent of South Florida single-family homes with mortgages are underwater – real estate slang for owing more on a loan than the home is worth.”
TALK TO TED If you are sitting on an investment property, waiting for the price to come back up or if you have an “Over-Priced Turkey” listed way above what the Flagler Property Appraiser says is it’s “Just Market Value” you are making a mistake. ‘Talk To Ted’ about a strategic default or a for-sale-by-owner at the market price to limit your loss on this fast-depreciating asset.
RIP OFF: Air Conditioning Repairs Rate Fixing.
I was burned once already by my Palm Coast ‘five star’ air conditioning sales and repair outfit. I always used “the best” when I was younger and my income and finances were much better. No more. My first clue was when they started a “duct cleaning” service. An almost worthless service for which they charged hundreds of dollars. It doesn’t take much research to discover how near useless that investment is.
Now, the air conditioner (heat pump) I purchased from them…the one that required their “special hand made air filters” that were premium priced (and looked like they were made by ten-year-olds)…has stopped working. I think it is a thermostat problem; but I am not sure. So I called them up to make an appointment:
$70.00 for a ‘service call’ to drive to my house. Then they want a ‘parts and labor’ payment payable on completion.
Well, I have to budget from my social security payment, so I asked what their labor charge would be. They don’t have a labor rate. They charge a combined ‘parts and labor’ fee based on the part they replace. Huh?
I used the yellow pages and called someone who was advertising a lower price for the drive to my house; the ‘service fee’. I could have sent a taxi for them and it would cost less. When asked their labor rate I got the same answer…”we charge a combined rate for the part needed and the labor to install it”. When questioned further, it turns out that MOST OF THE AIR CONDITIONING REPAIR OPERATIONS IN OUR AREA USE A NATIONAL ‘RATE BOOK’ TO ESTABLISH THEIR CHARGES.
This is a neat way to avoid head-to-head competition on rates, expertise and service. And it allows them to hire the cheapest, least qualified help, charge the “rate book” rate, and maximize their profits. I think it’s a monopolistic practice and a scam.
I am continuing to look for an individual with a good reputation who will give me a reasonable charge for coming to my house and diagnosing the problem-it’s not rocket science. I will pay a fair fee for that.
Then I should be able to decide about who will fix it at what price. This tightly coupling of the service call, the diagnostic exam and the fixed-price repair call into a "one call/one price/payable upon completion" policy is wrong.
I think I can find an air conditioning repair person to do travel to my house and do the diagnostic for a reasonable fee and then I can check my checkbook to see if I can pay for the work they say needs to be done or get a second opinion.
If you have a good Palm Coast air conditioner repair person who does not use the “national rate book” to establish rates, please drop me a comment..
RATE FIXING-A COMMON PRACTICE: Most auto repair places use this same “rate book” monopolistic practice. But with auto repairs you can take your car to a shop, get your problem identified, and then shop for a repair price. With a plumbing or air conditioning or electrical problem in your home, you cannot.
I had one auto repair shop say I needed a new head gasket. Another said I needed a water pump. I finally took it to highly-recommended John who is US Auto in Bunnel. He said I had a leaky radiator and might also need a water pump, he had to look. He fixed the radiator and replaced the water pump after telling me what it would cost His bill was very reasonable and the car is running fine.
Gaaa! What if I had paid to have the head gasket replaced and the radiator still leaked!
"Made in America" is taking on a new meaning to me when it comes to repair services. But No, I don't want the government to take over shopping for me!
Now, the air conditioner (heat pump) I purchased from them…the one that required their “special hand made air filters” that were premium priced (and looked like they were made by ten-year-olds)…has stopped working. I think it is a thermostat problem; but I am not sure. So I called them up to make an appointment:
$70.00 for a ‘service call’ to drive to my house. Then they want a ‘parts and labor’ payment payable on completion.
Well, I have to budget from my social security payment, so I asked what their labor charge would be. They don’t have a labor rate. They charge a combined ‘parts and labor’ fee based on the part they replace. Huh?
I used the yellow pages and called someone who was advertising a lower price for the drive to my house; the ‘service fee’. I could have sent a taxi for them and it would cost less. When asked their labor rate I got the same answer…”we charge a combined rate for the part needed and the labor to install it”. When questioned further, it turns out that MOST OF THE AIR CONDITIONING REPAIR OPERATIONS IN OUR AREA USE A NATIONAL ‘RATE BOOK’ TO ESTABLISH THEIR CHARGES.
This is a neat way to avoid head-to-head competition on rates, expertise and service. And it allows them to hire the cheapest, least qualified help, charge the “rate book” rate, and maximize their profits. I think it’s a monopolistic practice and a scam.
I am continuing to look for an individual with a good reputation who will give me a reasonable charge for coming to my house and diagnosing the problem-it’s not rocket science. I will pay a fair fee for that.
Then I should be able to decide about who will fix it at what price. This tightly coupling of the service call, the diagnostic exam and the fixed-price repair call into a "one call/one price/payable upon completion" policy is wrong.
I think I can find an air conditioning repair person to do travel to my house and do the diagnostic for a reasonable fee and then I can check my checkbook to see if I can pay for the work they say needs to be done or get a second opinion.
If you have a good Palm Coast air conditioner repair person who does not use the “national rate book” to establish rates, please drop me a comment..
RATE FIXING-A COMMON PRACTICE: Most auto repair places use this same “rate book” monopolistic practice. But with auto repairs you can take your car to a shop, get your problem identified, and then shop for a repair price. With a plumbing or air conditioning or electrical problem in your home, you cannot.
I had one auto repair shop say I needed a new head gasket. Another said I needed a water pump. I finally took it to highly-recommended John who is US Auto in Bunnel. He said I had a leaky radiator and might also need a water pump, he had to look. He fixed the radiator and replaced the water pump after telling me what it would cost His bill was very reasonable and the car is running fine.
Gaaa! What if I had paid to have the head gasket replaced and the radiator still leaked!
"Made in America" is taking on a new meaning to me when it comes to repair services. But No, I don't want the government to take over shopping for me!
Monday, August 9, 2010
Lawyers Being Sued Over Fraudulent Foreclosure Practic
The amount of delinquent Florida loans foreclosed and sold on courthouse steps has slowed down. Some of the slowdown can be attributed to the new law that requires arbitration befoe filing suit.
Another reason is that the process can be delayed by homeowners demanding proof of who really owns their loan. A major foreclosure law firm in Florida is being sued for attempting to get around this "proof of ownership" issue. This excerpt from an article from the 8/4/2010 Florida Realtor News newsletter helps explain why it is hard to determing just who owns your mortgage ..derivitives!
THE EXERPT:
"... The suit, filed last month in U.S. District Court, Southern District of Florida, says David J. Stern and his Plantation-based legal team violated the Racketeer Influenced and Corrupt Organizations Act by generating fraudulent mortgage assignments when pursuing foreclosures.
An assignment is held by the entity that has the right to receive mortgage payments.
Stern’s practice, which the lawsuit claims filed up to 7,000 new foreclosure cases in Florida every month last year, is also alleged to have pursued foreclosures for lenders that didn’t own the debt on the homes.
“There really is no proper plaintiff to sue and foreclose and that’s what this charade is designed to cover,” said Fort Lauderdale Attorney Kenneth Eric Trent, who is seeking class action status and filed the suit on behalf of Oakland Park resident Ignacio Damian Figueroa. “There is no real holder of the note and the mortgage anymore because they broke it up and sold it to 10, 12, 20 people.”
During the real estate boom, loans traded hands often, sometimes being bundled or split up and sold to investors.
Tracking the true owner of the debt sometimes can be a challenge. When pressed for proof of debt ownership, Trent said Stern’s office would create an assignment signed by a Stern employee instead of a representative of the lender attempting to foreclose."
Another reason is that the process can be delayed by homeowners demanding proof of who really owns their loan. A major foreclosure law firm in Florida is being sued for attempting to get around this "proof of ownership" issue. This excerpt from an article from the 8/4/2010 Florida Realtor News newsletter helps explain why it is hard to determing just who owns your mortgage ..derivitives!
THE EXERPT:
"... The suit, filed last month in U.S. District Court, Southern District of Florida, says David J. Stern and his Plantation-based legal team violated the Racketeer Influenced and Corrupt Organizations Act by generating fraudulent mortgage assignments when pursuing foreclosures.
An assignment is held by the entity that has the right to receive mortgage payments.
Stern’s practice, which the lawsuit claims filed up to 7,000 new foreclosure cases in Florida every month last year, is also alleged to have pursued foreclosures for lenders that didn’t own the debt on the homes.
“There really is no proper plaintiff to sue and foreclose and that’s what this charade is designed to cover,” said Fort Lauderdale Attorney Kenneth Eric Trent, who is seeking class action status and filed the suit on behalf of Oakland Park resident Ignacio Damian Figueroa. “There is no real holder of the note and the mortgage anymore because they broke it up and sold it to 10, 12, 20 people.”
During the real estate boom, loans traded hands often, sometimes being bundled or split up and sold to investors.
Tracking the true owner of the debt sometimes can be a challenge. When pressed for proof of debt ownership, Trent said Stern’s office would create an assignment signed by a Stern employee instead of a representative of the lender attempting to foreclose."
Wednesday, August 4, 2010
The Oil Leak Is Halted But The Foreclosure Torrent Has Not
Sell your “investment” house now. It is a depreciating asset that will continue to decrease in value for several more years until the foreclosure flood recedes!
Talk To Ted!
HUFFINGTON POST-It's like picking fly shit out of pepper
Whenever I tell my friends I follow the Huffington Post on Twitter, they berate me and think I must be a left wing activist. Truth is, this Blog has some of the best writers in the country contributing to it. It has great news coverage. If you follow it on Twitter and pick out articles that interest you, you will really be surprised. Of course, you have to ‘verify’. Just like what you see on TV or read in magazines and newspapers. But this is not a 'political-only' Blog.
For example, here is what they have to say about Obama’s sleight-of-hand to mask the real crisis that still exists in housing.
EXTEND AND PRETEND: “President Barack Obama's signature plan to combat the housing crisis has fallen short of its goals -- rather than significantly and permanently reducing home foreclosures, it is only delaying them.
The administration unveiled its Making Home Affordable plan in February 2009. Obama vowed in front of an audience gathered at Dobson High School in Mesa, Ariz., that MHA's signature effort, the Home Affordable Modification Program, would "enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure."
The $75 billion initiative -- $50 billion from the bank bailout, $25 billion from government-owned mortgage giants Fannie Mae and Freddie Mac -- was designed to induce lenders, servicers and investors to modify distressed mortgages through a series of cash incentives.
It's not working.
In its first year, 1.5 million people were invited to try HAMP. About 40 percent of those who tried it have been kicked out of the program; fewer than that have been given an actual shot at keeping their homes.
When President Obama took office, it took an average of 319 days to complete a foreclosure, according to Jacksonville, Fla.-based data provider Lender Processing Services. Now it takes 461 days.
Extending the process by which homes enter foreclosure allows banks to continue carrying the loans on their books at full value, delaying loss recognition. That allows unhealthy banks to appear healthy, staving off costly bank failures.
As a result, fewer homes hit the market in a distressed state. Home prices stopped their free fall.
"Extending and pretending was the right thing to do last year," says John Burns, a housing industry consultant based in Irvine, Calif. "It pains me to say that, but that's the situation they've got us into. Throwing these people out on the street and selling their homes would have depressed home prices."
The strategy has achieved stability for the housing market, but not for the people inside the houses. Families are merely given more time to wonder when sheriff's deputies will finally pile their belongings on the curb.
A Year Into HAMP, 'We're Losing Our Home'
Bea and Terry Garwood applied to JPMorgan Chase for HAMP help in April 2009 and were approved for a "trial" modification that July because they met the core requirements: their house payments took up more than 31 percent of their monthly pre-tax income; they lived in their home; they owed less than $729,000; and they were at risk of default. Garwood says the HAMP trial reduced their monthly payment on their two-story home in Pinckney, Mich., by nearly $500 to about $1,175 -- a huge relief, she adds.
A HAMP trial is supposed to become "permanent" after three months, but Garwood's dragged on for nine. "They kept on saying a bank statement was missing, or one of the documentations wasn't signed, or they didn't have the affidavit, or the hardship letter," Garwood says. "And then on March 19, I received a letter saying, 'You do not qualify for a permanent modification. You now owe us $12,000.'"
Chase rejected the Garwoods for two reasons, according to the letter Garwood received: The bank claimed their monthly mortgage payment amounted to less than 31 percent of their income and they failed HAMP's opaque "Net Present Value" test, a complex Treasury Department formula that servicers use to determine if a modification will make investors more money than a foreclosure. Garwood says that Chase assumed they had an inflated income by looking at deposits to their bank account and ignoring the money paid out to the people who work for her husband, a roofing subcontractor. If Chase went by the Garwoods' tax forms, she claims, the bank would realize they make thousands of dollars less every month and the couple would qualify for a permanent modification. Chase declined to comment.
Garwood says that the difference between their reduced payments during the trial period and what they would have paid otherwise, plus late fees, is $12,000. She says they can't possibly afford it all at once but that they would have found a way to make full monthly payments if they hadn't been lured into HAMP. They stopped making payments in April, shortly after they were turned down for a permanent modification. Sheriff's sales have been set for June, July, and now August. Garwood says she thinks she may be able to continue to dodge the foreclosure for a little while longer, but she's not exactly grateful for the extra time.
"They told us we were a great candidate, so we went for it," she says. "And as a result we're losing our home."
Treasury Department officials downplayed HAMP's role in the administration's foreclosure prevention efforts in an interview with HuffPost, insisting that the goal of helping three to four million people is broader than just HAMP or even the umbrella program under which it falls, Making Home Affordable.
"Foreclosure prevention was only one piece of the administration's approach to stabilize the housing market that included... interest rates at historic lows [for] increased affordability and refinancing, support for [Fannie Mae and Freddie Mac] to make sure there was a mortgage market available, and the homebuyer tax credit to stimulate demand," says Phyllis Caldwell, chief of Treasury's Homeownership Preservation Office. "HAMP is one part of foreclosure prevention."
'Anemic' Number of Permanent Modifications
HAMP gives servicers and investors $1,000 incentive payments for permanent modifications, and additional payments each year that borrowers stay current. Through June, Treasury has disbursed just $247 million for successful modifications, according to a July 21 report by the Office of the Special Inspector General for the Troubled Asset Relief Program.
The TARP auditor called the number of permanent modifications "anemic."
"HAMP has not put an appreciable dent in foreclosure filings," SIGTARP's report to Congress notes. "[F]oreclosure filings have increased dramatically while HAMP has been in place, with permanent modifications constituting just a few drops in an ocean of foreclosure filings."
"There is some extending and pretending going on," says Celia Chen, an economist and specialist in housing for Moody's Economy.com. "Many trial modifications have failed to become permanent modifications. We're starting to see the number of REOs [bank-owned homes] rising."
During Obama's first three months in office, banks repossessed nearly 191,000 homes. In the three-month period ending in June 2010, that number jumped to 270,000 -- a 42 percent increase.
More than 529,000 homeowners have been kicked out of HAMP through June, Treasury figures show. About 1.2 million entered the program with a promise and expectation of permanent relief. Roughly 389,000 are benefiting from the "permanent" modifications guaranteed to keep their payments down for five years.
Lenders have repossessed more than three times as many homes during this time.
The Treasury Department rolled out the program quickly, and initially allowed servicers to put borrowers into trial modifications without solid documentation of their income -- a mistake that auditors of the program say inflated the number of people in trial mods that would never pan out. Every few months, Treasury released additional directives that, among other things, have expanded the criteria that servicers might use for income verification, from 4506-T tax forms and pay stubs initially to documents that reflect unemployment benefits and alimony payments.
Servicers frequently complain that such constant changes to the program make it difficult to administer, according to government auditors, including SIGTARP and the Elizabeth Warren-led Congressional Oversight Panel.
HAMP homeowners know a thing or two about delays and supplemental directives: Banks' requests to resend lost paperwork dominate complaints about the program. Of the 364,077 trial plans, 166,000 have dragged on for longer than six months.
Teresa Follmer, an interior designer in Mesa, Ariz., tried over a year to modify her mortgage with Countrywide (now Bank of America) before discovering that she'd met HAMP's eligibility requirements in May 2009. But when she tried to apply, Countrywide told her it didn't do HAMP mods, according to a lawsuit filed in federal court in July. After Follmer called the Arizona Department of Financial Institutions to complain, a Bank of America executive got in touch and initiated a long series of back-and-forth discussions.
Many unhappy HAMP recipients have similar stories to the one outlined in Follmer's lawsuit: In response to the executive's request, Follmer compiled personal financial information and sent it to the bank, which acknowledged receipt the following day. A week later, Bank of America sent Follmer a notice of its intent to foreclose on her home. The bank then advised Follmer to gather up her financial information again and resubmit her application. In October, she received a package indicating her HAMP trial would begin -- and another package days later asking her to send additional paperwork. In January, Bank of America asked her to send a missed payment (which she denies she missed) and yet more documentation. In February, the bank thanked her for making payments and asked her to send her pay stubs and her tax returns (again). In May, Bank of America said it would foreclose because Follmer missed trial payments. When Follmer protested, she was told she could start her trial period all over again. But then in June, the bank told her she owed $23,988 and would lose her home if she didn't pay.
Follmer's suit, one of several across the country seeking class-action status, alleges that Bank of America "regularly falsely informs borrowers that it did not receive requested information and demands that documents be re-sent."
A Bank of America executive acknowledged the paperwork problems in June: "We continue to train and retrain to try to improve our process and we've done a lot of things to try to make sure we don't lose documents anymore," he said during a conference call with reporters. "We do think the experience is getting better and better, but again, it's still not the level we would hope it to be because we still have more customer complaints than we believe are acceptable."
Homeowners in New York City sued JPMorgan Chase for allegedly telling them to quit making payments in order to qualify for the program (similar suits have been launched against Chase in California and Seattle). "I trusted them because they're a big bank. I did whatever they asked me to," plaintiff Alex Lam told HuffPost. "Just to get a modification, that's all I'm asking for... Since day one, that's all I'm asking for."
The Government Accountability Office notes in a June 24 report that Treasury had yet to fine a single servicer for noncompliance. In fact, Treasury had yet to even formalize its penalty scheme. The GAO says that Treasury's lack of clear consequences "risks inconsistent treatment of servicer noncompliance and lacks transparency with respect to the severity of the steps it will take for specific types of noncompliance."
Treasury's enforcement of the rules has been limited to prodding servicers to do better, and requiring them to review borrowers' applications. While Treasury has the contractual right to claw back payments made to servicers, it has yet to do so. The agency declined to offer reasons why it has not done so.
TO SEE THE REST OF THIS STORY, GO TO: 'EXTEND & PRETEND': Inside Obama's FAILED Foreclosure-Prevention Program http://huff.to/cFg3pP (via @HuffPostBiz)
Talk To Ted!
HUFFINGTON POST-It's like picking fly shit out of pepper
Whenever I tell my friends I follow the Huffington Post on Twitter, they berate me and think I must be a left wing activist. Truth is, this Blog has some of the best writers in the country contributing to it. It has great news coverage. If you follow it on Twitter and pick out articles that interest you, you will really be surprised. Of course, you have to ‘verify’. Just like what you see on TV or read in magazines and newspapers. But this is not a 'political-only' Blog.
For example, here is what they have to say about Obama’s sleight-of-hand to mask the real crisis that still exists in housing.
EXTEND AND PRETEND: “President Barack Obama's signature plan to combat the housing crisis has fallen short of its goals -- rather than significantly and permanently reducing home foreclosures, it is only delaying them.
The administration unveiled its Making Home Affordable plan in February 2009. Obama vowed in front of an audience gathered at Dobson High School in Mesa, Ariz., that MHA's signature effort, the Home Affordable Modification Program, would "enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure."
The $75 billion initiative -- $50 billion from the bank bailout, $25 billion from government-owned mortgage giants Fannie Mae and Freddie Mac -- was designed to induce lenders, servicers and investors to modify distressed mortgages through a series of cash incentives.
It's not working.
In its first year, 1.5 million people were invited to try HAMP. About 40 percent of those who tried it have been kicked out of the program; fewer than that have been given an actual shot at keeping their homes.
When President Obama took office, it took an average of 319 days to complete a foreclosure, according to Jacksonville, Fla.-based data provider Lender Processing Services. Now it takes 461 days.
Extending the process by which homes enter foreclosure allows banks to continue carrying the loans on their books at full value, delaying loss recognition. That allows unhealthy banks to appear healthy, staving off costly bank failures.
As a result, fewer homes hit the market in a distressed state. Home prices stopped their free fall.
"Extending and pretending was the right thing to do last year," says John Burns, a housing industry consultant based in Irvine, Calif. "It pains me to say that, but that's the situation they've got us into. Throwing these people out on the street and selling their homes would have depressed home prices."
The strategy has achieved stability for the housing market, but not for the people inside the houses. Families are merely given more time to wonder when sheriff's deputies will finally pile their belongings on the curb.
A Year Into HAMP, 'We're Losing Our Home'
Bea and Terry Garwood applied to JPMorgan Chase for HAMP help in April 2009 and were approved for a "trial" modification that July because they met the core requirements: their house payments took up more than 31 percent of their monthly pre-tax income; they lived in their home; they owed less than $729,000; and they were at risk of default. Garwood says the HAMP trial reduced their monthly payment on their two-story home in Pinckney, Mich., by nearly $500 to about $1,175 -- a huge relief, she adds.
A HAMP trial is supposed to become "permanent" after three months, but Garwood's dragged on for nine. "They kept on saying a bank statement was missing, or one of the documentations wasn't signed, or they didn't have the affidavit, or the hardship letter," Garwood says. "And then on March 19, I received a letter saying, 'You do not qualify for a permanent modification. You now owe us $12,000.'"
Chase rejected the Garwoods for two reasons, according to the letter Garwood received: The bank claimed their monthly mortgage payment amounted to less than 31 percent of their income and they failed HAMP's opaque "Net Present Value" test, a complex Treasury Department formula that servicers use to determine if a modification will make investors more money than a foreclosure. Garwood says that Chase assumed they had an inflated income by looking at deposits to their bank account and ignoring the money paid out to the people who work for her husband, a roofing subcontractor. If Chase went by the Garwoods' tax forms, she claims, the bank would realize they make thousands of dollars less every month and the couple would qualify for a permanent modification. Chase declined to comment.
Garwood says that the difference between their reduced payments during the trial period and what they would have paid otherwise, plus late fees, is $12,000. She says they can't possibly afford it all at once but that they would have found a way to make full monthly payments if they hadn't been lured into HAMP. They stopped making payments in April, shortly after they were turned down for a permanent modification. Sheriff's sales have been set for June, July, and now August. Garwood says she thinks she may be able to continue to dodge the foreclosure for a little while longer, but she's not exactly grateful for the extra time.
"They told us we were a great candidate, so we went for it," she says. "And as a result we're losing our home."
Treasury Department officials downplayed HAMP's role in the administration's foreclosure prevention efforts in an interview with HuffPost, insisting that the goal of helping three to four million people is broader than just HAMP or even the umbrella program under which it falls, Making Home Affordable.
"Foreclosure prevention was only one piece of the administration's approach to stabilize the housing market that included... interest rates at historic lows [for] increased affordability and refinancing, support for [Fannie Mae and Freddie Mac] to make sure there was a mortgage market available, and the homebuyer tax credit to stimulate demand," says Phyllis Caldwell, chief of Treasury's Homeownership Preservation Office. "HAMP is one part of foreclosure prevention."
'Anemic' Number of Permanent Modifications
HAMP gives servicers and investors $1,000 incentive payments for permanent modifications, and additional payments each year that borrowers stay current. Through June, Treasury has disbursed just $247 million for successful modifications, according to a July 21 report by the Office of the Special Inspector General for the Troubled Asset Relief Program.
The TARP auditor called the number of permanent modifications "anemic."
"HAMP has not put an appreciable dent in foreclosure filings," SIGTARP's report to Congress notes. "[F]oreclosure filings have increased dramatically while HAMP has been in place, with permanent modifications constituting just a few drops in an ocean of foreclosure filings."
"There is some extending and pretending going on," says Celia Chen, an economist and specialist in housing for Moody's Economy.com. "Many trial modifications have failed to become permanent modifications. We're starting to see the number of REOs [bank-owned homes] rising."
During Obama's first three months in office, banks repossessed nearly 191,000 homes. In the three-month period ending in June 2010, that number jumped to 270,000 -- a 42 percent increase.
More than 529,000 homeowners have been kicked out of HAMP through June, Treasury figures show. About 1.2 million entered the program with a promise and expectation of permanent relief. Roughly 389,000 are benefiting from the "permanent" modifications guaranteed to keep their payments down for five years.
Lenders have repossessed more than three times as many homes during this time.
The Treasury Department rolled out the program quickly, and initially allowed servicers to put borrowers into trial modifications without solid documentation of their income -- a mistake that auditors of the program say inflated the number of people in trial mods that would never pan out. Every few months, Treasury released additional directives that, among other things, have expanded the criteria that servicers might use for income verification, from 4506-T tax forms and pay stubs initially to documents that reflect unemployment benefits and alimony payments.
Servicers frequently complain that such constant changes to the program make it difficult to administer, according to government auditors, including SIGTARP and the Elizabeth Warren-led Congressional Oversight Panel.
HAMP homeowners know a thing or two about delays and supplemental directives: Banks' requests to resend lost paperwork dominate complaints about the program. Of the 364,077 trial plans, 166,000 have dragged on for longer than six months.
Teresa Follmer, an interior designer in Mesa, Ariz., tried over a year to modify her mortgage with Countrywide (now Bank of America) before discovering that she'd met HAMP's eligibility requirements in May 2009. But when she tried to apply, Countrywide told her it didn't do HAMP mods, according to a lawsuit filed in federal court in July. After Follmer called the Arizona Department of Financial Institutions to complain, a Bank of America executive got in touch and initiated a long series of back-and-forth discussions.
Many unhappy HAMP recipients have similar stories to the one outlined in Follmer's lawsuit: In response to the executive's request, Follmer compiled personal financial information and sent it to the bank, which acknowledged receipt the following day. A week later, Bank of America sent Follmer a notice of its intent to foreclose on her home. The bank then advised Follmer to gather up her financial information again and resubmit her application. In October, she received a package indicating her HAMP trial would begin -- and another package days later asking her to send additional paperwork. In January, Bank of America asked her to send a missed payment (which she denies she missed) and yet more documentation. In February, the bank thanked her for making payments and asked her to send her pay stubs and her tax returns (again). In May, Bank of America said it would foreclose because Follmer missed trial payments. When Follmer protested, she was told she could start her trial period all over again. But then in June, the bank told her she owed $23,988 and would lose her home if she didn't pay.
Follmer's suit, one of several across the country seeking class-action status, alleges that Bank of America "regularly falsely informs borrowers that it did not receive requested information and demands that documents be re-sent."
A Bank of America executive acknowledged the paperwork problems in June: "We continue to train and retrain to try to improve our process and we've done a lot of things to try to make sure we don't lose documents anymore," he said during a conference call with reporters. "We do think the experience is getting better and better, but again, it's still not the level we would hope it to be because we still have more customer complaints than we believe are acceptable."
Homeowners in New York City sued JPMorgan Chase for allegedly telling them to quit making payments in order to qualify for the program (similar suits have been launched against Chase in California and Seattle). "I trusted them because they're a big bank. I did whatever they asked me to," plaintiff Alex Lam told HuffPost. "Just to get a modification, that's all I'm asking for... Since day one, that's all I'm asking for."
The Government Accountability Office notes in a June 24 report that Treasury had yet to fine a single servicer for noncompliance. In fact, Treasury had yet to even formalize its penalty scheme. The GAO says that Treasury's lack of clear consequences "risks inconsistent treatment of servicer noncompliance and lacks transparency with respect to the severity of the steps it will take for specific types of noncompliance."
Treasury's enforcement of the rules has been limited to prodding servicers to do better, and requiring them to review borrowers' applications. While Treasury has the contractual right to claw back payments made to servicers, it has yet to do so. The agency declined to offer reasons why it has not done so.
TO SEE THE REST OF THIS STORY, GO TO: 'EXTEND & PRETEND': Inside Obama's FAILED Foreclosure-Prevention Program http://huff.to/cFg3pP (via @HuffPostBiz)
Subscribe to:
Posts (Atom)