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Mortgage Lending
Articles about mortgage lending, home loans, home equity loans, lending requirements and lending issues.
Chinese Drywall Strikes Again!
Do you remember the stories about Chinese drywall? They started to crop up a couple of years ago. Some drywall made in China wasn’t exactly made to US standards. According to Wikipedia,
Laboratory tests of samples for volatile chemicals have identified emissions of the sulfurous gases carbon disulfide, carbonyl sulfide, and hydrogen sulfide. These emissions, which have the odor of rotten eggs, worsen as temperature and humidity rise and cause copper surfaces to turn black and powdery, a chemical process indicative of reaction with hydrogen sulfide. Copper pipes, wiring, and air conditioner coils are affected, as well as silver jewelry. Homeowners have reported a variety of symptoms, including respiratory problems such as asthma attacks, chronic coughing and difficulty breathing, as well as chronic headaches and sinus issues.
As if all of this isn’t bad enough, now there is another reason to get rid of any Chinese drywall that may be lurking in Read the rest of this entry »
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Homeowners Can File Individual Suits Over Denied Loan Modifications According to 7th Circuit Court of Appeals
Virtually every real estate agent has heard this story. A homeowner applies with their lender for a loan modification under the federal HAMP program. The lender puts them on a trial modification for a few months. Then the lender sends them a letter stating that they don’t actually qualify for the modification and that they owe the bank back payments, penalties, interest, etc…
Never mind the fact that the homeowner actually made all of their payments on time during their “trial modification period”. And never mind the fact that the lender never tells the consumer why they don’t qualify. They are just turned down. End of story.
Well, not so fast.
Most law suits involving HAMP loan modification Read the rest of this entry »
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Housing Speculators Will Now Be Eligible for Federal Bailout Money… Huh?
Just when you thought real estate markets couldn’t get any stranger, the federal government is about to do something that is downright crazy. And if you are one of the millions of homeowners currently under water on your mortgage and have been unable to get your lender to agree to a loan modification, what the feds are doing isn’t likely to make you too happy.
Several years ago, one of the things that led to the real estate boom was all of the speculation that went on in the market. In short, a lot of people made a lot of money by purchasing houses that they couldn’t really afford, with no money down, and then either renting them or flipping out of them at wildly inflated prices. Then came 2007.
When the market finally crashed, there were a lot of these speculators that were left holding the bag. A lot of them simply walked away from their investments. And many of those who were renting their properties out managed to stretch out the foreclosure or short sale process for a year or more, without paying their mortgage, but still collecting the rent on the properties. Just ask anyone who has been involved in selling real estate for a while and they have seen this type of behavior.
Well, now the feds have decided that any speculators who have managed to hold onto their investments should also qualify for up to four federally subsidized loan modifications per speculator. So even if you have been the good little do-be who has been paying their mortgage payment on time, and swimming like mad to keep your head above water, you may have to get in line behind those who played a large role in the run-up in housing values and ultimately, their collapse.
But that’s not the best part. The best part is that taxpayers… all taxpayers… will be footing the bill for this newly created mess. So, whether you are a conservative pundit, or you hang with the Occupy Wall Street croud, there is something in this announcement for everyone to hate. That is, of course, unless you are a speculator yourself.
These loan modifications will be handled under the HAMP program.
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Two More Bad Real Estate Agents Meet Long Arm of the Law
Four people in Northern California have pleaded guilty to a mortgage fraud scheme that lined their pockets with more than $20 million. Among them, two real estate agents by the names of Cristeta Lagarejos and Nelda Asuncion. They cooperated in the fraud.
Hopefully, the California DRE will pursue both of these people. Asuncion’s license has been expired since 2008. Lagarejos license expires on the 12th of next month, but it should not be renewed by the state. Interestingly enough, Lagarejos has no notes against her for disciplinary action according the license lookup service provided by the DRE.
The case involved a couple, Ronald Nelson and his wife Edith, both from Discovery Bay. They used straw buyers to purchase more than a dozen properties in Northern California and they obtained loans on additional properties that they owned.
All four people have entered guilty pleas to federal charges of bank fraud and tax evasion. Good riddance!
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And Another Agent Horror Story – Time to Increase Licensing Requirements
As anyone who reads this blog knows, I think it is far too easy to get a real estate license. You don’t have to look too hard to find one example after another of agents who shouldn’t be involved in California real estate.
This past week, the FBI arrested a San Diego County agent, his wife and several other people who were allegedly involved in a loan fraud scheme from Read the rest of this entry »
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