Archive August 2012
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Homeowner Bill of Rights Pass Legislature
Follow [at]HOFJholmesBlog Category: Home Owners For Justice
SB900 passed on July 4, 2012. Now the other bills, Blight Prevention, Tenant Protection, AG Enforcement Act, and the Special Grand Jury Act are now on the Governor's desk.
http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-announces-final-components-california-homeowner
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News Release August 30, 2012 For Immediate Release |
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Attorney General Kamala D. Harris Announces Final Components of California Homeowner Bill of Rights Pass LegislatureSACRAMENTO -- Attorney General Kamala D. Harris today announced that the final parts of the California Homeowner Bill of Rights have passed out of both legislative houses and have been sent to the Governor’s desk. “The entire Homeowner Bill of Rights legislative package will ensure fair lending and borrowing practices for California homeowners,” said Attorney General Harris. “California has been the epicenter of the foreclosure crisis and this package of legislation will help affected homeowners, tenants and neighborhoods.” Senate Bill 1474 by Senator Loni Hancock, D-Berkeley, gives the Attorney General’s office the ability to use a statewide grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple counties. Assembly Bill 1950, by Assemblymember Mike Davis, D-Los Angeles, extends the statute of limitations for prosecuting mortgage related crimes from one year to three years, giving the Department of Justice the ability to investigate and prosecute complex mortgage fraud crimes. On Governor Brown’s desk is Assembly Bill 2610 by Assemblymember Nancy Skinner, D-Berkeley, which will require purchasers of foreclosed homes to give tenants at least 90 days before starting eviction proceedings. If the tenant has a fixed-term lease, the new owner must honor the lease unless the owner demonstrates that certain exceptions intended to prevent fraudulent leases apply. Already signed into law is Assembly Bill 2314 Assemblymember Wilmer Carter, D-Rialto, which provide additional tools to local governments and receivers to fight blight caused by multiple vacant homes in neighborhoods. In June, two key parts of the Homeowner Bill of Rights passed out of both houses of the Legislature and were signed by Governor Jerry Brown. Those bills, which came out of a two-house conference committee, provide protections for borrowers and struggling homeowners, including a restriction on dual-track foreclosures, where a lender forecloses on a borrower despite being in discussions over a loan modification to save the home. The bills also guarantee struggling homeowners a single point of contact at their lender with knowledge of their loan and direct access to decision makers. All aspects of the California Homeowner Bill of Rights will take effect on January 1, 2013 once signed into law. |
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CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She recently founded Home Owners For Justice and can be contacted at (707) 578-5727, cjholmes@cjholmes.com, www.cjholmes.com, or www.HOFJ.org
CJ Holmes Radio Show Press Release
www.HOFJ.orgFollow [at]HOFJholmes
Blog Category: Home Owners For Justice
FOR IMMEDIATE RELEASE
August 22, 2012
Contact: Home Owners For Justice,
CJ Holmes 707-578-5727
cjholmes@cjholmes.com
KPFA/PACIFICA Friday at 10am Premieres Pilot Real Estate Foreclosure Show to 'Stop Foreclosures'; May be First Show of Its Kind in Nation
BERKELEY, Ca. – CJ Holmes, a leading foreclosure analyst and critic of the government's response to the foreclosure crisis, will host a pilot show of what may be the first show of its kind in the nation beginning Friday (Aug. 24) from 10-11 a.m. on Pacifica Station KPFA 94.1FM and KPFB 89.3FM and live streamed at www.KPFA.org. Call in numbers for the show are 510-848-4425 and 800-958-9008.
"How to keep your home off the chopping block, and what we can do to stop the fraud perpetrated by the banks,” is the theme of this pilot show, said CJ Holmes, host of the "CJ Holmes" show.
Homeowners, landlords, landlords' tenants, their neighbors, and now virtually all property owners are victims of the catastrophe called the "Housing Crisis,” which has turned out to be a giant swindle designed to transfer citizens’ money and real estate to the coffers of the banks and mortgage companies. In other words, the housing crisis is a crime perpetrated against society at large for the enrichment of financial institutions that are already fat from years of shady dealings executed in broad daylight because of feeble and unheeded government regulation.
The illegality of this foreclosure-eviction-seizure process is its weakness. While legislatures and politicians dawdle, a few informed citizens, lawyers and institutions are pushing back hard. C.J. Holmes is at the tip of the spear in this take-back-your-house movement. What she prescribes is not just hysterical defiance but thoughtful, step-by-step coordinated actions to hold your house against the rip-off artists.
Holmes, founder of Home Owners For Justice (www.hofj.org), will promote activism we can do as individuals, as groups, and as a nation to achieve the reforms we need. The show will also touch on the hot foreclosure issues of the day, including eminent domain and ‘REO’ bulk sales to hedge funds plus answer callers’ questions as they come in.
Other Pacifica Network stations are located in Los Angeles, New York, Houston and Washington D.C.
-end-
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She recently founded Home Owners For Justice and can be contacted at (707) 578-5727, cjholmes@cjholmes.com, www.cjholmes.com, or www.HOFJ.org
Eminent Domain for Private Profit is harmful - used correctly benefits the People
Follow [at]HOFJholmes Blog Category: Home Owners For JusticeUsing eminent domain to seize non-performing mortgages in an effort to help solve the foreclosure crisis is an idea whose time has come. But it is already being commandeered by private investors for their personal gain. Here’s why cities and counties should implement this innovative idea themselves, without resorting to profiteering middlemen.
Truly, who needs MRP [Mortgage Resolution Partners]??
Let's consider the many harms brought to bear with mortgage eminent domain to benefit Private Investors:
1. Cherry-picking. The privateers plan to seize and renegotiate only those mortgages that are performing well. That is, although they may be underwater, these homeowners are not in default and in no danger of foreclosure. These mortgages are even better than new ones, because they’re tried and true and known to be performing. Taking only performing mortgages does nothing to help those already in the foreclosure pipeline, does nothing to put people back in their foreclosed vacant home, nor address the masses of delinquent borrowers that truly are in danger of foreclosure.
2. Stealing from the less advantaged MBSs. These will be non government insured private-label mortgage-backed securities held by pension funds, unions, and little old ladies, who will lose both the monthly payments they’re getting now and the principal that’s being discounted to below appraised value.
3. Public power for private gain. Instead of having to negotiate with the owners of these papers, the middlemen can use the government’s power of eminent domain to grab the papers for them. This ultimate “bullying” of weaker investors specifically to profit stronger investors is a total MISUSE of this public power.
4. Additional Cost to the County. The county (that’s you and me) is to pay the private investor a fee of $4,500 - for what? Any fees paid by the county to anybody for this effort is obscene and just a money grab on the part of MRP.
5. Potential Insurance fraud. These MBSs may not be insured by government entities like Fannie/Freddie/AIG, however this “default” will trigger any insurance of these MBSs, thus bankrupting the insurance companies along with the investors operating in these targeted MBSs.
6. Far too lucrative – moral hazard. According to the plan, “fair market value” to the MBS will be only 85% appraised value, mortgages to owners written at 95% appraised value, benefiting the investors ONLY, plus the fees from counties and borrowers investors obtain at close. In this scenario, nobody benefits except the private investors, and possibly the homeowner with a reduced principal loan. These profits will motivate every investor on the planet to hound our local government officials for access to this “hammer” wealth – “hammer” others with eminent domain to steal their wealth. We dare not open this Pandora’s box.
7. Potential for re-securitization. Once these loans are regenerated, it is truly to be expected these private investors will partner with an investment bank to re-securitize these loans for immediate profit plus their share of bank commissions from the “gain on sale” of the MBSs. This dooms homeowners again to having their loan securitized once again for the benefit of the banks and investors.
Let’s consider mortgage eminent domain shrewdly used by counties or states:
1. Our counties and states do not need access to private money to modify mortgages. The county or state can simply eminent domain the mortgage from the MBS, and “pay market value for it to the MBS” by simply rewriting the loan principal and payments, and having the owner continue to pay the new payments to the MBS that owns the note. No money needed, other than county/state staff to oversee rewriting the notes. In fact, this could be done with a modest fee paid for by the borrower.
2. Our counties or states can establish Public Banks, using eminent domain on long delinquent loans and vacant and abandoned foreclosures, requiring proof from the Banks for note ownership to determine if the borrower pays the Bank the new payments, or pays the Public Bank instead. If a Bank can prove note ownership, the Public Bank uses appraised value to re-establish the home’s worth and new payments (appraisal paid for by the borrower), and the owner makes these new payments to the Bank. If note ownership cannot be established by a Bank, the owner makes their new payments directly to the Public Bank.
3. These Public Bank loans would provide the cash reserves needed for the Public Bank to begin fractionalizing and growing its loan portfolio from eminent domain orphans, expanding to refinances, making normal home loans, and providing a funding alternative for improvement projects. None of these Public Bank loans would ever be sold or securitized.
These uses of the Public Bank ensure that the benefit of fractionalizing and interest payments remain as a benefit in and for the county or state of the Public Bank, rather than benefiting the uber-wealthy in the system we have today with the Federal Reserve.
Here is Public Banking Institute link for more information about public banking.
This article was co-written with Susan Harmon, Public Banking Institute. CJ
Holmes, real estate investor since 1977, broker since 2005, and market analyst
since 2007, has personally handled hundreds of transactions, viewed thousands
of properties, and dealt with countless agents. She also owns a
portfolio of income producing properties, and has developed unique market
analyses to determine and predict price trends, which principles apply to
markets nationwide. She
recently founded Home Owners For Justice and can be contacted at (707)
578-5727, cjholmes@cjholmes.com,
www.cjholmes.com,
or www.HOFJ.org
CJ's Tips for Buying, Selling, Investing, or Loan Mods
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our Cool Tools!
Blog Category: Real Estate Nitty Gritty
Buying: Let us set up a direct MLS link, called a Portal, for your next VIP property email alert. Portals show all the market action and allow properties to be sorted. Portals give the competitive edge in finding properties and making offers.
If you lost a home to short sale or foreclosure before 2010, now is the time to get re-qualified to buy. Prices, down payments, and interest rates are all still very low making the cost of home ownership quite affordable. Make the best use you can of this opportunity.
Selling: Below are July 2012 average and median home prices for several counties. Lately, fewer foreclosure listings have resulted in buyer bidding wars, particularly for homes priced below median. These values can give some guidance about any property sales you might be considering. Don’t hesitate to ask for my specific input.
..........County: Median Average
........Alameda: $463,840 $536,692
.Contra Costa: $349,900 $480,004
..............Lake: $125,900 $144,857
.............Marin: $770,000 $986,538
.....Mendocino: $214,900 $279,011
.............Napa: $327,550 $365,433
San Francisco: $725,000 $1,186,072
....San Mateo: $749,000 $997,301
...Santa Clara: $679,998 $915,450
..........Solano: $189,750 $215,076
........Sonoma: $325,000 $384,923
Investing: In case you haven’t noticed, rents are climbing – the natural result of no lending to buyers that lost a home to foreclosure or short sale during the last three years. Now is the time to focus on building a rental portfolio of cash flowing properties. Lenders do require more down payment and offer a slightly higher interest rate, but the investment should position you nicely for future appreciation as the market recovers. Don’t hesitate to ask any question you may have regarding your personal investing situation or any specific property.
Loan Mods: Word on the street - if you have significant assets (401k, stock portfolio, rental properties) don't expect to get a loan mod…
When monthly income/expenses is itemized in the pre-qual paperwork, be sure the end result is positive - like have $50-$100 left over per month. Any negative amount will be interpreted that you are too broke to pay for a loan mod...
Once last hint - check out www.loansafe.org. This “gossip” site about what works/doesn't work with specific servicers may be just what you need to be successful in obtaining a loan modification. Good luck!
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She recently founded Home Owners For Justice and can be contacted at (707) 578-5727, cjholmes@cjholmes.com, www.cjholmes.com, or www.HOFJ.org
7/18/12: Foreclosure Update
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Blog Category: Home Owners For Justice
7/18/12: Foreclosure Update
KPFA show hotlink if you missed it. Download audio.
NEXT CAMPAIGNS:
PLEASE Sign Petition for Foreclosure Moratorium until 1/1/13
Stop Mortgage Resolution Partners from bribing county officials.
Get CA to file Class Action Lawsuit against Bank Attorneys
GOOD NEWS:
Occupy Bernal is forcing Wells Fargo to do loan mods
SF Foreclosure Fairness Initiative is looking positive
Harp 2 is starting to work
Wells Fargo fined $175M for racial bias
SB900 is law but won't take effect until 1/1/13
Attorney General Settlement Website - FYI
BAD NEWS:
Total homes facing foreclosure auction in CA: 134,215
Total facing foreclosure auction next 30 days: 69,233
San Bernardino filed BK. 50% of loans are underwater.
SNEAKY SERVICER PAPERWORK:
Padding expenses on loan statements - increase the penalties due
Teasing Money out of Owners just before Foreclosure - testimonial cannot be proven and there is no guarantee foreclosure will stop
Demanding Cash Payments for a loan modification. No guarantee payments will be applied to loan, as servicer is now debt collector
NPV Loan Mod Denial Garbage - NPV formula is never explained, so borrower cannot verify or counter bank claims
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She recently founded Home Owners For Justice and can be contacted at (707) 578-5727, cjholmes@cjholmes.com, www.cjholmes.com, or www.HOFJ.org
