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Wednesday, September 5, 2007

What you are not being told about the housing problems

Pending Home Sales Sink in July -
Lawrence Yun, the Realtors trade group's senior economist, called the problems "temporary," and related to jumbo home loans above $417,000 that can't be packaged into securities sold to investors by government-sponsored mortgage giants Fannie Mae and Freddie Mac.

ONCE AGAIN, if the community you live in has more than 10 percent of the unit owners behind in their assessments then all federal underwriting options are off the table. You cannot refinance the loan because of deliquencies in Associations fees and having too many owner investors will disqualify you as well.

It's all there in the 921 Form and every HUD1 requires one when a Common Interest Community is part of the land convenants.

As a general priciple communities cannot run a deficit budget because bills for services have to be paid and the repair and mantainance of the falicities are impacted. This more ofen than not results in a special assessments to be paid by members of the community.

Once you have increasing debit and declining assets or this case clubhouses, sidewalks lights and other amenities that are not repaired and maintained and the dues keep going up and the special assessments pile on who is going to be left holding the bag.

Having talked to every major figure on the Hill about the impact of non payement of assessments and then have done nothing about this and in some case have proposed laws that make the matters worse I can tell you they all get a failing grade on support for those Tens of Millions of owners in a Community Associations.

We well be naming names as the election year approaches becuase they too need to be held accountable might have to do a voting index on this subject. HUMMMMMMMMMM.

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