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Friday, December 25, 2009

Dodd Chastises Senate's 'Newest Members' For Their Behavior

Hey Senator Dodd how about you get off your decorum and get something done that helps the people and not the bankers and specifically Fannie and Freddy. You know very well that both of these agencies while in possession of thousands of homes are not paying the HOA or Condo dues and, both agencies are failing to provide docs or finical statements at closing... All of which are violations of law and their under writing guidelines.
Read the Article at HuffingtonPost

Wednesday, December 16, 2009

It's against the bylaws and just stupid how about these reasons.

Residents furious after HOA fees lost in stock market

A September letter from HOA property manager Nicki Williams to homeowner Jennifer Lowery-Bell states the board opened an account with Ameriprise and made the initial one-time investment in September 2007 of more than $80,000. As of July 2009, less than $77,000 was in the account, posting a more than $14,000 loss as of July 31.

Lowery-Bell said she learned about the investment in late July from board member David Bosworth, a Campus Way South homeowner who joined the board in September 2007. Bell then wrote two letters to Williams in August and September 2009 inquiring how the losses will be refunded and if any other investments have been made.

"They said they would assess the situation and get back with us, and it was never done," Lowery-Bell said of the board's comment at a September meeting about the situation.

The 321 homes in the community each pay $76 per month in homeowner fees, a total of $292,752 per year, said Lowery-Bell, who also is founder and coordinator of Campus Way South Homeowners Neighborhood Watch Program.

Williams, who collects the HOA fees and provides financial management to the board of directors, said she believes the board is acting in the best interest of the homeowners and that the board decided to invest the money in the Ameriprise account because interest rates at the time were low.

"$14,000 isn't a loss unless you want to retrieve your money today. I can't say it's right or wrong [to invest the money]," Williams said. "There was never any real thought that what they were doing was wrong."

Clearly the management company is lying or cant read the Bylaws of the Community they are offering management advice too.  I wonder if someone got a fee for steering this community to this investment firm and how many other communities have done the same?

What we do know is that the State of Maryland or anyone else for that matter could careless about bout issues in private communities which is why they only approve them for new developments.

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Thursday, November 5, 2009

Fannie Mae: "Deed For Lease" Program Will Let Thousands Rent Out Homes To Avoid Foreclosure

btw if these homes are in a Condo or HOA that already have too many non- owner occupied units this will further undermine the community. Yet who cares in DC if your whole community is failing, not fannie, freddy or hud they refuse to pay their assessments or even to disclose the financial health of the community to the new buyers they are sucker into them. What's a law or underwriting regulation when it comes to the government? Answer NOTHING.
Read the Article at HuffingtonPost

Wednesday, October 21, 2009

Foreclosures Are More Profitable Than Loan Modifications, According To New Report

That's funny cuz they are not paying community assessments while they are in control of the property and most in not all of the condo, townhouse and hoa communities have plenty of foreclosed homes and they are running negative budgets and face huge special assessments and possibly bankruptcy in some cases

btw expect no help from the GOV or agencies like FANNIE, HUD, or the VA they are paying either and even raised the delinquency rates to 15 percent cuz they don't want too.

Read the Article at HuffingtonPost

Tuesday, October 20, 2009

Why no one claims an empty home.

Bank-Owned Homes Surge, Communities Stung « The Washington Independent

The growing number of bank-owned properties in foreclosure scarring neighborhoods across the country.

The volume of bank-owned foreclosed homes — known as REOs, or real-estate owned properties — is growing at an alarming rate, compounding the foreclosure crisis by sticking hard-hit neighborhoods with vacant and often trashed homes that drive down property values even more. REOs are foreclosed homes that lenders take back after they don’t sell at foreclosure auctions or sheriff’s sales. They keep the homes in inventory until they can be sold again.

The bottom line is that many of these homes( as many as 3 out of 5) are in condos, town home or single family homeowner associations. And, the banks or FANNIE don't want to be on the hook for the assessments.

So they just let the homes sit idol. To them nothing is happening. To the community the rest of the owners are dealing with not only the blight of them, they are dealing with the budget shortfall that empty homes cause and there is absolutely no help coming out of Washington DC.

If the number of home in the US that are in common interest communities is any where near the number trade groups like CAI post ( ) then this housing debacle is far from over and your government is trying it's best to cover it up.

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Fannie Mae and Assessments.

It appears that my years of asking that our Government take notice of the rise in delinquent Assessments and the effect this has on communities has not only fell upon cold marble Fannie has gone and done the exact opposite.

Delinquent HOA Dues for Units in Attached Condominium Projects
Announcement 07-18 states that when using CPM Expedited Review and Lender Full
Review for an established project consisting of attached units, no more than 15 percent of
the condominium/association fee payments can be more than one month delinquent.
Fannie Mae is updating its delinquent HOA dues policy for the CPM Expedited Review
and Lender Full Review processes to require that no more than 15 percent of the total
units in a project can be 30 days or more past due on the payment of their
condominium/association fee payments. This new policy applies to the review of both
new and established attached condominium projects.

So in simple terms a condo/coop/hoa budget is suppose to equal zero at the end of each calendar year. The budget is made up of line items that are explained in your documents and have a reason for being there. So when up 15 percent of the unit owners are not paying them what does this mean. It means either the services which are mandated by the documents are not preformed (trash pickup, recycling snow removal, common area maintenance, management fees, security street lights) and the community is in breach of it's own operating guidelines or a special assessment has been passed, which truth be told is considered personal debt, to make up for the budget short fall.

So what to guess has not been paying those assessment then look no further then FANNIE, FREDDY, HUD & VA. They have more of the properties then anyone and while they have been in possession of them the lack of good faith effort to pay the back assessment should be considered criminal.

Think about it someone was not paying the mortgage do anyone really think they were paying the community fees.

Why criminal! Because FANNIE requires a 921 Project questionnaire on every loan that it fund in a planned community and prior to this announcement the previous amount of delinquent assessments was no more then 10 percent.

Since they are the owners of so many homes this was starting to be a real problem. Thus the need for them to help the government was clearly greater then the need to help the community actually get the funds they need to fund the budget. How many homes did Fannie sell prior to this new percentage failed to even meet their own requirement? Is Fannie even filling out the 921 when they sell foreclosed properties.

The effect of all this is that anyone that happens to be buying into a community that has 15 percent deficit in income is walking into a huge problem and the government is doing nothing to help and in fact they are the problem.

btw the average community is more like 20 percent late if not higher.

Saturday, September 26, 2009

Property In Landmark Eminent Domain Supreme Court Case Never Used

Private development aka common interest community "CIC" Think developer, local, state and federal authorities in what amounts to a ponzie scheme.

Take LAND/homes that are owned fee simple btw trash, recycling, snowplowing and maintenance of green area, lights and streets is being supplied by local GOV.

So let's seize it and then make the whole area over in some kind of CIC (condos. townhomes,single families in a master association.

The real judo is that this community will have an annual assessment based upon a budget to carry out all the activities that the local city used to provide and still pay taxes.

Ok it gets better---This community is a non stock private company and must hire out all of the services that were supplied by the local authorities previously.

What is the biggest problem facing these planned communities. If people are not paying their mortgage they are not paying these assessments.

This is the biggest reasons why NOone is taking property back. Once they do -assessments, special assessments and reserve funds become due FYI Current requirements state that no more then 10 percent of unit owners can be late.

Fannie, Freddy, HUD, the VA and every other underwriter in a CIC knows that the community is dead broke

Funny! Not really!! if anyone else conspired to conceal losses in a company let alone one that has public dollars and all the while selling it off to some dupe when will someone take notice.
Read the Article at HuffingtonPost

Friday, May 15, 2009

Hey Maryland Condo's`

You have a new rule about listing every item in the unit for the purpose of insurance

Condominium associations and insurance agents were left scrambling when the Maryland Court of Appeals recently ruled against a long-standing insurance practice for insuring condominiums. Insurance Agents & Brokers of Maryland is working to resolve the issue via an agreement among affected parties.

The court held that the Maryland Condominium Act does not require the condominium association’s master insurance policy to cover damage to an individual unit. Instead, it would be covered by an owner’s individual policy.

Wednesday, April 22, 2009

What are the Feds gona do?

I just called the main number for FHA and said that I have seen some trends that involve condo's and home owners across America as cited all over this blog. So I left a number and this blog address; So we'll see if anyone actually cares in Washington and I'll post the response here.

So far communities are not getting one ounce of love.

Sunday, February 22, 2009

Socializing Associations without worrying about the rest. in VA

In this recent article on the Washington Post website I was taken back by over all lack of understanding of how Common Interest Communities, CIC, work within the local markets. Take this....

"...recently gave rise to a proposal for a targeted rental inspection program. The plan would give county agents unprecedented access inside homes to ensure they are safe and well-maintained. County officials said an inspection program could protect property values by pressuring renters to keep up their dwellings.

Michelle Casciato, chief of the Neighborhood Services Division, recommended that the board consider creating an inspection program after noticing that as owner-occupied rates fell, building maintenance cases and code enforcement calls from residential tenants increased.

"In our experience, when you have higher rates of renter occupancies, community maintenance standards start to slide," Casciato said. "It's fairly well-documented that rental property is not maintained at the same rate."

State law allows counties to establish residential inspection districts, giving owners 60 days to register all rental property within those boundaries. Once the inventory list is created, agents can inspect homes to ensure they are up to code and safe. Inspectors would have access once every four years, unless a complaint is registered."

Housing Bust Spurs Rental Fears -

Funny thing I figured since this and many of the properties that are part of private communities the local government does not have this right since a communities document's would govern this as provided by the VA HOA ACt. unless they have changed the laws in Virginia.

The communities documents all have, or should, provisions for renters.Existing architectural guidelines covenants and bylaws of a community would already provide procedures for dealing with non conforming properties.

What we really have here is the this government's failure to buttress these private communities rights with legislation that would put teeth into roles of boards, overall supervision and collection of delinquent assessments.

So now local government is going to illegally go around the inherent rights of CIC's to government their own private communities and take over one function all the while doing nothing about the other issues like disclosure, assessments, board transparency, and most importantly financial viability all of which most are missing and Virginia is considered a model in CIC's.

Now take the District of Columbia, they have no HOA Act. That is right, surprise, there are no rules about Homeowner Associations. So boards, renters, contractors, the government just does what they want to do. I wonder how long before a responsible public office steps up to the plate to make this happen.

btw. here is a hint about a big problem that this story did not address. Every underwriter of loans that involve a CICs, including Fannie, Freddy, VA, HUD, FHA, all have owner to renter ratio limits. The most important one is that no more then 49 percent of the owners can be renters. It's the 51% Letter. The reality is that those number are really much higher in many cases like 75-85 percent.

So how is your State of Communities?

I guess we'll call it "Socializing Associations" without worrying about the rest.

Thursday, February 5, 2009

Guess who ain't getting any FED help

Thats right all you Tens of Millions of residence in Common Interest Communities.

Who is that Condos, Coops, Townhouse and Singe-family Homeowner Community Associations.

The congress, the reserve, the Office of Thrift Supervision OPHEA, Fannie, Freddy, and the VA HUD have all been told by me and for years about the problems in your communities.

Well, they all have not done one thing positive for you and with the exception of a a few states and local authorities none one else has either and in some case are detrimental.

Did you known that the so called news show 60 minutes has been faxed again and again and not one producer thinks the 80 million homeowners are Sh*t out of luck.

So to all the banks, investors, and governmental agencies that own so many of these homes now I believe everyone of you are in for a RICO charge the first one of these in a CIC that you own and sell and do not disclose the state of the communities, budget, documents, and board actions.

If you are not paying your communities assessment while you own one of these because of foreclosure then you are now undermining the very community your property is in and in some cases has forced seniors to have to move out because of habitability of the premise.

No one pays the bills,

the insurance, lights, heat, water, security, upkeep and repairs do not get done. The community goes to HELL.

Who is responsible besides the owners. Everyone that is doing nothing to change it.

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