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Thursday, October 21, 2010

If this is what they are sayin add to it what we have said..

Fannie Mae, Freddie Mac Bailout Likely to Double, FHFA Scenarios Show
By Kevin Depew  October 21, 2010 10:18 AM OUR FORECLOSED WORLD

The Federal Housing Finance Agency (FHFA) today released projections of the financial performance of Fannie Mae and Freddie Mac. The scenarios aren't pretty. 

The really scaring thing is that these projection don't take into account the effect of Fannie Mae on whole condominiums and home/townhouse association bottom line.

What about the recertification requirement for every condo in the USA.  What happens to them and Fannie with they fail to be recertified.

Note still no talk about a CIC Bailout.

Monday, October 18, 2010

What percentage of Condos need to fail Fannie Recertification before it fails?

If you think about the very premise that Fannie Mae requires that loans in common interest communities (especially condominiums) be backed up with various data points ( ie the parts of the recertification process) and that this recertification process will revel that at least ____% of them will fail.

What is that % number (20 -60) when reached shows that loans that Fannie Mae itself owns  are not eligible for Fannie Mae underwriting.    Do you get what we are saying.   The biggest mortgage note holder notes are not going to be going forward backed by them they have worthless paper in their own underwriting process.

How can they resell these units or anyone else for that matter?

Saturday, October 16, 2010

Friday, October 15, 2010

Condominiums must re-certify with Fannie Mae by December ~TrainWreak....

Do you really think we could make this stuff up...........Only in Government can it get this stupid  While your reading these requirement consider that every Condominium in the USA has to do this (((((((((((We are not kidding))))))

Now while your reading also realize that in just about every case where a Fannie Mae loan has gone bad there has not been assessment payments sometime in years.
Talk about unfunded mandates just these kill the communities that your homes are part of, again, not kidding. 
So if the community is dead broke, some with lost corporate charters we estimate that over 50 percent of the Condominiums well not be able to be re certified. At what point in time does that actually register with anyone other then this and a few other blogs.


1) Determine date project was initially approved (can either check in FHA Connection or on the public web site located at:

2) If project initially approved prior to January 1, 2000, full project approval is required.

3) If project initially approved on or after January 1, 2000, then the project is eligible for the streamlined recertification process.

4) Projects may be recertified beginning six (6) months prior to the approval expiration date or within six (6) months after the approval expiration date.

5) Projects not recertified within six (6) months after the approval expiration date will require full project approval.

6) No new FHA case numbers will be assigned for those projects where the project approval has expired and the project has not been recertified or reapproved.

7) Recertification packages may be submitted by the Lender, Builder/Developer, Homeowners Association, Management Company or an Attorney or Project Consultant who submits on behalf of one of the other named parties. Packages may not be submitted by Borrowers, Sellers and/or Real Estate Agents.

8) Recertification packages may be submitted to the jurisdictional Homeownership Center and processed under the HRAP option DELRAP participating lenders may review and process recertification packages.

9) All documentation and information required on the Condominium Recertification Cover Letter/Document and Checklist must be included in the request for recertification review. Lenders may elect to use their own form; however, it must contain all information required on the examples provided.

10) DELRAP participating lenders must upload all required recertification documentation, including all recorded legal documents, in FHA Connection (FHAC).

11) Regardless of the processing option selected, HRAP or DELRAP, the reviewer must enter the final determination and associated data into the Condominium Maintenance screen in FHAC.

The ICA will be blogging about how to deal with this and offer help to Condominiums get through the process.

Hello Washington DC please stop killing communities.

Why has the main stream media done everything possible to not cover this?

So I have been talking about Condo & Hoa issues since the first time I heard about one.

It was surprising to me as someone that worked in both Community Associations,( CPWI CEO 5yrs BOD 22) and politics my first campaign job was to make signs for a judges race when I was in 10th grade (1980) the fact that the needs of Tens of Millions of American  homeowners are being harmed by the elected officials on the local state and federal level, now world wide since most new communities build world wide are Common Interest Communities should be one of these stories that a reporter dreams of covering.

Now the shock is that during this time I have not been able to get any reporter other then two local reporters or any media outlet.  My wife worked in NPR for years and NOT ONE reporter has ever returned a phone call.
We did have for a short time have one producer from 60 Minutes, he died, and so has this story plus the Condos, Coops, and Hoa that are now 80 percent of all homes built

Yet we still have no one coving this story.

Thursday, October 14, 2010

Maryland's Governor candiates are ducking CIC issues.

Today on Twitter there was a debate between the Governor Omalley and Former Governor Bob Ehrlch about their vision for Maryland.  During this debate the candidates were also on twitter and were following the #mddebate for twitter folk.

We decided to chim in and see if the respective leaders where aware or even cared about the issues facing Maryland Common Interest Communities. So we asked the some direct questions and some general ones. So far neither of them have bothered to do more then claim some piric victory in a debate that didn't even touch on the fact that 3/4 of Maryland's homes are in jeopardy of going broke and bankrupt.
We have to ask--Who will emerge from Maryland leaders, either party, to start to take on a task that most of them been ducking or denying for years
Let's take foreclosure.........Sure the easy thing to do is say stop them, if you don't know that most of those are in Condo's Single Family & Townhouse Associations.  Now how are you going to help them keeps the lights on or the gas going when their master utility bills cannot be paid because past due assessments are at the all time high, let alone any other bills or budgeted obligations. 

BTW Fannie/Feddy/Hud/Va and your underwriters. If you own guideline say that no more then 10 percent of owners can be past due in assessments and we know that many communities are 30-50 percent of owners not paying INCLUDING YA"LL how can you then allow the resale of these property when your the owners of them.

 Is that even legal, let alone moral.  We know the answer do they.   BTW If your a resident of a common interest community and one of these campaigns calls, knocks or tweets to you ~ask them what's their plan for your community. 

Here is  r time line for this debate......

Inter Comm Assoc ICA
@ We asked you what your plan is for the millions of owners in regarding assessments/forclosures. U do know about ?
Inter Comm Assoc ICA
have not 4 some reason? been given relief under the they often cannot afford 2 rebuild roads, centers, roofs
Inter Comm Assoc ICA
BTW most are denied funding under the emergency relief act. A road lost in storm if owned by CIC not covered
Inter Comm Assoc ICA
owners lose because no one cares? knows? Golly how did 3/4 of homes since 80s become a Where's a plan 4 them
Inter Comm Assoc ICA
Millions of homes are in that r going broke cuz dont pay dues + no help
Inter Comm Assoc ICA
Now even knows that there are BIG problems in ... From 2002 FEDs NOPAY
Inter Comm Assoc ICA
What you are not being told about the housing problem Sept 5 2007
Inter Comm Assoc ICA
@ is suing for failure to meet CleanWatAct ie Stormwater ponds test/clean numbers = cant find them cuz -charter
Inter Comm Assoc ICA
after 6 years expunges list of forfeited charters, now does not have list of all the that existed = lost taxes
Inter Comm Assoc ICA
when a cannot get & a budget starts. Soon they cant pay MDProperty Tax, lose charter, MD loses taxes +
Inter Comm Assoc ICA
many of those illegals owned homes in So 1st time ya'll yell ((((ICE))) ? % of stoped getting
Inter Comm Assoc ICA
if some1 is running for office and they dont have a plan for the 3/4 of homes then tell them to get one.

Wednesday, October 13, 2010

To protect the communities DC needs to enact a HOAACT now.......

We call upon the District of Columbia elected leaders to stop the pain that homeowners in townhouse &  single family common interest communities feel everyday that they and their fellow community members face because the homes they are in are private communities and the government that approved them has not seen fit to offer the corresponding legislation in the form of an HOAACT.

Both Maryland, needs improvement, and Virgina have enacted part or all of the Uniform Common Interest Ownership Act. Which offer the guidelines that governs how these communities are cared for from day to day with regards themselves and the greater community.  Link to American Bars 2008 updated Act

What happens without an HOAACT?   Who knows...................................over all.............

What we do know is that DC home-buyers are not told that the community they are moving into have covenants on the land, along with bylaws,  and that the community is a private non-stock company with Articles of Incorporation let lone the amendments and they are resposbile as a board of directors made up of unit owner to govern this whole thing themselves.   We'll leave the DC property managers out of this for now.
From that basic misstep the potential for the new homeowners and the community to have a successful relationship is shot at the frontgate.
These HOA's because we don't have an HOAACT have no way to compel the homeowners to pay their assessments and if folks have not been paying mortgages ~anyone reading this want to still pretend they are paying their community bills.

As for these bills since we don't have an HOAACT there is no requirement that financial disclosure be made to new owners; So they have no budget or audited statement to judge the communities health as our  CONDO ACT requires and seem like a pretty crazy way to make the biggest investment of most of our life's.  Yet in DC you have to talk about the nutrition in a burger.

On the homeowners side since there is not HOACT there is no requirement to have open meetings and  the minutes or any accounting of the boards actions are not required to be made available to anyone..  Want to guess what happens when a board goes bad and the funds disappear from the bank accounts.    Ask the communities in across the District that are having this happen to them now.

We where told years ago by one of the biggest banks that their underwriters were not going to fund anymore HOA developments in DC until DC enacted a HOACT.   This same bank has now stopped all foreclosures and guess what they are the owners of these units and because no one in DC tracks HOAs their is no way to get these banks to pay assessments.

These same banks are going to turn around and sell these homes back to someone and they are not required to tell the new owners it's in a HOA and that the HOA is broke because the same bank, along with FANNIE MAE, FREDDY MAC, HUD and VA are not paying their bills either.

All the while Pepco is raising your streetlights & common area electrical rates, the District is going to increase the taxes on your property which since we dont have an HOAACT there is no common area it's all considered FRONTFOOTAGE.

Right now in Anacostia there is a community that has a fence falling down that DCRA is fining them on again and again.  The sad fact of the matter is that  since there is no HOAACT the community cannot get the members to pay their bills.  Which means at times they face losing street lights, gas and water.   Yet DC gov keep attacking them over a fence when DC is pretty much stilling their throats at the closing table.

So far we have talked to

Council members, Marion Berry, Mary Cheh, Michel Brown, Kwame Brown, Vince Gray, and Phil Mendelson and will be following up with them on our conversation as to how to move forward with bring the District into the 21 century.

This effects 100s of communities and thousands of homeowners is a very simple to fix. BTW  The only folks that are going to stand in the way are the ones that presently profit from the whole mess and we have a town full of them profiting away.  Everyday this is not enacted is another day that very bad thing are happening in these communities some so back whole communities are trying to declare bankruptcy.

Saturday, October 9, 2010

Maryland's Elected officals bend over backwards to kill your condo or hoa.

ANNAPOLIS, Md. (AP) - Maryland's governor and congressional delegation are asking the state's chief judge to halt all foreclosures in the state for at least 60 days.
In a letter to Chief Judge Robert Bell on Saturday, Gov. Martin O'Malley and all 10 members of Maryland's congressional delegation say immediate action is necessary to avoid miscarriages of justice.  Reported on WTOP

So Governor O'malley it appears that you are aware of the fact that 3 out of 4 of these homes are in a Common Interest Community and if you stop the process of foreclosure and dont help the community then there will be nothing left for the owner to be assoicated with since these homes are bound by convents and bylaws that say they are part and parcel of an over all community.

If your one of these communities I would be scared to death right now because this very same government is going to be after their property taxes and since so many of your neighbors went into default on their mortgage your budget has been balanced since the save button was hit drafing it and your community doesn't have these funds.
Let alone the master utilities, for street lights common area lighting, gas, water, security, repairs maintenance and these politicians have the nerve to cry over some auto signed documents.  Either, the Maryland elected officials hate your condo's coop's and homeowner association or they are clueless as to the effect decision like this one have on these communities. It's only 3 out of 4 homes in Maryland.
Considering that our Chairman Nelson Jacobsen called in and ask one

Maryland Condominiums, Cooperatives and Homeowner/Townhouse Associations are not just worried about the foreclosure. The process he talks about does nothing to help the Communities in fact it delays the amount of time and cost to the community.

What is the hardship on the HOA's How are you going to make these communities whole if you dont address the problem.

WHAT THE PROBLEM Well if they aint paying their mortgage then they're not paying these assessmens, reserve contributions and specail assessment for the homeowners they took the property from in the first place.

It gets better........Maryland HOA's there is a totallack of Financial Disclosure under the MD HOA ACT. When these banks do sell these homes which they are not paying assessment on they are not telling the new owners that the HOA is broke because deadbeats like the banks and FANNIE, FREDDY and HUD. Heck they dont have to even give the budget.

Now if that were't enough some of the biggest dead Beads see BOA-BLOG - FANNIE FREDDY & HUD aren't even giving them the required Documents -Article of Inc,
BTW Many of these CIC are not incorporated because they dont have the money to pay the MD filings.

Declarations, by-laws and any amendments. These are required under the Maryland HOA ACT Disclosure requirments and most of these banks, fannie/freddy and HUD are guilty of wholesale dereliction of responsibility or they are once again -- clueless.

Now considering that so many of Maryland homes are in CIC it find it very hard to believe that didn't notice them popping up in all over the place Considering that any development over 3 unit in Maryland has to form a water association.

So we are going to follow up with Craig Rice in Maryland and introduce him to a number of HOA owners and board directors and see if he's with CIC or against them.

Just stopping foreclosures will do one thing KILL CONDOS & HOAS IN Maryland

Friday, October 8, 2010

BOA just stuck a knife in every Condo HOA in America

As we expected when we reported that the Delaware AG got into the foreclosure fray (Delaware not being a judicial state), it was only a matter of time before foreclosures would be halted in all 50 states. Sure enough, Diana Olick has just reported that BofA has just expanded its foreclosure halt from the 23 judicial states, to all 50 states. And so, the pendulum swings from populist anger to adulation. The only question is when will Tarp 2 be enacted now that banks are facing tens of billions in losses. Full article

According to ZeroHedge  Bank of America just announced that any home that they have a mortgage in that falls inside a Common Interest Community, that said CIC, will not be getting any relief on unpaid assessments.

Clearly this is a move by Band of American to stab CIC's in the financial heart.   If there are no foreclosures then there is very little hope what so ever that past due let alone ongoing assessments to be paid.

In the same article they talk about Tarp 2 for banks.  Mean while the CIC's are still asking where is Community Reinvestment 1.

BTW Elected leaders there are 100 Million US citizen in CIC and we are going to help them paint a target on every one of you that does not stand up and deal with the development laws and situations that Congress and the FEDs have brought about by deliberate design.  

To CIC this is a fatal design and unless your a banker there is no way to justify that we continue to turn a blind eye to over 1 Million communities and to any community that has funds in a Band of American  branch you better pull your money out and put it in a community bank because dealing with BOA will bankrupt your community.  

BTW if you didn't notice they owe a load of back assessments, reserve fund contributions and ongoing assessments and special assessments -- because deadbeats like them don't pay the assessments.  Then Congress/FEDs their pets are letting them off the hook PLUS giving them billions and at the same time raising underwriting requirements that now make it harder for us suckers, err association members,  to sell our homes let lone keeping the whole community from losing utilities, services and general ability to survive.

If there was an actually analysis of how CIC are going to survive this toxic GOV/BANKSTERS could any one with a straight face or without a guilty conscience say that CIC have the ability to survive.

So your elected leaders really hate CIC's dont they.

If you have been reading the news or even talking to your neighbor or just have a pulse it's pretty clear we have an 8 mile train wreak unfolding in housing.    Now the thing about such big wreaks is that they take a while to figure out in scope and intensity. Some things that seem to be little along the way are often missed and to those impacted by the wreak  do need the same help as anyone else involved.  Who those that elected leaders are paying no heed to what so ever. Condominums, Cooperatives Townhouse/Singlefamily Homeowners Associations which represent 80% of all new development.

So you would figure that National, State and local leaders would want to help the residents that live in CIC's, however that is not the case at all.
 Right now there are 100 MILLION living in Common Interest Communities and your elected leaders are doing NOTHING to help us. offical 
In fact the Federal agencies: Fannie Mae, Freddy Mac, HUD,  are actually not just ignoring your community~ they are undermining it.    How you ask.  When these agencies take over a condo, coop, hoa unit they like all owners are required to notify the BOD and Management co that they are the newnowners and they are to start paying Assessments* ((((((((Wait)))))))) to you see what they really are doing. They are required, more often then not, to clear up past due assessment and reserve contributions.  Are they?
Across the board the Federal government when in ownership of a foreclosed unit is not paying their bills -they are dead beat owners and go out of their way to help banks not pay a dime.  
 Some of their contractors are telling communities that while owned by the FED they don't have to pay.   While years ago one US Senator started to peek into this pretty and I guess stopped. It seems that every sitting US Senator & Congressperson cares about banks more then they care about communities.  WOW cares about banks, Really....Yes really

"Major lenders have halted foreclosure proceedings in 23 states after revelations that in many cases, paperwork was signed by people who didn't so much as read what they were signing, much less do the research to verify that all the details were accurate."

What does it mean in a CIC when foreclosure are stopped.  It means the dead beat owners (SEE BANKS AND FEDs) don't have to take possession of the unit and they surely don't have to pay the assessments. There is now reader of this blog living in a CIC that doesn't know what happens when people don't pay assessments.  The budget goes in the hole and then what.

The State that U.S. Rep. Elijah E. Cummings represents-  Maryland has almost 3 out of 4 homes in a common Interest Community.  Which seems to me to be just another  nail in the financial coffin for them.  The coffin was outline by these same "leaders" when they made sure that no financial disclosure is required for Single Family/Townhouse Homeowner Association home sells in Maryland.  
So you could be moving into a MD community right now that is completely bankrupt and there is no law to give you the budget, or even tell you the community is  away with reselling to the public these unit they own.
So, right now in community after community the budgets are negative, bills go unpaid, services are lost. That right the master utilities are being cut off because the communities don't have the money to pay the bills and the elected leaders in Washington have not done 1 thing to help.

Actually they're doing everything to hurt.    Again, They (Fannie Freddy HUD) don't pay bills and they stop communities colds (like this legislation) in getting paid and that is before the Courts weight in which is a whole-nother-blog post.

I have to ask?   How many communities does Congress get to kill before we wake up and smell the burning flames from the carnage that Congress and the Federal Government have directly inflicted and continue to ensure that BANKS congresses best friend can just ignore law after law with regards to document and financial disclosure and the simple act of paying your bill.

To the communities in U.S. Rep. Elijah E. Cummings district when are you going to demand that he do something to benefit the greater public good.   If we're to apply the Marginal Utility of Public Good "MUPG" to this the curve wouldn't even bend up it's all down and so are your elected leaders on CIC's.

PS We do want to note that we just say that Obama did veto the foreclosure bill, however we are along way from even seeing the light on this issue as not one major news outlets has covered any of this story.