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?

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.

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.

Condos, Coops, Townhouse, Singe-family, Homeowner, Community Associations, congress, the reserve, the Office of Thrift Supervision OPHEA, Fannie, Freddy, VA, HUD

Bail-Out Deadlines and what they forgot to print in the Post.

Bail-Out Deadlines by E-Mail - washingtonpost.com

Bail-Out Deadlines by E-Mail

By Elizabeth Razzi
Sunday, July 15, 2007; Page F05

Buying a condominium? A house in a neighborhood run by a homeowners association? You had better stay on top of your e-mail.

A very large and extremely important document could be coming your way. Its arrival starts the clock ticking on a short period during which you can cancel the deal, should you desire to back out of your purchase contract.
New laws that took effect in Virginia on July 1 change the process for distributing the extensive disclosure packages that must be given to anyone buying a home that is part of a condo or homeowners association. While the law directly affects Virginians, buyers in the District and Maryland, where the disclosure requirements are not as detailed as they are in the Old Dominion, may find the effects spilling over as management companies that do business in all three jurisdictions adopt new practices.

If your in the District of Columbia and you happen to live in a Townhouse or Singe Family Homeowner Association you can stop reading this article here.

Why?

Because the leaders of the District have failed for years now at mine and others prodding to establish an HOA Act which is what is the triggering mechanism in this need to disclose. As the District does not have such an Act there is no specific law as is the case in MD or VA to disclose anything about rules and regulations.

Whats more in Maryland the HOA Act does not require that financial information about the community be provided to the buyer. So the budget, pending litigations or special assessments are made available to the new homeowners after they move in. Seem pretty fair to me and you too I bet. Having heard one of the principle in this ruse brag about how they fought to keep this from becoming part of the law. I have to wonder of the community and homeowners share this excitement with them. What I was told is that it would be too hard to provide this information at closing time.

So is there any wonder in what area of the housing market the last foot will fall. If you have been reading this blog you know that I know that HOA and Condo fees are not being paid and thus these communities are running negative budgets. But since the District and Maryland don't disclose this information before settlement those perspective homeowners that are buying may not and have no idea what the status of the communities financial health is or will be in the future until rules, regulations and financial information are fully disclosed.



So I have an idea for Elizabeth why not do a story on why the District has failed to enact such a law or why Maryland does not require the Financial s to be included.

Technorati Tags: Homeowners Associations, Disclosure Laws, HOA Documnets, Rules & regulations

Once again Not paying mortgage not paying association assessments.

Home sales, prices below last year’s rate - Real Estate - MSNBC.com

Home sales, prices below last year’s rate
Foreclosures in April surged, according to National Association of Realtors
Related Stories


Updated: 3:21 p.m. ET May 15, 2007

WASHINGTON - The pace of existing home sales slowed in the first quarter by almost 7 percent compared to a year ago, the National Association of Realtors said Tuesday.

In the latest indication of the housing market’s slowdown, the NAR said home sales reached a 6.4 million annual rate compared to 6.9 million in the same quarter of 2006.

The report came on the same day that RealtyTrac Inc., an industry research firm, said mortgage lenders foreclosed on 62 percent more U.S. homes in April than a year ago.

I am not sure how many ways to post this but if someone is not paying their mortgage does anyone reading this actually think if they live in a Condo, Townhouse or Single Family Homeowner Association that the dues for the community are being paid.

So what happens when the dues or assessments are not paid? The community is now running a deficit budget and they means that the overall community is now not in compliance with Federal underwriting guidelines...........So let think Fannie, Freddy and any other backer of mortgages.....

Since wall street has been buying these for sometime as well do you think they are telling the investors in these companies that a potential problem exist. When I called the Wall Street Journal and talked to one of the reporters about this he pretty much blew me off.

So I wonder how long this house of cards is going to stand.....

Technorati Tags: Foreclosures, Condos, Housing, Market, Homeowners, Associations