Article by Kent Hoover, March 26, 2010 in Portfolo.com
Below is an excerpt from Kent’s article for your information and use.
“Under this program, mortgage servicers would be required to reduce mortgage payments for unemployed individuals to no more than 31 percent of their income for a period of three to six months.
This would help these individuals stay in their homes while they look for a job. If they still don’t have a job at the end of six months, they can work with lenders on a permanent mortgage modification or other alternatives to foreclosure. If they find a job, they’ll resume making their regular payment, and overtime pay back the break they got while they were unemployed.
The other new initiatives are more troubling. Mortgage servicers will be required to consider writing down the principal on loans in cases where borrowers owe more than 115 percent of the current value of their home. The government will provide incentives to servicers to do this, as part of its Home Affordable Modification Program.
So far only 200,000 permanent mortgage modifications have been made through the HAMP program, although 1.1 million borrowers have begun trial modifications. The program was designed to help up to 4 million homeowners.
In addition, the Federal Home Administration will use $14 billion of TARP money to allow homeowners who are underwater on their mortgages to refinance through an FHA loan. To qualify, homeowners must be current on their mortgages and meet FHA underwriting guidelines. Lenders or the investors who bought the mortgage will have to agree to write down the unpaid principal balance of the mortgage by at least 10 percent.”
Wednesday, March 31, 2010
Tuesday, March 30, 2010
Great Time to Be a First-Timer
You know of some who would like to stop renting, and you certainly see a home in your future for someone - if not you! But is now the right time to make that big move?
Absolutely! The $8,000 first-time homebuyer tax credit is available to buyers who contract a home by April 30, 2010 and close by June 30, 2010. The amount will come as a refund when you file your 2010 tax return.
While the tax credit may be the most obvious reason for first-timers to buy now, there are many other good reasons to purchase a home. Pass this information along to the first timers:
• Homeownership allows you to improve your lifestyle, enhance your credit, and save for your future. Your home is your property, and you don’t need ask permission or pay fees to paint, make upgrades or have a pet.
• Today’s buyers market offers great homes, town homes and condos at very affordable prices. Selection has never been better.
• As the economy begins to improve, rental rates will increase. You’ll never get back the investment you make in rent.
• Interest rates are low, and one of the biggest factors that influence your monthly payment.
• Mortgage interest and property taxes are tax deductible each year.
This is a perfect storm for a buying a home. If not you, perhaps you know someone that should consider buying a home for the first time. Also remember, repeat buyers may be eligible for the $6,500 federal tax credit. Not a bad deal to start with!
Absolutely! The $8,000 first-time homebuyer tax credit is available to buyers who contract a home by April 30, 2010 and close by June 30, 2010. The amount will come as a refund when you file your 2010 tax return.
While the tax credit may be the most obvious reason for first-timers to buy now, there are many other good reasons to purchase a home. Pass this information along to the first timers:
• Homeownership allows you to improve your lifestyle, enhance your credit, and save for your future. Your home is your property, and you don’t need ask permission or pay fees to paint, make upgrades or have a pet.
• Today’s buyers market offers great homes, town homes and condos at very affordable prices. Selection has never been better.
• As the economy begins to improve, rental rates will increase. You’ll never get back the investment you make in rent.
• Interest rates are low, and one of the biggest factors that influence your monthly payment.
• Mortgage interest and property taxes are tax deductible each year.
This is a perfect storm for a buying a home. If not you, perhaps you know someone that should consider buying a home for the first time. Also remember, repeat buyers may be eligible for the $6,500 federal tax credit. Not a bad deal to start with!
Monday, March 29, 2010
Attorney's Advice on Credit Cards
I am passing along this advice for your consideration sent to me in an email.
Even If you dislike attorneys. You will love them for these tips.
Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company:
1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'
2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.
4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel.. Keep the photocopy in a safe place.
I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards..
Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.
But here's some critical information to limit the damage in case this happens to you or someone you know:
5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
6.. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
But here's what is perhaps most important of all: (I never even thought to do this.)
7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number.. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name.
The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit..
By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks..
Now, here are the numbers you always need to contact about your wallet, if it has been stolen:
1.) Equifax: 1-800-525-6285 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742 1-888-397-3742
3.) Trans Union : 1-800-680 7289 1-800-680 7289
4.) Social Security Administration (fraud line): 1-800-269-0271 1-800-269-0271
We pass along jokes on the Internet; we pass along just about everything. If you are willing to pass this information along, it could really help someone that you care about.
Even If you dislike attorneys. You will love them for these tips.
Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company:
1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'
2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.
4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel.. Keep the photocopy in a safe place.
I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards..
Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.
But here's some critical information to limit the damage in case this happens to you or someone you know:
5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
6.. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
But here's what is perhaps most important of all: (I never even thought to do this.)
7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number.. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name.
The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit..
By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks..
Now, here are the numbers you always need to contact about your wallet, if it has been stolen:
1.) Equifax: 1-800-525-6285 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742 1-888-397-3742
3.) Trans Union : 1-800-680 7289 1-800-680 7289
4.) Social Security Administration (fraud line): 1-800-269-0271 1-800-269-0271
We pass along jokes on the Internet; we pass along just about everything. If you are willing to pass this information along, it could really help someone that you care about.
Friday, March 26, 2010
Last Post in Series on Eminent Domain
Eminent Domain Abuses
Read this article about the 60 Minutes show in 2004 about eminent domain abuses by government.
http://bit.ly/YdiJ1
The Institute for justice in October 7, 2009 cited a report on NY State eminent domain abuses.
http://bit.ly/3s1euE
There are groups formed in various states acting as watch dogs for eminent domain actions by state and local government. Why have I devoted a week to eminent domain? Eminent domain abuses have been going on for a long time and in my opinion will start to become more and more of a problem.
In 2003, I was involved in an eminent domain action hired as an expert by the property owner. The local government classified the property as “blighted” and was proceeding with eminent domain proceedings if the land owner refused to sell. The local government wanted a grocery store on the property – it wasn’t zoned for that use and the property owner was proceeding with a “use by right” project. By the way, the property was vacant and still called blighted! In the end, the property owner sold the property to local government so they could partner with a grocery store chain.
Remember, it is all in the land. I believe we will see more and more eminent domain abuses because local and state governments have to generate new revenue from commercial, retail, industrial and business uses. Residential does not have a positive impact on local government budgets. Local governments have been and will continue to compete for revenue producing uses, uses that generate jobs, and uses that are sustainable. Government will use eminent domain to control and guide development patterns at the expense of the private property owner. In essence, government will eventually become the developer! Outside of the box thinking is not far off! Remember – it is all in the land.
Read this article about the 60 Minutes show in 2004 about eminent domain abuses by government.
http://bit.ly/YdiJ1
The Institute for justice in October 7, 2009 cited a report on NY State eminent domain abuses.
http://bit.ly/3s1euE
There are groups formed in various states acting as watch dogs for eminent domain actions by state and local government. Why have I devoted a week to eminent domain? Eminent domain abuses have been going on for a long time and in my opinion will start to become more and more of a problem.
In 2003, I was involved in an eminent domain action hired as an expert by the property owner. The local government classified the property as “blighted” and was proceeding with eminent domain proceedings if the land owner refused to sell. The local government wanted a grocery store on the property – it wasn’t zoned for that use and the property owner was proceeding with a “use by right” project. By the way, the property was vacant and still called blighted! In the end, the property owner sold the property to local government so they could partner with a grocery store chain.
Remember, it is all in the land. I believe we will see more and more eminent domain abuses because local and state governments have to generate new revenue from commercial, retail, industrial and business uses. Residential does not have a positive impact on local government budgets. Local governments have been and will continue to compete for revenue producing uses, uses that generate jobs, and uses that are sustainable. Government will use eminent domain to control and guide development patterns at the expense of the private property owner. In essence, government will eventually become the developer! Outside of the box thinking is not far off! Remember – it is all in the land.
Thursday, March 25, 2010
Fair Market Value & Just Compensation
In real estate transactions, there are sellers and able and willing buyers in which a price, terms, and conditions are negotiated. If either party is unwilling to compromise and reach a reasonable conclusion for both parties, the real estate process would be terminated.
In terms of eminent domain, there is a buyer (government) and perhaps not a willing seller. The fair market value of the property in question has to be established. This value is typically established by a current property appraisal and guided by local laws. In most instances, the government entity may have to obtain three separate appraisals to set the fair market value for the property.
If the seller does not except the appraised value and price offered, both parties may proceed through legal proceedings. Both parties would have their appraisers as expert witnesses offering testimony for the record.
Just Compensation
The fair market value of the property may be more than the appraised value of the property. Many think of eminent domain as the taking of vacant land but in most cases, buildings, businesses and homes are the focus of an eminent domain proceeding. Not only should the just compensation include the value of the land and structures but the value of the business. And the use of the land to be taken by eminent domain may have additional impact on the value on the remaining property. Just compensation should include the value of the remaining property, retained by the owner, but impacted by the project.
Public Use
Government has always used eminent domain for projects and/or improvements associated for “public use". This approach has expanded to include protecting the health, safety, welfare and “convenience”. Typical government improvements include road, water, and sewer projects. Now government is seeking to redevelop property for new uses – public and private. Property has now been classified as “blighted” by government to justify redevelopment efforts by government.
In terms of eminent domain, there is a buyer (government) and perhaps not a willing seller. The fair market value of the property in question has to be established. This value is typically established by a current property appraisal and guided by local laws. In most instances, the government entity may have to obtain three separate appraisals to set the fair market value for the property.
If the seller does not except the appraised value and price offered, both parties may proceed through legal proceedings. Both parties would have their appraisers as expert witnesses offering testimony for the record.
Just Compensation
The fair market value of the property may be more than the appraised value of the property. Many think of eminent domain as the taking of vacant land but in most cases, buildings, businesses and homes are the focus of an eminent domain proceeding. Not only should the just compensation include the value of the land and structures but the value of the business. And the use of the land to be taken by eminent domain may have additional impact on the value on the remaining property. Just compensation should include the value of the remaining property, retained by the owner, but impacted by the project.
Public Use
Government has always used eminent domain for projects and/or improvements associated for “public use". This approach has expanded to include protecting the health, safety, welfare and “convenience”. Typical government improvements include road, water, and sewer projects. Now government is seeking to redevelop property for new uses – public and private. Property has now been classified as “blighted” by government to justify redevelopment efforts by government.
Wednesday, March 24, 2010
Eminent Domain – Process to Acquire Land
Check your State and Local laws for procedures in your area. However, the basics remain the same:
1. Once government decides to “acquire” land for the benefit of the public good, they will attempt to negotiate with the property owner to purchase the property at the fair market value.
2. If by chance the property owner does not want to sell, the government will file a court action seeking to initiate eminent domain proceedings against the property owner.
3. After proper notification, the property owner must appear at hearing where the government will outline their need for the taking of the property, present their good faith efforts to negotiate with the property owner, and the property owner is provided the opportunity to present their case.
4. A successful ruling for government requires the fair market value to be established. Government obtains title for the property. If either party is not satisfied with the outcome of the proceedings, they may appeal the decision.
5. Through eminent domain, government may seek to obtain property for their use in the following circumstances:
A complete taking of the property
Only a portion of the property is taken – partial taking
A temporary taking of property to allow government to complete the project but the property owner retains title and possession of that portion of the property
Obtaining an easement or right-of-way for utility line construction
1. Once government decides to “acquire” land for the benefit of the public good, they will attempt to negotiate with the property owner to purchase the property at the fair market value.
2. If by chance the property owner does not want to sell, the government will file a court action seeking to initiate eminent domain proceedings against the property owner.
3. After proper notification, the property owner must appear at hearing where the government will outline their need for the taking of the property, present their good faith efforts to negotiate with the property owner, and the property owner is provided the opportunity to present their case.
4. A successful ruling for government requires the fair market value to be established. Government obtains title for the property. If either party is not satisfied with the outcome of the proceedings, they may appeal the decision.
5. Through eminent domain, government may seek to obtain property for their use in the following circumstances:
A complete taking of the property
Only a portion of the property is taken – partial taking
A temporary taking of property to allow government to complete the project but the property owner retains title and possession of that portion of the property
Obtaining an easement or right-of-way for utility line construction
Tuesday, March 23, 2010
Definition of Eminent Domain & Blighted
Source for the following definition: http://www.legal-explanations.com
Definitioin of Eminent Domain:
“n. the power of a governmental entity (federal, state, county or city government, school district, hospital district or other agencies) to take private real estate for public use, with or without the permission of the owner”
Source for the following – http://www.thefreedictionary.com/
blight (bl t)
n.
1.
a. Any of numerous plant diseases resulting in sudden conspicuous wilting and dying of affected parts, especially young, growing tissues.
b. The condition or causative agent, such as a bacterium, fungus, or virus, that results in blight.
2. An extremely adverse environmental condition, such as air pollution.
3. Something that impairs growth, withers hopes and ambitions, or impedes progress and prosperity.
Source for the following: http://www.columbia.edu/ New Rochelle Studio
The term "blighted area" for purposes of urban renewal condemnation, encompasses areas in process of deterioration or threatened with it as well as one already rendered useless and may include vacant land and air rights.
Definitioin of Eminent Domain:
“n. the power of a governmental entity (federal, state, county or city government, school district, hospital district or other agencies) to take private real estate for public use, with or without the permission of the owner”
Source for the following – http://www.thefreedictionary.com/
blight (bl t)
n.
1.
a. Any of numerous plant diseases resulting in sudden conspicuous wilting and dying of affected parts, especially young, growing tissues.
b. The condition or causative agent, such as a bacterium, fungus, or virus, that results in blight.
2. An extremely adverse environmental condition, such as air pollution.
3. Something that impairs growth, withers hopes and ambitions, or impedes progress and prosperity.
Source for the following: http://www.columbia.edu/ New Rochelle Studio
The term "blighted area" for purposes of urban renewal condemnation, encompasses areas in process of deterioration or threatened with it as well as one already rendered useless and may include vacant land and air rights.
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