Getting Cozy
October 5th, 2011Scam Dupes Home Owners into False Loan Audits
October 1st, 2011As Alex reported 10/1/2011 on Property Source Radio.
Realtor.org – Daily Real Estate News | Tuesday, Sept 27, 2011
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More home owners are being tricked into a forensic loan audit, a new scam that targets struggling home owners looking for a loan modification to save their home from foreclosure.
Several organizations, usually linking themselves to attorney and auditor organizations, have popped up in the last two years offering forensic loan audits. The Federal Trade Commission and Better Business Bureau say complaints about these “loan audit” companies have skyrocketed since the beginning of the year.
In the scam, the organizations claim to review a home owner’s mortgage documents to determine whether their lender had complied with state and federal lending laws. They then promise to get the home owner a quick loan modification and possibly a principal reduction on their mortgage too. Home owners pay an upfront fee—usually about $3,000.
However, home owners say that they aren’t getting a loan modification and usually nothing happens after the audit, even when errors in loan documents are revealed.
“They lure consumers to believe that by hiring them for a review of a loan modification package, they can expedite the process and get better results, or they make false promises that they can get a loan mod or principal reduction,” Josh Fuhrman, FTC’s senior vice president of community affairs, told AOL Real Estate News. “Home owners are not typically getting any results. [Scammers] are just stringing [home owners] along, or they disappear.”
Source: “Home Owners Beware: Forensic Loan Audit Scam,” AOL Real Estate (Sept. 26, 2011)
Fannie, Freddie May Hike Fees in 2012
September 24th, 2011As Alex reported 9/24/2011 on Property Source Radio.
Realtor.org – Daily Real Estate News | Tuesday, Sept 20, 2011
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In overhauling Fannie Mae and Freddie Mac, the government may require more private mortgage insurance from borrowers and charge lenders higher fees to guarantee loans–moves that could increase borrowing costs, Edward DeMarco, acting director of the Federal Housing Finance Agency, said this week at a mortgage conference in Raleigh, N.C.
Such steps are aimed at making the mortgage market more competitive and trim costs to the federal government by $28 billion over 10 years.
The government-sponsored enterprises buy loans from lenders and package them into securities that are then sold to investors. The GSEs charge a “guarantee fee” when they buy mortgages, a fee likely to be raised in 2012.
The increase could lead to a modest increase to mortgage borrowers. “Increasing the guarantee fees by 0.1 percentage point, as the White House proposed, would raise the monthly cost of a $220,000 mortgage by about $15,” The Wall Street Journal article notes.
Fannie and Freddie may also require borrowers to hold more private mortgage insurance to lessen the risks on taxpayers. The federal government took over the GSEs in 2008.
Any changes would be made “gradually” to avoid harming the already fragile housing market, DeMarco said.
Source: “Fannie, Freddie to Raise Fees,” The Wall Street Journal (Sept. 19, 2011) and “Mortgage Finance Head: Shift Risk From Treasury,” Associated Press (Sept. 19. 2011)
Green Mortgages Allow More Options for Upgrades
September 17th, 2011As Alex reported 9/17/2011 on Property Source Radio.
Realtor.org – Daily Real Estate News | Tuesday, Sept 12, 2011
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With the growth of green building the last decade, green lending has emerged to help finance those often costly “green” upgrades.
Dave Porter, with PorterWorks in Stanton, Wash., who provides continuing education courses on green lending to those in the real estate industry, says there are several basic types of green mortgages, which most of the public still isn’t very aware about. For example, energy-efficient mortgages (EEMs) are “used to finance the construction of a home that would meet green standards or to buy one that’s newly built.” An energy improvement mortgage (EIM), on the other hand, is used to buy and fix up a house that needs green improvements, like insulation or new windows.
The loans are available through mortgage programs by Fannie Mae, the Federal Housing Administration, Veterans Affairs, and the Department of Agriculture.
“They have slight differences in requirements, but basically they allow you to finance the home, plus the energy-conserving improvements, without having to qualify for the additional cost of the improvements,” Porter told the Chicago Tribune.
Source: “Market Ripe for Green Loans,” Chicago Tribune (Sept. 9, 2011)
Pourable Gel Fuel
September 15th, 2011By Jim Salmon
Nine Manufacturers, Distributors Announce Consumer Recall of Pourable Gel Fuel Due to Burn and Flash Fire Hazards WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC), in cooperation with nine manufacturers and distributors, is announcing a voluntary recall of all pourable gel fuels made or sold by these companies. Due to the serious risks of flash fire and burns when consumers add pourable gel to an already burning fire pot, consumers should immediately stop using the pourable gel fuel.
The recall involves an estimated 2 million units of various pourable gel fuels packaged in one-quart plastic bottles and one-gallon plastic jugs and sold in scented and non-scented formulations, which were sold since 2008 for between $5 and $20 by the companies listed below
Consumers can contact these firms to obtain instructions for a refund of the product and for returning unused bottles and jugs:
Bird Brain Inc., of Ypsilanti, Mich. Bond Manufacturing of Antioch, Calif. Sunjel Company (2 Burn Inc.) of Milwaukee Fuel Barons Inc. of Lake Tahoe, Nev. Lamplight Farms Inc of Menomonee Falls, Wis. Luminosities Inc (Windflame) of St. Paul, Minn. Pacific Décor Ltd. of Woodinwille, Wash. Real Flame of Racine, Wis. Smart Solar Inc. of Oldsmar, Fla. The pourable gel fuel can ignite unexpectedly and splatter onto people and objects nearby when it is poured into a firepot that is still burning. CPSC is aware of 65 incidents resulting in two deaths and 34 victims who were hospitalized with second and third degree burns of the face, chest, hands, arms or legs.
Of the 65 incidents, 28 of them, including 37 burn injuries and two fatalities, occurred with fuel gel products made by Napa Home & Garden, which conducted a recall of its products in June 2011, in cooperation with CPSC. Also in June, CPSC issued a press statement alerting consumers to the hazards of pourable gel fuels. All pourable gel fuel, regardless of manufacturer, poses flash fire hazards.
Consumers should not attempt to use or fix pourable gel fuel bottles with homemade remedies, or replace the fuel with other flammable materials.
Retailers should stop sale of existing inventory and immediately remove all stock of pourable gel fuel from shelves. Some firms are working on a design for caps that may prevent flash fire hazards.
Keep Pests Away From Your Bird Feeders
September 15th, 2011By Jim Salmon
Do you have a bird feeder that the squirrels raid? Try a tube feeder made with wire mesh. Birds can still peck through it but the squirrels can’t get in it!
Keep cats from getting your birds at the feeder by simply putting the feeder on a pole, preferably a metal one so the most persistent cats can’t sink their nails into a wood one and climb it.
Birds tend to like the feeders more if they’re hung near trees or vines, so they can take refuge in them. We have evergreens and the birds loves to be on the branches and swoop to the feeder. Cherry trees are another big hit with the birds, safe place to hang out, nest and eat! It’s like a fine hotel!
With colder weather approaching, especially in the winter try leaving stale baked goods, overripe fruits, meat scraps and drippings, peanut butter & even bits of cheese. Or go ahead and fill your feeder with black oil sunflower seeds, sit back and watch all the birds you’ll attract! Here’s a little tid bit true story; We have a big woodpecker block wire cage attached to a pole a little higher than our regular bird feeders. They’re all on a pressure-treated post, with the feeders attached on a tray. One day the cage was completely empty, no woodpecker block to be seen! Wow, ok, the birds or squirrels pulled it open, but where’s the block?
Of course, refilled it, next day same thing. Refilled it again! Now it’s getting a bit expensive. The following day, the cage is gone too! Found at the bottom of a tree about 10 feet away. Plus, along with this the feeders were wiped clean! Squirrels maybe? Ok, we’ll fix it for good! Bungee cord the woodpecker cage to the pole! Yep, you guessed it. Now this is more than even squirrels can do. That night we discovered, an entire family of raccoons have been raiding the feeders and completely walking off with the woodpecker blocks! Very fat raccoons!
The Top Ten Home Repair and Improvement Projects Not to Tackle as a Home Owner
September 15th, 2011By Jim Salmon
The Rhythm Method, Temperature and Symptoms
September 15th, 2011By Rich Levin
News Media and Todays Market
September 15th, 2011By Kristen Noble