Real Estate News

The article below from The Mortgage Professor sparked an interesting proposition and perhaps the CFPB (Consumer Financial Protection Bureau) should take note and furnish some assistance in the area of misbehavior from mortgage lenders.

When there are cases where you have a written promise by and acknowledgement of information from mortgage lenders and then they change the rules, then there are times when a legal battle is not worth the time, money, and risk to pursue damages – and that’s what mortgage lenders may want – a difficult grievance and damage redemption process.

Problem is, will the CFPB have ability, manpower, and resources to offer any relief?

Source: The Mortgage Professor: When mortgage borrowers need an ombudsman.

For several years, the Leyland Cypress trees have been used extensively by homeowners in Georgia as fast growing “privacy” cover to block nosy neighbors. They grow quickly and sometimes 2+ feet per year. This fast growth is one reason for their popularity.

But good things have their downsides. Apparently, according to Georgia Master Gardeners, Leyland Cypress trees are better suited for cold and wet climates (like the UK and Canada), not the wet and warmer Georgia climate.

Problems developing include Cankers (a fungus that spreads to branches that turn them reddish in color); disease spores spread from rain, watering, or garden tools; and some root diseases that cause yellowing of foliage and may cause trees to topple over.

Some gardeners advise a mixed variety of green trees in separate clusters as cover such as the Arizona Cypress, Sweetbay Magnolia, Fragrant tree olive, Foster or Savannah Holly, and Wax Myrtle as some of many suggestions.

Note: I have seen thousands of Leyland Cypress trees throughout Atlanta real estate in my travels – this will not be good news to those who chose to plant these as cover.

Source: MDJ, 11-24-2013, 2E.

In my earlier blog post – Settlements for Inept Mortgage Practices regarding robo signing and potential mortgage fraud, I referenced a huge $25 Billion settlement between the Federal Government and 5 of the largest US banks.

A total of $38.72 Billion has been provided by these institutions, but by US Government accounting, they aren’t finished yet…

How are they doing?

5-1-2014: GAO rips regulators on failure to objetively define and measure $6 Billion foreclosure prevention efforts

Read more here: http://www.sacbee.com/2014/04/29/6364382/gao-rips-regulators-on-foreclosure.html#mi_rss=Real Estate#storylink=cpy

Bank of America = 97% satisfied consumer relief – 41% refinancing effort
J.P. Morgan Chase = 75% satisfied consumer relief – 113% refinancing effort
Wels Fargo = 55% satisfied consumer relief – 122% refinancing effort
Citigroup = 46% satisfied consumer relief – 137% refinancing effort
Ally/GMAC = of course, being a Government controlled entity, no comment

Update 1-7-2014: As of 6-30-2013, 643,726 borrowers have benefited from some type of consumer relief totaling $51.33 billion – Follow the progress here at the oversight website https://www.mortgageoversight.com/

Georgia has received about $1.1 Billion in cumulative relief with >50% in 2nd lien forgiveness and short sale action.

Source: WSJ, 10-17-13, C7

1-25-2014: WSJ article 1-24-2014, Page B1 reported manufacturers are coming back into developing & producing new anti-biotics after regulators have been eliminating hurdles to producing new anti-biotics and since more and more people are dying every year over ineffectiveness of current anti-biotics since many people are becoming immune to them.

Hey, Obamacare hasn’t kicked in yet so drug shortages aren’t as huge a problem until it does…when there’s no profit incentive for pharmaceutical companies to invest millions/billions into development with no hopes of making any return.

In the meantime, the FDA has established a new rule to require drug companies to report to the FDA any plans to stop production of drugs in short supply. Since 2011, almost 375 drug shortages have been prevented – it’s been a help but many shortages still exist.

Who determines what “is or isn’t but will be” in short supply is unclear to me…but most severe shortage now are those with electrolytes, vitamins, and fluids to help in resuscitation of patients and in treatment of infants.

Problems pointed out is that few companies are making these products and generics and either shut down or have a production problem reducing the quantity produced.

Side thought: Shouldn’t this have been a routine process with all drug manufacturers in trade journals or just word getting out to give other manufacturers the option to make some money?

Source: WSJ, 10-31-13, B4

Thousands of high schools around the US will compete for one of 25-40 ($2-7 Million) Federal grants (that total $100 Million of taxpayer dollars) designed to prepare student for high tech economy of the future. Sources: WSJ, 11-19-2013, A3 and Bloomberg news.

Update 2-4-2015: Can you see where this is going? – see where the $100 million went (a.k.a. Where do Obama’s votes come from and how were the winners picked?) =

But wait, it’s not all free money – applicants would nee to come up with 25% in matching funds to participate…well, does that eliminates alot of the poorer inner-city schools that need training the most?

Doesn’t President Barack Obama care about those schools?

And what business is it of the Federal Government to use tax money for a top down approach? Why not tax people less let the local and State school districts partner with businesses

Note: The President’s $4.35 Billion “Race to the Top” initiative liks teacher evaluations to student test scores and promotes the “Common Core” math and reading standards.

Comment: When you’ve had liberal socialists dumbing down the students for decades into “feel good” professions and avoiding “independent” thinking and respect for the US Constitution, you dumb down kids and don’t stimulate economic growth from education – you create takers and sympathizers of failure.

Source: Bloomberg News

3-20-2014: Rep. Dave Camp’s proposal for reformed income tax structure probably won’t go anywhere since many special interest groups are crying about their tax preferences, but it merits consideration.

These 3 income tax deductions were scheduled to expire on December 31,2013 – did they?:

(1) Marginal mortgage debt over and above what the bank gets for the sale of the real property is normally considered taxable income, It is normally forgiven of those homeowners who gave up their property under foreclosure, deed in lieu, or short sale or who may have restructured their loan under HAMP/HAFA or other mortgage relief efforts including those through the large mortgage processing settlement. See IRS publication #4681. Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA)

(2) Nope – not renewed: Mortgage insurance issued after 2006 is deductible. IRS Publication #936.

(3) Up to 10% of energy saving improvements (for a maximum deduction of $500) to a personal residence was deducible. More information at energystar.gov and see IRS tax tip 2013-48.

Do you think the US Congress will have enough time to extend any of these deductions – especially to give former homeowners tax relief from the mortgage debt forgiveness?

Source: WSJ, November 23-24, 2013

First, the US companies who contract to get foreign technology worker instead of using US citizens are partially to blame for creating a market that is subject to abuse. Comment: I would like to see evidence that the US doesn’t have equally talented individuals who can provide the same or better level of service. Or do the US companies employing foreign workers just want to avoid any extra costs of employing US citizens?

Next, the recent $34 Million court case settlement with Infosys should spotlight the immigration visa system problems and propensity to circumvent the system for profit.

Basically, there are 2 types of employment visas:

B-1 visa: Costs about $160, takes a matter of “days”, and is generally to be used for immediate, and unique short term problems for a specific problem such as consulting with business associates.

H-1B visa: Cost about $5,000, takes a matter of “months”, and is to be used for longer term support roles designed to allow business professionals (who’ unique set of skills are unavailable in the US) to work in the United States for a specific amount of time.

Now, if you wanted to shave expenses and make more profit, which path would you try to take? Yep, it’s a built in design to make service providers lie to reduce their costs and increase revenue.

Do I think the US Congress will resolve the immigration system problem soon – I say a big NO!

Sources: NY Times and WSJ 10-30-2013

Check out the 25 rebates & incentives at http://residential.georgiapower.com/rebates/.

And don’t ignore Georgia Power Company’s recycling program for old, inefficient refrigerators…

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Georgia State Law (haven’t found the laws but news media outlets report there are these laws) requires you to first call 811 (or 1-800-282-7411) to have someone mark your utility lines (at no cost to you) before you excavate or dig into your yard for anything…before it goes BOOM after hitting a gas line!

Visit http://www.call811.com/ for details.

“Caveat emptor” = Buyer beware…. Watch this video from Houston news channel regarding “know before you owe” commissions and it doesn’t hurt to read everything before signing…or rely on a jury to protect you.

This Houston, Texas court case judgment making a real estate broker pay $150,000 in legal fees to former client who signed a Buyer Brokerage Agreement with them and claimed “unfair practice” may scare the pants off realtors across the country as well as the National Association of Realtors (NAR) and other states and state and local realtor associations about brokerage agreements…and maybe cause Seth Weissman to rewrite the Georgia brokerage agreement or the Georgia State legislature to rethink the legality of this form or its use?

On the other hand, if nobody else goes after and sues former clients in Georgia, then the point may be mute.

Real estate brokers may consider a possible rewrite of procedures for each real estate brokerage office across the country on how to present, negotiate, and obtain a prospective Buyer client’s signature on a Buyer Brokerage Agreement.

Source: http://www.yourhoustonnews.com/fort_bend/news/jury-punishes-houston-realtor-for-tactics/article_af16b9a2-51b1-11e3-abb0-0019bb2963f4.html