FHA Underwater Homeowner program begins 11 1 12

New short-sale program offers relief for underwater homeowners
One of the federal government’s most-important financial relief efforts for underwater homeowners started operating Nov. 1.

Traditionally short sales, where the lender agrees to accept less than the full amount owed and the house is sold to a new purchaser at a discounted price, are associated with extended periods of delinquency by the original owner.  The new Fannie-Freddie program breaks with tradition by allowing short sales for owners who are current on their payments but are encountering a hardship that could force them into default.
Eligible hardships under the new program run the gamut: Job loss or reduction in income; divorce or separation; death of a borrower or another wage earner who helps pay the mortgage; serious illness or disability; employment transfer of 50 miles or greater; natural or man-made disaster; a sudden increase in housing expenses beyond the borrower’s control; a business failure; and “other,” meaning a serious financial issue that isn’t one of the above.Homeowners who participate in this new program should be aware that although officials at the Federal Housing Finance Agency – the agency that oversees the program – are working on possible solutions with the credit industry at the moment, it appears that borrowers who use the new program may be hit with significant penalties on their FICO credit scores – 150 points or more.

Other factors to consider are promissory notes and other “contributions.”  In the majority of states where lenders can pursue deficiencies, Fannie and Freddie expect borrowers who have assets to either make upfront cash contributions covering some of the loan balance owed or sign a promissory note.  This would be in exchange for an official waiver of the debt for credit reporting purposes, potentially producing a more favorable credit score for the sellers.
Finally, participants should be aware of second-lien hurdles.  The program sets a $6,000 limit on what second lien holders – banks that have extended equity lines of credit or second mortgages on underwater properties – can collect out of the new short sales.  Some banks, however, don’t consider this a sufficient amount and may threaten to thwart sales if they cannot somehow extract more.

13.5 B. to be paid by Main street taxpayers

American taxpayers look what is left in our laps because of the"No congressional oversight" gift we made to the "too Big to Fail Banks"

Per Wall Street Journal
The Federal Housing Administration will exhaust its capital reserves and faced a deficit of $13.5 billion at the end of September, according to the agency?s independent annual audit set for release on Friday.


The report shows that the agency's reserves aren't adequate to pay for expected losses on the $1.1 trillion in loans that it guarantees, which means the agency is likely to require taxpayer funding for the first time in its 78-year history.

Justice Dept. raises awareness of disaster fraud hotline
The Dept. of Justice, the FBI, and the National Center for Disaster Fraud remind the public there is a potential for disaster fraud in the aftermath of a natural disaster.  Suspected fraudulent activity pertaining to relief efforts associated with natural disasters should be reported to the toll-free NCDF hotline at (866) 720-5721.  The hotline is staffed by a live operator 24 hours a day, seven days a week, for the purpose of reporting suspected scams perpetrated by criminals in the aftermath of disasters.

In the wake of natural disasters, many individuals feel moved to contribute to victim assistance programs and organizations across the country.  The Dept. of Justice and the FBI remind the public to apply a critical eye and to conduct due diligence before giving to anyone soliciting donations on behalf of victims.

For the first time I volunteered at the polls 6 am to midnight was not what was promised? Such a disorganized system I have never seen.

Finally at 11 pm when the captain went to the bathroom I  just took everything and threw it into the carts to leave.  We were supposed to be finished by 9 pm.  I am glad I took over.  We got to the SM civic center at 11 50 pm. CA is so disorganized.  We had to find people’s names, using no id on 2 different rosters, accept out of area voters with a page of paperwork and also do paperwork on sealed mail in ballots that were brought to the polls on elections day.  Then we had 3 machines to pack up and 6 portable voting booths.

I am fluent in Spanish yet the earphone booth was so ineffective that they could not understand the process.

 Oh the Russians! Non-english speakers such as the Russians!  If you are a certain age you don’t have to speak English to become a citizen so we helped several try to vote—impossible.

The first time voters were well over 60%, that was exciting.  I am not amazed that as of 11 15 there are still over a million uncounted votes in CA.

Property listings in Los Angeles in Spanish

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Property Listings in Spanish!
Home buyers can now search California listings in
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