Freddie Mac is making a bold move by threatening legal action against the city of Richmond, CA because they are planning to use eminent domain to seize underwater mortgages.
- Richmond’s Stance: In offering to buy troubled loans at below market value from mortgage companies, they are then able to write down the loan balances for the new home owners and refinance the loans into government-backed mortgages. IF the mortgage companies refuse to allow them to buy the loans, they city will play the eminent domain card and seize them. This whole plan is theorized to help residents curb the loan debt and avoid foreclosure. Circumventing the federal government in this process is the key point. Richmond officials hope this new method will speed up the currently stagnantly moving foreclosure aid assistance. “We’re not willing to back down on this,” says Richmond Mayor Gayle McLaughlin. “They can put forward as much pressure as they would like, but I’m very committed to this program, and I’m very committed to the well-being of our neighborhoods.”
Richmond is not the only city considering this option for their residents. About two dozen local and state governments — including Newark, N.J., Seattle, and several other cities in California — have been considering similar uses of eminent domain.
- Freddie Mac’s Stance: Voicing cautionary rhetoric, Freddie Mac feels the loan sales will be made only under pressure instead of being clean, tidy, and voluntary as assumed by Richmond. Freddie Mac and its backer, the Federal Housing Finance Agency, are considering taking legal action against such a plan.
This new method of circumvention may threaten real estate recovery. "We are concerned that the proposed use of eminent domain would slow the return of private capital to the housing finance system, and threaten our fragile housing recovery," writes California House Republicans John Campbell, Gary G. Miller and Ed Royce in a letter to Housing and Urban Development Secretary Shaun Donovan. "We do not believe this is appropriate public policy, even if this use of eminent domain were to survive the inevitable legal challenges that would follow any decision to seize mortgages.”
Freddie Mac Considers Legal Action to Block Eminent Domain Plan
The FHA has revised the rules around condos. In hopes of convincing condo associations to get certified or re-certified financing therefore opening the doors for a lower down payment for unit sellers, owners and buyers, the FHA insured mortgages once again.
This news is widely being taken with positive regard since it will “help spark home sales and help tens of thousands of condominium associations recover from the housing slump," according to the Community Associations Institute, the largest U.S. trade group in the field.
The new rules will eliminate legal liability headaches that hindered many condo boards to resist FHA certifications, raise the permissible investor-ownership limit, and increase the percentage of non-residential use allowed in an FHA certified project.
READ MORE ABOUT NEW FHA RULES HERE
Bulk quantities of food, electronics, furniture, you name it and Costco isthe place to buy it. Now, after a year of testing to see the viability, the Costco we know and love will be implementing a full-service mortgage lending program on its website in partnership with 11 well know lenders. Over 10,000 mortgages have been issued under the program already. They are hoping that number will swell as word gets out.
What is your reaction to Costco’s bold move? Comment and Share
Online marketing is not only a budding industry, it is full out sprinting. Blogging, facebook pages, we have all heard it all, but what about keeping it traditional. Build a website specifically for a listing! This is a simple but brilliant way to link a site to all the other marketing you do on the listing and instead of taking you to a Trulia, Zillow, ect page set up for all your listings, this strategy is focused on one listing alone allowing it to shine in the spotlight. On this site I have included things from specific letters from the prior owner sharing why they had bought/built the home as well and specific neighborhood information. What are your thoughts?