Posts Tagged ‘homeowners’

Crist to FEMA: Help

Thursday, March 11th, 2010

Florida governor Charlie Crist instructed the Interim Emergency Management Director to write a letter to FEMA Regional Administrator Philip May requesting federal assistance for state residents affected by toxic drywall.

In the letter, Crist asks FEMA to “conduct a preliminary damage assessment related to the issue caused by the degradation of Chinese drywall used in homebuilding in Florida.”  The Florida Office of Insurance Regulation said damage caused by Chinese drywall is not covered by homeowners insurance.

The Drywall Victims Insurance Protection Act of 2009 has yet to make its way through congress.

The letter to FEMA can be viewed here.

DHW asks: Have you or anyone you know been affected by Chinese drywall?

Federal judge weighs damages in toxic drywall case

Sunday, February 28th, 2010

On Monday, a federal judge heard testimony from Virginia homeowners suing Chinese drywall maker Taishan Gypsum Co. The plaintiffs  blame the company’s toxic drywall for causing damage to their appliances, electronics and central heat and air systems and are seeking over $2.5 million in damages.

Although U.S. District Judge Eldon Fallon did not immediately rule on the plaintiffs’ damages, he said he would make a decision “as fast as I reasonably can.”

Recovering money from Taishan Gypsum will face a major obstacle: China does not enforce civil judgments made in U.S. courts.

Lawyers for the plaintiffs said they will attempt to seize the company’s U.S.-bound vessels and shipments if the company continues to ignore the litigation. The defendants did not have legal representatives present during the trial.

DHW asks: Have you been affected by Chinese Drywall?

HUD to assist homeowners with Chinese drywall

Tuesday, December 29th, 2009

Press Release – “HUD to assist homeowners facing problem drywall. Temporary relief available to make home repairs affordable for at-risk borrowers.”

DHW asks: Do you or someone you know have Chinese drywall?

Meet the caulkers

Tuesday, December 15th, 2009

In an effort to reduce unemployment and increase the number of energy-efficient homes, President Obama is pressing Congress to pass incentives for homeowners who retrofit their homes.

The president is scheduled to tour a Home Depot in Virginia on Tuesday to make his case that creating more energy-efficient homes will create jobs and save families money on their utility bills. No word yet if the president plans to teach any DIY classes.

DHW asks: Do you think Congress should approve Cash for Caulkers?

25 percent of Florida mortgages behind in payments or in foreclosure

Monday, November 23rd, 2009

The Mortgage Bankers Association released a sobering report showing the housing recovery has a long road ahead. Here are some highlights (or low-lights) of their report.

  • 1-in-4 of every Florida mortgage is behind in payments or in foreclosure
  • Nationally, 14 percent of mortgages are behind in payments or in foreclosure
  • Lost jobs are the main cause of homeowners falling behind on mortgage payments (unemployment is not expected to peak until next spring or summer)
  • Prime fixed-rate loans to borrowers with good credit made up 33 percent of foreclosures last quarter (up from 21 percent last year)
  • Subprime loans with adjustable rates made up 16 percent of foreclosures last quarter (down from 35 percent last year)
  • 18 percent of FHA borrowers are behind in payments at least one month or in foreclosure.

DHW asks: When do you see the housing market hitting bottom?

Frank pushing proposal to lend money to unemployed homeowners

Tuesday, November 17th, 2009

Using some of the interest paid back to the government on money lent under TARP, Rep. Barney Frank is proposing a bailout for homeowners who are having difficulty making mortgage payments due to unemployment.

The Obama administration’s plan to fix the mortgage crisis has been criticized for being light on aid to unemployed homeowners. A congressional oversight panel revealed in a report last month that the $50 billion program “was not designed to address foreclosures caused by unemployment,” now the main cause of default.

Franks proposal, actually developed by Congress in the 1970s but never funded, was part of legislation introduced in September titled the Main Street TARP bill. Rep. Barney Frank is chairman of the House Financial Services Committee.

“These are people who are very responsible, very thoughtful. They got a home, it’s above water, they’ve got equity, but they’re unemployed, and you can’t afford mortgage payments on unemployment,” said Frank.

If passed, it would provide $2 billion for low-interest loans to unemployed homeowners who have the prospect of being able to continue making mortgage payments in the future.

Rep. Barney Frank is chairman of the House Financial Services Committee.

DHW asks: Do you know anyone in default of their mortgage due to a loss of employment?

Citi and USA Today: 1 in 5 dressed like they want it

Monday, November 9th, 2009

Last week, CitiMortgage suggested in a USA Today article that 1 in 5 homeowners currently in default of their mortgage are doing so strategically or voluntarily. They cite Sharon Sakson as one of these ’strategic defaults.’ Ms Sakson was laid off as a television writer and producer. After losing her job, she ‘burned through her savings to pay her mortgage.’ Burned through her savings. Ms Sakson is possibly the worst strategist I know. She strategically lost her job then voluntarily burned through her savings to make her mortgage payments. She eventually ‘walked away’ from her New Jersey home.

Clearly, we’re made to think Sakson and others who ‘walk away’ from their homes are bad people. How CitiMortgage and other lenders can get away with this type of character  assassination is beyond belief. Even more unbelievable, USA Today refuses to call lenders out on this practice. 

Readers should also note the USA Today article is not entirely accurate with regard to the seven-year wait period. If the foreclosed property is a primary residence, a borrower may be eligible for a new mortgage in five years.

DHW asks: USA Today’s decision to ‘blame the victim’ struck a nerve with a lot of folks at DesperateHouseWise. Have you had to walk away from your home?

DesperateHouseWise Update

Saturday, November 7th, 2009

DesperateHouseWise.com added a new page to its site. Modification Center offers helpful information for homeowners seeking a loan modification or refinance. Find information about Making Home Affordable and local foreclosure prevention events. You can even find a free, HUD-approved housing counselor.

DHW also added Housing Tax Credits. This page provides in-depth information regarding the recent extension and additions to the housing tax credits.

DHW asks: Have you applied for a loan modification? How was your experience?

Fannie Mae expands ‘Deed for Lease’

Thursday, November 5th, 2009

Fannie Mae is expanding its ‘Deed for Lease’ program to help thousands of homeowners facing foreclosure. The program is designed for those who want to stay in their homes but do not qualify for President Obama’s loan modification program. Participants transfer their title to Fannie Mae and rent back for up to one year.

Some facts about the program:

  • Fannie Mae has hired an outside agency to manage the properties (name of agency has not been released)
  • Rent cannot exceed 31% of the homeowners’ pretax income
  • Homeowners must be able to prove they can afford the market rent (established by the management company)
  • Participants must use the home as their primary residence

DHW asks: Do you think ‘Deed for Lease’ is a good idea?

Housing prices up in most major cities — except yours

Tuesday, October 27th, 2009

The AP reported a rise in the The Standard & Poor’s/Case-Shiller home price index of 20 major cities. However, industry experts remain concerned with rising unemployment.

DHW asks: Are home prices up in your area?