About $10 billion in originated loans last year contained fraudulent information, according to CoreLogic.
“The current and continuing depressed housing market will likely remain an attractive environment for mortgage fraud perpetrators who will continue to seek new methods to circumvent loopholes and gaps in the mortgage lending market,” said a new report from the Federal Bureau of Investigation (FBI) that cited CoreLogic’s figures.
The most prevalent mortgage fraud schemes include fraud involving loan origination, foreclosure-rescue initiatives, short sales, property flipping, equity skimming, builder bailouts, and reverse mortgages, the FBI says. Additionally, it’s finding many of the mortgage fraud schemes have a strong connection to organized crime.
“There have been numerous instances in which various organized criminal groups were involved in mortgage fraud activity,” the FBI says. “Asian, Balkan, Armenian, La Cosa Nostra, Russian, and Eurasian organized crime groups have been linked to various mortgage fraud schemes, such as short sale fraud and loan origination schemes.”
Tighter lender standards and an unstable job market have made it tougher for some people, especially those just starting out, to qualify for a home mortgage on their own. So, some home buyers are turning to family members or close friends with good credit to co-sign a home loan.
Making sense of the story
While becoming a co-signer may seem like a good solution, money manager and lenders caution against those who are asked to be the cosigner.
A cosigner, even if not living in the house, is really a co-borrower, meaning he or she still is responsible for payments if the occupant is unable to meet his or her obligations. In other words, if the principal party defaults on the loan, the cosigner is on the hook.
One financial planner suggests potential co-signers take a less risky alternative, such as providing a cash gift for the down payment. Under current tax laws, a person can give as much as $13,000 to a person, free of gift taxes, or $26,000 per person, if a married couple filing jointly is giving the money.
Those considering co-signing a mortgage must conduct due diligence. First, the cosigner must understand why the family member or friend is asking for help. Potential co-signers shouldn’t be afraid to look into the requester personal finances to help determine whether he or she will be able to repay the loan. Perusing credit reports also will show the track record he or she has for paying off debts.
A discussion about worst-case scenarios also should take place before signing on the dotted line. Working out a written contract containing an agreement about what would happen in the event of a default, also is recommended.
Cosigners also should keep in mind that the mortgage will show up on their credit report, and could affect their own ability to borrow money or buy a second home. If the principal borrower makes a late payment, that also will show up on the co-signer’s report.
Erik Zetterberg is getting ready for his 26th annual trip to Mexico where he gives away artificial legs, wheelchairs, crutches and other aides for people who have no access to this equipment. Over the years, he has financed much of this on his own, although from time to time he has had aide from individuals and the Rotary Club of Nevada County South.
Zetterberg, who’s had a prosthetic leg since the age of 7, has collected used and rejected prostheses from local prosthetic companies and distributed them for free among the disabled poor in Mexico. Over the years he has received a larger variety of donations – clothes, toys, eye glasses, mainly from friends.
In September 2007, the Sierra Nevada Memorial Hospital Foundation recognized Zetterberg as the Humanitarian of the Year for his decades of social service. “I couldn’t see usable goods going to waste when people needed them” said 70 year old Zetterberg. “There was a need for these things in Mexico. I couldn’t see them being thrown away in the garbage can”
One of his joys is to know that from the multiple artificial legs he donated to organization in Mexico last year, they were able to somehow take parts of some of the artificial legs and create multiple more legs to help more people.
If you have any wheel chairs, crutches, canes or even artificial legs, you would like to donate to Zetterberg, you may contact him by calling him (530) 273-0789 or (916) 955-7711 and he will come by and pick up whatever you care to donate.
Foreclosure filings dropped again in July, marking the 10th straight month for year-over-year declines and reaching their lowest level since November 2007, RealtyTrac reports. But analysts are still mostly attributing the drop to banks’ processing delays as they take more time to take action against delinquent home owners.
For July, about 212,764 homes received a foreclosure filing — which is a notice of default or auction sale or completed foreclosure — that’s down 4 percent compared to June. Filings were 35 percent lower than July 2010, according to RealtyTrac, and bank repossessions were down 33.6 percent from its peak in September 2010. Also, initial notices of default dropped 39 percent year-over-year to fewer than 60,000, which could be an indication that fewer borrowers are falling behind on their mortgage payments or that lenders are not filing notices as promptly in the past.
“The downward trend in foreclosure activity has now taken on a life of its own,” says RealtyTrac CEO James Saccacio. “It appears that processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts, may be allowing more distressed home owners to stave off foreclosure.”
Las Vegas continued to have the highest rate of foreclosures in the country — a filing for every 99 homes. Overall, for states, Nevada had the highest foreclosure rate of any state (one filing for every 115 homes), followed by California (one in every 239 homes), and Arizona (one in every 273 homes).
Art work by Sandy Gold Winner 2011 Fair Art Work Contest
By Wendy Oaks
EXCITING CONTESTS AND ACTIVITIESHAPPENING EACH DAY AT THE NEVADA COUNTY FAIR!
No pre-registration required. Show up ½ hour before event, have fun, and win great prizes!
At this year’s Nevada County Fair, August 10 – 14, there are exciting contests and activities going on each day! In addition to daily arena events, ongoing musical entertainment, and activities galore, there are fun contests planned for each day. Here are just a few of the fun contests planned for this year’s Fair.
New this year is “Eureka” Cupcake Wars, held Wednesday at 1 pm. The Fair will provide the cupcake, icing, sprinkles and other types of decorations, and participants have to create a cupcake to reflect a theme announced at the beginning of the contest. There will be four half-hour contests beginning at 1 pm.
“Go for the Gold,” based on the popular television show “Minute to Win It,” encourages contestants to complete a stunt within a minute to win prizes. Held on Wednesday at 4 and 5 pm; Saturday and Sunday at 4 pm
The Designer’s Hair Salon is sponsoring a Locks of Love event on Saturday, August 13, from noon – 3 pm. Donate your hair to help provide a hairpiece to financially disadvantaged children suffering from long-term medical hair loss. Stylists will be available to assist with the hair donation process, as well as to cut and style your hair for free.
Do you think you can text faster than anyone? If so, a Text Messaging Speed Contest will be held on Friday, August 12, from 4 – 6 pm. This is for children and adults alike.
Find out how fast your baby can crawl by entering the Diaper Derby! Join us on Sunday, August 14, at 5 pm to find out. There are two categories: 6-9 months and 10-12 months. This contest is limited to the first 20 contestants in each age category.
Show off your dancing talents for the audience at the Just Dance 2 event held on Friday from 8 – 10 pm.
If scrapbooking is your thing, here’s your chance to have some fun and win a prize at a Scrapbooking Contest on Thursday, August 11, from 4 – 6 pm.
Join us for Flower Pot Fantasy Contest at 5 pm on Saturday, August 13. Decorate flower pots using various supplies. There’s also the “You Can Call Me Martha” contest which allows participants 30 minutes to create something special from a variety of supplies. This contest is also on Wednesday from 6 – 6:30 pm.
There are no entry forms or fees for these events. Just show up ½ hour before the event at the Special Events Tent and get ready to play. Lots of fun and lots of great prizes!
Also, for your viewing pleasure, each day in the Special Events tent will feature special food contests. Join us to see the judging and meet some of the talented cooks in our community. Special food contests for children happen each day at 3 pm and special food contests for adults happen each day at 6:30 pm.
Visit the Nevada County Fair and help your community at the same time
Imagine being able to visit the annual Nevada County Fair at a discount, and be able to help the local Food Bank at the same time? At this year’s Fair, you can! The Nevada County Fairgrounds and The Food Bank of Nevada County are teaming up to help feed those in need.
Bring a can of food (or two or three) to the Fair on Sunday, August 14, and the Fair will give you a coupon for $1 off general admission to the Fair on that day. The Food Bank will have food collection bins available at the Fairgrounds from 10 am – 5 pm at Gates 1, 3 and 5, which is also where you’ll receive your coupon. It’s that simple!
All food collected on that day will be given to The Food Bank of Nevada County, which distributes food to those in need in our county. At last year’s canned food drive, 1,600 pounds of food were collected – enough to feed 750 – 800 families.
It’s the best of both worlds – fun at the Fair, while helping out in the community. It’s all part of Community Involvement Day, sponsored by YubaNet.com, on Sunday, August 14, at the Nevada County Fair.
This year’s Fair is August 10 – 14. Visit www.foodbankofnc.org or call (530) 272-3796.
Wendy Oaks
Publicist, Nevada County Fairgrounds
(530) 273-6217 wsoaks@gmail.com
Bank of America Nevada City Photo by John J. O'Dell
Bank of America has joined the Keep Your Home California principal-reduction program, making it the largest loan servicer involved in lowering loan balances for those with economic hardships.
Making sense of the story
Keep Your Home California is a program offered through the California Housing Finance Agency to help struggling homeowners avoid foreclosure.
Bank of America, which services more than two million home loans in California, joins others servicers involved in the program, including: California Dept. of Veterans Affairs, the California Housing Finance Agency, Community Trust/Self Help, GMAC, Guild Mortgage Company, and Vericrest Financial. Agency officials hope the list will continue to grow, and that the program will continue to gain momentum.
Under the program, qualified homeowners may be eligible for up to $50,000 in assistance. The program requires the mortgage investor to match dollar-for-dollar the amount provided by the program.
Bank of America borrowers who do not qualify for the principal-reduction program will be evaluated by bank representatives to explore other options, including a loan modification.
To be eligible for the program, applicants must: Own and occupy their homes as their primary residence; not exceed $729,750 in current unpaid principal balances on first mortgages; meet low- and moderate-income limits; complete and sign a hardship affidavit to document reasons for hardships; have mortgage loans that are delinquent or “in imminent default;” and have enough income to pay modified mortgage payments according to guidelines from servicers participating in the programs.
For more information about Keep Your Home California, visit keepyourhomecalifornia.org or call (888) 954-5337(KEEP).
The Granholm Family – (from left to right) Kaycee, Danny, Katie and Ben – will be recognized at the Nevada County Fair as the Family of the Year. Credit: Photo provided by Shaffers Originals
By Wendy Oaks
The Danny Granholm Family of Grass Valley has been named the 2011 Family of the Year by the Nevada County Fair’s Board of Directors. The Board chose the Granholm Family because of their ongoing participation in the Nevada County Fair and their commitment and efforts in supporting Nevada County agricultural youth programs.
Danny and Katie Granholm, who were both raised in Grass Valley, have been attending the Fair since they were children. As a teenager, Katie worked at the concerts hosted at the Fairgrounds, and grew up watching her grandparents square dance each year at the Fair. Danny also attended the Fair as a child, and remembers “being unable to sleep the night before the Fair because it felt like it was Christmas Day.”
Most recently, for the past eight years, Katie and Danny have been active in youth agriculture programs. In addition to showing animals with their own children, Danny is currently the President of the Nevada County Ag Youth Boosters and Katie is a past director of the Nevada County Livestock Producers.
As owners of BK Powder Coating, which they started in the garage of Danny’s parent’s home in 1996, Danny and Katie volunteer to donate the powder coating on all Ag Mechanic projects for students from both Bear River and Nevada Union High school.
“It is such a pleasure to work with these students,” said Katie. “They work so hard all year on their Fair projects, and it’s great to be able to come alongside these kids and help them and encourage them.”
Their children, Ben and Kaycee, have also been actively involved in the Fair for many years. Both began exhibiting animals about eight years ago. At the 2011 Fair, Kaycee will show sheep, and Ben will exhibit a hog.
Both Ben and Kaycee have gone on to pursue agricultural education. Ben, 19, graduated from Nevada Union in 2010. He recently completed a year of service to the FFA, where he served as the California FFA State Treasurer. In this role, Ben recently testified at the Senate’s Joint Fairs Committee on behalf of the network of California Fairs. In August, Ben will begin his studies at Fresno State, majoring in Agriculture Business. Kaycee, 17, is a senior at Nevada Union and involved in FFA. She is currently serving as the Superior Region President for FFA, and is preparing for college, where she will major in agriculture.
“Year after year, Danny and Katie dedicate countless hours to the Fair and the agricultural community,” said Sandy Woods, CEO of the Fairgrounds. “They are such a gracious and humble family, with a selfless attitude, and a willingness to give – and they do it all with kindness. They are a nice family and so deserving of being the Family of the Year!”
About being named the Fair’s Family of the Year, Katie says, “We are thrilled and so surprised. It’s a huge honor and we are humbled because there are so many other families who also deserve this recognition. We love being part of the Fair and seeing the community come together to support our community’s youth – and we are honored to be part of that.”
The Granhom Family will be honored at opening ceremonies of the Nevada County Fair, which runs August 10 – 14. They will receive a Fair package of tickets, as well a family portrait created by Shaffers Originals of Grass Valley.
For more information about the Nevada County Fair, visit www.NevadaCountyFair.com or call (530) 273-6217.
Grass Valley, CA (August 2011) – Sierra Nevada Memorial Hospital (SNMH) and Sierra Nevada Medical Group (SNMG) are teaming up to present Senior Involvement Day at this year’s Nevada County Fair on Thursday, August 11th, from 10 AM to 12 Noon at the Special Events Tent.
Join healthcare professionals for various presentations to learn about caring for a wide-range of health topics like diabetes management, heart health, wound care, and the importance of annual health screenings and check-ups. Experts from Sierra Nevada Medical Group will include: Dr. George Rice, Family Medicine; Dr. Kesha Hughes, Internal Medicine; and Dr. Ryan Smith, Cardiologist. Also hear what Dr. Evans – from Sierra Nevada Memorial Hospital – has to say about the hospital’s one-minute, radio health segment, Your Health Report, as well as Emergency care and house calls.
While visiting the Special Events Tent, take time to visit SNMH’s and SNMG’s healthcare tables for additional information.
The Nevada County Fair is August 10 – 14. Visit www.NevadaCountyFair.com for information or call (530) 273-6217. The Fairgrounds are located on McCourtney Road in Grass Valley.
