Real Estate

FHA Mortgages Are Poised To Get More Expensive

Logo of the Federal Housing Administration.
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The Federal Housing Administration (FHA) plans to impose significant restrictions on the amount of money that sellers can contribute at closing in the near future.  The FHA also will be raising its mortgage insurance premiums during the coming weeks, increasing charges for new purchases across the board.

Making sense of the story

  • One reason for the increase in fees is that over the last six years, the number of FHA loans used by buyers has increased significantly.  The housing program is financing 40 percent or more of all new-home purchases in some areas and is a crucial resource for first-time buyers and moderate-income families.  This is especially because of the low 3.5 percent down payment required for most FHA loans.
  • During this span of rapid growth, the FHA’s insurance fund capital reserves have steadily deteriorated – far below congressionally mandated levels.  And delinquencies have been increasing.  As a result, the FHA is under the gun to get its own house in order, cut insurance claims, and rebuild its reserves.
  • Under the changes, the FHA will lower its seller concession cap to 3 percent of the home price or $6,000, whichever is greater.  Currently, the FHA allows up to 6 percent of the price of the house to go toward buyers’ closing costs.
  • Beyond that change, the FHA also plans significant increases in insurance premiums – upfront premiums will rise to 1.75 percent from 1 percent, effective April 1, and annual premiums will increase by 0.1 percent on all loans under $625,000 and 0.35 percent on mortgage amounts above that, effective June 1.

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Real Estate

Mortgage Settlement Could Lead to More Scams

The recent announcement of the $25 million mortgage settlement between five major banks and state and federal government officials was probably welcome news to many people in the real estate business. But it has at least one downside: It will probably cause a rise in scams targeting borrowers seeking assistance.

Currently, between $4 billion and $6 billion is lost each year due to borrower-assistance swindles, says Joanne Kerstetter, vice president of education and community relations for Money Management International, a credit counseling service based in Sugar Land, Texas. Those numbers could go up over the next few years as scammers take advantage of the mortgage deal in their schemes.

“They’ll use government terms,” Kerstetter says. “They’re going to sound very official, as if they’re part of the settlement.”

Also, some of these scammers will guarantee access to borrower assistance funds. That’s a major red flag, she says. “Generally speaking, the advertisements that say, ‘Call us to get money,’ are not representing organizations officially involved with the settlement,” Kerstetter says.

In general, consumers should be wary of any company that reaches out to them with unsolicited offers of assistance. If they need help, they should contact their lenders or a financial counseling agency certified by HUD, Kerstetter says.

“The important thing is not to release any contact information to anyone who approaches you,” she explains. “Don’t sign anything unless you’re clear about what you’re signing and that your mortgage lender is involved in the process. If you’re making payments, make sure they’re going to the loan servicer or mortgage provider.”

By Brian Summerfield, REALTOR® Magazine

Read More

What You Need to Know About the Mortgage Settlement

4 Ways to ID Borrower-Assistance Scammer

 

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Business, Real Estate

Facts On The 3.8% Health Tax

 

Tax
Tax (Photo credit: 401K)

 

 

 

 

 

 

 

 

A 3.8 percent levy on certain investment income was included in healthcare legislation two years ago, and now misinformation about the tax’s application to home sales is being passed along over the Internet and e-mail, throwing some prospective home sellers into a panic. In actuality, very few owners will be affected by the new tax taking effect in 2013.

The tax will only be on investment income of upper income taxpayers. Included in the definition of investment income is capital gains from home sales above a certain amount and for households whose income is above a certain amount.  This means individuals who make $200,000 a year or more, or married couples who earn at least $250,000 a year are affected. Additionally, the tax is only applied to home sales if the proceeds exceed $250,000 for an individual, or $500,000 for married couples. And there still are other income and tax particulars that are considered before the 3.8 percent tax is triggered.

The National Association of REALTORS® recommends that members become familiar with the tax, but avoid coaching their clients on the policy because the amount of tax will vary from individual to individual as the elements that comprise adjusted gross income differ from taxpayer to taxpayer. NAR has published a brochure on how the tax works, which is now available online.

Download the 3.8% tax brochure (PDF).

Source:NAR and “Realtors Say Despite Efforts, Tax Rumor Keeps Spreading,” Glens Falls Post-Star (NY) (03/10/12)

 

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animals

This Is Einstein – The Parrot

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httpv://youtu.be/nbrTOcUnjNY

 

Its amazing how smart birds and animals can be.  We don’t give them enough credit for all of their abilities.

Studies with captive birds have given insight into which birds are the most intelligent. While parrots are able to mimic human speech, studies with the African Grey Parrot have shown that some are able to associate words with their meanings and form simple sentences. Along with crows, ravens, and jays, parrots are considered the most intelligent of birds. The brain-to body size ratio of psittacines and corvines is actually comparable to that of higher primates.One argument against the supposed intelligent capabilities of bird species is that birds have a relatively small cerebral cortex, which is the part of the brain considered to be the main area of intelligence in other animals. However, birds use a different part of the brain, the medio-rostral neostriatum / hyper striatum ventrale, as the seat of their intelligence. Not surprisingly, research has shown that these species tend to have the largest hyperstriata, and Dr Harvey J. Karten, a neuroscientist at the University of California, San Diego, who studied bird physiology, has discovered that the lower part of the avian brain is functionally similar to that in humans. Not only have parrots demonstrated intelligence through scientific testing of their language-using ability, but some species of parrot such as the Kea are also highly skilled at using tools and solving puzzles.[

Meet the Knoxville Zoo ‘s avian SUPERSTAR, Einstein.  Go  visit Einstein the African gray parrot at the Knoxville Zoo’s Bird Show, Knoxville, TN USA

 

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nevada county fair

Nevada County Fairgrounds Foundation To Host Crab Cioppino Feed

The magnificent six-up competition is always a crowd favorite at the Draft Horse Classic and Harvest Fair at the Nevada County Fairgrounds in Grass Valley.
The magnificent six-up competition is always a crowd favorite at the Draft Horse Classic and Harvest Fair at the Nevada County Fairgrounds in Grass Valley.


Join the Nevada County Fairgrounds Foundation at its second annual Crab Cioppino Feed on Saturday, March 31 at 6 pm at Ponderosa Hall at the Nevada County Fairgrounds.

For the event, Chef Arnie Romanello will create and serve his special 100-year-old recipe for all to enjoy. Dinner includes antipasto, all-you-can-eat Cioppino, salad and garlic bread. A no-host bar will also be available, and there will be a silent dessert auction and a live auction.

Tickets are $40 per person.  Receive a $5 discount per ticket (up to four tickets) if you renew your Foundation membership or become a 2012 Foundation member at time of purchase.

Tickets are available by visiting the Nevada County Fairgrounds, calling the Fair Office at (530) 273-6217, or downloading an order form at www.NevadaCountyFair.com/Foundation.

Proceeds from the event will benefit the Nevada County Fairgrounds Foundation and its mission of supporting and improving the community’s Fairgrounds.

For more information, visit www.NevadaCountyFair.com or call the (530) 273-6217.

By:

Wendy Oaks
Publicist, Nevada County Fairgrounds
(530) 273-6217
wsoaks@gmail.com

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Real Estate

Three Sarcramento Attorneys Arrested For Mortgage Scam

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Attorney General Kamala D. Harris  announced the arrests of  Sacramento  attorneys that took thousands of dollars in up-front loan modification fees for services that were never performed for homeowners, many of whom ended up losing their homes.

Attorneys Gregory Flahive of El Dorado Hills, 39, Cynthia Flahive of Folsom, 41, and Mike Johnson of Elk Grove, 42, were arrested on 19 felony counts, including grand theft by false pretense, conspiracy and false advertising. They were booked at the Sacramento County Jail with bail set at $50,000 bail each.

“Homeowners facing foreclosure are being targeted by predators, including those who use their law license to gain credibility and scam innocent Californians,” Attorney General Harris said. “My office’s Mortgage Fraud Strike Force is dedicated full-time to cracking down on these deceptive practices and protecting homeowners from fraud like this.”

Gregory and Cynthia Flahive, ex-spouses and owners of Flahive Law Corporation, and Johnson, the firm’s managing attorney, took up-front fees of up to $2,500 from homeowners in Placer, Sacramento, Butte and Yuba counties for loan modification services that were never performed. In California, it is illegal for foreclosure consultants to collect money for services before they are performed.

The Folsom-based law firm advertised their services on flyers, radio and televised infomercials, offering to provide loan modification services and help clients with bankruptcy, IRS tax relief and credit card modification.

In a 2010 infomercial, the Flahives said that, as a law firm, they had “extra leverage” with the banks. They described one of their unique services as a “mortgage violation audit” in which they reviewed a client’s loan documents to find bank violations that could be used as leverage to modify a client’s home loan.

In fact, the investigation revealed that, in some instances, the client’s lender had no record of contact with the Flahive Law Corporation.

Former clients of the Flahive Law Corporation filed complaints with the Attorney General’s office, as well as with the Better Business Bureau and the State Bar of California.

The State Bar of California launched an investigation, which was turned over to the Attorney General’s Mortgage Fraud Strike Force in summer 2011.

In one example of the firm’s deceptive practices, a victim who sought to lower his mortgage payments was told by Gregory Flahive to reject his lender’s offer of modification. The homeowner was told the Flahive Law Corporation could secure a better interest rate, reduce his principal, and possibly get his second mortgage eliminated. Four months later, the victim lost his home to foreclosure.

 

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animals

Rat Steals Milk From Cat

httpv://youtu.be/6xZFELCEgKg

The persistent pest pilfers the dairy dish from its surprising docile feline friend, who eventually licks its whiskers and wanders away, defeated. Cat defenders on YouTube are sufficiently outraged (“That rat is pushing his f***ing luck”), while rodent apologists show equally vocal support: “Domestic rats like this one are not disgusting, they’re very clean animals, highly intelligent and make great pets.” Surprisingly, we found ourselves cheering for the rat’s victory in this viral tug of war — a more fortuitous fate than that of unlucky relatives who end up as snake food.g

 

 

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History

Nevada County History, California

This map shows the incorporated and unincorpor...
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The earliest settlement in Nevada County was made in the summer of 1848 at a place called Rose’s Corral which was located between the Anthony House and Bridgeport. Early in the spring of 1849 a group of mountaineers from Oregon known as the Greenwood Company mined for gold at Illinois Bar on the South Yuba River. They were followed by emigrants from Indiana. In the fall of 1849, the Greenwood Company made winter camp at Jefferson, and the Indiana group moved further upstream to Washington. It was that same autumn that Captain John Pennington’s party struck rich diggings on Deer Creek and built the first cabin on Gold Run, the site that was to become Nevada City. (Source Ed Tyson)

Originally a mining camp founded along Deer Creek in 1849, Nevada City rapidly became the largest and wealthiest mining town in California. At one point, Nevada City was the third largest city in California with a population of 10,000. Nevada City’s good fortune allowed miners and settlers to enjoy plush gambling establishments, hotels, saloons, and stores. However, like many big cities that sprang up quickly during the rush for instant wealth, early Nevada City shared a darker side of claim jumping, murder, brothels and opium dens.

Continue reading Nevada County History, California →

Community Events

Volunteer To Remove Scotch Broom In March 2012

Volunteer Now and help control scotch broom and join the Scotch Broom Challenge in Nevada County.

The Scotch Broom Challenge was created in 2007 to address the spread of this highly flammable and invasive plant in our community. The Scotch Broom Challenge started with just a few sites in Nevada County. In the spring of 2011 over 250 volunteers took the Scotch Broom Challenge and pulled broom at 17 sites throughout Nevada County and Placer County.

This year local groups and agencies are once again teaming up to pull Scotch broom at the sites listed below and we are looking for volunteers from the community who want to come out and join us. The Scotch Broom Challenge pulls are generally from 9 am to 12 pm, unless otherwise stated. No experience is necessary and we provide the equipment and supplies.

 

Saturday, March 3, 2012 & March 4, 2012

Champion Mine Road

Greater Champion Mine Neighborhood Association

Work continues along Champion Mine Road sponsored by the Greater Champion Mine Neighborhood Association. Nevada Irrigation District is now collaborating on removal of broom in the ditch. The work parties are both days. Project site coordinator is Frances Jorgensen. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

Saturday, March 3, 2012

Burton House

Bear Yuba Land Trust

Located on Lake Vera Purdon Rd in Nevada City, this preserve is owned by the Bear Yuba Land Trust. The approx 40 acre site is home to a community garden, Food Love Project, a Maidu educational center complete with bark huts and an outdoor education program led by Rick Berry and his Fox Trotters. Project coordinator Allison Dawson. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

Saturday, March 10, 2012

Tyler Foote Road, North San Juan

North San Juan Fire protection District

Help make one of the primary evacuation routes for the North San Juan Ridge area safe, along Tyler Foote Road, starting near the Fire Station that would be used as a key staging area during a fire. A great chance to learn how to remove Scotch broom effectively. Project site coordinators are Jo Ann and Rusty Kauffman. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

Saturday, March 10, 2012

Hell’s Half Acre

Red Bud Chapter CNPS

Work continues to remove broom from Hell’s Half Acre which is a unique biological site and is currently used by the Red Bud Chapter of the California Native Plant Society for education and restoration of native plant species. This site is located immediately adjacent to Twin Cities Church off the Rough & Ready Highway just outside Grass Valley. Volunteers are meeting on the corner of Adam Ave and Rough & Ready Hwy. This project site is sponsored by the Red Bud Chapter of CNPS. Project site coordinators is Bill Wilson. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site a week in advance.

Saturday, March 10, 2012

North Star Mine House

Bear Yuba Land Trust

Located on Auburn Road just beyond the Fairgrounds, the North Star House in owned by the Bear Yuba Land Trust and hosts a variety of events including a weekly summer Grower’s Market and the Stars at North Star Concert. Project coordinator Allison Dawson. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

 

Saturday, March 17, 2012

he Scotch Broom Challenge was created in 2007 to address the spread of this highly flammable and invasive plant in our community. The Scotch Broom Challenge started with just a few sites in Nevada County. In the spring of 2011 over 250 volunteers took the Scotch Broom Challenge and pulled broom at 17 sites throughout Nevada County and Placer County.

This year local groups and agencies are once again teaming up to pull Scotch broom at the sites listed below and we are looking for volunteers from the community who want to come out and join us. The Scotch Broom Challenge pulls are generally from 9 am to 12 pm, unless otherwise stated. No experience is necessary and we provide the equipment and supplies.

Bring your family and friends, pick a site and participate in one of Nevada County’s most fun and satisfying challenges.

 

Oak Tree Park, North San Juan

Oak Tree Park District

New work was begun last year at the site of the Oak Tree community park. Work will continue at this site in order to control the existing broom and reclaim land lost to dense infestations. This site is sponsored by the Oak Tree Park District. The project site coordinator Grant Wayman. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

Saturday, March 24, 2012

Wolf Creek at Wolf Creek Road

Wolf Creek Community Alliance

This is the Fourth year for this site and we’ve nearly accomplished our goal. We will be addressing re-sprouting from prior pulling efforts. Consideration for re-vegetation of this site is being evaluated. This site is sponsored by the Wolf Creek Community Alliance. Project site coordinator is BJ Schmitt. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

Saturday, March 24, 2012

Woodpecker

Bear Yuba Land Trust

Woodpecker Wildlife Preserve is located on Banner Mountain just off Gracie Road. It is a 28 acre preserve owned by the Bear Yuba Land Trust. There are public trails on the preserve that are actively used by the community. This preserve overlooks Nevada City and is a wonderful resource for bird watchers, mountain bikers and hiking enthusiasts. The project site coordinator Allison Dawson. Please register with the Fire Safe Council of Nevada County to volunteer on this site or any other site.

For more information or to volunteer please call 530-272-1122 or send an email to info@areyoufiresafe.com

 

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Real Estate

$1 Billion To Be Paid By Bank Of America For Mortgage Fraud

Photo of Bank of America ATM Machine by Brian ...
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Largest False Claims Act Settlement Relating to Mortgage Fraud 

As part of the global resolution between the United States of America and the five largest mortgage servicing banks in the country, which will bring much needed relief to financially distressed homeowners nationwide, Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced that the government will also resolve its claims against the Bank of America, Countrywide Financial Corporation and certain Countrywide subsidiaries and affiliates (Countrywide) for underwriting and origination mortgage fraud.

As part of the global settlement, Bank of America will pay $1 billion to resolve the wrongdoing uncovered during the office’s investigation. The settlement will entail an immediate payment of $500 million to provide a recovery for the harm done to the FHA by Countrywide’s conduct. Payment of the second $500 million will be deferred to fund a loan modification program for Countrywide borrowers across the nation with underwater mortgages. Under the terms of the program, Bank of America will solicit all potentially eligible borrowers and provide a loan modification to anyone with an eligible mortgage who accepts the offer. If, after the expiration of three years, the bank has not met its obligation to apply the full $500 million to provide such relief, any remainder will be paid directly to the United States.

“We announce today the largest ever False Claims Act settlement relating to mortgage fraud. Through their underwriting and origination of tens of thousands of government-insured loans to unqualified borrowers, Countrywide Financial subsidiaries systematically abused the Federal Housing Administration and became some of the main players in this country’s financial crisis. We are committed to protecting the FHA’s ability to provide assistance to qualified low-income and first-time home-buyers, and this settlement goes a long way toward that end. It also puts lenders on notice that they will face serious financial consequences for violating their obligations under the FHA’s programs,” stated United States Attorney Lynch.

“This agreement is demonstrative, and should serve as a model, of what results can be achieved when agencies of the United States Government join forces in a united effort to combat fraud in the FHA insured mortgage program,” said Inspector General Montoya. “OIG staff served IG subpoenas, conducted multiple interviews, reviewed loan files, and worked closely with the U.S. Attorney’s office in developing this case.” He further added, “I am appreciative of the tenacity with which the Assistant United States Attorneys approached this matter, the expertise and effort of my OIG auditors, investigators and legal team, and the assistance of the HUD Office of General Counsel and its Office of Program Enforcement and Philadelphia Home Ownership Center throughout this endeavor.”

Source: The United States Attorney General

For more information about the task force visit: www.stopfraud.gov.

 

 

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