Announcing the Winner of the Health Reform Video Challenge

I'm a republican at hart. Coming from Belgium I have seen the abuse of free health care and unemployment benefits. But living here and seeing the abuse of hospitals and surgeons charging outrageous sums of money for help and medicine. I think your president has a point

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The Eight Irresistible Principles of Fun

The Eight Irresistible Principles of Fun

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The Simpsons _ Foreclosure

The Simpsons _ Foreclosure
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The Simpsons series page at Hulu.com
Homer and Marge foreclose on their house.

President Obama has signed the "Protecting Tenants at Foreclosure Act."

If you have invested in a property and have tenants, and your rentals are in foreclosure, or if you regularly purchase properties at foreclosure sale, or if you are a lender who forecloses on residential dwellings, there is a new federal law that will have a direct impact on your business.

On May 20, President Obama has signed the "Protecting Tenants at Foreclosure Act." Under the new law, if a federally-related mortgage loan (as defined in 12 U.S.C. 2602) is foreclosed or if the property being foreclosed is a dwelling or residential property, then the purchaser at the foreclosure sale takes the property subject to the pre-existing tenancy of a bona fide tenant. A "bona fide tenant" is one who is not related by blood or marriage to the foreclosed borrower and is a tenant under a lease negotiated in an arms-length transaction and the rent is not "substantially less than fair market value."

If the bona fide tenant is there, then the purchaser at the foreclosure sale must provide at least 90 days' notice to vacate to the tenant, and (if the tenant's lease pre-dates the notice of lis pendens) the tenant is permitted to remain in the property for the remaining term of the lease or for 90 days, whichever is later.

The tenant does not get the balance of the term of the lease (i.e. tenant only gets 90 days) if the purchaser at the foreclosure sale sells the property to someone who intends to live in the property as their primary residence. In that event, the lease terminates immediately upon closing to the new buyer (so long as the tenant has received 90 days' notice to vacate).

This should comfort tenants that are living in houses that are being foreclosed on. Hopefully it will help to convince them to keep paying rent while the investor-owner is trying to work things out with the bank. So far when tenants got served with the lis pendis, they decided to leave or worse, not to pay the owner. In doing so the tenant brought the homeowner/investor even more into trouble.

This new law "sunsets" and is no longer effective after December 31, 2012.

Below is a questionnaire that gives you a better view to interpret the new law:

Is this a foreclosure of a federally-related mortgage?
If yes, law applies;
If no, then:
Is this a foreclosure of a residential property or dwelling unit?
If no, then law does not apply;
If yes, then:
Is there a tenant in the property?
If no, then law does not apply.
If yes, then:
Is this a "bona fide" tenant (non-related to borrower, arm-length, fair market rent)?
If no, then law does not apply.
If yes, then:
Is this a month-to-month rental?
If yes, then provide 90-day notice to vacate.
If no, then:
Was the current lease dated effective prior to the date of the lis pendens?
If no, then provide 90-day notice to vacate.
If yes, then:
Does the lease expire in less than 90 days?
If yes, then provide 90-day notice to vacate
If no, then wait out term of lease and provide notice of non-renewal/termination at least 90 days prior to lease expiration date (if desired).
If lease expires in over 90 days:
Has the property been sold to a new purchaser who will occupy it as a primary residence?
If yes, then lease terminates at sale, but still must give 90-day notice to vacate;
If no, then new owner takes subject to current lease and must give 90 day notice prior to lease expiration date.


I hope this helps those who will face this scenario. I would not be surprised if the larger lenders and servicers attempt to attack the new law on constitutional grounds, but the arguments likely would not be heard by the U.S. Supreme Court until after the law sunsets anyway.

That's it, for the time being, we will have to learn our investors to work within these boundaries.

www.monkeysold.com

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Hitler Needed A Short Sale

Hitler also had his problems and a short sale might have been a solution to problem. He might have created his own personal bail out. Unfortunately he is facing foreclosure and might not be able to avoid foreclosure. Being a non US citizen he has few options but short sale might have saved his house from foreclosure. That's what happened when you are upside down on your mortgage. Of course it explains in a nutshell how almost every American has reacted during the boom. Using liar loans and spending the money from the HELOC Home Equity Line Of Credit. A real Funny but real look at the mortgage foreclosure crisis.
Enjoy!


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An Inside Look At How We Work Together

I just stumbled upon this video and it really is typical for us. Timothy and myself we can be so busy with what we are doing, that sometimes when one talks to the other it goes like this.
Enjoy!

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An In Debt View On Florida Mortgage Debt

When will housing prices rebound? It's the billion-dollar question. With the economy weakening day by day, probably not next year.



After reading the article written by Scott Cendrowski under the title "The 2009 Housing outlook" and published in Fortune Magazine; December 22, 2008 (Special Issue: Investor's Guide 2009, Why It's Time to Buy) I came to the following conclusion:



Today the Orlando-Kissimmee market here in Florida has dropped significantly. Certain areas have dropped 40 to 50% compared to 2007. In the subject article Scott Cendrowski predicts that that same area is going to have another price change of -19.8% in 2009 and another one of -7.1% in 2010.



What does that mean in reality to Joe The Plumber who bought his house at $300,000 in 2006?

Well, Joe's house is now worth $150,000 and next year, according to Fortune Magazine, his house will be worth $120,000 and in 2010 that same house will be worth $110,000.



Any idea how long it will take to get that house back at $300,000 with an annual price increase of 5%?

Well, I've calculated that and it is going to take 20 years.



A lot of homeowners in Florida think that there home is still worth more than market value and most of them say that they will ride out the storm. This is not a storm we're facing, but a hurricane. And one thing Floridians should know about hurricanes is not to stay around and trying to ride it out.



These are historic times we are living in, I am sure that the credit agencies will develop different rating formula's for people facing delays in payment in 2008 and 2009, because almost every American is affected. And buy the way why do we all worry about that credit score? Why do we need a good credit score? To get more debt? It is debt that got us in this mess in the first place.



Now is a good time to clean up your slate. Just negotiate a short sale with your bank, agree on debt forgiveness and let them waive deficiency judgment. And whilst you at, why not negotiate a settlement on your credit cards? A lot of information on Foreclosure avoidance, deed in lieu and loan modification can be found on my monkeysold blog



Makes sense? doesn't it?



by Monkeysold, Celebration, FL

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