Introduction. After three years of counseling folks in the throes of making a distressed housing decision, I have to honestly ask myself if loan modification today is a prudent, wise, or productive endeavor. Regrettably, in most – though not all – cases, the answer is an emphatic “No.” Of the many consumer advocates, attorneys, and counselors out there, I may be in the minority. But I suspect that of the many consumers who have gone through the modification process, I am in the majority. Continue reading “The Myth of Lender Modification”
As I was reading Kelly Harpster’s excellent article on The Housekeeping Report, summarizing the January 9, 2013 oral arguments on the Niday case[1] before the Oregon Supreme Court, I felt I was ringside with Howard Cosell covering an old Ali-Frazier title bout:
“Frazier hits Ali with a short left jab, followed by a quick right – Ali feints, dances, bobs, weaves – he laughs, drops his hands and mugs at Frazier, taunting him, then fires back with a flurry of punches to Frazier’s midsection. Oh, there’s the bell! That was the round 15[2]! The ref jumps in to separate the two gladiators, who are exchanging angry words and gestures. Their corner-men separate the pugilists, each side claiming victory. Ladies and gentlemen, this is why they call it the “Sweet Science.” Have you ever seen such a magnificent exhibition of the sport? It truly was a “Thrilla in Manila!” Now let’s go to the judges’ scorecards….” Continue reading “MERS, Niday, and Occam’s Razor”
If the politicians in Washington today were instead the CEOs of private industry, they’d all have been fired by now.” Anonymous [sort of]
Introduction. At the end of 2012 we all went over the Fiscal Cliff like Wile E. Coyote. But unlike Wile E., we were able to grab a hold of a small scraggly branch on the way down, and eventually climb back onto terra firma…for the time being. The next looming crisis – the Debt Ceiling negotiations – is the second feature in this macabre satire called “Your Government at Work,” so don’t go away just yet![1]
Leaving a discussion of who’s to blame for another day [there’s enough blame to go around], how did the real estate industry fare in the Fiscal Cliff legislation [technically known as H.R. 8, American Taxpayer Relief Act of 2012], that was moved, seconded and passed on January 2, 2013? Well, considering what was at risk, it appears we dodged a few bullets, albeit temporarily. So here’s what the scorecard looks like right now: Continue reading “2013 Fiscal Cliff Legislation And Its Impact On The Real Estate Industry”
My fondness for alliterations compels the title. I could not resist. The purpose of this post is to welcome Lake Oswego attorney extraordinaire, Kelly Harpster, to the blogosphere – that vast otherworld known as the Internet, where one can accomplish two respectable goals: (a) Sharing important information on self-selected topics, and (b) doing so through the lens of our own personal Weltanschauung.
Quite coincidently, Kelly and I commenced our solo practices at approximately the same time – early 2010. We had both previously worked at the large Portland firm, Davis W right Tremaine. As a further coincidence, almost immediately after opening our separate practices, we became interested – nay, fascinated – with the world of bank foreclosures, and the havoc being wreaked upon Oregon homeowners who found themselves in properties and debt from which an orderly retreat was nearly impossible. For both of us, it became clear that the financial services industry, from Wall Street investment houses such as Goldman Sachs, to the lending and servicing industries, such as Bank of America, Morgan Stanley, and Wells Fargo – to name a few of the survivors of the crash of 3Q 2008 – were primarily responsible for what has become a foreclosure crisis of epic proportions. While the Big Banks [my term] queued up to take billions of taxpayer-funded bailout money, distressed homeowners, awash in negative equity, were all but forgotten.[1] It had become clear to us that the “Little Guy” [my term], was in dire need of help, legally and legislatively. To that end, Kelly has worked tirelessly since starting her solo law practice.
Although, I had a head start in my blogging ventures, when in 2010, I impetuously leaped, like Hotspur, into the fray, I am pleased to see that Kelly has recently done so as well – albeit with more deliberateness – with “The Housekeeping Report – Oregon Mortgage and Foreclosure News.” It is a welcome addition of useful, current, and reliable information for all who choose to visit.
For those who know Kelly, they know that she is smart…scary smart. When, where, and how she has the time to devour the vast amount of knowledge and information she retains is something of a mystery. Perhaps she is actually a twin, and together they masquerade as one. However she does it, it is accomplished with relish, and the results are immediately recognizable; she knows whereof she speaks. So for folks who know Kelly, I am sure they are already enjoying her new website. It is rich in valuable content, designed to inform her legal peers and help The Little Guy, at the same time.
And for those who do not know Kelly, I invite you to meet her vicariously, through the news and views she shares at The Housekeeping Report. As I learned long ago at Davis Wright Tremaine, Kelly is what we called a “quick study.” She grasps issues at warp-speed, synthesizes them into bite-size pieces, and adds a dose of hot sauce that is her [sometimes] wicked wit. Readers will not be disappointed.
Congratulations Kelly! Welcome to the blogosphere!
[1] I acknowledge the government’s efforts through HAMP and HARP, but, in my opinion, they were doomed from the start, since bank participation was voluntary. The remarkably poor statistical success of these programs bears this opinion out. Clearly, the effort has improved over time, but one has to wonder whether it is now, too little too late. [If “deservedness” for financial help was a criterion for distressed homeowners, who are required to submit “Hardship Letters” before receiving assistance, why were the Big Banks not required to do so, as well? In fact, by all accounts, they received billions of bailout dollars whether they wanted it or not. – PCQ]
Slam! Bang!
HER: “Honey, is that you? You’re home early from the firm. Usually, on Fridays, you go over to Lucifer’s Lounge with the other attorneys for shots of Devil’s Springs Vodka, and regale each other with stories of the families you foreclosed during the week. Honey? Honey? What’s wrong?”
HIM: “I think I screwed up….”
HER: “Was it a little, itsy, bitsy, ‘No one will ever know,’ mistake – or one of those ‘Where’s my passport’ mistakes?” Continue reading “Foreclosure Mill Morality”
Following a rough and tumble year in the banking industry, Belial Bank’s feckless fearless leader, B.L. Zebub, believes it is high time to bring some levity and loyalty to the lowly troops who have been tirelessly foreclosing all the Beleaguered Borrowers they may have missed the first and second time around. Mostly, however, B.L. is concerned about the reputational damage his bank has suffered this year. Once known as the largest bank in America as measured by hubris, it is at risk of losing this mantle of distinction. On the Chinese calendar, 2012 has been Belial Bank’s Year of the Rat.
B.L. is hoping against hope to instill a sense of pride among the rank and file; he knows that his company’s promise to the feds to install a “single point of contact” [or “SPOC”] for every borrower seeking help, has become a sham. Problem is, after a couple of weeks on the job, the SPOCs either quit, get fired, or leave to take more respectable jobs in the collection and repo industries. And then there was the public relations nightmare Belial Bank suffered after it was disclosed to the press that the top brass were giving prizes to supervisors who could run up the highest number of SPOCs for a single borrower in the shortest amount of time. Last week’s big winner, Art O. DeLay, won a hundred crisp dollar bills and the afternoon off to visit The Devil’s Den Gentlemen’s Club, conveniently located just down the street from Belial’s headquarters. [Cover charge waived.] Continue reading “Belial Bank’s 2012 Holiday Planning Meeting”
Background. In 2007 Congress passed the Mortgage Forgiveness Debt Relief Act. The gist of the law is that for those taxpayers who have had debt cancelled as the result of a principal write-down, short sale, deed-in-lieu, or foreclosure, the ordinary income tax that would normally be assessed is forgiven. There are two primary qualifications: (a) The cancelled debt only applies to loans used to buy, build, or substantially improve a primary residence, and (b) The home must have been used as a primary residence for two of the last five years. Specifics of the law can be found in an IRS Bulletin, here. The law is set to expire December 31, 2012.
Until now, Congress, suffering from chronic ADD and being unable to multi-task, could not focus on anything but the 2012 election. Now that the election is over, Congress is dealing with other items, such as the “Fiscal Cliff,” Dodd-Frank, and everything else they ignored for the past 11 months. Continue reading “Will The Mortgage Forgiveness Law Be Extended?”
This is the second installment of my article looking back over the past five years at Portland housing statistics. Part One examined the real reason for the housing crisis which officially commenced in 3Q 2007, and looked at the historic numbers for average and median (i.e. “mean”) sale prices according to the RMLS™. The link to Part One is here.
The Rest of the Story. Besides pricing over the past five years, what about time on the market? Available inventory? Number of listings? Closed sales? Let’s look at each one:
1. Time on the Market. Until 3Q 2007, an overheated real estate market was still burning through inventory. In August 2007, the average time on the market was 56 days – less than two months from listing to “pending sale.”[1] The following month, September, 2007, banks began realizing that the drumbeat of subprime defaults was not going away. They tightened their underwriting requirements almost immediately. Over time, they began to even restrict borrowers from tapping their HELOCs based upon ZIP code. As short sales and REOs began to fill the real estate marketplace, buyers and appraisers began viewing the sales figures as legitimate comps by which to gauge present value. All the while, many potential buyers remained on the sidelines, waiting for prices to hit bottom.[2] Many sellers who were fortunate enough to have equity during the following five years had to decide whether to wait until the market turned, or sell their home and recover far less equity than they had earlier.[3] Continue reading “Portland Metro Housing Prices – The Last Five Years [Part Two]”
Background – 3Q 2007. Looking back, August 2007 was a memorable month, filled with good news and bad. Based upon RMLS™ numbers, it was a statistically impressive month for closed residential transactions in the Portland Metro area. The bad news was that it was the last such month we were to see. From that point forward, in almost every meaningful category, the local housing stats just kept getting worse.
The Credit Crisis – 3Q 2007.[1] Quietly, and with little public fanfare, in the third quarter of 2007, worrisome cracks began to appear in the country’s financial system. They were first noticed by those who monitor these things, such as the Federal Reserve. They were also noticed by some who actually had a hand in causing the cracks to occur.[2]
In short, the credit markets began seizing up; access to short term borrowing engaged in by companies was drying up. Normally, large businesses financed their daily operations through the sale of commercial paper, i.e. secured and unsecured short term loans. The Federal Reserve recognized the crunch, and in September 2007, cut interest rates by 50-basis points, or one-half of one percent. The purpose in so doing was to provide liquidity for financial institutions and investment houses so they could continue to survive. Bloomberg explained it well in its September 27, 2007 article titled “U.S. Commercial Paper Drop Slows After Fed Cuts Rates (Update5)”: Continue reading “Portland Metro Housing Prices – The Last Five Years [Part One]”
OK, I admit it! I am suffering from chronic MERS fatigue. Every few days, in some part of the country, MERS gets sued by someone. Sometimes it involves a pending foreclosure; other times it involves some state or county suing to recover lost recording fees. And the beat goes on. MERS apologists, aka the Big Banks and their toadies attorneys, appear before one judge or another with arguments so specious as to make intellectually honest lawyers grimace and intellectually dishonest lawyers grin. – PCQ
On Thursday evening, November 15, we learned through the Oregonian, that the Multnomah County Commissioners unanimously authorized the filing of a lawsuit against Mortgage Electronic Registry System, also known as “MERS,” which describes itself as follows: Continue reading “MERS Fatigue”
