TEAM HOFFMANN

Posted on 22. February 2012 05:33 by qjustinh

A watchdog agency said Wednesday that the legal tab for former leaders of mortgage finance giants Fannie Mae and Freddie Mac is at least $110 million.

And taxpayers have paid at least $47 million of it, according to an Office of Inspector General of the Federal Housing Finance Agency report.

And the total bill could be even higher since the inspector general report focused on only one particular legal case against Fannie Mae, and isn't an exhaustive account of the housing giants' legal bills, reportedly more than $160 million, according to a 2011 congressional hearing.

Yet, a whopping $99.4 million has been paid in legal bills to defend a 2004 case against three former Fannie Mae senior executives accused of inflating the firm's publicly traded stock price to maximize their own bonuses. About $37 million of that has been picked up by the taxpayer.

For Freddie Mac, the overall legal tab paid by the taxpayers is $10 million, according to inspector general.

The Federal Housing Finance Agency inherited legal bills when it took Fannie Mae and Freddie Mac under conservatorship in 2008. The bills are for employees long gone but must be paid as a part of benefits packages agreed to by legal contract.

Office of Inspector General of the Federal Housing Finance Agency suggested that the housing agency take steps to limit legal expenses, in the report.

With taxpayer bailouts to the housing finance giants hitting $183 billion through the end of December, lawmakers have questioned the "appropriateness" of legal pay outs, the watchdog said.

"Given the significant amounts of taxpayer money involved and the issue's high visibility, FHFA must continue to scrutinize intensively the enterprises' advances in order to limit costs," the report concluded.

The two companies were essentially taken over by the government in September 2008 when they were placed in conservatorship and given large cash infusions to cover mounting losses on the mortgages they owned and guaranteed.

Other efforts, such as the biggest source of money for the bailouts: the Troubled Assets Relief Program (TARP), had a larger initial price tag but the overwhelming majority of the $474.8 billion it gave out has been returned to Treasury.

Tougher lending standards have allowed the mortgage financiers to profit from more recent loans they purchased, even if they continue to suffer losses on loans made during the housing bubble. The two firms are now financing about two thirds of the mortgages being written in the United States.

In response to the inspector general report, the Federal Housing Finance Agency said it agreed with the watchdog's suggestions about efforts to limit future legal fees, according to a response to the review by FHFA attorney Alfred Pollard.

The report noted that more legal bills are coming down the road, since the U.S. Securities and Exchange Commission just filed a lawsuit against six former senior officers at Fannie Mae and Freddie Mac.

By Jennifer Liberto

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Taxpayers continue to pay legal fees at Fannie Mae and Freddie Mac.

Posted on 20. February 2012 04:31 by qjustinh

It may not be 1600 Pennsylvania Ave., but the presidential candidates reside in some pretty nice digs. Here's a look at where they live -- at least, for now.

Mitt Romney

Location: La Jolla, Calif.
Estimated value: $9.6 million

Out of all of the candidates, former Massachusetts Gov. Mitt Romney owns the most real estate, including a townhouse in Boston and this beachfront home in La Jolla, Calif. Romney bought the home in May, 2008 for $12 million, according to public records. Now, he is planning a massive overhaul of the place. The Spanish-style home is on a cul-de-sac with direct access to the beach. There are plenty of luxury features like a secluded patio with a lap pool, spa and a chef's kitchen. Zillow currently values the home at $9.6 million, but that's about to change. Romney has filed an application with the city to tear down the 3,000-square-foot, single-story property and build a more than 8,000-square-foot, three-story home, according to the city of San Diego's development services department.

Romney's House in Lake Winnipesaukee, NH

Jon Huntsman

Location: Washington, D.C.
Estimated value: $3.3 million

The former Utah governor and ambassador to China already calls the nation's capital home. Jon Huntsman purchased this handsome house in June 2010 for $3.6 million, according to public records. That was a steep discount from its original $4.5 million asking price. The 5-bedroom, 4-1/2-bath brick townhouse, built in 1911, is in the spiffy Kalorama neighborhood in northwest D.C. It has been fully renovated in keeping with its original Federal style. There are traditional details like crown moldings and coffered ceilings throughout the home, but also modern amenities like a state-of-the-art kitchen with stainless steel appliances and large master bathroom.

Newt Gingrich

Location: McLean, Va.
Estimated value: $1.3 million

The former House Speaker bought this 5,206-square-foot house in May, 2000 for $995,000, according to public records. The two-story home was built in 1987 in McLean, Va., a high-end suburb of D.C. There are 5 bedrooms and 4-1/2 bathrooms on just less than half an acre. The brick Colonial-style house turned out to be a decent investment. The home is currently valued at $1.3 million, 30% higher than the purchase price, according to real estate site Zillow's market analysis.

Rick Santorum

Location: Great Falls, Va.
Estimated value: $1.3 million

The former Pennsylvania senator lives in Great Falls, Va., just 30 minutes outside of D.C. Santorum bought this 4,900-square-foot split-level home in August, 2007 for $2 million, according to public records. The home includes 4 bedrooms, 5 bathrooms, a cobbled drive and a heated pool on 5 acres. Despite the large size of the property, Zillow currently values the home at $1.3 million, 35% below the purchase price.

Rick Perry

Location: Austin, Texas
Estimated value: $869,800

The Texas governor has been renting this home in Austin while the Governor's Mansion, where he was living since December 2000, undergoes extensive renovations (it was badly damaged in a 2008 fire). This 5,800-square-foot home has pecan hardwood floors, a gourmet kitchen with granite countertops and a Sub-Zero refrigerator, an outdoor kitchen and a pool on 3 acres of land, according to Zillow. But the governor and his wife won't be enjoying these amenities for much longer. Renovations on the Governor's Mansion, which are estimated to cost more than $20 million, are expected to be completed this June, according to Friends of the Governor's Mansion, a non-profit organization.

Ron Paul

Location: Lake Jackson, Texas
Estimated value: $262,500

Texas Rep. Ron Paul, is currently selling his Lake Jackson home 50 minutes outside of Houston. He first announced the sale on his Facebook page on April 14, directing people to BuyRonPaulsHouse.com. The house, built in 1958, has 4 bedrooms, two of which have loft spaces, 5 bathrooms, a large office with built-in bookshelves, a formal dining room, living room, family room and a craft room. Outside, there is a large swimming pool and patio on nearly half an acre. According to his listing, this is "a great house and a great piece of history. Ron and Carol lived there for 42 years, lots of great memories in this house. Generations of Liberty loving kids have grown up here, and you can continue the tradition." Paul is asking $325,000, although Zillow currently values the house at $262,500.

By Jessica Dickler

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Posted on 17. February 2012 05:39 by qjustinh

Rich Arzaga owns a luxury home in San Ramon, California, but he's not betting on it as an investment.

The founder and CEO of Cornerstone Wealth Management, who bought the 5,000 sq. ft. property in 2005 for $1.8 million and has spent $500,000 improving it, considers the abode a wonderful place for his family. But ask him to rate his home — or any home, for that matter — as a financial investment, and Arzaga balks.

"It's the American Dream to own a home, but whoever said that didn't do the analysis on it," says Arzaga, knowing he's taking a contrarian stance to conventional wisdom.

Examining 250 properties around the U.S., and going through close to 40 client files to project the financial impact of owning real estate versus liquidating it, Arzaga, an adjunct professor in personal finance at the University of California at Berkeley, found that, "100 percent of the time it was better to rent, rather than own."

That's right: 100 percent.

The reason is simple. While a home is the main repository of wealth for many Americans, it comes with numerous hefty expenses. The carrying costs — what's needed to hold and maintain the asset — range from property taxes and home insurance to emergency repairs and renovations.

In a rental situation, the landlord covers those costs, leaving the occupant free to invest revenue in other areas.

"I don't have the emotions a lot of people do surrounding real estate," Arzaga says. "I have steely eyes for how investing in real estate works, and I'd better be a prudent investor for my clients."

Owning a dream home, he says, creates a drain on other financial priorities, causing homeowners "not to meet their financial goals. They were going to fail."

Some real estate experts thought there was some truth to Arzaga's argument, albeit with several conditions.

"To state that owning a home is or isn't a good investment is too simplistic," says Jeffrey Rogers, president and COO of Integra Realty Resources. "It depends. In times of relatively higher rents, low home values, and low interest rates, it makes sense to own a home. But in a reverse market, it wouldn't be economically feasible. Over time, those who purchase in down or flat markets with low interest rates come out ahead."

"Our lifetimes are a long time, and when we look over the long term, real estate and other investments tend to have a positive return," says Jed Kolko, chief economist at Trulia.com, a real estate search and research website. 

"But when it comes to real estate, changing your mind is expensive. There are a lot of costs involved in buying, selling and moving. If you move every two years, it's probably a bad investment for you. It also depends on your job market. If you're in a one-company town and the company goes down, there goes your job and there goes your home value."

Greg McBride, a senior analyst at Bankrate.com, agrees with one point of Arzaga's. "Home ownership is not so much a creator of wealth as a store of wealth," he says. "The promise of home ownership is that over the long haul, it can rebate many or perhaps all of your costs, unlike rent, which doesn't rebate a dime."

The trouble, he says, is that many Americans want a home so badly, they neglect other ways to grow wealth and financial security.

"You have the other financial bases covered: emergency savings, retirement savings, paying off debt, saving for the education of your children," McBride says. "There's no sense in buying a home if it's going to deplete your emergency or retirement savings."

McBride crunched the numbers in a pre-bubble era (2004) for a home purchased at $200,000 by a buyer in the 27 percent marginal tax bracket. Factoring in a 30-year mortgage, $1,200 in annual home insurance, closing costs of $5,500 and maintenance costs of $100 a month, along with property taxes, he calculated that it would take a selling price, 10 years later, of $395,404 just to break even. His conclusion gave Arzaga's view credence: "Homeownership may not be the moneymaker you think it is."

Then there's the emergency fund, a must for when a home requires unexpected repair work.

"As far as emergency savings is concerned, six months of a cushion is adequate," McBride says. "But only 24 percent of people have that kind of cushion, and about 65 percent own homes."

So while home ownership may sound glamorous, you need a lot of money to make it work, without much guarantee of positive returns in a post-bubble era. Indeed, Arzaga cites himself as an example of how home ownership doesn't pay off. His residence is today worth $1.5 million, about 17 percent less than what he paid.

So why not sell? For Arzaga, it's a lifestyle choice, and one that he doesn't regret, since his big money-making investments are elsewhere.

By: Reuters

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Posted on 15. February 2012 05:34 by qjustinh

You don't have to hire a professional painting crew to get a professional paint job! You have all the tips and tools you need to turn dull rooms into beautiful escapes. 

First, you must decide what prep work needs to be done to your walls. Walls should be clean and free of holes and blemishes. Spend a little time filling nail holes and any cracks with caulking. This crucial step will make for a clean finished product.

Do you have mildew growing on your walls? Use a 1 part bleach to 3 part water solution to wash or scrub the mildewed areas. Rinse away the bleach solution prior to the rest of your prep work and voila you'll have a mildew-free surface.

Next, prep the space for the actual act of painting. Remove any furniture or knick-knacks. Lay down plastic or cloth drop clothes to protect your floors. If drop clothes aren't in your budget, consider laying down pieces of cardboard around your room's edge. Finally, use blue painters tape around trim, windows, and doors to ensure a clean edge. Sometimes the prepping phase takes longer than the painting phase, but trust that it's worth it.

Once you have prepped the space, it's time to make a trip to your local home improvement or paint store to pick out the color! Do you have an inspiration room you've found in a magazine or book? Are you wanting to match your walls to a specific object or fabric?

Be sure to take these items with you since many paint departments now offer color matching. If they don't, at least you'll have the color with you as a visual reference.

Do you have an especially rough or marked wall? Consider hiding blemishes with a faux texturing technique, such as applying paint with a sponge. Your local home improvement store will have brochures and maybe even classes teaching you how.

The color and style of paint your room is a big choice. If you need help deciding on what colors are most popular today don't shy away from from the display of brochures available in any paint department. These pictures can serve as inspiration.

Now, it's all about the right tools. Be sure to select brushes based on the type of paint you choose. There are different brushes for latex, oil, and stains. Use brushes for cutting in around edges and do the bulk of your work with rollers. Just be sure to wash out whatever tools you use at the end of each day. If you need to walk away from a project for more than 30 minutes then be sure to wrap brushes in plastic (even a shopping bag will do) to ensure they don't dry out.

Get that perfect ceiling line with a pro edger. It looks like a long piece of metal with a handle and helps you create that professional line. No cutting-in experience is required! Plus, don't forget to pick up pole extenders and step ladders for those hard to reach places.

Paint in a well-ventilated space and only on warm days. Paints must be applied in temperatures above 35 degree (and most about 50). If you want to go green with your paint be sure to select only zero-voc paints. They cost only a fraction more and kind to both the environment and your body.

Painting is a simple and very rewarding task. It can be one of the least expensive ways off breathing new life into an old space. Be sure to take your time doing the prep work and your hard work is sure to pay off big -- in style or in impressing buyers! 

by Carla Hill

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Posted on 14. February 2012 04:48 by qjustinh

On Thursday, a group of well-connected and powerful men announced that the federal government and state attorneys general had agreed to a multibillion-dollar settlement of claims relating to falsified foreclosure documents. The image of former corporate lawyer-turned-Attorney General Eric Holder and Iowa official Tom Miller complimenting each other on their courage and bravery was a stark reminder of how little power foreclosure victims have in Washington. The terms of the settlement were still secret, but we saw hints of what is to come: The website set up to inform the public noted that homeowners may not know for up to three years whether they are eligible for help.  

 

Rather than settling anything, this agreement is simply a continuation of the policy framework of both the Bush and the Obama administrations. So what, exactly, is that framework? It is, as Damon Silvers of the Congressional Oversight Panel, which monitored the bailouts, once put it, to preserve the capital structures of the largest banks. “We can either have a rational resolution to the foreclosure crisis or we can preserve the capital structure of the banks,” said Silvers in October, 2010. “We can’t do both.” Writing down debt that cannot be paid back — the approach Franklin Roosevelt took — is off the table, as it would jeopardize the equity keeping those banks afloat.

 

This policy framework isn’t obvious, because it isn’t admissible in polite company. Nonetheless, it occasionally gets out.  Back in August 2010, at an “on background” briefing of financial bloggers, Treasury officials admitted that the point of its housing programs were to space out foreclosures so that banks could absorb smaller shocks to their balance sheets.  This is consistent with the president’s own words a few months later.

 

In October 2010, Obama publicly revealed how he sees the mortgage debt crisis. “This is a multitrillion-dollar market and a multitrillion-dollar problem,” he said, “and we’ve only got so much gravel.”

 

“We can’t magically sort of fix a decline in home values that’s so severe in some markets that people are $100,000 to $150,000 underwater,” he continued. “What we can do is to try to create sort of essentially bridge programs that help people stabilize, refinance where they can, and in some cases not just get pummeled if they decide that they want to move.”

 

At the time, the President was referring to HAMP, the $75 billion program announced in March 2009 as the administration’s signature program to address problems in the housing market. HAMP had been created because Sen. Jeff Merkley of Oregon demanded some remaining bailout money be used to help homeowners, or he would withhold a critical vote on unlocking the authority for the administration to get more TARP money. Larry Summers sent a letter to Merkley offering both a debt write-down plan (“cramdown”) and the dedication of up to $75 billion of money to help homeowners, in return for his vote.  In fact, administration officials had already decided that they would not pursue a debt write-down.

 

The settlement announced yesterday, whether you believe the $25 billion number (of which only $5 billion is actual cash), is one-third the size of HAMP. As Obama noted nearly two years ago, that’s just not very much gravel.

 

A more realistic solution to the problem was actually debated within the administration during the transition, in debates revealed by economist Laura Tyson at the Financial Times’ View from the Top Conference in 2011.  She noted that top officials had to decide whether to engage in mass write-downs of debt similar to FDR’s programs in the 1930s by using tools such as judicial modification, or whether to allow millions of foreclosures to go forward. They chose the latter. The current foreclosure epidemic, in other words, is partially a policy choice.

 

Everything done subsequent to that decision has been designed to mask this essential policy choice. This settlement is simply the latest example. While the headline number on the settlement is $26 billion, the actual cost to the banks and benefit to homeowners could be far lower, depending on how this complicated system of “credits” will be allocated. The banks will in all likelihood be able to charge off activities they had already planned, such as not pursuing deficiency judgments, refinancing and loan modifications. Some of the money may wind up being be paid not by banks, but by investors, such as pension funds.

 

Moreover, when the banks have reached settlements with law enforcement officials, they generally don’t hold to them.  The Nevada attorney general recently sued Bank of America for violating an agreements the state had made with Countrywide (once the largest mortgage originator in the country, now owned by BOA)  to end various predatory practices. When you issue parking tickets instead of handcuffs for multibillion-dollar crimes, the crime spree continues unabated. And obviously, HAMP, which was originally budgeted at three times the size of this settlement, has been a complete catastrophe.

 

Undergirding all of the chatter about the settlement is a basic reality that is not acknowledged by the administration.  There has simply been no thorough investigation of how the mortgage servicer market works, or how extensive forgery and fraud are. Banks routinely claim that few people have lost their home due to faulty foreclosures, and while that’s probably not true, we simply don’t know the extent of the problem. In effect, this settlement is a solution imposed on a problem yet to be diagnosed.

 

The next investigation

 

At the State of the Union, the president announced a new task force to investigate the abuses leading up to the mortgage crisis, as well as related tax and bank fraud questions.  This force is a multi-headed hydra, led by officials from the Department of Justice and New York Attorney General Eric Schneiderman.

 

The initial signs aren’t hopeful; DOJ has assigned 55 people to the task force, including 10 FBI agents. During the S&L crisis, which was 40 times smaller that this one, roughly 1,000 FBI agents were involved in the investigation. To put it another way, given the $5 trillion of home equity lost in the crisis, DOJ has assigned one person for every $100 billion lost. It is as if Apple lost its entire cash horde of $100 billion, and the government assigned just one person to find out what happened.

 

But there has been a good amount of private litigation and effort already, so though unlikely, it isn’t absolutely hopeless that there could be some handcuffs. A good test case to see what happens next is to see who is chosen to head the task force on a staff level. Someone like former TARP Inspector General Neil Barofsky or Rep. Brad Miller of North Carolina would indicate some level of seriousness. A traditional Justice Department bureaucrat would indicate otherwise.

 

Settlement or no, the housing crisis isn’t going away. The entire mortgage market at this point is backstopped by the government, and even so, housing prices are sliding. The roughly $1 trillion of underwater mortgages and the destruction of the rule of law in the private mortgage market need to be dealt with, one way or another. And they will be, whether through a restoration of a healthy housing market, or through the end of broad homeownership as part of the American experience.

 

By Matt Stoller

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Posted on 13. February 2012 05:42 by qjustinh

For many, homeownership is still a dream. Moving from renting can seem like it’s an impossible mission. But if you plan ahead and carefully budget, the goal of homeownership can be yours.

When budgeting how much home you can afford, it’s important to understand and anticipate the costs of owning and maintaining a home. Here are a few things that some first-time buyers forget to include.

Private Mortgage Insurance

This is added on to your mortgage when the down payment is less than 20 percent. You can buy a home with less money but you’ll pay the PMI which covers the lender should a homebuyer default on the loan. As you build up equity, your PMI drops off.

Taxes

Property taxes generate revenue for municipalities, counties, and schools. It’s an expense that can vary across the U.S. However, on average, it’s 1.38 percent of the home’s value. Back East tends to have the highest property taxes.

HOA Fees

Homeowners’ Association fees (HOA) can add several hundred dollars to your monthly household expenses. These HOAs help to maintain common areas, typically within condominium complexes. They also govern what can be done to the unit and the surrounding area. While there is an up side to HOAs, some buyers prefer to have more freedom over their property, perhaps, until the neighbor paints his house turquoise with red accents.

Homeowner’s insurance

Lenders require homeowner’s insurance on your property. The amount you’ll pay depends on many variables including: where you live, the age, type, size of your home. For example, older homes can cost more to insure due to the fact that they may require more repairs than newer homes. Also, high-hazard areas can cost more to insure and some insurance companies may not offer an insurance policy for your home, if you’re in a high-risk area.

Utilities and appliances

These areas can be overlooked because, often, when people are renting the appliances are taken care of. When you own your own home, be sure to consider expenses such as the water heater or dishwasher breaking down. While, you can’t exactly figure out when an appliance is going to quit working, you can set a monthly allowance aside to start establishing a household repair fund. Just don’t touch the account or when you really need it, you’ll find it’s not there for you.

Inspections, appraisals, and closing costs

Many buyers understand they will have closing costs but they fail to budget for other items such as a home inspection. Sometimes inspections are paid for by the seller but it’s usually the buyer who pays for the inspection. And, even if the homeowner recently had a home inspection and has the report, a buyer still might want to pay for an inspector to have another look to compare the findings.

Depending on the home, there may also be other inspections such as for lead paint, pests or radon gas.

While the extra expenses do add up quickly, if you carefully budget and plan ahead, the goal of homeownership is achievable and very satisfying.

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Posted on 11. February 2012 04:29 by qjustinh

In an effort to cut their losses, banks are paying some struggling homeowners as much as $35,000 to sell their homes before they end up in foreclosure.

The deals are aimed at incentivizing homeowners who owe more on their home than it is worth and who are seriously delinquent on their payments to sell their homes in a short sale.

In short sales, homes are sold for less than what is owed and the bank forgives the excess debt. Banks have been reluctant to approve such deals in the past -- since they take a loss on the home -- but in certain cases, it's become a much better proposition than letting the homeowner fall into foreclosure.

This new approach by the banks has startled plenty of homeowners, according to Elizabeth Weintraub, a Sacramento-area real estate agent who specializes in short sales.

"Initially, the homeowners are skeptical," she said. "The bank may have already turned down their request for a modification. Then, one day, they call and say, 'Let us give you some cash.'"

When Chase Mortgage (JPM, Fortune 500) told Angelique Pierce, that she would receive a check for $25,000 if she sold her house, she couldn't believe it.

"I got the offer in the mail," said the Rancho Cordova, Calif. resident. "I called my bank to ask if it was real."

After Pierce became disabled a few years ago and had to stop working work, she fell behind on payments on both her first and second mortgages, valued at $250,000 and $50,000, respectively.

Now, she's trying to sell her three-bedroom ranch for just $95,000 -- almost half of the $179,000 she paid for the place in late 2002.

From the bank's point of view, the offers make sense, according to Tom Kelly, a spokesman for Chase Mortgage, who would not comment on Pierce or other individual cases. "The first choice is a modification but if that's impossible than a short sale is a faster, more efficient solution," he said.

For the banks, foreclosure has become an increasingly difficult and expensive option. Homeowners have learned to fight the banks tooth and nail, dragging out cases for years.

And as the cases drag, expenses grow. Homeowners not only stop paying their mortgages but they stop paying property taxes and conducting normal maintenance as well. Roofs, siding, plumbing and other parts of the home deteriorate and the property loses value. By the time banks take possession, they're out tens of thousands of dollars.

"I've seen a lot of foreclosures for sale where it would cost a lot more than $20,000 to get them into condition to sell again," said John Hayton, a short sale specialist in Orlando, Fla, who has had a number of clients receive offers from the banks.

Short sales also command higher prices than foreclosed homes. In December, foreclosed properties sold for an average of 22% less than conventional sales, while the discount for short sales was only 14%, according to the National Association of Realtors.

All that has been true for years, but it is only lately that these outsized incentives, which Bloomberg recently reported on, have surfaced.

Sellers are more cooperative when they're going to receive a five-figure check for their troubles.

Nick Chaconas, an agent with discount broker Redfin, wondered why one seller was so anxious to sell their home. "Since I represent the buyer, I didn't even know about the incentive until the closing," he said.

It turned out that the seller's bank was writing her a check for $30,000.

Whether sellers can expect incentives from their banks depends on multiple factors, including where they live.

Wells Fargo (WFC, Fortune 500) limits its offers to certain states, such as Florida, where the foreclosure process can be lengthy, according to spokeswoman Veronica Clemons. The bank has paid $10,000 to $20,000 to borrowers who short sell or transfer their title to Wells via a deed-in-lieu.

Bank of America (BAC, Fortune 500) had a pilot program in Florida that paid incentives of $5,000 to $20,000 for sales that were initiated between Sept. 26, 2011 and Nov. 30, 2011 and close by the end of this August. The amount of the incentive is based on 5% of the unpaid balance, with a $5,000 minimum and $20,000 maximum.

Jumana Bauwens, Bank of America's spokeswoman, called it a "test-and-run program" that may be expanded to other states.

The offers are not always a panacea for homeowners struggling to pay the bills, however.

Pierce, for example, has not been able to make hers pay off. She had a buyer but her second mortgage holder refused to go along with the deal unless it got a share of the $25,000 she was being offered by the bank. She said that the bank balked at the deal and the sale was cancelled.

She's looking for another buyer, but it's up in the air if Chase will honor its original offer if the second mortgage holder won't cooperate. 

By Les Christie

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Posted on 8. February 2012 04:51 by qjustinh

Super Bowl XLVI Sunday means finding the perfect place to party while rooting for Tom Brady's Patriots or Eli Manning's Giants. Of course, some NFL stars past and present are not exactly hurting when it comes to palatial digs big enough to host the neighbors.

Which one of these guys would you like to score an invite from to celebrate that unofficial national holiday?

Tom Brady (New England Patriots 2000-present)

The Patriots' MVP QB told the crowd after the AFC championship game at Foxboro that he, well, kind of stunk it up against the Baltimore Ravens. But with an arm that will land him in the Football Hall of Fame, Brady doesn't have a lot to sweat — at least on the football field. In real estate matters? Well, Brady's been a little down on his luck trying to sell his apartment in the Boston real estate market. After taking a $400,000 price cut from his original 2009 list price, the home was re-listed in early October for $10.5 million. The 5,311-square foot condo offers 3-plus bedrooms, 3.5 baths, a master suite, luxurious kitchen and a state-of-the-art gym.

Tom Brady's Home for Sale:$2,198,000.

DeMarcus Ware (Dallas Cowboys 2005-present)

From the looks of it, the All-Pro defensive end is moving up in the world of high-end real estate, listing his Dallas-area home for a cool $2 million. It's not that surprising, considering the five-time Pro Bowler is the highest-paid Dallas Cowboy ever, signing a six-year, $78 million contract extension, $40 million of which was guaranteed. Ware's home is located in one of Dallas' finest gated communities and maxes out at a whopping 9,304-square. The manse features four living areas, numerous bonus rooms, a wine porch, seven fireplaces, a theater room, and chef's kitchen.

DeMarcus Ware's Home for Sale:$2,198,000

Carson Palmer (Cincinnati Bengals 2003-2011, Oakland Raiders 2011-present)

After an ongoing dispute between Palmer and Bengals president Mike Brown regarding Palmer's request to be traded, the team finally let go of the quarterback in October 2011. Now playing for the Oakland Raiders, the QB has moved out West, selling his Cincinnati home for $1.915 million. The 5-bedroom, 5.5-bath home is situated on a private 5-acre lot and is filled with architectural details like carved-wood paneling, floor-to-ceiling windows and built-in bookcases. With a full game room, pool table and wet bar, this place could be the new owner's perfect Super Bowl party setting.

Carson Palmer's Home Sold: $1,915,000

JaMarcus Russell (Oakland Raiders 2007-2009)

While quarterback JaMarcus Russell was making plays on the football field, he apparently wasn't making payments on his million-dollar mansion in Oakland. According to TMZ, Russell "allegedly failed to pay $195,512.05 in mortgage payments." In the midst of trying to settle his Oakland real estate mess, Russell is also looking for a job. He was released from the Raiders in May 2010 and is currently a free agent.

Terrell Owens (San Francisco 49ers 1996-2003, Philadelphia Eagles2004-2005, Dallas Cowboys 2006-2008, Buffalo Bills 2009, Cincinnati Bengals, 2010, Allen Wranglers of the IFL 2012-present)

T.O. has never been shy — about anything. Not his flamboyant touchdown celebrations, his reality-TV persona or about his own prodigious talent on the field. The Pro Bowl receiver's ambition to return to the game has garnered the usual T.O. media overkill, and so has his equally high-profile life in luxury real estate. That includes a recently reported monster price drop for the condo Owens owns in the pro athlete-friendly Azure high rise in Dallas. Originally listed for $2.125 million, the 3-bedroom, 4.5-bath unit took a $95,000 price cut before being taken off the market last month. But don't worry, Owens is not without a place to call home. He still maintains a monster crib outside of Atlanta, which was featured on MTV Cribs and in other celebrity real estate listings.

Kurt Warner, (St. Louis Rams 1998-2003, New York Giant 2004, Arizona Cardinals 2005-2009)

Former NFL star quarterback Kurt Warner is far from his days as a grocery store stock boy. The MVP of Super Bowl XXXIV has moved onto another Phoenix-area manse, recently listing his massive Paradise Valley estate for $4,998,500. The 7-bedroom, 6.5-bathroom contemporary home boasts 11,329-square feet of living space. Loaded with all of the sleek amenities a pro athlete could want, Warner's pad is worthy of its high-end price tag. The home features a gourmet granite kitchen, expansive family entertaining areas, a butler's kitchen and a spectacular dining room. On the entertainment side, it features a large billiards room with wet bar, spacious guesthouse with separate entry, a piano room, formal living, theater room and a spa.

Kurt Warner's Home for Sale:$4,998,500

Walter Jones (Seattle Seahawks 1997-2009)

Not many people have a regulation-sized football field with "NFL standard goal posts in each end zone" included on their property. But when you're a nine-time Pro Bowler and six-time All-Pro NFL player, it's a must — apparently! Jones moved into the 13,000-square foot mansion in his native Alabama after retiring from football in 2009, and last year he listed the massive estate for $3.5 million, which is currently still on the market. Besides the football field, Jones' home includes a lighted sport court and "sports house," as well as in-ground pool and pool house with TV area, bar and full bath. The 14-acre-plus property also has walking trails, gazebo, guest house and six-car garage.

Michael Strahan (New York Giants 1993-2007)

Former Giants defensive end Strahan is a NFL commentator for FOX NFL Sunday these days, but he made no bones about how he'd prefer to be with his old team on the field come Super Bowl Sunday. The seven-time Pro-Bowler retired in 2008 after the Giants won Super Bowl XLII, but he does have other business to attend to these days. That includes deals in the Los Angeles-area real estate market. His 9,200-square foot Brentwood estate recently hit the market with a $6.95 million price tag. Featuring 6 bedrooms, 8 baths and 2 powder rooms, the home includes a master suite, large balcony, his/her baths, walk-in closets, as well as steam/dual shower.

Jake Plummer (Arizona Cardinals 1997-2002, Denver Broncos 2003-2006, Tampa Bay Buccaneers 2007)

The former quarterback-turned-professional-handball-player may have been able to easily walk away from the NFL, but he hasn't had such luck shedding his Cherry Hills Village home in Englewood, Colo.. The seven-bedroom, eight-bath home is still on the market, listed for nearly $3 million. Situated on 2.81 wooded acres, the property features a pool and tennis courts.

Troy Aikman (Dallas Cowboys 1989-2000)

Former Dallas Cowboys star quarterback Troy Aikman set the standard when he was racking up Super Bowl rings. It's no wonder that his real estate holdings are equally impressive, including the home Aikman listed for $24 million last May, making it the most expensive residence currently on the Dallas real estate market. The Mediterranean-style mansion sits on nearly 1.5 acres with a creek running through it. There are 5 bedrooms, 7 baths, a sports court, outdoor fireplace/pit, outdoor living center, wet bar, exercise room, game room, library and guest quarters.

Joe Montana (San Francisco 49ers 1979–1992, Kansas City Chiefs 1993–1994)

NFL Hall of Famer Joe Montana is offering a major discount on his Sonoma vacation retreat — a $14 million price cut! That's the second big cut for the San Francisco 49ers family, considering the way the Niners were cut from the playoffs by the Giants in the NFC title game. Now listed for a jaw-dropping $35 million, Montana's Tuscan estate is close to 10,000 square feet and sits on 500 acres of lush wine-country land with creeks, wide-open views and even a private pond stocked with fish. The grounds also include an equestrian center, a full-sized basketball court, skeet shooting range, gym, pool and spa.

By Camille Salama

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Posted on 7. February 2012 07:16 by qjustinh

In one of the first criminal prosecutions in the post-housing bust era, DocX has been indicted on forgery charges by a Missouri grand jury, The New York Times reports.

A grand jury in Boone County, Mo., handed up an indictment Friday accusing DocX, one of the largest companies that provided home foreclosure services to lenders across the nation, of 136 counts of forgery in the preparation of documents used to evict financially strained borrowers from their homes, the Times said.

Lorraine O. Brown, the company’s founder and former president, was indicted on the same charges, according to the report.

DocX is a unit of Lender Processing Services of Jacksonville, Fla. Its employees reportedly executed and notarized millions of mortgage documents for big banks and loan servicers over the years. Lender Processing closed the company in April 2010 after it saw evidence of apparent forgeries in its documents -- a practice now called “robo-signing.”

Robo-signing is the practice of a bank or lender service employee signing thousands of documents and affidavits without verifying the information contained in them.

“The grand jury indictment alleges that mass-produced fraudulent signatures on notarized real estate documents constitutes forgery,” Missouri Attorney General Chris Koster, who is investigating DocX, said in a statement, according to the Times. “Today’s indictment reflects our firm conviction that when you sign your name to a legal document, it matters.”

By msnbc.com news services

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Posted on 6. February 2012 06:13 by qjustinh

These 10 low cost tips will get you started on turning your house into a "show home". This is critical because if you want to get the most money for your home and sell more quickly, you need potential buyers (and their agents) to feel it's a "hot property".

Even if you're not moving, you will find these tips also make your home more relaxing and enjoyable to live in.

1. Consider the curb appeal.

Landscaping is nice, but not in everyone's budget. At minimum, lawns should be freshly mowed, leaves raked, or snow shoveled. Consider a hanging or potted plant for the entrance. Sweep the porch, deck and all walk ways and ensure garbage and recycling are tucked neatly away from the front of the house.

Scrub your front door, porch, outside railings and steps. This is cheaper than repainting and makes a world of difference. Once the outside entrance is clean, decide if the paint really needs a touch up.

2. Get rid of clutter!

Pick one closet or area at a time so the task isn't as daunting. Look at every item with a very critical eye and ask yourself why you're keeping it.

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After

Remember that how you live in your home and how you sell your house are two entirely different things. You're going for a "show home" look.

Forget about hanging onto items for a garage sale. Pick your favorite charity and donate it. You paid for these things long ago, why not just give them away to others who REALLY need them?

You'll probably have to edit the same closets a number of times to really whittle them down to the "essentials". If rooms and closets still look cramped, rent a storage locker.

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After

Removing clutter is an important starting point. A home staging professional will also know how to draw attention to the room's best features and create a focal point.

3. Turn excess inventory into cash.

If you have a collection of items for projects you never got around to, return them. This also applies to the two-year supply of light bulbs, canned goods or paper products sitting in your basement.

Without a receipt you won't get cash, but you will have a store credit that you can use once you move. Less clutter and less stuff to pack, move and unpack again!

4. Watch where the eye goes.

There are speedy and low cost solutions to many of the little problems that together make a home seem shabbier than it needs to.

Walk along each corridor and into every room and check where your eye is drawn (better yet, ask a critical friend or family member). If the eye is drawn to the chipped white paint on the door frame, take some "white out" and fill it in. If it's those old nail holes in the wall, see if you can hang a picture to cover them.

Glue any peeling wallpaper. If it's really horrible and you can't afford the time or money to fix it properly, hang pictures and strategically place baskets. You won't cover the problem entirely (which would be wrong anyway), but you will draw your audience's attention away from the problem and onto something more visually pleasing to focus on.

5. Find a fix-it person.

Ensure cupboards open and shut and that no taps are dripping. Look in all rooms for things you never got around to fixing and decide which ones might be distracting to potential buyers. No, it's not OK for door handles to fall off, even if you have learned to ignore it!

6. Clean, clean and clean again.

Most mortals can't live in a spotless environment all the time. This can be one of the more stressful aspects of having your home on the market— but it's worth the effort to sell your home for top dollar. You can hire a professional service to come in and deep clean everything; then take 20-30 minutes each day to maintain it.

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After

Appliances should sparkle even if you're not including them with the house. After all, you might throw them in later as a negotiating tool. Counter tops, taps, sinks and bathtubs should be shiny and free of water spots.

If you have a pedestal sink, don't forget the dust that collects on top of the plumbing where it attaches to the wall. If the whole sink is spotless and the taps aren't dripping, it will look new!

Dust shelves and vacuum or "Swiffer" the floors. Naturally, all beds should be made. At a recent open house for a home listed over $500,000 (and over 60 days on the market), they hadn't even bothered with these two simple steps! It made you wonder what bigger things had been neglected.

Remember clean windows let in more light and look newer. Hire a service if you have to— it's worth the investment.

If all this attention to detail seems over the top, remember that a very clean home leaves the impression that the house is well cared for. This helps put buyers at ease— especially a first time buyer who may be worried about the responsibilities of owning a house.

7. Let in some air.

Open some windows for at least 10 minutes. There is nothing worse than walking into a stuffy house or one that smells of smoke and pet odors.

8. Let in some light.

It might be mood lighting to you, but if you're trying to sell your home, keep it bright! Dimly lit rooms tend to look small and dingy— especially during the day.

If you have a particularly dark room, consider investing in a floor lamp that will bounce light off the ceiling.

If your walls are so dark that they're sucking up all the light, consider repainting. You can even buy a small can of a lighter shade of your wall color, mix it with glaze and rub it onto the wall. It will reflect light and give the room a more open feeling. This approach saves much of the preparation and clean up involved in repainting.

9. Don't forget fresh flowers.

You don't need to spend a fortune to have fresh flowers throughout your home. Even a daisy in a bud vase brightens a bathroom counter. Ask your florist which blooms last a week. You can also use potted flowering plants that are in season for a low-cost solution.

Don't use plastic or obviously fake flowers, especially in an expensive home!

10. Carefully consider music. Soft background music can help create a soothing environment and camouflage neighbor and traffic noise. But make sure the volume is very low. Blaring TVs are definitely a no-no, but you'd be surprised how many people leave them on for showings!

Does your house look like a show home yet?

Step back and look at your home with the eye of a highly critical buyer. One of Debra Gould's clients said it well when he described what he called "the sock on the TV syndrome." In other words, something has been sitting for so long in one place in your house that you don't even see it anymore.

Before

After

Be honest with yourself, if you've left a room looking like the one at left for years, will you really have the energy and the vision to turn it into the room at right before your house goes on the market?

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