Hawaii requires Solar Powered Water Heaters June 28, 2008

Hawaii has become the first state to require solar powered water heaters. Beginning in the year 2010, all new homes are required take this step to reduce Hawaii’s dependance on imported fossil fuels. Right now the state relies completely on imported fossil fuels.

With the new law in force, no building permits will be issued for single-family homes unless they have a solar water heater. Exceptions will be allowed for areas without a lot of sunshine, like forested areas.

Of course, some fear that this will only drive up the already high costs of homes in Hawaii, but I think it is another good step towards energy independence. Who knows, I might feel differently if I were required to do it.

Hundreds arrested in Mortgage Fraud cases June 20, 2008

AP
Hundreds swept up in mortgage fraud arrests
Thursday June 19, 5:08 pm ET
By Lara Jakes Jordan and Alan Zibel, Associated Press Writer

FBI estimates $1B in losses from mortgage fraud schemes nationwide

 

WASHINGTON (AP) — More than 400 real estate industry players have been indicted since March — including dozens over the last two days — in a Justice Department crackdown on incidents of mortgage fraud nationwide that stem from the country’s housing crisis.The FBI put the losses to homeowners and other borrowers who were victims in the schemes at over $1 billion.

“Mortgage fraud poses a significant threat to our economy, to the stability of our nation’s housing markets and to the peace of mind of millions of American homeowners,” Deputy Attorney General Mark Filip said at an afternoon news conference.

Since March 1, 406 people have been arrested in the sting dubbed “Operation Malicious Mortgage” resulting from 144 cases across the country. Sixty people were arrested on Wednesday alone, including in Chicago, Miami, Houston and a dozen other regions policed by the FBI.

Law enforcement officials said their stepped-up focus on mortgage cases aims to combat problems that have grown out of the risky lending practices prevalent until the mortgage market collapse started last year. Officials have identified 10 “mortgage fraud hotspots” nationwide in California, Colorado, Texas, Minnesota, Michigan, Illinois, Ohio, New York, Georgia and Florida.

To people who have committed fraud or are contemplating doing so, FBI Director Robert Mueller said: “We will find you, you will be investigated and you will be prosecuted.”

Those named in the cases include housing developers, mortgage lenders and brokers, lawyers, real estate agents and appraisers, said Sharon Ormsby, section chief in charge of financial crimes for the FBI.

In some cases, gang, drug and organized crime investigations have resulted in mortgage fraud cases because such schemes enable criminals to launder money, Ormsby said.

Mortgage foreclosure rescue scams, which promise to help struggling homeowners stave off foreclosure and keep their homes, also have become a major problem, officials said. Typically, unsuspecting owners sign over their homes and then find they are victims of fraud.

In separate arrests, two former Bear Stearns managers in New York were indicted Thursday, becoming the first executives to face criminal charges related to the collapse of the subprime mortgage market.

Across the country, reports of mortgage fraud have soared over the past year as the subprime mortgage market collapsed, and defaults and foreclosures soared.

Banks reported nearly 53,000 cases of suspected mortgage fraud last year, up from more than 37,000 a year earlier and about 10 times the level of reports in 2001 and 2002, according to the Treasury Department’s Financial Crimes Enforcement Network.

In recent months, the FBI has been investigating more than 1,400 mortgage fraud cases and 19 companies — including Bear Stearns — tied to the subprime mortgage crisis.

Officials declined to say who might be the next corporate target, but Mueller said the investigations focus on accounting fraud, insider trading, and failure to disclose the value of mortgage-related securities and other investments.

Under review for potential fraud are: investment banks, hedge funds, credit rating agencies, brokerage houses and due diligence firms — which evaluate loans packaged into investments.

Similar to the federal investigations of Enron Corp. and WorldCom Inc., the cases are complex and rely on intense scrutiny of documents, Mueller said.

 

Wells Fargo can help you Give Back to your community June 19, 2008

This is great for anyone like me who:

1. Likes to multi-task (close your loan and donate to charity at the same time)

2. Wants to help their community (a $300 donation given in your name)

3. Doesn’t have a lot of extra cash to donate to a non-profit organization (Donation from Wells Fargo at no cost to you)

Just the other day I was watching coverage of all the flood damage in Indy and neighboring states, and I said to my husband, “I wish there was something I could do to help”. Well, it turns out there is an easy way to help.

Wells Fargo’s “Sharing Advantage” Program is a unique program that enables customers who purchase or refinance a home through Wells Fargo Home Mortgage to designate a non-profit organization for a $300 contribution from the Wells Fargo Foundation. Contributions made by Wells Fargo are totally without charge to customers. That’s right, you can ask Wells Fargo to donate the $300 to your church, Habitat for Humanity, the Red Cross, the Susan G Koman Foundation or whatever faith-based or non-profit org you would like to help support, as long as they are registered with Wells Fargo.

Organizations must be exempt under section 501(c)(3), examples are charitable, educational and religious groups. You can even have the money donated to your children’s schools! If your school or church does not have an IRS 501(c)(3) tax-exemption letter, then a copy of their Federal Tax ID number on their letterhead will be reuired.

If you are involved with a non-profit organization in the Indianapolis area, I would be happy to come speak to your group about this opportunity. Please feel free to call me at (317) 450-4527.

So when you are ready to refinance your home loan or purchase a home, consider using this unique loan option. You can call me or Mark Dietrich at Wells Fargo for more information.

Some “Extreme Makeover” Homeowners want out! June 13, 2008

I love to watch home decorating shows on TV. Everything from “Curb Appeal” to “Trading Spaces“, but especially “Extreme Makeover: Home Edition“. I don’t know if it’s the goofy but cute, energetic host, the amazing decorating ideas, or the tear-jerker stories, but I am addicted. However, one question has always plagued me about those happy homeowners. What happens AFTER they move that bus and the camera crews pack up and Ty and the Gang move on to their next conquest? Sure, they have a great new home, fabulous decor, pristine landscaping, sometimes even a pool, but if their situation was difficult to begin with, how do they maintain all of that?

I wonder what the difference in utility bills is when you go from a 1000 square foot house to a 3500 one, with all the gadgets built right in. I’m sure they’re Energy Star appliances and all, but the costs must be more than the family had budgeted before. What about chemicals for that new pool or hottub? What about fertilizer, irrigation, and plantings to keep up the gorgeous landscaping? What about cleaning such a huge house?

With the increase in value comes an increase in property taxes. Homeowners must be prepared for that, and able to keep their tax bills current. Some homeowners who have won the fabulous new home now have to put it up for sale because they can’t pay the higher taxes. One article I read said that the taxes went from about $1500 to $6000, and the couple’s parents had to help them pay the bill– not a crisis. Another article said the tax bill went up to about $60,000, and that family has no choice but to sell.

I don’t mean to be a downer or to take away from the charitable aspect of the show. I believe strongly in helping others and giving back to the community. I just think that the show should be sure that people know what they are getting themselves into, and help them prepare for the issues that may arise later.

 

Be careful out there– Common Mortgage Scams June 13, 2008

Here is a great article I found which outlines the different types of mortgage fraud that are most common right now. There are more out there, so please be careful. Read the fine print, and if it sounds too good to be true… well, that’s a cliché for a reason! Work with reputable companies, and don’t be afraid to check them out with the Better Business Bureau.

___________________________________________________________________

Daily Real Estate News | June 3, 2008
Most Common Mortgage Scams

Scam artists may promise to save cash-strapped home owners from foreclosure but then, instead, steal their money or any remaining home equity. Such scams are becoming more prevalent, and some states are fighting back.

In Florida, one of the nation’s foreclosure capitals, State Attorney General Bill McCollum has filed suit against National Foreclosure Management, a mediation company, for allegedly defrauding troubled home owners. Fraudulent rescue companies in Illinois have been increasingly penalized, while in Massachusetts the for-profit practice of foreclosure rescue transactions has been banned.

Here are the most common ploys scammers use to prey on desperate home owners:

Bait and switch. The home owner is presented with what appears to be an application for refinancing, but in reality it’s title transfer papers. Once the home owner signs, he loses his home.
Upfront fees. Scammers ask for money to be used for locating rescue funding. Once the home owner pays, the scam artist disappears.
Bankruptcy ploys. An attorney - or someone who pretends to be - persuades the home owner that filing for bankruptcy will save the house. The only one who wins is the person who pockets the fees he charges to file.
Rent-to-buy. Fraudsters offer to buy the property with a provision that the home owner will pay rent while building equity. Once the title is transferred, the former home owner is locked out.
Fraudulent refinance deals. A scammer offers to use his higher credit score to secure a refinance deal, but first the home owner has to hand over title to the house.

Source: Forbes, Matt Woolsey (05/23/08 )

Greensburg, Kansas– Way To Go!! June 2, 2008

(Click photo for an entire slide show of Greensburg photos)  

I love Indianapolis, but right now I’m feeling very inspired by Greensburg, Kansas. Their story brought a tear to my eye, especially since there were tornadoes here in Indy just this past week. A commerical on the Discovery Channel prompted me to do more research on the city. Discovery’s new “Planet Green” network will be airing a series about Greensburg and their reconstruction. The new network will begin airing on Wednesday.

I have to admit, I had never heard of Greensburg until it was destroyed by an F5 tornado in May of 2007. Even though my husband is from Kansas, neither of us had heard of it, and once we realized none of his family was in danger, we eventually let it slip from our minds. Now I know that Greensburg is about 1.5-2 hours west of Wichita, a total of about 4 hours straight west of where my Husband grew up.

Anyway, let me explain my fascination with Greensburg. In May of 2007, this small town was hit by an F5 tornado. The tornado was almost 2 miles wide and completely destroyed 95% of the town, it travelled nearly 22 miles. The county was declared a disater area.

After the tornado, the city council decided that everything built from then on would meet LEED- Platinum standards (more info on LEED standards). Greensburg is the first city in the nation to take on this challenge. I think it is amazing that after such a tragedy, they are instead focusing on the opportunity presented to them to move forward.

Greensburg, GreenTown is an organization that is helping the city reach it’s goals of rebuilding, and they do accept donations, and provide updates on the progress of the city. Check it out!

 

And guess what else… for every person who goes to http://www.planetgreen.com, the Discovery Network will donate $1 to the rebuilding of Greensburg!