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Dallas Has Its Share of Mortgage Ripoff

The government announced yesterday a multi-department effort to crack down on mortgage scams - pulling desperate people into phony modification programs, promising them ways to keep their home from foreclosure, then ripping them off. I asked Dallas bankruptcy attorney Rustin Polk if he has seen any evidence of this hanky-panky in Dallas — and he said unfortunately, yes. Too many: One client was working on a loan modification with a “loan counselor”, paid several fees and appraisals during a six month period of time. The lender went ahead and posted the home for foreclosure today.  Yesterday at noon, the loan counselor said to his client, “Oh by the way, we just found out that your mortgage lender doesn’t do modifications.”

Another client paid a local “law firm” that advertises on a local Dallas radio station $3,000 to get his mortgage modified; the firms first piece of advice was to intentionally get behind on his mortgage. The mortgage company posted him for foreclosure, the modification people told him that they couldn’t help him. Now he now faces the prospect of losing his home if he does not pay three months of payments all at once, plus all of the bank’s legal fees related to the foreclosure, and he’s out the $3,000. What a scam.

Then there’s the “foreclosure rescue specialist” called North American Foreclosure, LLP.  Folks need to be careful, says Polk, a bankruptcy attorney and home foreclosure expert for 15 years.

“Sadly, a person will try whatever they have to in order to keep their home and a roof over their kid’s head.  And who can blame them?,” says Polk. “But a con artist can sense that kind of desperation.   The number of so-called “loan modification counselors” has quadrupled in the last 18 months as the hucksters have opened up shop.  These fly-by-night operators target desperate homeowners– the easiest mark, but also the least able to afford such a scam.”

Zillow Explains Obama’s New Home Loan Modification Plan

Many of you probably read the news last week regarding the Obama administration’s plan to come up with a rather aggressive effort to stem the tide of foreclosures. In short it’s a way for homeowners to reduce their monthly payments (not including PMI) to 31% of their pre-tax monthly income. For the full monty visit Zillow’s blog post here that explains the process in detail and even points you to the right documents.

Here are the dirty details on qualifying:

• Must have originated mortgage before Jan. 1, 2009.
• Be an owner-occupant.
• Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
• Have trouble paying your mortgage due to financial hardship.
• Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income. Duh.There’s a three-month trial period before you lock in the lower rate for five years and if your home is in danger of foreclosure the process will be halted while you apply for the program.

Should The New First Dog Need A Brother Or Sister

And I highly recommend the other breed Sasha and Malia have expressed an interest in getting — a Golden Doodle. Doods are wonderful, somewhat “hypoallergenic”, fiercely loyal, protective, smart, and full of energy. Warning to the White House kitchen: Doods are also adept counter-surfers.

The New First Dog?

I reached Dave Perry-Miller today to give the Obamas some tips on the Portuguese Water Dog they are reported to be getting for first daughters Sasha and Malia.

The Portuguese is a “working class dog,” says Dave, very appropriate for this presidency and the nation’s current pulse. Portuguese fishermen used them to retrieve fishing nets out of the water from their boats. Laborers, yet, but with much class and panache: Dave’s Henry James is more like “a naughty person with fur”, he says. The breed eats their kibble and also that of any other canine — “his favorite is really whatever is in sister Edith Wharton’s bowl.” Frisky, like our stock market — at age 12 Henry James is still jumping. As for special treats, the choice of a PWD for the White House ought to have an enormous influence on health care: Henry James’ favorite snacks are fish and apples — give that to every American once a day and you’ll slice the cost of health care right in half.

The First Dog Is A Portuguese Water Dog

So I just heard, and dialed up Dave Perry-Miller for Obama family advice: stay tuned.

$275 Billion Home Stimulus Plan At First Blush

I know the reports are preliminary, but I am already getting ulcers over President Obama’s cure for our housing woes. Here’s my first report card:

A -$8000 tax credit for first-time buyers, l like very much. Assuming this will work like a section 179 deduction and come right off the taxes, not add 5 more pages or 6 hours of CPA billable hours to the tax return, essentially using tax dollars to help fund the home purchase. 

F- Revamping U.S. bankruptcy rules, giving judges the power to reduce mortgage payments and set lower interest rates. Excuse me, but I think part of our problem was that banks got too big, unregulated and complex. So now we are going to let judges play banker? This will slow down lending and banks will have to recoup their losses from somewhere —charge more to the customers who pay their bills, or higher PMI or PMI for everyone or higher interest rates.

Not fair, folks.

C – The government will match reductions lenders make to keep borrowers home payments at 31% of their income. What income — stated income? Does that include alimony?

Incomplete – Flushing Fannie Mae and Freddie Mac with $900 billion.

Today: Real Estate Stimulus D Day

President Obama is detailing his plan for helping homeowners struggling to stay in their homes and explain just how the umpteen billion stimulus package will help jazz up the housing market. What I have heard from local experts: we are in for a spring market like we have never seen — volume wise. Folks who have not had homes on the market, those waiting on the sidelines, are signing listing agreements left and right. Allie Beth Allman has — are you sitting down — more than $800 million in listings. Consumers, say many experts, think that we may have hit the bottom.

Have we?

Meantime, check out this letter to President Obama from Mortgages Unzipped: we need loans and we need them now.

$15,000 Real Estate Stimulus Boost?

So, what do we think about the Senate’s housing slump solution? When I was at Inman last month, the NAR’s chief economist did say that government intervention was sorely needed. So this plan would be a maximum of a $15,000 tax credit for buying a home. (The actual amount is a percentage of the home’s price — if you bought 3500 Beverly you’d get the max of $15,000.) Kind of like the credit you get for buying an SUV that weighs more than 6000 lbs. So tell me, will it work? 

On A Clear Day You Can See The Vice President’s House

Unlike during the previous administration!

Thain’s Commode

A reader informs me that Mr. Thain’s office commode is not a toilet, but an elaborate chest. I should have known that because I write for a home design magazine. (Was actually trying to be tongue-in-cheek. Or plunger-in-pot.) But to tell you the truth, there are $10 million dollar commodes out there. I have seen 24 ct. gold commodes studded with gems. There is an antique commode in one Dallas home that I’m told is worth $100,000 — maybe I can dig up a photo. It is pink and conceals the commode completely so you never know where you are sitting, so to speak.

Meantime, Mr. Thain should go hug his commode: the Obama administration is already rubbing hands to tighten up the regulatory system on the financial world, unleashing Timothy Geithner:

“Excessive executive compensation that provides inappropriate incentives,” Mr. Geithner said, “has played a role in exacerbating the financial crisis.”

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Wonderful Presidential Dogs

Henry James and Edith Wharton will photograph handsomely against the white background of their new digs. Send me a photo of the dog you think President and Mrs. Obama should fetch for their children.

Obama Inauguration, Washington, D.C.

My daughter’s friend Brannon was at the history-making Inauguration of America’s 44th president yesterday, and I am living vicariously through her. She sent photos and word that even with silver tickets, there were waits but in general, an exhilarating experience:

“It was a remarkable weekend. We went to the concert at the Lincoln Memorial, a special art showing in Georgetown, Jay-Z’s concert, and the swearing-in. I had “silver” tickets to the Inauguration. We walked about 45 minutes to get there, waited about 45 minutes to get past the gates (I’ve heard some horror stories, but we didn’t have many problems), and then watched the swearing-in from our standing-room viewing area south of the reflecting pool. There was so much energy and excitement in the crowd. It was amazing and I was so fortunate to be there!”

Crawford No Longer “Texas White House”

Former President George and Mrs. Bush, who will soon be splitters between Daria Drive and Crawford, are heading back to Texas. I dug up this USA Today article on their ranch from almost nine years ago. Wonder where President Obama will find his “refuge from stress”? Camp David? Suggestion: Farnsworth House?

Lawyers & Title Companies To Benefit From Obama Presidency

With more real estate closings as banks get federal bail-out money and are pressured to make more mortgage loans, so says business development consultant Larry Bodine , a former editor and publisher of the ABA Journal.

Dan Branch Working The Crowds

Last Day For Early Voting – Long Lines At Our Redeemer

One Home That Has No Political Signs

Corner of DeLoache and Preston Road, the $15,455,000 Preston Hollow home of Fred Baron and Lisa Blue – has no political yard signs (as of this post). The home has held enormous Clinton signs in past years and, until recently, signs for John Edwards. For president.

Obama Leading In Bush Country I and II

Tim Rogers ran this post today about Dan Branch’s commissioned poll (after the Republican convention, before the Wall Street meltdown/bail-out) revealing that Obama is leading over McCain in Republican-rich Highland Park and University Park. I was driving through Preston Hollow last week and amazed at the plethora of Obama/Biden signs displayed in the yards of the $1.8 million dollar McMansions east of Preston, south of Royal and north of Northwest Highway — in other words, in the President’s old ‘hood! (Also many in front of the few ranches still left, which indicates, perhaps, Obama supporters may be anti-tear down?) This is not an official poll, just an observation.