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Credit - Financial - Foreclosure News
August 10, 2009: Federal funds used to fund Florida rebate program for home appliances:
Florida will receive at least $17.5 million in federal funds to implement the "Energy-Efficient Appliance Rebate Program" to assist Floridians to lower utility costs and make their homes more energy-efficient.
Assuming average rebates of 20 percent, based on median consumer costs, Floridians can expect to save the following amounts on energy-efficient appliances:
- $290 on refrigerators.
- $200 on clothes washers.
- $200 on freezers.
- $200 on dishwashers.
- $ 65 on room air conditioners.
- $ 40 on humidifiers.
August 6, 2009: "Cash for Clunker" program gets refill:
The United States Senate joined the House of Representatives by voting to fill up the "Cash for Clunker" program with another $2billion for the popular effort that would enable owners of cars which are older and less gas efficient to earn a $3,500.00 to $4,500.00 credit for the purchase of a new vehicle that provides better gas mileage.
July 30, 2009: Brakes Applied to "Cash for Clunker" program:
The "Cash for Clunker" program signed into law on June 24, 2009 to jump start flat new car sales and remove high pollutant and low gas mileage cars from roadways had car showrooms working in overdrive as would-be new car buyers sped to take advantage of automatic $3,500.00 and $4,500.00 trade-in vouchers, so much so that funds which were to last until November, 2009 ran out of gas.
The House of Representatives has already voted additional funds to be pumped into the program to give it a lift, and the Senate, idling, is expected to do so before Congress peels out on its summer recess. .
July 24, 2009: Increase of State and Federal Minimum Wage:
Effective, January 1, 2009 Federal minimum wage increased to $4.19 for employees receiving tips and $7.21 for hourly wage earners. On July 24, 2009, both the Florida and Federal minimum wage for hourly wage earners not earning tips increase to $7.25 per hour.
July 6, 2009: Stimulus Funds To Provide Meaningful Employment for 18-24 Year Olds at No Cost to Employers:
Federal funds are providing on-the-job-training for 18-24 year olds, whose wages and worker's compensation insurance will also be paid with Federal stimulus funds, undere The Summer Youtyh Employment and Training Program administered by the Workforce Alliance, a division of the Department of Labor. Employers are obliged to provide only supervision and training. For more information, both those seeking employment and employers can contact the Workforce Alliance, a division of the Department of Labor, at 800-556-5627 or http://pbcalliance.com/
July 2, 2009: Expansion of "Obama" Homeowner Affordability and Stability Program [HASP]:
Requirements to participate in the "Obama" mortgage plan have been loosened. Please refer to the March 4, 2009 entry below for the full synopsis. The loan-to-value ratio, formerly 105% of the value of the home has been adjusted to 125%. Previously, if the property was worth $200,000.00 the loan could not exceed $210,000.00.
Now, if the property was worth $200,000.00, the loan can not exceed $250,000.00; and a property having value of $300,000.00 would qualify for a $375,000.00 loan. Be reminded that the only loans affected are those insured by government and quasi-government agencies: Fannie Mae, Freddie Mac, FHA, VA, and the like.
June 30, 2009: Community Food Alliance advises Palm Beach County Commission that $83 Million of Food Stamp benefits goes unclaimed:
The Palm Beach Post reported that despite an increase in the number of people registering for food stamps with the Department of Children and Families that the agency has $83 million in benefits available that has not been claimed.
The Food Stamp Program or SNAP (Supplemental Nutrition Assistance Program) focuses on nutrition and putting healthy food within reach for low income households.
Food Stamps help low-income people and families buy the food they need for good health. You apply for benefits by completing a State application form. Benefits are provided on an electronic card that is used like an ATM card and accepted at most grocery stores.
Check to see your eligibility at State Food Stamp Eligibility
June 24, 2009: "Clunker car" bill signed into law:
In an effort to stimulate new car purchases and promote the use of more fuel-efficient vehicles, the "Car Allowance Rebate System", also known as "cash for clunkers", was signed into law. The law allows the Federal Government to issue a voucher of up to $4,500.00 when an older, less gas-efficient vehicle is traded in for a new car having better gas mileage standards.
The law provides $1 billion in funding to be spent by November 1, 2009. The entire program will be revealed by August 1, 2009, but in the interim, certain elements of the program have been disclosed:
1) the owner trading in the car must have owned and insured it for a least a year before the trade-in
2) the car must have been built later than 1984
3) the combined city/highway economy rating must be less than 18 miles per gallon: Look Up Your Vehicle
4) the vehicle must be in driveable condition
5) the price of the new car must be less than $45,000.00
6) the trade-in must be crushed by the dealer, it can not be sold to another buyer
The maximum voucher is NOT in addition to the regular trade in value given by the dealer--it IS precisely the amount that will be applied against the purchase price. The owner of a car having value of more than $4,500.00 will not want to use the voucher since they could get more for their trade in without it.
Editorial Comment: Since the "clunker" will be destroyed, the program will benefit those having an older vehicle having little value who are holding on to the car out of habit. However, if the owner has an older car having value of less then $4,500.00 owns it as it is the best that the owner can afford, the program is meaningless, as it is likely that someone driving a clunker because they have to, not want to, would have a hard time qualifying for a loan to purchase the new vehicle, or making payments if they did.
June 2, 2009 - Florida KidCare health insurance program enrollment increased by bill signed by Governor Crist:"
KidCare is a health insurance program run by the State of Florida available to uninsured children under age 19. The program is jointly overseen by Agency for Health Care Administration, the Florida Healthy Kids Corporation, the Department of Health, and the Department of Children and Families. As of May 2009, more than 1.6 million children were enrolled in Florida KidCare.
The new law increases enrollment eligibility, streamlines administration, decreases the time required to determine eligibility, and streamlines the financial eligibility process by allowing electronic verification of family incomes. It is estimated that under the new legislation, more than 54,000 children will be eligible for KidCare.
Premiums for the programs making up KidCarey--Medicaid, MediKids, Children's Medical Services and Healthy Kids--range from $0 to $159.00 per month per child. Families need not be at the poverty level to qualify (Healthy Kids will qualify a family earning 2x the Federal Poverty Level--$44,000.00 and has a monthly premium of $120.00 per child with dental treatment and $108.00 per child without dental). Eligibility is determined by age of the child and income level. The Broward County Health Department has prepared a chart showing which program applies: Chart prepared by Broward County Health Dept A link to the KidCare website has been placed on the Helpful Links page of this website.
May 30, 2009 - "Rise and Shine" Food Coop begins operation by the Florence De George Boys and Girls Club of West Palm Beach:
A non-profit enterprise operated by this Boys and Girls Club enables its participants develope social responsibility and earn money by operating a food coop, which also gives families a way to buy fruits, vegetables, meats, dry goods and household items at greatly reduced prices. The next distributions is set for Saturday, June 13, 2009 and are made after that on alternating Saturdays. A family must pay $10.00 to register and the $30.00 cost of each food distribution is paid about a week ahead of each distribution. For more information, visit the Florence
De George Boys and Girls Club at 4105 Pinewood Avenue, West Palm Beach, FL 33407, or call 561-881-9585.
May 22, 2009: Credit Cardholders' Bill of Rights signed into law:
The Credit Card Accountability, Responsibility, and Disclosure Act, informally referred to as the Credit Cardholders' Bill of Rights--an amendment to the Truth in Lending Act--was signed into law by President Obama today. Many of the provisions will go into effect on February 22, 2010. Amongst the consumer protection provisions regulating practices of credit card companies are:
1) creditors must give a minimum 45 days' notice prior to increasing interest rates [compared to the current 15 days]
2) college students under 21 can no longer obtain credit cards unless someone over 21 agrees to co-sign for liability or the student can demonstrate fiscal responsibility
3) "universal default" provisions--where a late payment made to Bank X can be used as an excuse for Bank Y to increase interest rates on its accounts, even though the cardholder was never late to Bank Y--will be prohibited
4) creditors can not charge a late fee when the cardholder presents proof of mailing payment within 7 days prior to the payment due date
5) extends the time given cardholders to pay their bills by requiring creditors to mail billing statements no less than 25 days prior to the due date, as compared to the current 14 days
6) prohibits creditors from allowing a cardholder to exceed a set limit--and then charge a fee for exceeding the limit--unless the cardholder specifically authorizes the company to allow the cardholder to go over the limit
7) requires that introductory rates be kept at the same level for a minimum of 12 months
A one page summary of the highlights of the new law can be found in the "Helpful Links" page of this website.
Editorial Comment: Folks, on paper the law seems to protect consumer from abusive credit card company practices, but the reality is that the credit companies hold all the....er....cards. The law does not go into effect for another 10 months, during which time the credit card companies will have ample opportunity to make all the changes they wish. Typically, when a rate increase notice is given to the consumer, the choice is to either decline to pay the balance at the higher right, in which event the cardholder may find the company closing the account and demanding payment, keeping the account open and allowing the person to pay off the balance at the lower rate but not allow additional charges on the account, or having the cardholder agree to the higher interest rate. The card-issuing companies are well aware that so many cardholders have come to rely on credit cards for payment of the many essential and basic needs--food, gas, tuition, and so forth. Unfortunately, once a consumer is in the cycle, it is hard to avoid making additional charges, using cash for purchases, while also making payments on the accounts in a sufficient amount necessary to actually pay off the card, rather than making minimum payments.
Suggestions: Until some of these protections come on-line, consumers having the ability to have their bank make automatic payments, or who can pay their bills over the internet, should set up automatic payments of at least the minimum payments due in order to avoid payments being considered late, and if at all possible, make the payments when the bill is received, not when the payment is due. Paying accounts charging higher interest rates is a good idea, but keep in mind that having an account with a higher % of the credit limit owed can hurt your credit score, so in some circumstances, making payments on accounts with lower % interest rates may make sense if by doing so you will reduce the per cent of the limit owed. Try to not have too many accounts with the same creditor--sometimes hard to avoid, as when JPMorgan/Chase bought the accounts of Wamu, or Wells Fargo bought Wachovia.
May 20, 2009: Tenants residing in foreclosed homes have new 90-day rights to remain in the property under Protecting Tenants at Foreclosure Act of 2009:
Signed into law as part of the Helping Families Save Their Homes Act of 2009 is a little publicized provision to protect tenants living in a home subject to foreclosure proceedings. Tenants with and without a written lease who are current in rent payments must be given no less than 90 days notice prior to being required to vacate the premises. Tenants with a written lease and who are current in their rent payments will be permitted to remain in the home until the end of the lease term, unless the foreclosure purchaser sells the property to someone who will use it for their own residence, in which event the current tenant will have only the 90 days to stay. The law is set to expire at the end of 2012.
Editorial Comment: Laws are written by legislators but interpreted by Courts. You can access the entire statute from a link on the Helpful Links of this website. Even a casual review reveals questions to be determined. Is application of the law limited to leases created before a foreclosure action starts, or does it apply to all leases? How do we verify the intended use of the property by the buyer of the home? What remedies exist for the tenant who has been improperly dispossessed? How can creditors be protected from fraudulent leases, or leases created after the fact? Does use of the term "case" mean foreclosure proceedings which require judicial foreclosure, or should the word better been written as "instance" so as to include foreclosures in states which follow an administrative procedure? To be adequate notice must the party giving notice attach a copy of the sales contract? Is service of process in a mortgage foreclosure service sufficient notice to the tenant? Courts look to the plain meaning of statutes and legislative intent. We think we know what was intended by the Statute, but...
May 11, 2009 Palm Beach County Circuit Court Adopts Administrative Order 3.306-5/09 in foreclosure cases to assist homeowners to negotiate with lenders after suit has been filed:
To take advantage of an availability of law students, clerks, interns and staff attorneys, cases that are filed between May 20, 2009 and June 30, 2009 will have a Case Management Status Conference conducted no later than 34 days after a Summons has been issued. Homeowners will be provided of the date, time and location of the Status Conference with the service of Court papers upon them. Attendance is not mandatory, but it may still be a way to have a 1-1 meeting between the homeowners and the attorneys representing the Plaintiffs in an effort to get the parties together earlier in the proceedings rather than later. If a party is not able to attend an email to CAD-ForeclosureCMS@pbcgov.org can be sent. Even if the Plaintiff's attorney does not appear, homeowners will be given information as to sources which are available for further assistance. The Financial Affidavit established under Administrative Order 3.05-1/09 has been revised so that information regarding assets need not be disclosed.
May 2, 2009: Mortgage Modification through Bankruptcy does not pass:
Senate Bill 61--the "Helping Families Save Their Homes In Bankruptcy Act of 2009"--did not pass. This legislation would have allowed Bankruptcy Judges in Chapter 13 filings to modify mortgage balances on a debtor's principal residence and the terms of payment.
Editorial Comment: Please note that filing a Chapter 7 bankruptcy will only slow down a foreclosure action and will not stop it. You should not be behind in your mortgage payments when you file, so do what you must to catch up as quickly as possible.
Also note that under the existing law, modifications to investment real estate, car loans, and other secured items can be made, just not that of the principal residence. If the property ceased to be your principal residence--you moved out and started to rent it out, for example--you might still qualify for debt modification, but remember, that is only under Chapter 13 where you have to make payments to the Trustee for 3-5 years--hardly the "fresh start" that you are seeking.
March 4, 2009: Eligibility for "Obama" Homeowner Affordability and Stability Program [HASP]:
The "Obama" mortgage plan eligibility standards were announced today and are shown to have limited application. Loans affected must be insured by government and quasi-government agencies: Fannie Mae, Freddie Mac, FHA, VA, and the like. The debt to value ratio can not exceed 105%, so, if you owe $211,000.00 and your home is worth $200,000.00 you would not qualify.
There are two portions to the plan. One portion allows non-delinquent homeowners who have loan balances higher than the value of the home residence to refinance to a lower rate/ The second portion allows homeowners behind in payment to get a loan modification. Here are the general guidelines.
Making Home Affordable Refinance Guidelines
1. the home must be primary residence [includes 1-4 unit homes, condominiums, and manufactured homes]
2. the loan must be secured by Fannie Mae or Freddie Mac [call to find out if mortgage loan is owned by
by either by calling 1-800-7FANNIE, or 1-800-FREDDIE or going to www.fanniemae.com/homeaffordable
3. homeowner must be current on payments and have not been late in the last 12 months.
4. loans will be refinanced into 15 or 30 year fixed rate loans, without prepayment penalties or be a balloon
note. Borrower will be responsible for fees associated with the refinance
5. amount owed on first mortgage cannot be more than 105% of the value of home
6. homeowner must have a stable income
Making Home Affordable Modification Guidelines
1. the home must be primary residence [includes 1-4 unit homes, condominiums, and manufactured homes]
2. homeowner must show hardship [illness, loss of income] and be without other, liquid assets to pay mortgage
3. mortgage to be modified must have been originated on or before January 1st, 2009.
4. unpaid principal balance must be equal or less than the following:
1 Unit: $ 729,750
2 Units: $ 934,200
3 Units: $1,129,250
4 Units: $1,403,400
A mortgage can be modified under the program only once. Homeowner can receive a Pay-for-Performance Success Payment that pays for the principal balance on the loan as long as homeowner's payments are current. [$1,000 per year for up to five years].
Foreclosures will be suspended while borrowers are being considered for a modification.
The program targets a front end debt-to-income ratio of 31% [principal,interest,taxes,insurance, and HOA] or less of gross income. The government will allow services to reduce the ratio to 38% and then kick in a cash subsidy to reduce the amount to 31%.
A homeowner with a back end debt ratio of more than 55% must confer with a HUD-approved counselor. The back end debt ratio is the total debt the borrower pays each month--credit cards, car payments, student loans, insurane, etc.
The modification will last 5 years. The floor for rates is 2% and the cap is the market rate on the day of the modification. A loan modified by temporarily lowering interest rates would go to the market rate after five years.
February 20, 2009 - William Roby, Chief Judge of the Nineteenth Judicial Circuit of Florida
[Indian River, Okeechobee, St. Lucie and Martin Counties] enters Administrative Order 2009-1 to
take effect March 13, 2009.
Mediation is required for all cases filed involving owner occupied residences, which means a home owner or an immediate family member of the home owner. If the mediation service is able t handle the volume, mediation may be available for cases filed prior to the date of the Admin. Order. Until mediation is completed, a default can not be entered against the home owner, a Summary Final Judgment can not be entered, and a trial date can not be set.
Within one business day after a foreclosure Complaint is filed, Plaintiff's attorney must transmit a designation of Plaintiff's representative, a copy of the note and mortgage and any pooling or servicing agreements (PSA) with investors that would affect the Plaintiff's ability to settle to the Collins Center for Public Policy, an independent, nonpartisan, nonprofit organization. All parties are required to attend the mediation and sanctions can be imposed for failure to comply, including the dismissal of the law suit.
The Plaintiff has the obligation to pay the $750.00 mediation fee at the time it files the foreclosure law suit, and the cost may be taxed as a cost or apply it as a set off in the event a Final Judgment in foreclosure is entered against the home owner.
A link to this Administrative Order, which applies to foreclosure cases in Indian River, St. Lucie, Martin, and Okeechobee Counties, may be found in the "Helpful Links" page of this website.
January, 2009 - Palm Beach County Administrative Order 3.305-1/09 adopted, supercedes prior Administrative Order 3.305-10/08.
To enable home owners who may have tried to obtain loan modification or "short sale" of their home residence but only to have a mortgage company or its servicing agent bring suit for foreclosure of the property, the Circuit Court of the Fifteenth Judicial Circuit, in and for Palm Beach County, Florida has adopted Administrative Order Number 3.305-10/08, which applies to all cases filed after November 1, 2008.
The Administrative Order establishes a line of communication between the home owner and a representative of the Plaintiff having the authority to enter into negotiation. A Plaintiff may not move a case forward to a summary judgment or trial if a homeowner provides the required financial disclosures to the Plaintiff's attorney, files a Notice of Compliance with the Clerk of the Court, and the Plaintiff's duly authorized agent has not responded to the request. The homeowner must implement the disclosure within fourteen (14) days from the filing of a response to the Complaint.
Either party may request mediation at any time.
A link to this Administrative Order, which applies to foreclosure cases in Palm Beach County, may be found on the "Helpful Links" page of this website.
November 1, 2008 Palm Beach County Circuit Court Adopts Administrative Order. 3.305-10/08 in foreclosure cases to enable homeowners to negotiate with lenders after suit has been filed:
This administrative order has been superceded by Administrative Order 3.305-1/09 above.
Benjamin Disraeli and popularised in the United States by Mark Twain: "There are three kinds of lies: lies, damned lies, and statistics."