Posts tagged ‘Fannie Mae’

Tale of two – The cost – Part one




Part One– https://thatwoman.wordpress.com/2017/05/11/a-tale-of-two-city-houses-downing-of-quality/
Part Two– https://thatwoman.wordpress.com/2017/05/13/a-tale-of-two-continued-lorains-cast-offs/
Part Three – https://thatwoman.wordpress.com/2017/05/16/a-tale-of-two-a-tale-of-woe-lorain/
Part Four- https://thatwoman.wordpress.com/2017/05/22/a-tale-of-two-the-who-the-how-why/
Part Five- https://thatwoman.wordpress.com/2017/05/24/the-tale-of-two-the-how-supporting-cast/
Part Six- https://thatwoman.wordpress.com/2017/05/29/a-tale-of-two-the-why-land-of-iz-not-woz/
Part Seven- https://thatwoman.wordpress.com/2017/06/19/a-tale-of-two-do-nowt-get-nowt-lorain/

If nothing else the previous 7 posts in the series has confirmed there has been an ongoing problem for 12 years ( or more) the houses and their ONGOING problems may have gone through 3 administrations heaven knows how many different councils and council members but with ONE Building Dept and the way of non accountability. The only people cited who follow through seem to be the already law abiding property owners, the rest seem to “play the property / enforcement game – IN MY OPINION- based on the research over the years.

There is a cost to all this diseased, decrepit, dilapidated housing and in 2005 – 3 years before the sub-prime mortgage debacle The National Vacant Properties Campaign with the support of the Environmental Protection Agency came up with a 24 page report – 12 years ago just about the time our city was starting to go belly up…
https://www.smartgrowthamerica.org/app/legacy/documents/true-costs.pdf
the above report is really worth the read and government with Community Development and Building and Planning surely should have accessed the report


If you ask any Lorainite in the year 2017 they will say this photo from the 2005 report is a familiar site , especially in the 44052 44055 where our poster child houses are located

2005

Cities must address the increasing number of vacant properties, not only because of the negative impact they have on the surrounding community, but because of the numerous costs they impose. They strain the resources of local police, fire, building, and health departments, depreciate property values, reduce property tax revenue, attract crime, and degrade the quality of life of remaining residents. In summary, vacant and abandoned properties “act as a significant fiscal drain on already strapped municipalities, requiring disproportionate municipal resources, while providing little or no tax revenue to municipal coffers.”

As the years passed and we continued our downward slide and lack of enforcement there were other reports written.
http://www.cleveland.com/cleveland-heights/index.ssf/2015/08/abandoned_homes_affect_communi.html
http://www.cleveland.com/rocky-river/index.ssf/2015/08/rocky_river_westlake_hide_vaca.html
Then we get to the 2017 White paper on Blight another must read

For a single home, one can attempt to calculate these costs.
Using the following conservative assumptions the foreclosure of a home will cause a loss of value of at least $130,000 as a result of the following:
1. The home if owner-occupied would be worth $200,000, which is just under the national mediansales price of $235,000. The loss of value to the
home itself is 38 percent, the amount expected by buyers and in the midpoint of the range ofestimates. This is a loss of value of $76,000.

2. Assuming 21 houses within 500 feet. This is
a conservative assumption based on houses that are roughly one-fourth of an acre that have100x100 foot square plots. Thus, there are five
houses on both sides of the affected property as well as another 11 across the street. This number could be substantially higher in urban settings
(condominiums or row houses) and also lower for rural settings or areas where there are not uniform plots or housing on both sides of the street. Each
of these houses experiences a 1 percent decline in home value. For the $200,000 home, that is $2,000. That is a loss of value of $42,000.

3. There are another 12 houses beyond 500 feetbut that are still affected. Recall some studies used the one-eighth of a mile (660 feet) while others showed effects all the way out to 1,000 feet and even further in some to half a mile. For this estimate we are assuming an impact of another 300 feet in all directions, which is conservative given other findings. These impacted houses have a 0.5 percent decline in value, or $1,000. That is a
loss of value of an additional $12,000.

For those who find the methodology of studies that find losses of
2 percent in value of neighboring properties closer and 1 percent
of those farther away more compelling, then the total losses
jump to $184,000. In this scenario the property loss suffered by
neighbors is actually greater than that suffered by the foreclosed
home itself!

http://www.communityblightsolutions.com/files/CBS_White_Paper_2017.pdf
And the latest complaint in Lorain is 330 W 9th Street.
This too was a Fannie Mae dump selling in 2010 for $44,000.00 and dumped by Fannie Mae to a Bayvillage resident just 7 months later for $13,500. and there you have it proof once again the system sucks!!!!

The typical foreclosed home imposes costs of more than $170,000. Approximately $85,000 of this total is directly attributable to a property being vacant and the condition in which that vacant house is kept.
 Over half the total cost of a foreclosure’s impact on neighboring properties comes from the fact that the property is abandoned.
 Foreclosures that involve vacant properties lead to increases in violent crime.  The impact of vacancy on crime increases as the property stays vacant for longer periods, likely plateauing at between 12 and 18 months.
 Vacant buildings are major fire hazards; vacant residential buildings account for one of every 14 residential building fires in America.

Yes there is a municipal cost, a cost to property worth for the surrounding houses BUT there is also a cost I will explore in the next post to the taxpayer of Lorain for the system that enables this system- salaries, vehicles, law courts………. coming up in part two of the broken system. We can’t say we weren’t warned of course we also paid in our taxes for the costs of the reports, whitepapers and studies………..

To be continued …………….

June 26, 2017 at 9:17 pm Leave a comment

The Follow-up – A tale of Two houses City Council Lorain(e)

Wurmser for lease rs 091015
Fulton Road 02 rs 091015

September 14th the Lorain City Council Public Meeting on Point of Sale.
as mentioned in the Morning Journal Newspaper. ( http://www.morningjournal.com)

http://www.morningjournal.com/general-news/20150912/lorain-city-council-to-discuss-enforcement-of-point-of-sale-inspections
Council Chambers held more than the usual few – Invited participants included members of Lorain County Government and Magistrate Cook , in whose courtroom I had found myself ( trying to hear) on August 12th and September 9th. I won’t go into detail you can find coverage here
http://www.morningjournal.com/general-news/20150914/lorain-council-wants-stiffer-fines-more-enforcement-for-point-of-sale

BUT WHAT I CAN SAY IS:
judy nedwicksnodgrass

COUNTY GOVERNMENT HAS TO BE INVOLVED TO HELP IN THE POINT OF SALE ON THE FRONT END THROUGH PROPERTY TRANSFER- –
Cook
AND JUDICIAL HAS TO BE JUDICIOUS ON THE BACK END. THESE ISSUES ARE NOT JUST LORAIN ISSUES!!! These out-of-state / county holding companies are not choosy where they feed.

Visionres

When I attended the Housing Court on Sept 9th I met a family – The Shaffers- whom, to my mind, have become the faces of unscrupulous out of state Holding and Property LLC Companies .

The Shaffers, are in sort of a legal limbo when it came to having their say in Housing Court- Before the bench those days were the LLC Kaja Holdings 2 in all their Vision Properties glory who were the “defendants” along with their attorney Jaing, Lei- ( Lei Jaing) who got to plead their case –jaing lei
http://eb5info.com/eb5-attorneys/35-lei-jiang

Unfortunately the Shaffers , although they believed themselves to be the owners 4132 Fulton ( since they were the purchasers of the home – under the Lease to Own agreement) – had no say in the courtroom and therefore were dismissed from the courtroom by Magistrate Cook, in all likelihood as they were not on the paperwork given by the city. They were considered tenants.

The Shaffers , thanks to City Council Committee on the Enforcement of Point of Sale and Councilman Dan Given, did get their say! The media also have given them coverage
http://chronicle.northcoastnow.com/2015/09/16/lorain-familys-ordeal-highlights-point-of-sale-systems-flaws
http://www.morningjournal.com/article/20150915/NEWS/150919657

The Shaffers produced a receipt given to them ( see Chronicle article ) showing they had paid $350.00 to Vision Properties ( aka Kaja Holdings) for what they were led to believe was for a City of Lorain inspection for POS/ plumbing/ electrical. NOTE: the actual inspection by the City of Lorain is $100.00 and the city did not inspect this home.
Two things come to my mind-

Had the Shaffers ( who had brought the documentation to court been allowed to speak- Kaja Holdings/ Vision Properties may have had to answer some very interesting questions from the Magistrate if not the city prosecutor/ Building and Housing Dept.
fraud
ONE: For instance in all of the properties purchased by Kaja Holdings, RVFM , Vision Property Management
etc. after Lorain’s Point of Sale

How many times, since a number of them have been cited for non compliance Certificate of Inspection (POS), took money for such a supposed inspection from the people ( Leasing to Own)? Obviously they did it once and made money – were there others so duped?

And number TWO-

To this layperson’s thinking does this not constitute fraud? Using an ordinance to take money from people, not following that ordinance, and charging three times as much for the compliance of the ordinance that never was- and if the City of Lorain’s inspectors weren’t the person with the clipboard who was? How many times has this – in my opinion -fraud happened . Is not the City of Lorain an injured party in all this? Will we prosecute?


The Shaffers, are still in a mess but hopefully now someone has listened they will be helped and the City of Lorain has garnered some interesting information.
Carpetbagger_cartoon_dbloc_1872_adj
Unfortunately, a quick drive around my neighborhood shows another Property Company from Columbia South Carolina and Fannie Mae up to their old habits . 917 9th Street– There are the rent to own signs everywhere on this house –
917res
and

IMG_4219
Now you know if my discharging “donspout” was cited in February and given 6 days to be fixed
https://thatwoman.wordpress.com/2015/02/01/ode-to-a-downspout-named-don-lorain/

then this house on 9th NEVER could have passed a point of sale inspection !

The house sold and transferred July 27th 2015– Another “sale by Fannie Mae ” ( Federal National Mortgage ) before POS- BUT HARBOUR PORTFOLIO VII LP ( NOTE the NUMBER VII)sold it on for 1,500 dollars – probably after renting it out for a couple of years

917 9thres

I wonder if Clotilde Ann Eaker – SOUTH KOREA knew about Point of Sale ??
This Harbour Portfolio VII is also tied up with
NATIONAL ASSET ADVISORS, LLC
Address: 4350 ST ANDREWS RD, COLUMBIA, SC 29210

http://naadvisorsllc.com/
Harbour Portfoliores
And it is their signs all over the 9th street property
IMG_4214
They too have a couple of homes in Lorain on their site
assets

OH and Vision Property Management they have added a couple since the last time I checked
Visionlistres
Interesting : 1144 Washington ( AKA Kaja Properties) has been in Housing court with numerous violations –
https://thatwoman.wordpress.com/2015/09/11/the-housing-court-and-you-lorain-part-one/
614 W 21st Street
Address: WELLS FARGO BANK NA TRUSTEE
1665 PALM BEACH LAKES BLVD WEST PALM BEACH, FL 33401
Tax Bill Mailed to: DEUTSCHE BANK
1665 PALM BEACH LAKES BL WEST PALM BEACH, FL 33401
Then there is
1837 E 36th Street

Owner Name
Address: CHRISTIANA TRUST
1665 PALM BEACH LAKE BLVD WEST PALM BEACH, FL 33401
Tax Bill Mailed to: DEUTSCHE BANK
1665 PALM BEACH LAKES BL WEST PALM BEACH, FL 33401

Notice anything the addresses are all the same ( Deutsche Bank) –
https://en.wikipedia.org/wiki/Deutsche_Bank
they have been known to transfer to Kaja , Vision, and whomever. in this sordid property tale.

Oh! dear me and yes you can still purchase 1348 West Erie
Wurmser for lease rs 091015

Our new group of LLCs. LP Numbers ONE through apparent infinity is “Harbour Portfolio “ and their source of supply Fannie Mae aka Federal National Mortgage

This is not new to North East Ohio and Harbour Portfolio V11 of them was with their source Fannie Mae ( Federal National Mortgage ) the FEDERALLY backed mortgage company
http://topics.nytimes.com/top/news/business/companies/fannie_mae/index.html

fannie mae

Good old Fannie, she has been busy with Harbour Portfolio and all its numbers
Portfolio Harboures

There were 27 listed – Lorain- Elyria some after Lorain’s Point of Sale and every single one of the came from Federal National Mortgage – dumped on US( in my humble opinion).

We are not alone in this bank dump behaviours- Fannie has been “fannying” around with property and old neighborhoods in Cleveland as well
Carpetbagger_cartoon_dbloc_1872_adj
Predatory Carpet Baggers
the focus of an article in 2012 Cleveland
http://topics.cleveland.com/tag/harbour-portfolio-vii-lp/posts.html

Fannie Mae, the government sanctioned lender of last resort, panders to predatory flippers by dumping zombie properties for chump change, writes Christopher Evans

What sets 3868 apart is the prior owner: Fannie Mae, that government-sanctioned lender of last resort, is back in the business of selling foreclosed zombie properties to predatory carpetbaggers.

Harbour Portfolio bought the property for $4,304 last February from Fannie Mae, according to the Auditor’s Office.

Fannie Mae did not disclose that the property had been condemned, Brancatelli says. Not that Harbour Portfolio would care, he adds. “They’ll find some buyer who’ll put lipstick on the pig and rent it out.”

The condemnation notice? “They’ll buy a key at Home Depot that’ll turn the water back on,” Brancatelli says.

………It also notes that Building and Housing has prepared 22 criminal charges against Fannie Mae for not obtaining certificates of disclosure on properties before they were transferred. An additional 38 charges are in the works, the email adds.

Not much changed then.

Where are the Feds when you need them? Oh that is right they back Fannie Mae.

September 17, 2015 at 10:48 pm 6 comments

Point of Sale , Lorain- A history – a result

taxpayerlorOld buildings have been much on my mind and that of the county in recent days and the legal options
https://thatwoman.wordpress.com/2014/06/19/lorain-county-judges-crowing-with-chandra/
https://thatwoman.wordpress.com/2014/06/20/chandra-cha-chinging-away-county-coffers-and-how-it-is-done/

Living in this , Lorain’s oldest neighborhood, I have watched the deterioration as bank dumped foreclosures were passed around and on and on until as perfectly reasonable homes that were built with pride are left abandoned to their fate.

buy swap sell

No longer, are they the homes they once were in this neighborhood but now a commodity , to be used and abused until they are no longer worth anything.

Some of our home-grown banks are the biggest culprits
https://thatwoman.wordpress.com/2013/07/09/the-pos-and-nuisance-ordinance-a-lesson-in-history/
https://thatwoman.wordpress.com/2013/07/05/the-nuisance-and-point-of-sale-ordinance-lorain/

The Point of Sale will cause some large numbers of “in escrow dollars” and one has hit the headlines in the Morning Journal and all the kerfuffle of Wurmser front etc .

http://www.morningjournal.com/general-news/20140620/lorain-house-sets-record-with-45750-escrow-requirement

wurmser wrecked

AHHHHH!!!!, yes! that house– the Wurmser House – the house of mystery , the house on the “historical inventory register” . You can read all about the “history mystery” of that house here
https://thatwoman.wordpress.com/2012/05/30/lorains-history-mystery-the-wurmser-house-a-tale-of-two-houses/

Let us look at what happened after the tornado– when Wurmser

Henry Oswald Wurmser was a respected architect in Lorain and renowned throughout the state. He was responsible for designing many churches, businesses and residences.

lost one house
Tornado-5th Wurmser

and gained another –the current featured front page news and “poster child ” for the realtors, banks and landlords……

You see this house , like so many others passed from “pride of home to Mr. Wurmser” ( the probably date for this house is after 1924) and his family , a sale or two ( without Point of Sale of course ) a couple of foreclosures more purchasers who lost until what we have now !

property  search

from the MJ article

It appeared the home at 1348 W. Erie Ave. could have an escrow amount that is more than the house is worth.

The home is owned by the Federal National Mortgage Association, commonly known as Fannie Mae.

Oh dear Fannie Mae- well Fannie and her buddy Freddy have caused a lot of “bad happenings with the 2008 sub prime mortgages (MORT old English for “death”) and we can certainly GAGE that with Fannie and the banks.

In the years before the crisis, the behavior of lenders changed dramatically. Lenders offered more and more loans to higher-risk borrowers, including undocumented immigrants. Lending standards deteriorated particularly between 2004 and 2007, as the government-sponsored enterprise (GSE) mortgage market share (i.e. the share of Fannie Mae and Freddie Mac, which specialized in conventional, conforming, non-subprime mortgages) declined and private securitizers share grew, rising to more than half of mortgage securitizations.

Dumped
https://thatwoman.wordpress.com/2012/07/11/banks-banking-on-lorain-business-of-blight-devaluing-lorain/

And another one bites the dust in Lorain and you can see the drooling of the realtors to find the “bone of contention” as proof point of sale isn’t working –

NOTE: I would like to point out the homes in the article have been empty and for sale for a few years BEFORE the January 1st Point of Sale Lorain came into being- couldn’t sell them then either could you?

“It’s not wonderful in any sense of the imagination,” Myers said. “We have properties we can just not sell now. Everybody just walks away because nobody wants to put that kind of money in a house in Lorain.”

IN LORAIN – or just in Lorain’s oldest neighborhoods????

You see Point of Sale “isn’t about this Lorain’s oldest neighborhood or even Ward two and the areas that have deteriorated from homes that held families once upon a time and now hold vagrants, vermin and are the shopping places for copper!

THE POINT of point of sale is to stop in the rest of Lorain, that hasn’t experienced yet the bank dumps and slip shod workmanship as these house are passed around between property pimps from happening in Lorain’s other neighborhoods .

The rot has to stop somewhere – painful as it is and then just maybe the tale of 3620 Clinton won’t be coming to your ward!

My Poster Child of flippers and entrepreneurs
The history of a second chance

3620-clifton-house

Lisa wrote about 3620 Clifton January 13th of 2013

http://bustershouse.wordpress.com/2013/01/13/as-seen-in-lorain-3620-clifton-avenue-and-the-second-chance/

http://bustershouse.wordpress.com/2013/06/16/whatever-happened-to-3620-clifton-avenue/

In that article, it was mentioned that the owners of one of the houses on the demolition list were given a second chance to make repairs. Even though it was noted by Demolition Board member, 5th ward Councilman, and neighborhood resident Eddie Edwards that “Before the sale, the house sat empty for about five years, with its doors and windows open and generally falling apart…” and “The new owners also waited a year before taking action to repair it…” AND the Board went out to see this house for themselves AND took the Fire Chief with them AND talked to the unhappy neighbors – the owners have $17,000 and a plan and that was enough for the Board to grant them a second chance.

“According to this article, “…owners of 3620 Clifton Ave. will get another five weeks to make repairs to that South Lorain home. For a second week, the condition of the structure sparked the most discussion in the demolition appeals board meeting.”

Demolition Board of Appeals meetings are held during the week and are impossible for me to attend. At the meeting held February 28, 2013, the owners were given another month to continue their work on the property. They were granted this extra time because they had roofed and secured the house, plus cleaned up the yard. [

So here we are ONE YEAR and Three Months later and the flip is apparently a flop…..(

No point of sale when this property was purchased….. the house is still “curvy “, “sagging” and not so cute , no electricity and obviously no tenants except of the groundhogs.

June 2014 Canon 318-1

ps 3620

POS is not to make these old neighborhoods better it basically is to stop Lorain’s newer neighborhoods from deteriorating as we have done.

Let us look at the history of the other houses mentioned in the article from the POS Morning Journal

• 330 Connecticut Ave., $12,925; the auditor’s value is $98,680.
330 Connecticut
Ps 330

3204 Garfield Blvd., $19,400; the auditor’s value is $44,420.
3204 Garfield
ps 3204

• 704 E. 32nd St., $28,300; the auditor’s value is $54,350.
This property is owned by NEW SUNRISE PROPERTIES – WHO OWN 28 OTHER PROPETIES IN AND AROUND THE COUNTY
704 32nd
nEW SUNRISE

• 1502 New Mexico Ave. has an escrow amount of $40,500; the auditor’s office valuation of the house is $36,000.

1502 New Mexico
This one is now owned NOW by Veterans Affairs ( another possible foreclosure???
ps veterans affairs

There we have it out of the 4 highest escrow accounts 2 are owned by the “mortgage holders” ( which brings to mind poor business practices of the sub prime) and one non-profit agency.

As they say the rest of the story!!!!!

June 22, 2014 at 1:02 pm 13 comments


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