By Colleen Jenkins
(2011-04-16) (Reuters)
PALM COAST, Fla (Reuters) - As snow blanketed the northern United States this winter, city leaders in Palm Coast, Florida, sent postcards to thousands of out-of-state landowners who have not yet built homes on their piece of paradise.
"It's sunny and 76 degrees in Palm Coast," the mailers read. "What's the temperature where you live?"
The postcards highlighted the scenic trails and uncrowded beaches that helped make this coastal community between Daytona Beach and St. Augustine the nation's fastest growing metro area in the past decade, according to new U.S. Census Bureau data.
What they didn't say: Palm Coast needs a boost after getting battered by the housing bust and foreclosure crisis.
"We grew too fast," said City Manager Jim Landon. "We fell very hard, too."
The Palm Coast metro area's population rose 92 percent between 2000 and 2010, far outpacing the second-fastest growing metro area of St. George, Utah, which increased nearly 53 percent, the census showed.
The metro areas of Las Vegas, Nevada; Raleigh, North Carolina; and Cape Coral, Florida, rounded out the top five.
Palm Coast also now ranks highest in unemployment out of Florida's 20 metro areas, according to national labor statistics. Its 14.9 percent unemployment rate in February was five percentage points above the national average.
Distressed property sales dominate the housing market. The city building division that once issued an average of 400 single-family home building permits a month during the construction boom has seen that number dwindle to about 10.
City leaders remain optimistic, in part because of the steady stream of national retailers including Kohl's, Belk and Lowe's that arrived during the economic slowdown.
But residents were surprised to learn of Palm Coast's fastest-growing status after seeing many neighbors move away.
"It's become a real depressed area," said retiree Phyllis Sieling, loading groceries from a Super Target into her car.
GROWTH, WITH EYE ON GREEN
It's hard to feel depressed in Waterfront Park, a 20-acre nature haven along Palm Coast's Intracoastal Waterway.
Opened last fall, the park boasts a fishing pier, playground and some of the city's 100 miles of connected hiking and biking trails. Recycling containers for bottles and fishing lines abound.
City leaders have worked to keep things "green" and to maintain the tranquil, outdoor lifestyle envisioned by developers who carved the planned community out of scrubland in the 1970s.
Back then, residents in northeastern states received Garfield the cat phones as gifts if they checked out Palm Coast for their retirement home.
There is still plenty of golf and tennis played, but good schools and a small-town feel also have drawn in families.
"That's what keeps us here, the schools," said 42-year-old mother Tommie Krawiec, who chose a move to Palm Coast over the more hectic Jacksonville.
On a sunny Saturday, Krawiec and another local couple watched from a shaded picnic table as their young daughters played along Waterfront Park's shoreline.
Ken Hemingway, 50, and his wife relocated from Connecticut in 1998, when the city of Palm Coast had just two stoplights and was a year away from incorporating.
He said the influx of residents -- from 49,832 in 2000 to 95,696 in 2010 -- hasn't hurt the quality of life.
"You couldn't drag me back kicking and screaming," he said. "Everybody says it's busy here. We're like, you have no clue."
Landon, the city manager, proudly notes that the only sign of this swiftly expanding city from I-95 is a blue water tower bearing Palm Coast's logo.
City officials said they have withstood pressure during the stalled economy to compromise on strict architectural standards. They require businesses to design attractive exteriors, plant thick vegetation and install signs that are monument-style rather than on poles.
On a main thoroughfare, a soon-to-open Mobil gas station features stone columns by its pumps, and the new ABC Fine Wine & Spirits store has a tile roof and lush landscaping.
"I defy you to find as attractive an ABC store in the state," said Mayor Jon Netts, a retired educator from New Jersey who drives a towing service tug boat on the side.
He's hoping the city can convince the owners of 18,000 vacant platted lots -- who received those tempting sales-pitch postcards -- to build homes and bring in new dollars.
Officials also expect a mixed commercial and residential development known as Town Center to fuel less frenzied growth. A 14-screen movie theater, Red Lobster and Olive Garden opened in recent months, and Panera Bread is on the way.
"We have great potential," Landon said. But, "I hope we're not the fastest growing community in the next decade."
(Edited by Greg McCune)
© Copyright 2011, Reuters
Monday, April 18, 2011
Thursday, April 14, 2011
Good news for the housing matket in Palm Coast
Bargain prices on housing combined with low interest rates below 5 percent may bring the real estate market its busiest spring season in years, economists say. Distressed sales continue to put downward pressure on home prices, which may lure more buyers off the fence and ready to snag a deal during the typical prime-time buying season. Some builders are ramping up discounts on new homes as well as boosting commissions to brokers to try to spark more transactions. Sellers of existing-homes also are getting more competitive in pricing their homes
Friday, April 8, 2011
Single Family Delinquency Rate Less than 4%
Freddie Mac Chief Executive Officer Ed Haldeman said less than 4% of the government-sponsored enterprise's single-family home loans are at least three payments behind or heading into foreclosure.
Haldeman made that statement in an article he authored, "Three little-known facts about Freddie Mac delinquencies."
Haldeman said less than 1% of the firm's multifamily portfolio is classified as delinquent.
"It's among the lowest. The seriously delinquent rate for the industry as a whole was about 9% at the end of 2010," Haldeman wrote. "And the rate for subprime mortgages was approximately 27% – seven times higher than Freddie Mac's. On the multifamily side, the delinquency rate for banks and thrifts was slightly more than 4% – about 16 times higher."
Haldeman said the GSE saved 275,000 distressed loans last year, adding that the firm primarily operates as a buyer of 30- and 15-year, fixed-rate mortgages.
Haldeman made that statement in an article he authored, "Three little-known facts about Freddie Mac delinquencies."
Haldeman said less than 1% of the firm's multifamily portfolio is classified as delinquent.
"It's among the lowest. The seriously delinquent rate for the industry as a whole was about 9% at the end of 2010," Haldeman wrote. "And the rate for subprime mortgages was approximately 27% – seven times higher than Freddie Mac's. On the multifamily side, the delinquency rate for banks and thrifts was slightly more than 4% – about 16 times higher."
Haldeman said the GSE saved 275,000 distressed loans last year, adding that the firm primarily operates as a buyer of 30- and 15-year, fixed-rate mortgages.
Wednesday, March 30, 2011
Where to Go During an Earthquake
Remember that stuff about hiding under a table or standing in a doorway? Well, forget it! This is a real eye opener. It could save your life someday.
EXTRACT FROM DOUG COPP'S ARTICLE ON 'THE TRIANGLE OF LIFE'
My name is Doug Copp. I am the Rescue Chief and Disaster Manager of the American Rescue Team International (ARTI ), the world's most experienced rescue team. The information in this article will save lives in an earthquake.
I have crawled inside 875 collapsed buildings, worked with rescue teams from 60 countries, founded rescue teams in several countries, and I am a member of many rescue teams from many countries. I was the United Nations expert in Disaster Mitigation for two years, and have worked at every major disaster in the world since 1985, except for simultaneous disasters.
The first building I ever crawled inside of was a school in Mexico City during the 1985 earthquake. Every child was under its desk. Every child was crushed to the thickness of their bones. They could have survived by lying down next to their desks in the aisles. It was obscene -- unnecessary.
Simply stated, when buildings collapse, the weight of the ceilings falling upon the objects or furniture inside crushes these objects, leaving a space or void next to them - NOT under them. This space is what I call the 'triangle of life'. The larger the object, the stronger, the less it will compact. The less the object compacts, the larger the void, the greater the probability that the person who is using this void for safety will not be injured. The next time you watch collapsed buildings, on television, count the 'triangles' you see formed. They are everywhere. It is the most common shape, you will see, in a collapsed building.
TIPS FOR EARTHQUAKE SAFETY
1) Most everyone who simply 'ducks and covers' when building collapse are crushed to death. People who get under objects, like desks or cars, are crushed.
2) Cats, dogs and babies often naturally curl up in the fetal position. You should too in an earthquake. It is a natural safety/survival instinct. You can survive in a smaller void. Get next to an object, next to a sofa, next to a bed, next to a large bulky object that will compress slightly but leave a void next to it.
3) Wooden buildings are the safest type of construction to be in during an earthquake. Wood is flexible and moves with the force of the earthquake. If the wooden building does collapse, large survival voids are created. Also, the wooden building has less concentrated, crushing weight. Brick buildings will break into individual bricks. Bricks will cause many injuries but less squashed bodies than concrete slabs.
4) If you are in bed during the night and an earthquake occurs, simply roll off the bed. A safe void will exist around the bed. Hotels can achieve a much greater survival rate in earthquakes, simply by posting a sign on the back of the door of every room telling occupants to lie down on the floor, next to the bottom of the bed during an earthquake.
5) If an earthquake happens and you cannot easily escape by getting out the door or window, then lie down and curl up in the fetal position next to a sofa, or large chair.
6) Most everyone who gets under a doorway when buildings collapse is killed. How? If you stand under a doorway and the doorjamb falls forward or backward you will be crushed by the ceiling above. If the door jam falls sideways you will be cut in half by the doorway. In either case, you will be killed!
7) Never go to the stairs. The stairs have a different 'moment of frequency' (they swing separately from the main part of the building). The stairs and remainder of the building continuously bump into each other until structural failure of the stairs takes place. The people who get on stairs before they fail are chopped up by the stair treads - horribly mutilated. Even if the building doesn't collapse, stay away from the stairs. The stairs are a likely part of the building to be damaged. Even if the stairs are not collapsed by the earthquake, they may collapse later when overloaded by fleeing people. They should always be checked for safety, even when the rest of the building is not damaged.
8) Get near the outer walls of buildings or outside of them if possible - It is much better to be near the outside of the building rather than the interior. The farther inside you are from the outside perimeter of the building the greater the probability that your escape route will be blocked.
9) People inside of their vehicles are crushed when the road above falls in an earthquake and crushes their vehicles; which is exactly what happened with the slabs between the decks of the Nimitz Freeway. The victims of the San Francisco earthquake all stayed inside of their vehicles. They were all killed. They could have easily survived by getting out and sitting or lying next to their vehicles. Everyone killed would have survived if they had been able to get out of their cars and sit or lie next to them. All the crushed cars had voids 3 feet high next to them, except for the cars that had columns fall directly across them.
10) I discovered, while crawling inside of collapsed newspaper offices and other offices with a lot of paper, that paper does not compact. Large voids are found surrounding stacks of paper.
Spread the word and save someone's life...
The entire world is experiencing natural calamities so be prepared!
'We are but angels with one wing, it takes two to fly'
In 1996 we made a film, which proved my survival methodology to be correct. The Turkish Federal Government, City of Istanbul , University of Istanbul Case Productions and ARTI cooperated to film this practical, scientific test. We collapsed a school and a home with 20 mannequins inside. Ten mannequins did 'duck and cover,' and ten mannequins I used in my 'triangle of life' survival method. After the simulated earthquake collapse we crawled through the rubble and entered the building to film and document the results. The film, in which I practiced my survival techniques under directly observable, scientific conditions , relevant to building collapse, showed there would have been zero percent survival for those doing duck and cover.
There would likely have been 100 percent survivability for people using my method of the 'triangle of life.' This film has been seen by millions of viewers on television in Turkey and the rest of Europe, and it was seen in the USA , Canada and Latin America on the TV program Real TV.
EXTRACT FROM DOUG COPP'S ARTICLE ON 'THE TRIANGLE OF LIFE'
My name is Doug Copp. I am the Rescue Chief and Disaster Manager of the American Rescue Team International (ARTI ), the world's most experienced rescue team. The information in this article will save lives in an earthquake.
I have crawled inside 875 collapsed buildings, worked with rescue teams from 60 countries, founded rescue teams in several countries, and I am a member of many rescue teams from many countries. I was the United Nations expert in Disaster Mitigation for two years, and have worked at every major disaster in the world since 1985, except for simultaneous disasters.
The first building I ever crawled inside of was a school in Mexico City during the 1985 earthquake. Every child was under its desk. Every child was crushed to the thickness of their bones. They could have survived by lying down next to their desks in the aisles. It was obscene -- unnecessary.
Simply stated, when buildings collapse, the weight of the ceilings falling upon the objects or furniture inside crushes these objects, leaving a space or void next to them - NOT under them. This space is what I call the 'triangle of life'. The larger the object, the stronger, the less it will compact. The less the object compacts, the larger the void, the greater the probability that the person who is using this void for safety will not be injured. The next time you watch collapsed buildings, on television, count the 'triangles' you see formed. They are everywhere. It is the most common shape, you will see, in a collapsed building.
TIPS FOR EARTHQUAKE SAFETY
1) Most everyone who simply 'ducks and covers' when building collapse are crushed to death. People who get under objects, like desks or cars, are crushed.
2) Cats, dogs and babies often naturally curl up in the fetal position. You should too in an earthquake. It is a natural safety/survival instinct. You can survive in a smaller void. Get next to an object, next to a sofa, next to a bed, next to a large bulky object that will compress slightly but leave a void next to it.
3) Wooden buildings are the safest type of construction to be in during an earthquake. Wood is flexible and moves with the force of the earthquake. If the wooden building does collapse, large survival voids are created. Also, the wooden building has less concentrated, crushing weight. Brick buildings will break into individual bricks. Bricks will cause many injuries but less squashed bodies than concrete slabs.
4) If you are in bed during the night and an earthquake occurs, simply roll off the bed. A safe void will exist around the bed. Hotels can achieve a much greater survival rate in earthquakes, simply by posting a sign on the back of the door of every room telling occupants to lie down on the floor, next to the bottom of the bed during an earthquake.
5) If an earthquake happens and you cannot easily escape by getting out the door or window, then lie down and curl up in the fetal position next to a sofa, or large chair.
6) Most everyone who gets under a doorway when buildings collapse is killed. How? If you stand under a doorway and the doorjamb falls forward or backward you will be crushed by the ceiling above. If the door jam falls sideways you will be cut in half by the doorway. In either case, you will be killed!
7) Never go to the stairs. The stairs have a different 'moment of frequency' (they swing separately from the main part of the building). The stairs and remainder of the building continuously bump into each other until structural failure of the stairs takes place. The people who get on stairs before they fail are chopped up by the stair treads - horribly mutilated. Even if the building doesn't collapse, stay away from the stairs. The stairs are a likely part of the building to be damaged. Even if the stairs are not collapsed by the earthquake, they may collapse later when overloaded by fleeing people. They should always be checked for safety, even when the rest of the building is not damaged.
8) Get near the outer walls of buildings or outside of them if possible - It is much better to be near the outside of the building rather than the interior. The farther inside you are from the outside perimeter of the building the greater the probability that your escape route will be blocked.
9) People inside of their vehicles are crushed when the road above falls in an earthquake and crushes their vehicles; which is exactly what happened with the slabs between the decks of the Nimitz Freeway. The victims of the San Francisco earthquake all stayed inside of their vehicles. They were all killed. They could have easily survived by getting out and sitting or lying next to their vehicles. Everyone killed would have survived if they had been able to get out of their cars and sit or lie next to them. All the crushed cars had voids 3 feet high next to them, except for the cars that had columns fall directly across them.
10) I discovered, while crawling inside of collapsed newspaper offices and other offices with a lot of paper, that paper does not compact. Large voids are found surrounding stacks of paper.
Spread the word and save someone's life...
The entire world is experiencing natural calamities so be prepared!
'We are but angels with one wing, it takes two to fly'
In 1996 we made a film, which proved my survival methodology to be correct. The Turkish Federal Government, City of Istanbul , University of Istanbul Case Productions and ARTI cooperated to film this practical, scientific test. We collapsed a school and a home with 20 mannequins inside. Ten mannequins did 'duck and cover,' and ten mannequins I used in my 'triangle of life' survival method. After the simulated earthquake collapse we crawled through the rubble and entered the building to film and document the results. The film, in which I practiced my survival techniques under directly observable, scientific conditions , relevant to building collapse, showed there would have been zero percent survival for those doing duck and cover.
There would likely have been 100 percent survivability for people using my method of the 'triangle of life.' This film has been seen by millions of viewers on television in Turkey and the rest of Europe, and it was seen in the USA , Canada and Latin America on the TV program Real TV.
http://www.amerrescue.org/
American Rescue Team International is said to be the World's most experienced rescue team and disaster management-mitigation organization.
American Rescue Team International is said to be the World's most experienced rescue team and disaster management-mitigation organization.
Thursday, September 23, 2010
Protests grow against new septic tank law
TALLAHASSEE, Fla. – Sept. 23, 2010 – A bill passed by the Florida Legislature, SB 550, requires septic tank homeowners to have an inspection every five years. The Florida Department of Health (DOH) is now drafting rules for compliance. The law becomes effective on Jan. 1, 2011, with the inspection component phased in over the following five years.
The Legislature created stricter septic tank rules to protect the environment. Better septic systems are designed to filter out more nitrogen, which feed weeds and algae.
But the rule comes at a significant cost to the state’s 2.6 million homeowners that rely on a septic tank, and Florida lawmakers representing rural counties that rely heavily on septic tanks – Rep. Marti Coley (R-Marianna) and Sen. Evelyn Lynn (R-Ormond Beach) – have promised to introduce legislation next year to repeal the septic tank inspection measure.
“I just simply think that to mandate every five years for every homeowner with a septic tank to have it inspected is unnecessary and big government,” Coley says.
The DOH has heard from a number of counties and homeowners worried about the $100 to $300 cost of a septic inspection, and Gerald Briggs, DOH’s bureau chief for onsite sewage programs, says he’s “very concerned this will cost property owners,” and “we are making sure the cost is as low as we can make.”
State officials believe some septic tanks pollute more than others, and the mandatory inspections will help identify those homes. If an inspection does uncover a major problem, new drain fields could cost homeowners as much as $5,000 or $6,000 to fix, according to Sam Averett, president of Averett Septic Tank in Lakeland.
“Every system needs to be maintained,” Averett said. “You are affecting some water body somewhere – everywhere in the state … If the homeowners were maintaining their systems to begin with this would not be an issue – but they are not.”
Source: Bruce Ritchie, 09/21/2010 © 2010 Florida Realtors®
The Legislature created stricter septic tank rules to protect the environment. Better septic systems are designed to filter out more nitrogen, which feed weeds and algae.
But the rule comes at a significant cost to the state’s 2.6 million homeowners that rely on a septic tank, and Florida lawmakers representing rural counties that rely heavily on septic tanks – Rep. Marti Coley (R-Marianna) and Sen. Evelyn Lynn (R-Ormond Beach) – have promised to introduce legislation next year to repeal the septic tank inspection measure.
“I just simply think that to mandate every five years for every homeowner with a septic tank to have it inspected is unnecessary and big government,” Coley says.
The DOH has heard from a number of counties and homeowners worried about the $100 to $300 cost of a septic inspection, and Gerald Briggs, DOH’s bureau chief for onsite sewage programs, says he’s “very concerned this will cost property owners,” and “we are making sure the cost is as low as we can make.”
State officials believe some septic tanks pollute more than others, and the mandatory inspections will help identify those homes. If an inspection does uncover a major problem, new drain fields could cost homeowners as much as $5,000 or $6,000 to fix, according to Sam Averett, president of Averett Septic Tank in Lakeland.
“Every system needs to be maintained,” Averett said. “You are affecting some water body somewhere – everywhere in the state … If the homeowners were maintaining their systems to begin with this would not be an issue – but they are not.”
Source: Bruce Ritchie, 09/21/2010 © 2010 Florida Realtors®
Wednesday, September 22, 2010
Florida again #1... but for the wrong reasons.
MIAMI – Sept. 22, 2010 – Mortgage fraud is responsible for untold trillions of dollars in bad loans currently defaulting across the country, and Florida has played a starring role in the tragedy, a federal commission said during a hearing in Miami on Tuesday.
A panel of national and local experts sat before the federal Financial Crisis Inquiry Commission during a hearing focused on liar’s loans, predatory mortgage practices and shady home appraisals. They concluded that the financial impact of the fraud was more severe than most have estimated, and prosecuting those responsible will be nearly impossible. It was the third of four hearings being carried out nationwide by the commission, which Congress assembled last year to investigate the causes of the global financial meltdown.
‘A central issue’
“Mortgage fraud is not just a side issue – in many ways it’s a central issue of this financial collapse,” former Florida Sen. Bob Graham, a commission member, said after the hearing. “I was stunned at the extent and the dollar impact of mortgage fraud and its contribution to the worst financial meltdown in half a century.”
Five hours of expert testimony painted a picture of a system wrought with regulatory inadequacies and financial incentives for unscrupulous behavior at nearly every level. The result, panelists said, was more than $1 trillion lost by banks, homeowners and, ultimately, the U.S. taxpayer between 2005 and 2007 alone. As many as 70 percent of mortgages now in foreclosure were the result of at least one element of fraud, said Ann Fulmer, vice president at Interthinx, a risk-mitigation firm that does extensive mortgage fraud research.
The hearing also laid out the laundry list of challenges local law enforcement officials face as they try to track down and prosecute the predatory lenders and mortgage fraudsters active in Florida during the housing boom.
Compared to the savings and loan crisis of the 1980s and 1990s, which saw more than 1,000 mid- and high-level executives jailed for white-collar crime, mortgage fraud convictions have been paltry, panelists said. Solving mortgage fraud cases is difficult because the process is time-intensive and proving “intent” can be nearly impossible, said Ellen Wilcox, a special agent with the Florida Department of Law Enforcement.
Another challenge: Florida’s statute of limitations means fraudulent loans issued more than three years ago are no longer subject to prosecution.
“Most mortgage fraud will not be reported until the mortgage goes bad, but the ‘crime’ occurred when the money was lent,” Wilcox said. “If there was mortgage fraud in the granting of a mortgage loan in 2004, it can not longer be criminally charged.”
The average mortgage fraud case takes one to two years to investigate, she added.
Law-enforcement officials are also generally under-equipped to face down Florida’s nation-leading fraud problem – the Mortgage Asset Research Institute has ranked the state No. 1 in the country for mortgage fraud since 2006, with nearly three times the normal amount of reported cases.
Still, some progress has been made, and the general consensus is that many of the individual bad apples involved in mid-decade mortgage fraud have been pushed out by market forces, tougher regulation and law enforcement.
Task force launched
In 2007, Miami-Dade police and Mayor Carlos Alvarez launched the Mortgage Fraud Task Force and lobbied for tougher regulatory laws, said Miami-Dade police Capt. Ed Gallagher. Since then, Miami-Dade police have made 239 arrests for mortgage fraud. The U.S. attorney’s office Mortgage Fraud Strike Force has gotten 401 convictions since 2007, said Wilfredo Ferrer, U.S. attorney for the Southern District of Florida.
The Florida Office of Financial Regulation has put together a task force to curb the latest wave of real estate fraud – mortgage modification schemes, said commissioner J. Thomas Cardwell.
Graham and other FCIC commissioners plan to use Tuesday’s findings as part of a comprehensive financial crisis report, due to the president by Dec. 15. Graham said he hoped that report would help policymakers better understand the regulatory and market forces that led to the costly mortgage fraud crisis.
“The role of government as a regulator had gotten – as it did in so many other areas of finance – fairly soft and flabby during the early part of this century,” he said. “Hopefully, one of the positive outcomes of this terrible experience is that the agencies will be better supported, staffed and given the capability to be a lion and not a toothless tiger.”
Copyright © 2010 The Miami Herald, Toluse Olorunnipa. Distributed by McClatchy-Tribune Information Services.
A panel of national and local experts sat before the federal Financial Crisis Inquiry Commission during a hearing focused on liar’s loans, predatory mortgage practices and shady home appraisals. They concluded that the financial impact of the fraud was more severe than most have estimated, and prosecuting those responsible will be nearly impossible. It was the third of four hearings being carried out nationwide by the commission, which Congress assembled last year to investigate the causes of the global financial meltdown.
‘A central issue’
“Mortgage fraud is not just a side issue – in many ways it’s a central issue of this financial collapse,” former Florida Sen. Bob Graham, a commission member, said after the hearing. “I was stunned at the extent and the dollar impact of mortgage fraud and its contribution to the worst financial meltdown in half a century.”
Five hours of expert testimony painted a picture of a system wrought with regulatory inadequacies and financial incentives for unscrupulous behavior at nearly every level. The result, panelists said, was more than $1 trillion lost by banks, homeowners and, ultimately, the U.S. taxpayer between 2005 and 2007 alone. As many as 70 percent of mortgages now in foreclosure were the result of at least one element of fraud, said Ann Fulmer, vice president at Interthinx, a risk-mitigation firm that does extensive mortgage fraud research.
The hearing also laid out the laundry list of challenges local law enforcement officials face as they try to track down and prosecute the predatory lenders and mortgage fraudsters active in Florida during the housing boom.
Compared to the savings and loan crisis of the 1980s and 1990s, which saw more than 1,000 mid- and high-level executives jailed for white-collar crime, mortgage fraud convictions have been paltry, panelists said. Solving mortgage fraud cases is difficult because the process is time-intensive and proving “intent” can be nearly impossible, said Ellen Wilcox, a special agent with the Florida Department of Law Enforcement.
Another challenge: Florida’s statute of limitations means fraudulent loans issued more than three years ago are no longer subject to prosecution.
“Most mortgage fraud will not be reported until the mortgage goes bad, but the ‘crime’ occurred when the money was lent,” Wilcox said. “If there was mortgage fraud in the granting of a mortgage loan in 2004, it can not longer be criminally charged.”
The average mortgage fraud case takes one to two years to investigate, she added.
Law-enforcement officials are also generally under-equipped to face down Florida’s nation-leading fraud problem – the Mortgage Asset Research Institute has ranked the state No. 1 in the country for mortgage fraud since 2006, with nearly three times the normal amount of reported cases.
Still, some progress has been made, and the general consensus is that many of the individual bad apples involved in mid-decade mortgage fraud have been pushed out by market forces, tougher regulation and law enforcement.
Task force launched
In 2007, Miami-Dade police and Mayor Carlos Alvarez launched the Mortgage Fraud Task Force and lobbied for tougher regulatory laws, said Miami-Dade police Capt. Ed Gallagher. Since then, Miami-Dade police have made 239 arrests for mortgage fraud. The U.S. attorney’s office Mortgage Fraud Strike Force has gotten 401 convictions since 2007, said Wilfredo Ferrer, U.S. attorney for the Southern District of Florida.
The Florida Office of Financial Regulation has put together a task force to curb the latest wave of real estate fraud – mortgage modification schemes, said commissioner J. Thomas Cardwell.
Graham and other FCIC commissioners plan to use Tuesday’s findings as part of a comprehensive financial crisis report, due to the president by Dec. 15. Graham said he hoped that report would help policymakers better understand the regulatory and market forces that led to the costly mortgage fraud crisis.
“The role of government as a regulator had gotten – as it did in so many other areas of finance – fairly soft and flabby during the early part of this century,” he said. “Hopefully, one of the positive outcomes of this terrible experience is that the agencies will be better supported, staffed and given the capability to be a lion and not a toothless tiger.”
Copyright © 2010 The Miami Herald, Toluse Olorunnipa. Distributed by McClatchy-Tribune Information Services.
Thursday, September 16, 2010
Tips to help owners spot foreclosure scams
WASHINGTON – Sept. 15, 2010 – Last year, the U.S. Federal Trade Commission identified 71 companies running suspicious foreclosure rescue ads. This year, the Better Business Bureau named foreclosure rescue rip-offs among its top 10 scams.
Here are just two common scams identified in the September “Foreclosure Resource Guide” now available at the National Association of Realtors® (NAR) Realtor Content Resource:
• A representative of a so-called foreclosure rescue company promises to negotiate a deal with your lender, instructing you not to contact your lender, lawyer or credit counselor during the supposed negotiations. After you pay an up-front fee or a few months of mortgage payments, the scam artist disappears.
• A scam artist promises to fend off foreclosure in exchange for an up-front fee. Instead of getting you legitimate relief, the fraudster pockets the fee and secretly files a bankruptcy case in your name.
Also covered in the “Foreclosure Resource Guide” are free tips on what to do immediately if you’re facing foreclosure, five foreclosure pros you need on your team, what foreclosure counselors can and can’t do, and website resources for foreclosure help.
NAR’s Realtor Content Resource is an exclusive member benefit that entitles Realtors to download free homeownership content from HouseLogic to your consumer website, blog, or e-newsletter. HouseLogic is NAR’s consumer website geared to helping homeowners make smart decisions to enhance, maintain and protect the value of their home.
For more information, go to the Realtor® Content Resource at: http://www.houselogic.com/members/?nicmp=RCRIM&nichn=editorial&niseg=RMONews1_20100905
© 2010 Florida Realtors®
Here are just two common scams identified in the September “Foreclosure Resource Guide” now available at the National Association of Realtors® (NAR) Realtor Content Resource:
• A representative of a so-called foreclosure rescue company promises to negotiate a deal with your lender, instructing you not to contact your lender, lawyer or credit counselor during the supposed negotiations. After you pay an up-front fee or a few months of mortgage payments, the scam artist disappears.
• A scam artist promises to fend off foreclosure in exchange for an up-front fee. Instead of getting you legitimate relief, the fraudster pockets the fee and secretly files a bankruptcy case in your name.
Also covered in the “Foreclosure Resource Guide” are free tips on what to do immediately if you’re facing foreclosure, five foreclosure pros you need on your team, what foreclosure counselors can and can’t do, and website resources for foreclosure help.
NAR’s Realtor Content Resource is an exclusive member benefit that entitles Realtors to download free homeownership content from HouseLogic to your consumer website, blog, or e-newsletter. HouseLogic is NAR’s consumer website geared to helping homeowners make smart decisions to enhance, maintain and protect the value of their home.
For more information, go to the Realtor® Content Resource at: http://www.houselogic.com/members/?nicmp=RCRIM&nichn=editorial&niseg=RMONews1_20100905
© 2010 Florida Realtors®
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