California Legislation May Set Precedent
California legislators are working on giving homeowners a break from the leftover debt after a short sale or a foreclosure. The banking lobbyists want to retain the right to collect that debt and borrowers as well as the real estate industry wants that debt to be forgiven like it was in the depression era. The thinking is that it’s enough punishment to lose one’s home.
But bankers want to be able to collect the debt, especially where the homeowner refinanced, got cash out of the house to buy boats, cars, vacations, etc.
I see the point — nobody should borrow more than they can, but then these loan programs led borrowers to believe that the banks thought they could afford the loan, the home, and the cash out.
Who’s ultimately responsible? I have to call out the banks. It was shocking to me even then, back in 2001-2004, to hear the sales pitch of some of the lender reps that came to our office. The requirements to qualify borrowers kept getting looser and looser, allowing low credit scores, no income documentation, high loan to value, and high debt ratios which all contributed to this mess we are in now.
I think both borrowers and banks have to take responsibility, but the greater weight should be on the banks and investors who led us down that now-spiky path.
Lynette Hensley, Associate Broker

If you’re still renting because you don’t think you can afford to buy, try this:
Renovation and Remodeling loan programs can offer you some options when buying a home, particularly a home that needs updates or repairs where the seller is unable or unwilling to make the repairs before closing. There are so many bank owned properties on the market that are great deals, but banks don’t typically fix anything during the sale process. This has put a speedbump in more than one transaction in the recent past.
Homeowners and building owners are responsible for maintaining and repairing this section of pipe that carries wastewater from your home or building’s plumbing system to the public sewer main (usually located under the street). As the property owner, you are responsible for replacing any sidewalks and roadway removed during the repair, potentially costing thousands of dollars. Maintenance is important. The primary problem associated with side sewers is sewer backups into homes or businesses. Some causes and solutions include: