"Making Home Affordable" offers a solution for homeowners in distress

Homeowners who are struggling with their mortgage payments may soon find an affordable solution, thanks to a new initiative by the Obama administration. Making Home Affordable is a plan to help such homeowners refinance, even if they are "upside down" in their mortgage, owing more than the home is worth. It is expected to help between 4 to 5 million homeowners refinance, who would otherwise have great difficulty doing so.

Mortgage refinance criteria

To be eligible for a mortgage refinance through the Making Home Affordable plan, homeowners must meet certain qualifying criteria. Over the previous 12 months, they must have paid all mortgage payments no later than 30 days past the due date.

Furthermore, their mortgage loan must be owned or guaranteed through Fannie Mae or Freddie Mac. Homeowners can determine whether they meet this requirement by calling their lender or by contacting Fannie Mae at (800) 7FANNIE or www.fanniemae.com/homeaffordable, and Freddie Mac at (800) FREDDIE or www.freddiemac.com/corporate.

Benefits of MHA mortgage refinance

There are several reasons homeowners should consider a mortgage refinance through the Making Home Affordable plan. Most significantly, Fannie Mae and Freddie Mac offer considerable flexibility with applicants' credit scores and histories. The traditional lending market, on the other hand, is still relatively rigid as the housing market slowly recovers.

Many Homeowners have been forced to move due to economic reasons or career relocation, and need help meeting payments on the home they left behind. The Making Home Affordable plan would benefit them because it applies to residential properties other than the applicant's current primary residence, like rental or vacation properties.

"Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall," said Treasury Secretary Tim Geithner. "Every step we take forward is done with the imperative in mind."

How to sell your home fast

Whether you’re facing a job transfer, impending foreclosure, or an escalating adjustable rate mortgage, there are many reasons you may need to sell your home quick. Unfortunately, selling a home can be a discouraging process, although taking the right steps can speed the process along. Even in a slow housing market, you can sell your home faster with a few basic strategies.

Take quality photos

A vast percentage of modern-day home searches start on the Internet, so high-quality photos are essential. Rent a wide angle photo lens to make rooms appear larger. Open curtains on a sunny day to let in plenty of natural light and show off your home’s best features. You may even recruit a professional photographer to capture your home’s best side.

Market your home

Marketing is critical. The personal connections and resources of realtors can help, but homeowners can even market and sell their own home with the help of web sites like FSBO.com or ByOwner.com. Yard signage and a listing on the multiple listing service is available through such sites. Other avenues include social media like Twitter, Facebook, and You Tube videos.

Price it correctly

Look at comparables, get an inspection, and consult an appraiser and realtor before setting the price on your home. However, when the housing market is in a slump, you are much less likely to get full value for your home, so get ready to compromise. If your home stalls on the market, act fast and slash the price by 10 percent. Incremental decreases are not drastic enough to catch attention. Lower the price and sell it faster.

Remove all clutter and personal effects

Family photos, kids’ artwork, knick-knacks, pet bowls, general clutter, and anything else that speaks about your personal life should be removed. Enable visitors to envision your home as their own. Consider hiring a professional home stager for an objective eye to help make your home more appealing.

Buyer Incentives

Offer to pay closing costs, or one year’s worth of property taxes or homeowner’s association fees. More creatively, you could spring for a maid or landscaping service. Incentives can increase the number of looks you’ll get, thus increasing the odds of getting an offer and selling your home fast.

Tax benefits for first-time home buyers

If you have been waiting for the right time to buy your first home, 2009 is your year. There have always been many tax benefits to home ownership, but recently passed legislation makes the deal even sweeter for first-time home buyers. In response to the housing market decline, the federal government is offering first-time purchasers a tax credit of up to $8,000 that does not have to be repaid if the home is owned for at least three years.

The tax credit is equivalent to 10 percent of the home’s purchase price, capped at $8,000. Eligible taxpayers must purchase their first home before December 1, 2009 and their adjusted gross income must not exceed $75,000 per person, or $150,000 per married couple.

In addition to the new tax credit, first-time home buyers may be quite surprised at how many other tax benefits await. The interest on a first-home or second-home mortgage is fully deductible up to $1 million. The interest on up to $100,000 of home equity debt is also tax-deductible, regardless of what the loan is used for. This is a tremendous benefit because interest payments consume the vast majority of payments over the first several years.

Loan discount points and origination fees, commonly grouped into closing costs, are tax-deductible for home buyers – even if the seller pays closing costs. In terms of loan origination fees, for example, this typically means you could deduct 1% or more of the home’s purchase price.

Best of all, profit of up to $250,000 per individual ($500,000 per married couple) off the sale of a home is non-taxable income. Any profit beyond that is subject to capital gains tax. The caveat is the taxpayer must have lived in the home at least 24 months out of the previous five years, but the 24 months do not need to be consecutive. Add to this the fact that homeownership-related tax deductions often allow taxpayers to reach a point where they can itemize other smaller deductions like charitable giving, and homeownership begins to look quite profitable. When handled correctly and within your financial means, buying a home can truly be a winning deal.

OAITA and ELTA file lawsuit against ODI

TO: Press, TV and Radio stations in Cleveland, Columbus, Cincinnati, Dayton, Akron, and Toledo.


Contact person: Robert B. Holman, Esq.
OAITA (440) 232-9911

SUBJECT: INDEPENDENT TITLE AGENTS FILE NEW LAWSUIT AGAINST OHIO DEPARTMENT OF INSURANCE.

FOR IMMEDIATE RELEASE

The Ohio Association of Independent Title Agents (OAITA) (http://www.oaita.org/) and Eagle Land Title Agency, Inc. have filed a new lawsuit in the Franklin County Court of Common Pleas against Mary Jo Hudson, Director of the Ohio Department of Insurance. OAITA, an association of independent title insurance agents in Ohio, and Eagle Land Title Agency, Inc., an independent title insurance agency licensed by the Ohio Department of Insurance seek to prevent the spread of kickbacks and referral schemes in the real estate industry by asking the Franklin County Court of Common Pleas to declare that the Director of the Ohio Department of Insurance must enforce currently existing rules prohibiting banks, real estate companies and mortgage brokers and their subsidiaries from engaging in the business of title insurance pursuant to Ohio law.

OAITA and Eagle are represented in the newly-filed lawsuit by E. Bruce Hadden, Gregory W. Happ and Robert B. Holman. The lawsuit alleges that Director Hudson failed to enforce current administrative rules based on long-standing Ohio statutes that prohibit banks, real estate companies or mortgage brokers, or any of their subsidiaries, from unlawfully steering Ohio homeowners and their real estate transactions to title insurance agencies owned all or in part by those same banks, real estate companies or mortgage brokers. The suit alleges that ownership of title insurance agencies by banks, real estate companies or mortgage brokers, known as controlled business arrangements, creates dangerous conflicts of interest by allowing those banks, real estate companies and mortgage brokers to obtain kickbacks and referral fees for steering Ohio homeowners to their own controlled title agencies. The lawsuit alleges that such conflicts of interest violate Ohio statutes and that Director Hudson has failed to construe newly enacted rules in accordance with the long-standing law.

The suit is an important step towards reducing the overreaching power and influence a bank, real estate company and mortgage broker have over a homeowner’s real estate transaction and, in particular, a homeowner’s statutorily protected choice of title insurance provider. The lawsuit is important since many homeowners do not even realize such a choice exists. By permitting banks, mortgage brokers and real estate companies to move into the title insurance business, the lawsuit alleges that the ODI’s inaction has helped to feed the pervasive greed that has overwhelmed the real estate industry in recent years. Considering the well-known impacts of the mortgage industry meltdown and the rise in foreclosures across the country, homeowners across Ohio are well-served by the filed action.

Independent title insurance agents serve as important checks and balances on the power of banks, real estate companies and mortgage brokers to unlawfully steer homeowners’ real estate transactions to controlled entities. Members of OAITA and Eagle Land Title Agency, Inc. are independent title insurance agents and independent real estate settlement service providers who refuse to give kickbacks or referral fees to banks, real estate companies and mortgage brokers for the real estate transactions they close. Instead, independent title agents: (1) help to reduce the cost of title insurance by not engaging in elaborate schemes to reward referral parties at the homeowners’ expense; (2) help to lessen the likelihood of real estate related litigation involving homeowners by not allowing referral party pressure to dictate closing requirements; and, (3) help restore trust and integrity in the fiduciary relationship that exists between homeowners and their settlement providers by insuring that only disinterested title agents provide title insurance services, not their referral parties.


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OAITA Complaint - Declaratory Judgment

Department Assures Third-Party Title Escrow Accounts Are Safe for Ohio Consumers

COLUMBUS – Ohio Department of Insurance Director Mary Jo Hudson announced, today, that Ohio consumers can feel protected because of a recent interpretation of federal law by the Federal Deposit Insurance Corporation (FDIC).

The FDIC has granted account guarantee program coverage to Ohio Interest on Trust Accounts (IOTA) by determining that IOTA accounts had the same status as Ohio Interest on Lawyers’ Trust Accounts (IOLTA). This positively impacts consumers because title agents routinely deposit client funds into their IOTA accounts on a temporary basis during real estate transactions. Those funds will now be protected while in the bank or depository institution in the same way that the consumer’s checking, savings, and certificate of deposit funds are protected, but will not be subject to the $250,000 maximum limitation.

This result may or may not apply to accounts maintained by title insurance companies in other states.

Anyone with questions about their insurance should call the Department’s consumer hotline at 1-800-686-1526 and visit www.insurance.ohio.gov for information.

Ohio Department of Insurance Contacts:

Robert Denhard, Public Information Officer (614) 644-3366
Jarrett Dunbar, Public Information Officer (614) 644-2475

MORTGAGE MELTDOWN Was Caused by Elimination of Safeguards

A hat tip to our friends at http://www.caare.org/ for writing the simple truth of the meltdown below (I wonder why you won't find this on 20/20 or 60 minutes?):

There are multiple real estate related industries that provide a safety net to real estate transactions. It is their job to uncover problems and disclose them to all interested parties. You could even say that it is their job to provide information that might “kill a deal” when the transaction is a bad one. If their ability to independently determine problems becomes compromised, then the entire infrastructure of residential real estate becomes compromised. Welcome to the Mortgage Meltdown of 2008.

Most consumers rely heavily upon Realtors in the selection process of services that provide safeguards to the integrity of the transaction. But does it make sense to have Realtors involved in that selection process? Should any professional who has a large financial stake in the outcome of a residential transaction be permitted to provide or select inspection, appraisal, mortgage, title or legal services?

If a Realtor has a $30,000 commission riding on a transaction, is he going to select a law firm or home inspection, mortgage or title company that is going to protect the integrity of the transaction or is that Realtor more likely to pick a service that is going to protect their commission by making sure that the transaction closes? How many bad loans never would have funded had the lender not been in a position to select the appraiser? How many bad loans are funding today because lenders who own foreclosed properties are insisting that buyers use their title company for the closing?

The fact that lenders can sell their mortgages, like commodities, to distant and detached investors contributed to the crisis because no one cared about the integrity of the loan that was being sold. However, is it really a bad thing to sell those mortgages? What if there were safeguards in place in the form of independent and unbiased determination makers who are untroubled by threats of boycotts or firing?

It was the removal of important safeguards that enabled the mortgage crisis. If those safeguards had not been intentionally nullified by a real estate industry accelerating out of control in a race for more and more unfair profits, those safeguards would have more than likely have uncovered the problem loans and killed them before they ever could have damaged anyone. We must get the real estate industry out of the supporting industries.

One stop shopping does not belong in a marketplace where some “shops” are supposed to be scrutinizing the other “shops.”

Our theory is that commissioned service providers should never have been allowed to have ANY involvement in the selection of the service providers whose job it was to find and disclose problems with the transaction. And by all means, they should NEVER have been permitted to have an ownership interest in those safeguard industries. Yet, that is exactly what happened and what is happening today.

Most supporting safeguard indus

There is really nothing complicated about this concept: It is even worse than the proverbial fox guarding the hen house because the are no consequences if the Realtor gets caught steering their clients into their hen-house (sp) title company. Even worse, the Realtors who are most successful in betraying their clients’ chickens (sorry, I meant trust) are portrayed as heroes and will have no worries when it comes time to negotiate their commission split with their broker.

The real estate industry vigorously protects and deceptively promotes the ownership of these safeguard industries as something that somehow benefits consumers and society. They have even gone so far as to provide tainted data to highly compensated research firms for “studies” that are then disseminated to governmental authorities in support of their conspiracy. They have taken this fox/chicken coop concept and spun it with appealing names like One Stop Shopping, Bundled Services and Affiliated Business Arrangements. They even got Congress to change the old term of Controlled Business Arrangements because it had “negative connotations.” Their persistence should come as no surprise once it is pointed out that ownership of these safeguard industries practically guarantees that almost all transactions will close and that they can charge whatever they want on these services that are largely misunderstood by consumers.

Unfortunately, their persistence in preserving their controlled business arrangements has also resulted in the near destruction of our economy. Home inspectors, appraisers, lenders, title companies and even lawyers have all been compromised. If they do their job and find problems with a transaction, they are never hired again. Replacing unbiased independent decision makers with chumps who rubber stamp transactions under the threat of being fired or boycott is today’s real estate mantra.

What to look for in a title agency?

Here are some quick points to remember when looking for a title agency to close your real estate transaction. I'm not trying to be self-serving here but think it is a basic checklist for anyone looking to safely close their transaction at any title agency.

• Length of business; How long have they been in business? Experience level is priceless. We at Eagle have been serving central Ohio for over 30 years with professional, ethical and friendly service.
• Value; Look for a title company that looks for ways to save you money! Compare prices - No Closing Fees, No Junk fees, No Padding; we at Eagle save customers between $400-$800 dollars on most of our closings!
• Independent Agent? - Are they affiliated with their lender, real estate agent or builder? Beware of affiliated business arrangements. They drive cost up and present many "conflicts of interest". Title Agent must be a neutral third party.
• Get it in Writing; Make sure they put estimate of title closing costs in writing. Have them prepare you a preliminary HUD settlement statement. Also, get a good faith estimate in writing from your lender.
• Closing Protection Coverage; It is now Ohio law that you should be offered Closing Protection Coverage. This protects you against possible title agent theft, misappropriation, fraud and any other failure of Licensed Title Agent; get the actual letter sent ahead of time before you close. It should be presented to you on initial contact.
• Survey; Make sure they offer you a survey if purchasing a new property before you close. You should review with your legal counsel before the closing takes place!
• Title Commitment; Make sure they provide the Title Commitment before you close. This is the results of the title examination. It has extremely valuable information regarding the propery that again should be review with your legal counsel before the closing!
• Valid Title Agents License; Check with the Ohio Department of Insurance (ODI) using their agent lookup feature to verify they have a valid Title Insurance Agents license and in good standing with their underwriter.
• Valid Underwriter; Check with their underwriter and make sure they are a valid agent. Make sure underwriter is a highly rated and reputable company.
• E & O Insurance Coverage; Check that they have E & O insurance coverage and make sure you get proof of the current policy.
• Other Important items; Ask about their cutting edge technology; CD-imaging of signed closing papers, website services such as online ordering and consumer information.

Independent Title Agents Matter

Top Reasons to use an Independent Title Agent

• CHOICE - We empower you to make the best choices possible. We suggest you shop and compare 3 different independent title agencies for price, service and convenience. We are confident that you'll like what you see and that you will come out on top!
• CONFLICTS OF INTEREST - We believe that real estate professionals have a fiduciary duty to their client and need to keep their clients best interest in mind. Self-dealing, unfair business practices, anti-competitive business practices, conspiracy to defraud, unjust enrichment and interference with a fiduciary relationship are just a few of the problems. Notwithstanding, we caution, what better way to lock-in business, destroy competition and raise prices without consequences than to incentivize fiduciaries to manipulate their clients about choosing a title company?
• SAVINGS - We don't participate in Affiliated Business Arrangements (AfBAs). This is an active choice we make to better meet your needs and serve you. We do not pay referral fees, inducements or incentives to real estate or lending professionals. Instead, we pass these savings on to our customers.
• AUTONOMY -With freedom of one's action, we are less pressured into doing business with any particular person or company, therefore, customer service, competitive pricing, quality of work and higher standards are always in mind for our customers.
• HONESTY/DUTY- We keep our relationships honest, allowing us to focus on what we do best: looking out for your needs, providing choices and protecting you, our customer. We feel it is a duty and privilege to serve you.
• ALLIANCE - Being a proud member of the Ohio Association of Independent Title Agents. We believe that truly independent title agencies make title insurance costs more competitive, help lower title insurance claims and protect the ultimate consumer from costly real estate related litigation, displacement from their home and horrible inconveniences.
• REPRESENTATION - We believe that you should be represented by legal counsel throughout your transaction.
• PLEDGE - We not only adhere to higher standards of professionalism and integrity but have made a pledge to the consuming public.
• TRANSPARENCY - Since when does it make sense to have the real estate professional examine their own title work? Homebuyers are often completely reliant on a real estate agent for expertise and advice on all aspects of a real estate transaction , including finding a title company, but the real estate agent and lender knowingly places their client in a position of complete vulnerability and then "takes financial advantage" of them by sending them to their in-house title company. A person should never violate Trust for secret profit.
• SAFEGUARDS - We are neutral third parties providing the safeguards, integrity and "checks and balance" to the transaction. It is our position that people involved in controlled business arrangements should have NO involvement with the title agent who is supposed to uncover and disclose to all parties all problems with the transaction.
• TRUTH - We don't believe in the "One Stop Shopping" OSS concept. In-house title agencies are just smoke and mirrors. Even more startling is that consumers are actually told by the real estate associations like RESPRO.ORG that they want OSS and bundled services. If OSS were properly disclosed to consumers we believe that the truth would far outweigh any benefit. OSS removes all the safeguards, eliminates competition, representation and violates the consumers best interest.

New Document Recording - ORC 317.114

Effective July 1, 2009, Ohio Revised Code §317.114 establishes new rules for the recordation of documents in Ohio as follows:

(A) Except as otherwise provided in division (B) of this section, an instrument or document presented for recording to the county recorder shall have been prepared in accordance with all of the following requirements:

(1) Print size not smaller than a computer font size of ten;
(2) Minimum paper size of eight and one-half inches by eleven inches;
(3) Maximum paper size of eight and one-half inches by fourteen inches;
(4) Black or blue ink only;
(5) No use of highlighting;
(6) Margins of one-inch width on each side of each page of the instrument or document;
(7) A margin of one-inch width across the bottom of each page of the instrument or document;
(8) A three-inch margin of blank space across the top of the first page of each instrument or document to accommodate any certification or indorsement of the county engineer, county auditor, or county recorder, as may be required by law, with the right half of that margin being reserved for the indorsement of the county recorder required by section 317.12 of the Revised Code; and
(9) A one and one-half-inch margin across the top of each of the remaining pages of the instrument or document.

The county recorder shall accept for recording an instrument or document that does not conform to the foregoing requirements but shall charge and collect the following additional fees for each such instrument or document: an additional base fee for the recorder's services of ten dollars and a housing trust fund fee of ten dollars, which shall be collected pursuant to section 317.36 of the Revised Code.

(B) This section does not apply to any of the following:
(1) Any document that originates with any court or taxing authority;
(2) Any document authorized to be recorded under section 317.24 of the Revised Code;
(3) Any plat, as defined in section 711.001 of the Revised Code, that is required or authorized by the Revised Code to be recorded;
(4) Any document authorized to be recorded that originates from any state or federal agency;
(5) Any document executed before the effective date of this section.

Closing Protection Coverage - what's that?

Many think they don't need it but you better think twice. Many real estate agents and professionals don't even know what it does or why we as a title agent bug everyone to death to get the required notice signed by all the parties at the beginning of each transaction which is required by law.

Closing Protection Coverage (CPC) was created to protect the consumer directly from the title agent. Simply because of the many title agent defalcations and fraud that happened right here in the state of Ohio and even here locally in Columbus that crushed and financially destroyed many consumers. Unfortunately, there were title agents that forgot to pay off mortgages among other things and then went out of business.

First, let me say that CPC has always been offered to lenders and most lenders have always required it. It wasn't until recently January 1, 2007 that the Ohio legislature put into law that we have to offer it to all parties of a real estate transaction. This includes both the buyers, sellers and the lender. I know, I know, you are thinking, you just want to sale this coverage to make money. No, not at all. Actually, we as the title agent do all the logistical work of creating, collecting, reporting and remitting to our underwriter and never receive one cent.

So, your now thinking so why does he want to sell this so bad? Well, because this is probably one of the best things the lawmakers have done to protect the ultimate consumer from all the fly by night title companies and unscrupulous agents. Actually, in these times, I personally would purchase it no matter where I closed and no matter whether it was a purchase, sale or refinance. The public and the real estate professional think that because there is title insurance involved that they simple don't need it.

The official description of coverage says the following:

The Closing Protection Coverage indemnifies you against the loss of settlement funds resulting from any of the following acts of the Licensed Agent or anyone acting on behalf of the Licensed Agent, subject to certain conditions and exclusions specified in the Closing Protection Coverage Form:

1) Theft, misappropriation, fraud, or any other failure to properly disburse settlement, closing or escrow funds; and 2) Failure to comply with any applicable written closing instructions, when agreed to by the Licensed Agent.

There are just two many things that can go wrong that could effect you as the consumer that could possibly be covered with this insurance. Plus, more importantly it puts the underwriter on the hook for the agents actions.

Still, even today, we have many real estate professionals that advise their clients not to purchase it in order to save the mere $15 dollars if purchasing and $50 if selling a home. They usually say this because they have high regard for our company, maybe because we have been around for 30 years, and we appreciate that, but it won't hurt our feelings one bit if you recommend it, and that advice doesn't do the consumer any good if something happens even beyond our control.