WE’RE HEARING from New York, known as the Empire State. Finally some good news may be coming out of the three natural disasters (two hurricanes and one tropical storm) to hit the state over the last few years. The money is coming from federal funds under two separate programs and will be earmarked to be spent in 102 communities that were hardest hit by the storms.
Half a billion dollars will be made available through the New York Rising Community Reconstruction Program to help rebuild in the 102 communities. One-quarter of a billion dollars will also be made available to the communities under the state’s FEMA funded Hazard Mitigation Grant program.
What does this have to do with mortgage brokers, LOs and lenders in these areas? The answer is simple. Jobs to rebuild and a flow of money of that magnitude will lead to a need for mortgage loans.
Recently I came across a federal/state funded mortgage loan program where I own a home in Michigan. It was a sweet deal but after speaking with the powers that be it became clear I would not qualify for the program based on assets and income. Oddly the program rep then told me that people who met the asset and income requirements would probably not meet another requirement which was to have equity in the home. After hanging up it occurred to me that I should have asked what happens to the money designated for the program if no loans are made?
Then I went online to get more particulars about the program and discovered all sorts of other loan programs available but not a lot of the specific details about the programs. It seems like there is a lot of government money out there for housing and the question is how to get it. Sounds like something an enterprising independent mortgage broker should look into and figure out how to make a profit doing it.
While we are on the topic of my home state of Michigan I should also point out that the expiring mortgage loan modification program (foreclosure mitigation) has now been extended until June 30, 2014. Also a new set of rules kicks in on Jan. 9, 2014 again designed to encourage workouts of defaulting loans by requiring a meeting with borrowers and a lender rep on homes that are someone’s principal residence.
A related foreclosure story is something I came across in a legal notice. I have been reporting on strange doings around the nation where people are filing all sorts of creative documents related to real estate. The legal notice I read on close examination was not done by an attorney. It started out with legalese and contained the legal description of the property but then became bizarre. In addition to the homeowner pledging allegiance to the constitution and bill of rights, they demanded to see the “dry ink” mortgage that their lender was relying on to foreclose their home. Good luck with that.
Finally today we end in North Dakota where the AG recently issued an opinion to clarify things for the county recorders or register of deeds. The opinion gives the recorders the option but not the obligation to record a deed which references a legal description contained in another recorded document. I am surprised the title company industry let that slip by because it will be adding to their workload if they have to look beyond one document to find a description in another document.
Based in Chelsea, Mich., John McDermott is a real estate and elder care attorney who represents both consumers and businesses. He can be emailed at
