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BP claim reassures residents
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| Written by R.J. Dean |
| BILOXI, Miss. – July 19, 2010 – Kenneth Feinberg, the Washington attorney who will take over BP’s $20 billion claim fund within the next few weeks, assured Gulf Coast residents Friday that he will compensate eligible people and businesses damaged financially by the Deepwater Horizon catastrophe. “I am beholden neither to the administration nor BP,” said Feinberg, who has cemented a reputation for fairness and compassion as administrator of the 9-11 Victim Compensation Fund in New York. “I work for the people in the Gulf.” Feinberg has been hosting town hall meetings in the Gulf states to explain in layman’s terms how the fund will work. His approach was straightforward when he spoke to an audience of more than 200 on Friday at the Coast Convention Center in Biloxi. He said his job is to distribute money to people, and businesses large and small, with proven losses. “I think you’re crazy if you don’t sign up,” Feinberg said. “It’s up to you.” He said people are free to hire attorneys, but they should be prepared to spend five years in litigation. They are also welcome to have attorneys accompany them to file claims, or to consult one of the pro bono lawyers he is lining up to help with the process. He credited BP with already having paid $200 million in claims. That money, he said, is not being deducted from the $20 billion fund. BP has pledged to continue honoring claims if the initial fund is drained. A couple of major changes to the claims process are coming. Feinberg wants to expedite payments to businesses. He said those payments have moved more slowly than individual claims. Rather than monthly payments for emergency claims, which Feinberg called “ridiculous,” the independent fund will offer emergency payments for six months of losses. People who accept those payments will not give up any rights to later sue BP. Individuals also will be able to calculate and submit claims for their total losses, but must sign away their rights to sue in accepting lump-sum payments. Total-loss claims will be verified by experts before payment. “If you think it’s fair and time to move on, take the check,” Feinberg said. “If not, don’t take it.” Feinberg said the fund will not pay claims for mental anguish or suffering, but will pay claims for physical illness, injury or death. He said he will “bend over backward” to help people document their financial losses so they can get paid. His office will be watchful for fraud. After his 30-minute presentation, Feinberg answered questions. He offered answers that were direct and to the point. Several times he acknowledged he did not have an answer yet. Many of the questions came from real estate professionals who said the oil catastrophe has stifled the market. One broker wanted to know if a claim would be paid when property was under contract and it could be proved the deal fell through because of the oil disaster. “This is tough,” said Feinberg, who added he has received a lot of questions about real estate. “I understand that argument. I don’t have an answer yet to that argument.” He said he won’t rule out payment. “We’ll have to just work our way through this,” he said. Feinberg made it clear from the start he will be working in the Gulf states. “You can not explain this program from Washington,” he said. “You can not run this program from Washington. You’ve got to come down to Mississippi, Louisiana, Alabama and Florida and explain this program to the people, explain what this program can and cannot do.” © 2010 The Sun Herald (Biloxi, Miss.), Anita Lee. Distributed by McClatchy-Tribune News Service. R.J. Dean, Realtor rjdeanhomes@gmail.com www.rjdeanhomes.com Cell: 239-994-0012 |
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Fannie Mae gets tough
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| Written by R.J. Dean |
| WASHINGTON – July 19, 2010 – Borrowers who walk away from mortgages they can afford to pay – making “strategic defaults” – are running increasing risks that they’ll be penalized for doing so. Starting in October, Fannie Mae says, strategic defaulters will be disqualified for new Fannie Mae-backed loans for seven years after their foreclosures. Fannie also says it will go to court where it can to recoup outstanding mortgage debt from borrowers who strategically default. Under a bill that’s passed the House and awaits Senate action, the Federal Housing Administration would be barred from insuring mortgages for those who previously ditched a mortgage they had the ability to pay. Get-tough policies are forming at the same time that about a quarter of mortgage borrowers owe more than their homes are worth. Fannie Mae buys about 40 percent of all mortgages and packages them for resale to investors. The FHA insures about 30 percent of home mortgages. Freddie Mac, which also buys mortgages, says it is examining Fannie Mae’s policy. To determine if a borrower is in default, Fannie examines whether the homeowner still has access to credit and is paying that debt and others. Cracking down on strategic defaulters is controversial. Some lenders say it is necessary to stem the tide of homeowners shirking their obligations. “We need to start treating bad behavior with serious and measureable consequences so that we can get this nation back on its feet,” says Daniel Smith, vice president of mortgage banking at First Place Bank in Livonia, Mich. “Washington needs to come up with a uniform law on this issue.” Others say homeowners who may appear guilty of strategically defaulting really can’t afford to make mortgage payments. “It seems like an overreaction,” says Howard Banker, a founder of Fair Mortgage Collaborative, a consumer education non-profit in New York. “If you do default, it goes into foreclosure, and that’s already very damaging to your credit.” Other policies may be more effective than penalizing strategic defaulters, says Mark Zandi, chief economist of Moody’s Analytics. Changing bankruptcy laws to allow bankruptcy judges to reduce debtors’ mortgages is an example, he says. “I’m not a big fan of using the stick to get people to stay in their homes. There are instances where it makes no financial sense for them to stay in their homes,” Zandi says. “And how do you know, really, if someone is strategically defaulting?” Two out of five homeowners say they would consider walking away from their mortgages if their homes were worth less than what they owed, according to a survey by Trulia and RealtyTrac. © Copyright 2010 USA TODAY, a division of Gannett Co. Inc., Stephanie Armour. R.J. Dean, Realtor rjdeanhomes@gmail.com www.rjdeanhomes.com Cell: 239-994-0012 |
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Save transaction time
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| Written by R.J. Dean |
| ORLANDO, Fla. – July 19, 2010 – In creating Florida Realtors ® Form Simplicity – an included benefit for Florida Realtors members – the designers had a single goal in mind: Make a product that is easy to use and that saves time. “Our team recognized that Realtors want to spend their time talking to clients and building business rather than on paperwork,” said Joe Ballarino, president and chairman of Real Estate Industry Solutions, Florida Realtors wholly owned subsidiary and the developer of Form Simplicity. “We wanted to create a product that would ease that process for them.” The transaction program’s time-saving features include: Library Print a form and go. Users do not need to create a transaction record in order to print a form. Once they log in to Form Simplicity, a click on “Library” brings up all available forms. From there, users can click, print and go. MLS data integration If users enter an MLS listing ID within an online transaction, the data instantly imports into their forms – no need for retyping. Data synchronization Form Simplicity auto-populates form fields. Users enter information only once, and it automatically populates within all the corresponding fields in the transaction. A buyer’s street address entered on the original contract, for example, would automatically be added to any forms or addendums related to that transaction. And if that address is misspelled, the user only needs to correct it on any form for it to changed throughout the transaction. Long-term storage Active and closed transactions are stored online. This saves time in two ways: First, stacks of paperwork no longer have to be printed, photocopied and stored in boxes. Second, users have access to all their records, both open and closed, through their laptop, smart phone or other portable device. Form Simplicity’s server redundancy system offers the safest and most secure means for storing transactions. Form Simplicity is a member benefit to all Florida Realtors members, and more information is available online. (Peggy: Link to: http://www.floridarealtors.org/ToolsAndSupport/FormSimplicity/index.cfm ) Realtors log in using the same ID used for floridarealtors.org. New users may also access a free training webinar and watch an overview video of the product on its homepage. For questions, e-mail Info@FormSimplicity.com . For technical support, call the Florida Realtors Technology Helpline, a free member benefit, at: (407) 587-1450. © 2010 Florida Realtors® R.J. Dean, Realtor rjdeanhomes@gmail.com www.rjdeanhomes.com Cell: 239-994-0012 |
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