Thursday, May 29, 2008

Congresswoman Battles Foreclosure

Congresswoman Battles Foreclosure
By ERICA WERNER,
AP
Posted: 2008-05-24 11:41:29
Filed Under: Nation News, Politics News
WASHINGTON (May 24) - Congresswoman Laura Richardson claimed Friday that her Sacramento home was sold into foreclosure without her knowledge and contrary to an agreement with her lender. But foreclosure buyer James York say the house is his now.Richardson said that she is like any other American suffering in the mortgage crisis and wants to testify to Congress about her experience as lawmakers craft a foreclosure-prevention bill.
Richardson said she has renegotiated her loan to pay it off and promised to fully comply with all its terms. She also said she will pay nearly $9,000 in delinquent property taxes.In a lengthy interview with The Associated Press on Friday night, the Southern California Democrat struck back against several days of negative publicity over reports she defaulted on her mortgage, allowing the house to be sold at auction.Richardson, elected in a special election last August, acknowledged turmoil in her life in the months after an incumbent's death in April opened up the Los Angeles-area House seat.She used her money to finance her campaign and fell behind in mortgage payments. But Richardson said that makes her like other Americans who have to deal with a sudden death or birth that throws a wrench into their finances.She insisted she's not getting special terms because she's a congresswoman."I'm Laura Richardson. I'm an American, I'm a single woman who had four employment changes in less than four months," Richardson told the AP. "I had to figure out just like every other American how I could restructure the obligations that I had with the income I had."Richardson was a member of the Long Beach City Council when she won a California state Assembly seat in November 2006, months before she bought the three-bedroom, 1 1/2-bath Sacramento home. She won the congressional seat the next year in the special election to replace the late Juanita Millender-McDonald.The problem is that the 1,600-square-foot home she bought for $535,500 in January 2007 was sold at auction earlier this month to a Sacramento mortgage lender, who paid $388,000. The sale was officially recorded on Monday, according to documents on file with the county Recorder's Office.A default notice sent to Richardson in March put her unpaid balance at $578,384.Richardson makes nearly $170,000 as a member of Congress and was paid $113,000 during the eight months she served in the Assembly in 2007 before her election to Congress. She also received a per diem total of $20,000 from California, according to a financial disclosure form she filed with the House of Representatives clerk.Although others struggling with mortgages make far less, Richardson said it was "very misleading" to compare her earnings to the national median household income of around $50,000. The reason: Lawmakers are required to maintain two residences while other people don't have to, she said.Richardson provided AP with an April letter that appears to be from Washington Mutual Home Loans telling her that there was a hold on foreclosure sales on her property until June 4 of this year.She said she got another letter asking for payments May 2 and paid them, but did not know the sale was going to happen five days later.Richardson also provided an e-mail dated Thursday she said was from Washington Mutual that appeared to acknowledge an agreement "to facilitate the recission of foreclosure sale."A Washington Mutual spokeswoman, Sara Gaugl, told AP earlier in the day that the company had "not received consent from Ms. Richardson that would allow us to discuss her loan situation."Washington Mutual did not respond to a later inquiry seeking comment on Richardson's claims.Meanwhile, the current owner of the property told AP that his ownership of the house is not in doubt.James York, owner of Red Rock Mortgage Inc. of Sacramento, declined to discuss any possible negotiations that might be ongoing."I've taken possession on the home," York said. "I've been working on it. Fixing it up. It had been vacant. It was in cleaner and in better repair than most foreclosures."The home, built in 1926, is in Sacramento's Curtis Park, a desirable, upper middle-class neighborhood near downtown that sits under a canopy of decades-old trees.
Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.

Saturday, May 24, 2008

Springfield Update

Illinois Association of REALTORS
Quorum Call Week in Review
May 23, 2008


Quorum Call is distributed Fridays when the Illinois General Assembly is in session. For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org. Full text of legislation cited in this newsletter can be found at www.ilga.gov.


“Taxation with representation ain’t so hot either.”
~Gerald Barzan
- This week, both the House and Senate took final action on a number of substantive bills as this spring session heads toward what is hoped to be the final days- however, the State budget still remains the wild card. The House and the Senate have passed separate budget measures so negotiations must continue in an effort to craft an agreed final plan. The Senate’s version included over $500 million in sweeps from various dedicated funds with the exception of certain funds including those funds that have been the subject of lawsuits to prevent such action.

- On Wednesday, the Governor signed into law Senate Bill 2052, legislation sponsored by Senator Bill Haine and Representative Dan Beiser, creating the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair (P.A. 95-719). These counties are authorized to establish a flood prevention district for the purpose of performing emergency levee repair and flood prevention. The counties are also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. In related action, the Senate approved a “trailer bill” this week to make necessary additions to this new State law related to the administration of the district including the authority to use excess funds accumulated prior to January 1, 2008 by a sanitary district in their tort liability fund. This trailer bill must also be approved by the House. The IAR SUPPORTS this bill.

- Senate Bill 2014, sponsored by Senator Susan Garrett and Representative Sid Mathias, was overwhelmingly approved by the House on Tuesday following the same action by the Senate in April. This bill clarifies Illinois law related to actions of local governments that are subject to de novo review. The IAR SUPPORTS this bill which has been sent to the Governor for his consideration.

- The House unanimously approved Senate Bill 2110 this week and the measure has been sent to the Governor for his consideration. This bill, sponsored by Senator A.J. Wilhelmi and Representative Careen Gordon, creates the Uniform Environmental Covenants Act. This legislation provides that an owner of real property may voluntarily enter into an environmental covenant with an agency and, if appropriate, one or more holders. The covenant must be recorded and it is subject to the laws governing recording and priority of interests in real property. The purpose of the Act is to control the future use of brownfield sites for the protection of health and the environment. The IAR is NEUTRAL on this legislation.

- Also approved this week and sent to the Governor was House Bill 4129, sponsored by Representative Frank Mautino and Senator Bill Haine. This bill amends the Private Sewage Disposal Licensing Act, to allow for new technology to be used as an option for smaller septic systems that service primarily residential properties. The intent is to allow for new technology, tested and proven in other states and often at a lesser cost, to be used in Illinois. The IAR SUPPORTS this legislation.

- House Bill 4195, sponsored by Representative LaShawn Ford and Senator Mattie Hunter, was unanimously approved by the Senate this week following similar action by the House in April. This bill amends the foreclosure provisions within the Code of Civil Procedure to add language regarding notice provisions with respect to residential real estate. The law will require that notice be sent to the homeowner, even if the homeowner has previously been held in default. If the homeowner has filed an appearance, the notice must be sent by mail to the address indicated on the appearance. In all other cases, the notice must be mailed to the homeowner at the common address of the foreclosed property. The notice is required to include, in 12-point boldface capitalized type, the statement that the homeowner has the right to remain in possession for 30 days after entry of an order of possession. The IAR is NEUTRAL on this legislation.

- House Bill 4611, sponsored by Representative Connie Howard and Senator Mattie Hunter has been approved by both chambers and sent to the Governor for his consideration. The bill expands the “Our Own Home Program” within the State Treasurer’s office. This program, established in 2002 assists Illinois residents buy a home or keep their existing homes from going into foreclosure. “Our Own Home” provides lenders with extra security on mortgages they might otherwise reject. The Treasurer’s Office guarantees 10 percent of each loan amount for the first five years of the mortgage. Under the provisions of the bill, the Treasurer’s office will assist mortgage holders in refinancing, in addition to loans for purchasing a home. In addition, the legislation redefines “home loan” within the program to remove the 50% cap on the conforming loan size. The IAR is NEUTRAL on this legislation.

- House Bill 1842 was approved by the Senate this week and sent back to the House for their concurrence. You may recall that in 2004 the General Assembly enacted the Energy Efficient Commercial Building Act. This law required that all commercial buildings constructed, renovated or modified conform to the International Code Council’s International Energy Conservation Code. House Bill 1842 expanded the Act to include construction of residential buildings. Initially approved by the House in 2007 over the objections of the IAR and the Home Builders Association, the bill was rewritten by the Senate to reflect the negotiations among all parties. While the bill expands the Act to cover both commercial and residential buildings there were important provisions added to address specific concerns of the IAR and the Home Builders. The bill will provide that the Code shall be the minimum/maximum energy efficiency requirements for the new construction of all residential buildings in the State. Additions, alteration, renovations or repairs to existing residential structures are exempted. Currently 127 municipalities and 7 counties have already adopted a Code by ordinance and are authorized to continue to administer their Code in place on or before May 1, 2008. HOWEVER those units cannot, in the future, enact less or more stringent standards than the standards established in this Act. The bill also prohibits a unit of local government from enacting an annexation ordinance or resolution or annexation agreement that would impose energy efficiency building standards less or more stringent that the standards in effect throughout the jurisdiction of that government. The IAR SUPPORTED the negotiated amendment added by the Senate and has removed its opposition to the bill.

- Final legislative action was taken on three bills dealing with Tax Increment Finance (TIF) Districts Senate Bill 2298 extends the life of the TIFs in both West Frankfort and Milan; House Bill 4201 extends the life of the TIF in the village of Downs; House Bill 4548 extends the life of the TIF in the village of Libertyville. The IAR is NEUTRAL on these bills which have been sent to the Governor for his consideration.

- Senate Bill 2387 was approved by the House this week following similar action by the Senate in April. This bill, sponsored by Senator Jacqueline Collins and Representative Karen Yarbrough, adds homeownership, including the basic process of obtaining a mortgage and the concepts of fixed and adjustable rate mortgages, subprime loans, and predatory lending, as a component of consumer education courses taught in Illinois high schools. The bill has been sent to the Governor for his consideration.

- House Bill 1361, sponsored by Representative LaShawn Ford and Senator Rickey Hendon, was unanimously approved by the Senate this week. The bill makes changes to the Real Estate License Act related to escrow monies. As we reported earlier, this bill was approved by the House in the 2007 session following negotiations between the IAR and Representative Ford. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to Governor for his consideration.

- House Bill 4687, sponsored by Representative Michael Boland and Senator Michael Frerichs, has been approved by both chambers and sent to the Governor. This bill permits the board of any fire protection district to establish a grant program for residential property owners who wish to install a sprinkler or other fire suppression system.

- The Senate took final action on House Bill 4196 this week, a measure that extends the date for the submission of the report of the Condominium Advisory Council to January 31, 2009. Senator John Cullerton, the Senate sponsor had proposed amendments to the measure that sought to enact procedures for tax sales and scavenger sales of condominiums and townhomes. However, these provisions were controversial and ultimately removed from the bill. The IAR is NEUTRAL on this proposal which has been sent to the Governor for his consideration.

- In 2003 the Elevator Safety and Regulation Act was enacted into State law. This is the State law that covers the construction, operation, inspection, testing, maintenance, alteration and repair of elevators, escalators moving walks and dumbwaiters. The Act is administered by the State Fire Marshal’s office and includes the licensure of contractors, inspectors and mechanics as well as the permitting, annual registration and annual inspection of existing conveyances. While private residences, including apartment and condominium units, are exempt from the Act, apartment and condominium buildings with elevators are covered under the Act. Also of note, the Act does NOT apply to the city of Chicago. This week the Senate approved Senate Bill 886 which specifies that rules adopted under the Act requiring safety code upgrade compliance beginning in 2009 or 2011 is extended to 2013. Senator Don Harmon, the sponsor of the measure indicated that this will allow budgeting for condominium associations to comply but not compromise safety. This measure has been sent to the House for their consideration. Representative Skip Saviano is the House sponsor.

- The House unanimously approved House Bill 5067 this week and sent the bill to the Senate for their consideration. This bill is the rewrite of the Real Estate Appraiser Licensing Act. The IAR was involved in negotiations on the measure and SUPPORTED the bill as approved by the House. The bill is sponsored by Representative Skip Saviano and Senator William Delgado.

- The Senate also approved House Bill 3106 this week. This measure grants the requisite State authority to the city of Champaign to exercise quick-take eminent domain powers for a period of one year for drainage and improvements related to the Boneyard Creek Project (a flood control project). This bill has been sent back to the House for concurrence. HB 3106 is sponsored by Representative Shane Cultra and Senator Michael Frerichs. The IAR is NEUTRAL on this measure.

- The Senate approved an amended version of House Bill 4207 this week and sent the bill back to the House for their concurrence. The bill amends both the Criminal Code and the Landlord and Tenant Act to provide that it is unlawful for a child sex offender who owns and resides at residential real estate to knowingly rent any residential unit within the same building in which he/she resides to a person who is the parent or guardian of a child or children under 18 years of age. This provision shall apply to those leases or other rental arrangements entered into after the effective date of the bill. This bill is sponsored by Senator Iris Martinez and Representative JoAnn Osmond.

- The House Judiciary I- Civil Law Committee advanced Senate Bill 2128, legislation seeking to license community association managers, to the House floor this week as negotiations continue. The IAR is working with proponents of the measure and hope to have an agreement soon.

- House Resolution 1199, in celebration of the 75th anniversary of the Institute of Real Estate Management (IREM), was adopted by the House this week.

- Members of both the House and the Senate return to Springfield next Tuesday in an effort to conclude business for the spring by Saturday, May 31st. The General Assembly has extended the deadline for final action on bills remaining on the calendar to May 31st. Among the many bills in this category are two bills OPPOSED by the IAR- Senate Bill 2287 (amending the Safe Homes Act) and House Bill 2916 (authorizing local regulation of landlords). Watch for a possible Call to Action on these issues next week.

- Check out the Government Affairs section of the IAR website for a status report on all State issues of interest.



For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Contact information for members of the House and Senate, notice of committee hearings, text of legislation and roll call votes are all available on the Illinois General Assembly’s Web site, www.ilga.gov.

Monday, May 5, 2008

Springfield Update

Quorum Call is distributed Fridays when the Illinois General Assembly is in session. For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org. Full text of legislation cited in this newsletter can be found at www.ilga.gov.

“Private property began the instant somebody had a mind of his own.”
~e. e. cummings
- While the Speaker of the House, Michael Madigan, announced on Thursday that the House would return Sunday to consider SJRCA 70- the resolution that provides for the constitutional amendment to be placed on the November ballot to authorize the recall of State executive officers, members of the General Assembly, judges and local elected officials the measure FAILED in the Senate by 3 votes. The measure needed 36 votes to pass but it was defeated on a roll call vote of 33-19-2. This measure differed from the House version (HJRCA28) in that it included judges and local elected officials. The House resolution was held in the Senate Executive Committee and there was no final vote. As we previously reported, under the provisions of our constitution an initiative to amend the constitution would have had to be approved in the same form in both chambers by May 4th to be on the ballot in November. See how your Senator by viewing the official roll call:
http://www.ilga.gov/legislation/votehistory/95/senate/09500SC0070_05012008_002000T.pdf

- The House Revenue Committee unanimously approved for consideration House Bill 5730, a measure that extends the life of the TIF district in the village of Hoffman Estates. The bill has been sent to the House. The IAR is NEUTRAL on this proposal.

- On Wednesday, the House approved Bill 5503 on a roll call vote of 83-26-0. This measure, sponsored by Representative Skip Saviano and Senator Don Harmon, makes changes to the Real Estate Timeshare Act to further clarify provisions requiring that resale agents be licensed under the Real Estate License Act. The IAR SUPPORTS this legislation which has been sent to the Senate for their consideration.

- The House overwhelmingly approved House Bill 4683 this week and sent the measure to the Senate for their consideration. The bill creates the Fire and Life Safety Device Act to establish penalties for the manufacture, installation or sale of any fake smoke detector, sprinkler head, carbon monoxide alarm, or heat detector used for life safety or fire protection. The measure permits inspection of the devices to ensure compliance with the Act by municipalities, fire protection districts, counties, licensed fire sprinkler contractors and licensed engineers BUT no such inspection can be conducted in any room or suite of rooms used for human habitation, including any single family residence, living unit of a multi-family residence or living unit in a mixed use building. The IAR appreciates the efforts of Representative Elaine Nekritz to address concerns that the IAR had with the original proposal. The bill will be sponsored in the Senate by Senator Michael Noland.

- Also approved this week was House Bill 4789. The underlying bill creates the Radon-Resistant Building Codes Task Force, made up of 13-members (including a member of the IAR) charged with making recommendations to the Governor, the Illinois Emergency Management Agency, the Illinois Environmental Protection Agency, and the Pollution Control Board concerning the adoption of rules for building codes. At the request of the IAR the bill also includes clarifications to the Illinois Radon Awareness Act, including a provision that clearly exempts transfers involving a dwelling unit located on the third story or higher above ground level, including dwelling units in condominiums and cooperatives. The bill now moves to the Senate for their consideration. The bill is sponsored by Representative Dan Reitz and Senator Bill Haine. The IAR SUPPORTS this bill.

- House Bill 5701 was unanimously approved this week in the House and sent to the Senate for their consideration. This bill, sponsored by Representative Julie Hamos and Senator Iris Martinez, appropriates $6 million from the Rental Housing Support Program Fund to the Illinois Department of Revenue for rent subsidies to property owners who rent to low-income tenants and for operational support of the Rental Housing Support Program administered by the Illinois Housing Development Authority. The funds from this program, established by law in 2005, are generated by a flat $10 surcharge on recorded real estate-related documents.

- On Thursday the Senate Financial Institutions Committee unanimously approved for further consideration House Bill 4191. This bill, sponsored by Senator Jacqueline Collins, accelerates the effective date of Senate Bill 1167 approved in the 2007 spring session. You will recall that this comprehensive predatory lending measure was slated to take effect in mid-2008. That measure enacted new predatory lending regulations that were the initiative of Attorney General Lisa Madigan and revised the predatory lending database provisions originally enacted in House Bill 4050. Under HB 4191, the new effective date of the Attorney General’s provisions would be on the date it is signed by the Governor (rather than June 1) but the predatory lending database provisions would still be effective July 1, 2008 due to a stated effective date for those provisions. Another section of HB 4191 amends the Deposit of State Moneys Act to grant the State Treasurer the ability to expand the “Our Own Home” program which provides assistance to home owners at risk of losing their homes due to a financial hardship. The bill has been sent to the Senate floor for further consideration. This measure, sponsored in the House by Speaker Michael Madigan, was approved in that chamber in January. The IAR is NEUTRAL on HB 4191.

- Also approved by the Senate Financial Institutions Committee was House Bill 1361. This bill, sponsored by Senator Rickey Hendon, makes changes to the Real Estate License Act related to escrow monies. This bill from the 2007 session, sponsored in the House by Representative LaShawn Ford who is also a REALTOR was the product of negotiations between the IAR and the sponsor. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to the full Senate for their consideration.

- This November voters statewide will be asked if a constitutional convention should be convened. A recent poll by the University of Illinois on the question of the convening of a constitutional convention indicated 16% strongly support, 23% support, 10% oppose, 8% strongly oppose. But a very high number of those polled- 43%- remain undecided. According to Brian Gaines, the political scientist at the University of Illinois who coordinated the poll, frustration with state government is reflected in the poll results as both recall and term limits (which could be considered by the convention) were strongly supported by poll respondents. See the poll results at the following link: http://www.igpa.uillinois.edu/opinionmonitor/results4.asp The IAR Leadership recognizes the importance and statewide implications of the convening of a constitutional convention. In March the Leadership team directed the Public Policy and Government Affairs Member Involvement Group to establish a Task Force to develop policy recommendations and to report same to the Leadership Committee. The eleven-member Task Force, chaired by Public Policy and Government Affairs MIG chairman Chuck Wiercinski, has been established and will be meeting in early June.

- The General Assembly is in session next week. The House will reconvene on Tuesday and be in session through Friday while the Senate will meet Wednesday through Friday.



For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Contact information for members of the House and Senate, notice of committee hearings, text of legislation and roll call votes are all available on the Illinois General Assembly’s Web site, www.ilga.gov.

Members meet with Senator Murphy after Legislative Breakfast