Question: What is a homestead exemption, how much is it for and what does it do? My sister owns a detached single-family home in a common interest development and has a homestead exemption. She told me to do the same on my condominium. Can I put the exemption on my condo? If the association tries to nonjudicially foreclose on me, will the homestead exemption protect me?
Answer: Simply, a “homestead” is your home. Although the equity in your home may be available to your creditors, many states, including California, provide for a “homestead exemption” as a way of protecting some, or all, of your equity.
Property subject to a homestead exemption is not limited to condominiums like yours in a common interest development. Single-family homes, mobile homes and boats also are among the dwellings that can qualify.
For debtors with multiple homes, only the principal dwelling qualifies. That is defined as the home in which the owner lives on the date a judgment creditor’s lien attaches to the dwelling and in which the judgment debtor resided continuously until the date of the court determination that the dwelling is a homestead.
California homeowners receive an automatic homestead exemption to protect equity when a court forces the sale of a house to pay for a judgment. The automatic exemption can be claimed only by a debtor who resides, or is related to one who resides, in that homestead property at the time of the forced judicial sale of the dwelling.
The Oregon father and son threatened with foreclosure on their Newberg property have received another reprieve, the bank holding their mortgage said Monday.
John Cox, who was featured in the 2013 HBO documentary “American Winter” about the plight of unemployed families in the Portland area, faced auction of his property Wednesday. According to court documents, Cox owes more than $551,000 in principal, interest, taxes and other expenses on the nearly 5-acre property.
Wells Fargo spokesman Tom Unger said Monday, “The foreclosure sale has been postponed.”
“We are continuing to work with Mr. Cox,” Unger said in an email.
Cox said Monday afternoon, “I’m excited. There’s possibilities.”
Three former U.S. Treasury secretaries agree: the U.S. has plenty of problems, but it’s still in a dominant global position.
“We’re a bright spot in the global economy,” Henry Paulson, the former Goldman Sachs chief who worked for President George W. Bush, said Monday at the Milken Institute Global Conference in Los Angeles.
Paulson noted that steady, if slow, economic growth since 2009 and rising home prices as examples of America’s enviable position compared to other countries.
“I’d rather invest in the United States than any other country in the world. We have tremendous comparative advantage,” added Robert Rubin, the former Citigroup executive who served under President Bill Clinton.
Timothy Geithner, who served under President Barack Obama, echoed the sentiment: “If you look at the challenges we face as a country, they are pretty historic challenges, and our politics are terrible. But I think you’d rather have our challenges than the challenges of any developed economy.”
|UD No. 15-048
April 24, 2015
HUD ANNOUNCES CHANGES TO DISTRESSED ASSET STABILIZATION PROGRAM
HUD requires Investors to delay foreclosure for a year and offers a non-profit only pool sale
Posted in Uncategorized
Beleaguered Ocwen Financial (OCN) has been on a quest since December 2014 to get rid of its massive agency mortgage servicing rights holdings.
Last month the company said it is selling a $25 billion MSR portfolio to Nationstar Mortgage (NSM), just over a month after agreeing to sell another $9.8 billion portfolio of agency servicing to Nationstar.
That announcement is the latest in a string of agency MSR sales for Ocwen, which said in December that it plans to exit agency servicing entirely.
This year hasn’t been as bad for Ocwen as 2014, but the company has been facing a tough go of it. Back in 2014 the New York Department of Financial Services was all over Ocwen – freezing a number of MSR deals at the start of the year and ending the year forcing the subprime servicer to pay $150 million for actions that likely caused “significant harm” to certain mortgage clients. A bigger coup for the New York regulator: They took a scalp in the form of forcing former Chairman William Erbey to walk away from the company he founded.
It was a long time coming – the Consumer Financal Protection Bureau had Ocwen in its sights since at least 2012 for the sheer bulk of mortgage-related complaints that Ocwen generated.
Ocwen dragged its heels on its annual and fourth quarter filings for so long that word around the New York Stock Exchange is that plenty want the company delisted – a fatethat is befalling Ocwen affiliate Home Loan Servicing Solutions (HLSS) over at the NASDAQ.
Posted in Uncategorized