The new Home Affordable Foreclosure Alternative Program, or HAFA, is meant to assist homeowners who are eligible for a loan modification but cannot work out a payment plan they can afford. Instead of being foreclosed, HAFA assists such homeowners with the short sale or deed in lieu of foreclosure process. HAFA is voluntary, and lenders are not required to sign up for it. Do you qualify under HAFA? Here's a checklist to see if you do:
1) Your loan is a Freddie Mac or Fannie Mae loan. However, you may qualify even if it is NOT a Freddie Mac or Fannie Mae loan.
2) Your bank or servicing company signed up to participate in the Home Affordable Modification Program (HAMP) by December 31, 2009, AND your bank has also since signed up to participate in HAFA.
3) The property in question is your primary residence.
4) Your loan is the first mortgage on the property.
5) You took out the loan before January 1, 2009.
6) Your unpaid balance is less than $729,750.
7) Your monthly mortgage payment is exceeds 31% of your gross income.
8) Your loan is already in default, OR default is reasonably foreseeable.
Tuesday, February 23, 2010
Monday, February 15, 2010
Craigslist Not Liable for Fair Housing Act Violations
As you may already know, Craigslist is a popular site on which people can post, among other things, homes or other real estate for rent or sale. Unlike an ordinary newspaper advertisement, Craigslist content is published almost immediately after a user submits its ad to Craigslist online. Craigslist does not charge the user for this service.
However, Craigslist does not filter out advertisements based on the Fair Housing Act. A user can submit an ad with a statement such as "no minorities allowed" or "no children", and the ad will be published nonetheless. As a result, Craigslist was sued (Chicago Lawyers' Committee for Civil Rights Under the Law, Inc. v. Craigslist, Inc., 519 F.3d 666 (7th Cir. 2008)).
Although the plaintiff argued that Craigslist should be required to filter the ads, and that the ads were only posted because Craigslist exists, the court disagreed and found in Craigslist's favor. The court explained that Craigslist did not write the ads, and in an online context such as this one, Craigslist should not be considered the "speaker" of the words in the advertisement, nor even the publisher.
Bottom line -- Craigslist is not required to filter ads. If you see an advertisement for housing on Craigslist and it sounds discriminatory, it very well may be!
However, Craigslist does not filter out advertisements based on the Fair Housing Act. A user can submit an ad with a statement such as "no minorities allowed" or "no children", and the ad will be published nonetheless. As a result, Craigslist was sued (Chicago Lawyers' Committee for Civil Rights Under the Law, Inc. v. Craigslist, Inc., 519 F.3d 666 (7th Cir. 2008)).
Although the plaintiff argued that Craigslist should be required to filter the ads, and that the ads were only posted because Craigslist exists, the court disagreed and found in Craigslist's favor. The court explained that Craigslist did not write the ads, and in an online context such as this one, Craigslist should not be considered the "speaker" of the words in the advertisement, nor even the publisher.
Bottom line -- Craigslist is not required to filter ads. If you see an advertisement for housing on Craigslist and it sounds discriminatory, it very well may be!
Thursday, February 4, 2010
Condominium Insurer's Disclosure Requirements Limited to Condominium Only
What happens in a situation where you own a condo, have an insurance claim, and the insurance company sends out an inspector who discovers additional damage? Well, a lot hinges on where that damage is -- it is in your condominium or not? And it also depends on whether the damage, if outside your condo, caused the damage inside your condo.
A recent case, Fichtel v. The Board of Directors of the River Shore of Naperville Condominium Association, No. 2 07 1237 (Ill. App. Ct. 2nd Dist., April 21, 2009), illustrates this point. In Fichtel, the plaintiff condominium owner had water damage in her unit and filed an insurance claim. State Farm, her insurance company, sent out an inspector to investigate the claim. During the course of the inspection, the inspector entered the attic space above the plaintiff's unit to see if the water damage was coming from there. When he came out, he told the plaintiff that the water damage was not caused by a leaky roof. However, he did not tell the plaintiff that there was mold in the attic.
The attic was not part of the plaintiff's condominium unit and was not insured by State Farm. It was a common area, and so the inspector notified the condominium board of the mold in the attic. He also allowed the plaintiff's claim for water damage, which State Farm paid.
Later, the plaintiff sued State Farm along with the condominium association. The plaintiff alleged that State Farm had an obligation and an affirmative duty to disclose the mold to her. State Farm denied the plaintiff's allegations, and the court concurred with State Farm. The court's reasoning was that the mold was not in an area insured by State Farm, it did not cause the water damage in the plaintiff's condominium, the plaintiff's water damage claim was unrelated to mold, State Farm had no fiduciary duty to the plantiff (they were only her insurer), and State Farm was only doing what it was contractually obligated to do under its contract with the plaintiff -- that is, investigating her claim for water damage.
Most insurance policies are very specific -- they will only cover your condominium, not anything else. If you have any damage to your condominium and your insurance company's inspector investigates areas outside of your condominium for the cause, he is not obligated to disclose anything he finds that is not relevant to your claim. He is an inspector for the insurance company, not an inspector for you. If you are concerned that areas outside of your own condominium unit may be suffering damage, it is best for you to hire your own inspector to investigate.
A recent case, Fichtel v. The Board of Directors of the River Shore of Naperville Condominium Association, No. 2 07 1237 (Ill. App. Ct. 2nd Dist., April 21, 2009), illustrates this point. In Fichtel, the plaintiff condominium owner had water damage in her unit and filed an insurance claim. State Farm, her insurance company, sent out an inspector to investigate the claim. During the course of the inspection, the inspector entered the attic space above the plaintiff's unit to see if the water damage was coming from there. When he came out, he told the plaintiff that the water damage was not caused by a leaky roof. However, he did not tell the plaintiff that there was mold in the attic.
The attic was not part of the plaintiff's condominium unit and was not insured by State Farm. It was a common area, and so the inspector notified the condominium board of the mold in the attic. He also allowed the plaintiff's claim for water damage, which State Farm paid.
Later, the plaintiff sued State Farm along with the condominium association. The plaintiff alleged that State Farm had an obligation and an affirmative duty to disclose the mold to her. State Farm denied the plaintiff's allegations, and the court concurred with State Farm. The court's reasoning was that the mold was not in an area insured by State Farm, it did not cause the water damage in the plaintiff's condominium, the plaintiff's water damage claim was unrelated to mold, State Farm had no fiduciary duty to the plantiff (they were only her insurer), and State Farm was only doing what it was contractually obligated to do under its contract with the plaintiff -- that is, investigating her claim for water damage.
Most insurance policies are very specific -- they will only cover your condominium, not anything else. If you have any damage to your condominium and your insurance company's inspector investigates areas outside of your condominium for the cause, he is not obligated to disclose anything he finds that is not relevant to your claim. He is an inspector for the insurance company, not an inspector for you. If you are concerned that areas outside of your own condominium unit may be suffering damage, it is best for you to hire your own inspector to investigate.
Subscribe to:
Posts (Atom)
