CA "Homeowners Bill Of Rights" Becomes Law

On July 10, 2012 Gov. Brown signed the California Homeowner Bill of Rights into law. The Bill offers protection from the flawed and abusive practices of the big banks.  Governor Brown passed this bill because after thorough investigation it was revealed that bankers working in one department would feign ignorance of a customer’s case while another department would go behind the customer’s back and foreclose on them.  Customers were even being foreclosed on while in the process of a loan modification.  Homeowners will also be allowed to sue for violations such as dual-tracking and penalties for the banks have been increased.  Banks will also be forced to offer one contact per person.  “While the provisions that would make dual-tracking illegal and make the process less bureaucratic are positive” (Homeowners Could Sue Lenders Under New Bill of Rights), many feel the laws need to go further.

There are concerns raised by this bill though. “The California Bankers Association is concerned about the potential spike in litigation that may raise costs for future home buyers” (Gov. Brown signs Homeowner Bill of Rights).

            There are also many other benefits gained by homeowners with the passage of this bill.  One significant right given by this bill is the right to security against foreclosure.  The Homeowner Bill of Rights makes it much harder for the person in debt to be foreclosed on and keeps minor debts from being the cause of it. Homeowners have also gained the right to know all of the rules and charges on the property before buying a home.  Documents have to be provided in plain English, but unfortunately most real estate legal documents are still as confusing as ever due to use of unnecessary complex language.  The interests of the individual are stressed above that of the community as well.  Living in a common interest community does not mean a person’s individual autonomous rights such as peaceful advocacy in common areas need to be given up.   
          This law will generally come into effect on January 1. 2013. It only pertains to first mortgages secured by owner-occupied properties (principal residence).

              

WHAT IS THE FUTURE OF THE MORTGAGE FORGIVENESS DEBT RELIEF ACT?

Heavy burden of potential tax liability

Do you remember the Mortgage Forgiveness Debt Relief Act? It was introduced by President Bush in December 2007. The Act offered relief to homeowners who would formerly owe taxes on forgiven mortgage debt. Before the Act introduction, underwater homeowners who sold their homes on short sales had to pay income tax on the amount of debt forgiven by lenders. The Act helped to popularize short sales among borrowers who needed to sell their underwater properties. Some claim that the law helped to prolong the home crisis as it caused many "planned defaults". As short sales for all practical reasons are given only to those borrowers who missed at least two mortgage payments. However, it often allows strategic defaults helping well to do homeowners to unload underwater properties on expense of those in real distress, as sellers pursuing strategic defaults are often in a better position to get through the complex and lengthy short sale process. Many believe that for house market to bottom out sooner and to start rebounding it is necessary to stop all outside intervention to home pricing including loan modifications or short sales.

Whatever your belief is, the Tax Forgiveness is set to expire at the end of 2012 and in light of dysfunctional Congress it is very unlikely that it will be extended again (it was already once extended in 2010). At least it seemed like this a few weeks ago. On February 15th, however, dsnews.com published the following information: In the Treasury’s Green Book, its summary explanation of the administration’s (2013) budget proposal, it calls for an extension of the tax break due to “the continued importance of facilitating home mortgage modifications.” The administration is proposing an extension that would apply to any amounts forgiven before January 1, 2015. So there is hope....

What should you do then if your property is underwater and you might have to sell it soon? You definitely need to do your homework and meet with your accountant to find out the tax implication of such sale now and after the end of the year assuming both cases, that the Relief Act will expire and that it will be extended. Also take in to consideration that while short sales are a bit easier than before, with more than one loan against the property, they still can take 3 to 6 months. Of course, to qualify for short sale you need to demonstrate that you are undergoing hardship to qualify. To be underwater is not a sufficient reason. And if short sale is not an option for you, what other options are out there? You might want to ride it through, but if it is not the option, talk to a professional. A bankruptcy or real-estate attorney might be able to help you through. Once you know what your options are - then you need to decide if to try to sell now or two wait.

IRVIN UNGAR AND HISTORICANA - BURLINGAME TREASURES

Some time ago I shared with you key facts behind Burlingame''s desirability (Why is Burlingame, CA so Desirable and Why is Burlingame, CA so Desirable - More Reasons and More Facts).  Since then I discovered another Burlingame treasure. Unfortunately you cannot google "Burlingame treasures" and come up with what I consider the right answer should be - Irvin Ungar and Historicana. But, who is Irvin and why I consider him a Burlingame treasure? Irvin Ungar is a former pulpit rabbi who embarked on a mission to re-popularize the art of Arthur Szyk. Arthur Szyk was "[R. Chesnoff] a master of political art, a brilliant draftsman/artist whose evocative works had all the power of Goya's 'The Execution' and Picasso's Guernica." If you never heard about Szyk and/or about the art of illumination - please check this Huffington Post article announcing April 2010 exhibition of Szyk's art in NYC. In a concise but informative way it gives a great introduction to Szyk and his art. Szyk's art was immensely popular in the US in the period between Szyk's arrival to the states (he became a US citizen in 1948) to his sudden death in 1951. And I mean - immensely. His art appeared on covers  of Time, Esquire and Collier magazines and in the NY Post.

Unfortunately following Szyk's death his art went to virtual oblivion. Why? Maybe because according to Ungar's opinion “[Szyk] believed that art was not his aim, but his means. “He felt he was not a creator of art for art’s sake, but art with a message". It is difficult to say why Szyk's art was forgotten, but maybe this self-depreciating statement reflected contemporaries unwillingness to value high the art "created for a cause". Whatever the reason, Szyk was a great artist and Ungar made a mission of his life to revive his art. And we should be grateful to Ungar for doing it. Szyk's art shouldn't be forgotten not only because it is unique and continues to impress and amaze, but also because Szyk and his art stood for timeless ideals. "[Huffington Post] Szyk was also among the first political cartoonists to attack racism and the harsh inequities then facing American blacks. But he was also entranced by the hope that America represented to him. Some of his finest illuminations were devoted to The Bill of Rights, The Declaration of Independence and detailed portraits of heroes such as George Washington and Thomas Jefferson, some of which are now in the collection of the Library of Congress in Washington".


The art of Arthur Szyk was rediscovered by George Gooche in 1991, who "discovered a veritable treasure trove of Szyk's art works, which had been in storage for more than 40 years" (per information on the Society website). This discovery lead to establishing of the Arthur's Szyk Society in Orange County. Subsequently, the Society was moved to Burlingame in 1997 and Irvin Ungar, became and still is the Society's President Emeritus and Curator. It is impossible to overestimate the effort Ungar put into reviving the art of Arthur Szyk. Why is he doing it? You can read about in the interview of Steven Heller an published on the website of American Institute of Graphics Arts. Let me use Ungar's own words: "To be honest, I really feel a sense of purpose. Hardly a day goes by that I don't try to do something to move Arthur Szyk forward in the world. I really do see Szyk as a heroic figure, an American icon worthy of recognition among the elite of the world as well as the common man and woman. Equal to the pleasure that I get out of seeing, researching or writing about Szyk's art every day is the pleasure I feel every time I witness someone discovering Szyk's art for the first time. And what is more, once one sees his art, I know they will never forget it and never confuse Arthur Szyk with any other artist. In that sense, then, I consider Arthur Szyk memorable, his art alive, and myself privileged to be part of that process."

I hope that I got your interest not only to find out more about Szyk and Ungar, but also to research other treasures of Burlingame. I am certain that more time you spend learning about Burlingame you will find more treasures. And please check Historicana - a place that "specializes in the buying and selling the artwork of Arthur Szyk".  And for more information about Burlingame, its surroundings and people living here keep checking "Burlingame and Vicinity" blog.