Stop Unregulated Foreclosure Fraud by Homeowners Associations!
Stabilize Real Estate Markets, Save Taxes, Create Jobs, Prevent Fraud!
$10 BILLION “SELF-FUNDED” BUDGET PROPOSAL FOR FEDERAL REGULATION OF HOMEOWNERS ASSOCIATIONS (“HOAS”)
Countless federally-subsidized loans are at risk due to homeowner association foreclosure fraud. There is no protection at the state level – therefore, protection needs to happen at the federal level.
This $10 billion “self-funded” 4-year budget proposal would fund the creation of a commission for the federal regulation of homeowners associations. An existing commission, such as the Securities Exchange Commission, would also be an option. This $10 billion self-funded budget would:
1. Keep Homeowners in Their Homes & Create Jobs!
2. Prevent Foreclosure Fraud and Other Financial Crimes by Homeowners Associations (“HOAs”)
3. Prevent Defaults on Federally-Subsidized Loans (Attributed to HOA Fraud)
4. Prevent Federal Tax Fraud by Homeowners Associations
5. Stabilize the Real Estate Markets
6. Prevent (and Save) BILLIONS YEARLY in HOA Fraud Across the United States!
This “SEC-like” commission would require audits and financial disclosures by homeowners associations (“HOAs”) to prevent foreclosure fraud and other financial crimes that are, otherwise, going unchecked, unregulated at the state level. Most “condo-hotels” are already being federally regulated by the Securities Exchange Commission – why not federally regulate homeowners associations, too?
UNREGULATED HOA FORECLOSURE FRAUD = HIGH TAXES
Americans’ biggest investment is homeownership and yet, there is no federal regulation of HOAs - leaving HOA foreclosure fraud to go unchecked, unregulated – forcing U.S. Taxpayers to foot the bill.
The Justice Department is currently prosecuting five hundred (500) Nevada HOAs alleging false claims, false lien amounts and false liens against home titles. http://www.scribd.com/doc/99045327/7-29-11-USA-v-HOAs-Cmplt-Amd
Links to media articles and first-hand victim accounts about massive homeowner association fraud schemes: http://www.scribd.com/doc/106752096/NEVADA-HOA-FRAUD-Please-Sign-Petition-to-Stop-HOA-Fraudulent-Foreclosures
In Nevada, and several other states, “super priority liens” and non-judicial foreclosures allow homeowners associations to (fraudulently) foreclose in advance of Fannie Mae, Freddie Mac, federally-subsidized lenders - all without any court proceedings, without any “checks and balances”.
My (former) HOA embezzled nearly $1 million, fraudulently foreclosed on several homes, and pretty much got away with it without convictions, without restitution to foreclosure fraud victims. (Washoe County District Attorney #406539, Reno Police Dept. #08-031672).
BENEFITS OF THIS PROPOSAL:
1. Keeps homeowners in their homes, create jobs!
2. Stabilizes the real estate markets and the U.S. economy by providing measures for the prevention of homeowner association foreclosure fraud and federal tax fraud,
3. Increases federal tax revenues (otherwise unpaid due to homeowner association fraud),
4. Benefits Fannie Mae, Freddie Mac, FHA, VA (government/U.S. taxpayer-sponsored enterprises) with increased home loan revenue, fewer defaulted loans (and savings to U.S. Taxpayers)!
$10 BILLION BUDGET FOR HOA FORECLOSURE FRAUD PREVENTION, STABILIZATION OF REAL ESTATE MARKETS, JOB CREATION, TAX SAVINGS!
According to Community Associations Institute (CAI), in 2011, there were 25.1 million properties in HOA-type communities. http://www.caionline.org/info/research/Pages/default.aspx
If 25.1 million HOA property owners each contributed $100 yearly, it could potentially yield a yearly budget of $2.5+ billion ($10 billion during a 4-year span) to create a federal commission to regulate homeowners associations, create jobs and stabilize the real estate markets. HOA noncompliance penalties and fines would also serve as additional revenue to the $10 billion proposed 4-year budget.
Personally, I am opposed to new taxes particularly in this economy. However, I believe we are in a crisis situation and homeowners need federal protection! I believe the benefit of keeping homeowners in their homes and preventing HOA fraud far outweighs the minimal cost of $100 per year.
In addition, I believe regulating HOAs by “keeping them honest” will save homeowners from fraudulent assessments, embezzlement, fraudulent foreclosures and other such financial crimes - therefore, these benefits clearly outweigh the small cost of $100 per year.
Furthermore, I believe there will be backend tax savings and other financial benefits to homeowners which will offset this minimal frontend cost of $100.
FEDERALLY-SUBSIDIZED HOME LOANS REQUIRE FEDERAL PROTECTIONS
Homeowner protections need to happen at the federal level.
Countless federally-subsidized loans are at risk due to homeowner association foreclosure fraud. When homeowners associations fraudulently foreclose on homeowners, the federal government is also hit with multiple losses: losses on federally-subsidized loans, losses on government assistance to homeowner association fraud victims, and lost tax revenues.
Since HOA foreclosure fraud adversely impacts the federal government (U.S. taxpayers), HOAs must be federally regulated.
Please consider legislation for the federal regulation of homeowners associations that will protect homeowners and keep them in their homes! This proposal will prevent federal tax fraud and prevent homeowner association foreclosure fraud. It will protect homeowners, Fannie Mae, Freddie Mac, federally-subsidized lenders, and, ultimately, U.S. Taxpayers and the U.S. economy, all while creating jobs and stimulating the economy.
Please restore faith in the American Dream of Homeownership and stop homeowner association foreclosure fraud! Keep homeowners in their homes! Thank you very much for your consideration.
HOA Fraudulent Foreclosure Victim