24 June 2008 -  The Virginia Housing Commission met yesterday and received briefings from the Federal Reserve Bank of Richmond, VHDA and Builders Association.  Read the full report on mortgage defaults and foreclosures under the "Ask Mike" Blog...

17 June 2008 - UPDATE REMINDER - A.) Investor loans have now been restricted  to a maximum of 4 FHA backed loans (i.e., down from 10 loans).      B.) Additionally, HOPE NOW and partcipating Lenders are trying to work out more defaulted 1st mortgages assuming they can modify these loans and then have the 2nd mortgage lenders re-subordinate their loans back under the modified 1st mortgage loans (not a done deal as yet...).

 13 June 2008 - HUD-FHA Agree to extend financing to foreclosed homes & suspend anti-flipping rule for one year (6/09/-8 - 6/08/09).  The news release is as follows below:

"Measure seen to bring stability to home values and accelerate sale of rapidly accumulating vacant properties... WASHINGTON - In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties. For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period. "A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. "The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country." FHA's new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It's reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing. With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property "flipping," a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA's new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing". To read the full text of this new temporary policy, visit FHA's website.

10 June 2008 - HUD/FHA is trying (again) to restrict 3rd party down payment assistance gifts to buyers looking for FHA backed loans (i.e., a sizeable part of the buyer marketplace).  Read the full news article under "Hot Legislation Updates"... 

 05 June 2008 - As concerns HB 1487 (Mortgage-Lender Act of Virginia) the Bureau of Financial Affairs has now determined that private loans (up to 3 per year) are still allowed by unlicensed individuals assuming the private money lender does not lend to persons where the loan/note is secured by their personal residence.  For a full understanding of acceptable private lending practices as well as illegal usury and predatory lending, please consult your attorney (or just start attending our meetings!  ).

27 May 2008 - Mike Cheatwood has been selected to be a member of the Virginia Housing Commission working group where some of the agenda items being the additional regulation of "foreclosure  rescue companies" and HB 1487 on limitations on making private loans/HML's.  The next working group meeting has been scheduled for 23 June (9AM in House Room C).

08 May 2008 - As a member of the Governor of Virginia's Foreclosure Prevention Task Force, Mike Cheatwood met with other task force members and discussed the increasing trend of foreclosure in the Alt A and Prime lending markets.  Additionally, the upcoming "re-sets" of a large number of sub-prime mortgages is scheduled for June and August 2008 and with only about a 10% lender loan modification sucess ratio, the foreclosure rate is expected to continue to climb in 2008 and house prices above the local area median point are expected to drop some more.  NEXT HOUSING COMMISSION MEETING IS SCHEDULED FOR 21 MAY 2008.  

(4/22/08) - The Virginia Housing Commission convened for the 1st time in 2008.  The purpose (as expressed in the agenda) was to address the numerous 'tabled/defeated' BILLS from the 2008 legislative session as well as other public policy initiatives.   At the conclusion of the meeting Mike Cheatwood was nominated to be a member of working group #5 which is the committee charged with reviewing HB 1487 (Virginia Mortgage Lender Act that 'passed' and seems to affect Hard Money Loans in VA) and "Foreclosure Rescue" legislation, if more legislation is needed than HB 408 which passed in the 2008 session.

(4/03/08) - Mike Cheatwood and Steve Gunther recently returned from meeting with Congresswoman Thelma Drake (a real estate investor, landlord, agent and builder herself) in Washington DC on 02 April.  Our discussion centered on drafting positive investor legislation based on the work we had previously accomplished on Virginia House Bill 408.  We expect this good legislation to be proposed in the next 2-4 weeks...   Currently on hold since Senator Kohl's legislation is stalled in committee.

(3/28/08) - Investors wishing to support the non-profit "policitical action committee" set up just for us (i..e, Virginian's for Responsible Real Estate Investing  Acts    = "Good Legislation" / VARREIA PAC) can now make these needed donations via PayPal at the "Banner-Link" at the top of the home page!

       Background - Governor Kaine appointed FPC President Mike Cheatwood to the Governor's Foreclosure Prevention Task Force in 2007 as one of three Virginia real estate industry experts on the panel.

      Additionally, as concerns pending investor friendly Legislation, FPC President Mike Cheatwood and TRIG President/FPC Board Member Steve Gunther have been actively representing Virginia real estate investors in legislative meetings with key Delegates on House Bill 408 and House Bill 947.  Our efforts in meetings on 16, 23 and 30 January as well as our 06 February testimony in front of the Housing Sub-Committee, have been to protect the real estate industry while also agreeing to provisions that target unethical or illegal activity (by some but certainly not all investors) such as: 

     1.  Foreclosure Rescue persons/companies that offer a "Purchase, lease-back, option to repurchase arrangement" or offer any other "bait & switch" advertising that misleads sellers into thinking they are being allowed to keep their home, get a loan from an investor to save their home, when in fact the homeowner has been deceived into signing the deed and has sold the home to the "rescuer".

     2.  Foreclosure Consultants that require an upfront fee to perform services for the homeowner and then do little or nothing to mitigate or stop the foreclosure. Additionally, our efforts have been directed towards educating legislators, consumer advocates, the media and the public that there are also legitimate investors (like us) who simply want to buy properties under market price, follow the rules (not create a lot of new rules) and make a profit by providing rehabbed and affordable housing to the public.

   Mike Cheatwood met with the full Task Force in Richmond on 26 March (public seating is also available in the Virginia Housing Offices at 601 S. Belvedere).  Interested persons can consider contributing to our Virginian's for Responsible Real Estate Investing Acts PAC (VARREIA PAC - Political Action Committee) to help fund the effort.  The next Task Force meeting is scheduled for 06 May 2008 in Richmond, VA.

     "PAC" Contribution methods are as follows:

1.  Click on the VARREIA PAC "banner" on the home page and make your contribution electronically using our on-line PayPal account.

2.  Mail checks payable to:VARREIA PAC at: 1777 London Bridge RD, Virginia Beach, VA 23453 ( ==>  C/O Sea Shore Realty)  *** Donors giving amounts over $100 will also need to provide: Name, Address, Occupation and Employer(as per election commission rules).

Thanks for your support...

Mike Cheatwood, President