Carole Cohen Realtor®, ePRO

I'm pretty much just going to post this as Bill Callahan and Frank Ford wrote it. Just a few extra thoughts before I do. The key point to me is that no matter how angry it makes me or all of us, clearly we need to do this. But what we need to do in a quick, band-aid fashion, is a bailout. What should take longer, in my opinion, is the actual restructuring that may occur.

We need to make sure that all the necessary checks and balances are in place, that any regulatory changes put into place make sense for the long term. And as Bill and Frank are pointing out, that they make sense for those of us in our communities. I'm posting this on Active Rain instead of my outside blog because the points they raise are thoughtful, deserve discussion, and might spark some ideas for your own community needs regarding this bail out. Here is what they wrote:

To: Interested parties in Greater Cleveland RE: What we learned last night about the proposed Federal Bailout September 19, 2008 Proposed "Resolution Trust Corporation" - a Community Protection Agenda

While the details are murky, Paulsen, Bernanke and Congressional leaders are publicly committed to create,within a few weeks, a new Federal entity described as analogous to the Resolution Trust Corporation.

Yesterday's Bloomberg report says:

"The two regulators, in talks with lawmakers late today, sought support for a plan to help financial institutions remove from their balance sheets illiquid mortgage related assets at the root of the yearlongcredit crisis.

Congressional leaders said they intend to work to pass such legislation within days."

Presumed insiders Brady, Ludwig and Volcker, in their oped piece about this proposal in the WSJ Wednesday, described the proposed entity's functions:

"Such a stabilizing mechanism would accomplish four much needed tasks:

"First,by buying paper that otherwise is effectively not trading, it would help restore liquidity to the marketplace and help markets to function more fluidly again.

"Second, by warehousing the troubled paper for a longer period than, for instance, the Fed's discount window typically should or could, it would allow for a more orderly liquidation of this paper, and the chance for much of it to recover a portion of its value.

"Third, by giving the agency the ability to manage mortgages with flexibility to keep people in their homes and businesses running, it should lessen the number of foreclosures. This, in turn, would help moderate the decline in real estate values and the deterioration of neighborhoods, thus supporting house prices that in fact lie at the heart of the crisis.

"Fourth, where necessary, like the RTC of the 1980s, this new mechanism can assist the Federal Deposit Insurance Corporation in resolving sick institutions that are so clogged with the troubled paper they cannot continue as independent entities. However, we would hope that purchasing the mortgage related paper will minimize the need to provide emergency, short term assistance to solvent banking institutions."

The third function " managing mortgages" to "lessen foreclosures" is very attractive, of course, and

presumably will be a major political talking point of proponents. It's possible that this initiative represents a breakthrough for our efforts to tame the foreclosure beast in Cuyahoga County.

But how would this work, exactly?

We're aware of three basic categories of "illiquid mortgage related assets" that this "RTC" might take agree to acquire. The first is actual mortgages held by the institutions in their own portfolios. The second category probably much bigger and more problematic is mortgage based securities. The third is contracts and derivatives related to mortgage based securities.

It's easy to see how the "RTC" could take over the management, workout and disposition of actual unsecuritized mortgages, just as the original RTC did. But unsecuritized home mortgages are not a very large factor in the foreclosure crisis.

Much harder to see is how the "RTC" will reduce foreclosures by taking over and managing the institutions' junk mortgage based securities and derivatives. The owner of an MBS doesn't "own" any of the underlying mortgages only an equity share in a pooling entity (e.g. a trust) for which "control" is divided among various contract players, i.e. the trustee, the master servicer, etc.

So how will just taking over an institution's portfolio of nonperforming mortgage based securities which seem to be the main "illiquid mortgage related assets" at issue, and are certainly at the heart of the national foreclosure tsunami enable the "RTC" to do what Volcker et al. say it's supposed to do?

Answer: It probably won't, unless the law is written to make sure it does.

Our proposal:

To the extent that we have any contacts who may be in a position to influence the final shape of this proposal, we should try to get the following principles written into it:

1. In managing any mortgage related assets it may acquire, the "RTC"'s guiding mission includes:

a)avoidance of foreclosure of owner occupied homes;

b) equitable renegotiation of mortgages as needed to preserve both home ownership and equity for all parties;

c) enabling current residents, including tenants of rental housng, to stay in their homes through and after foreclosure;

d) the management and disposal of properties after foreclosure in a manner consistent with community preservation.

2. The "RTC" will not take over any mortgage related asset unless the terms of acquisition give it full

management and control of the underlying mortgage(s).

After drafting the preceding points, we had the opportunity to discuss them with members of the Cuyahoga County Vacant and Abandoned Property Action Council - including representatives of the County, the City of Cleveland (administration and City Council), the First Suburbs Consortium, Cleveland Municipal Housing Court, the Cleveland Neighborhood Development Coalition, and the Enterprise Foundation, as well as Neighborhood Progress.

The Council's members expressed broad agreement with the concerns raised above and their willingness to participate in an effort to address them with legislators.

Members of the Council raised another important concern: Foreclosed properties now controlled by Federal entities (HUD, VA) are exempt from municipal enforcement of building and housing codes. This is creating major problems for cities, especially in connection with HUD properties. Acquisition of thousands of foreclosed properties by a Federal "RTC" could make these problems much worse unless the legislation provides that:

3. The "RTC" will promptly establish and record clear title to any real estate asset it may acquire through

foreclosure or otherwise, and as owner will be subject to all applicable state and local laws and

regulations.

Bill Callahan is the convener of Cleveland's Foreclosure Action Coalition, and blogs about foreclosures and

other local concerns at http://www.callahansclevelanddiary.com. (Bill is being modest here, he is clearly one of our area foreclosure experts.) Frank Ford is Senior Vice President for Research and Development of Neighborhood Progress, Inc. Reprinted with permission from Bill Callahan Peace Out - 3C

UPDATE: Adding this Times article about the Bush request/Fed proposal with more flesh on it now that it's Saturday.

Also adding this link on the bail out from The Economist I always appreciate clear explanations. This sums up what has transpired very well.

FInally, here is a Wall Street Journal blog post with the text of the initial wording of this proposal.

Sept. 22nd Update: Here is a link from The Washington Post's Politico site with the text of the Democratic Party Bailout Proposal they recommend.

Last year I wrote this post about the proposed Eco Village Cottages at W. 58th and Pear. It's an exciting project, and this past week it moved closer to fruition and occupancy with a ground breaking ceremony.

These homes will meet Leeds standards for energy efficiency, are all of the same design (I think there are five homes). They are part of the Cleveland Land Trust which means they will remain affordable throughout their lifetime. (The Land Trust sells homes at market value but the buyers buy at about 80% of market value). You can read about the Land Trust here.

Green City Blue Lake has an informative post on the Cottages. Here is an excerpt:

"....The homes are universally designed, life-cycle homes that allow aging in place. They will include accessibility features such as ramped entrances to porches, and, in the three bedroom model, a first floor bedroom with bath. Buyers who need a fully accessible home can have the additional features they need added at no additional cost.

The cottage designs grew out of the Cleveland Green Building Coalition's Emerging Designers initiative, which brought together young architects to learn about green design while applying what they learned to real projects...."

There are income requirements for eligibility to purchase and of course the supply is limited. But it's exciting to see this project move along (they had projected an August ground breaking and they are pretty darn close to that date).

A wonderful side benefit? Short (and I do mean short) walk to the RTA Station. To recap: affordable, unbelievably low fuel costs, close to public transportation. Do we need more of this all over Cleveland or what?

Peace Out - 3C

Have you ever read a book that stays under your skin and makes you think about it as well as ideas that seem to spawn in your mind because of it?

Are you tired of negativity in your city and among your neighbors? Do you feel like you live in a community without the actual community cohesiveness that would be nice?

Have you ever wondered to yourself, 'there are so many issues that need to be tackled in my neighborhood and I would love to help but I don't know where to start.' I know I have. And now I've read a book that is both under my skin and causing my mind to go off in what could be some good directions. What is the book? Instructions from The Cook, written by Cleveland's own George Nemeth (BFD) (@georgenemeth) and Jack Ricchiuto (@DesigningLife.com). You can read about or order Instructions from The Cook here.

Have you ever had an idea about something you'd like to do for a neighbor, for your neighborhood, or something you'd like implemented into City life? Or maybe you have an idea for neighborhood kids or a business venture. It all seems overwhelming but Jack and George wrote this book to show how it doesn't have to be. And as a matter of fact, they say two important things:

- good things, ideas with longevity, usually start out small not large.

- "people will authentically support what they help create" (page 55 of the book).

- there are lots of good ideas, not just one

- meeting to talk about ideas with people of all sorts of mindsets is usually much more productive than just meeting with people who think like me (this ties into the 'lots of good ideas' truth above).

When Jack and George wrote about 'slow and small' being better than 'fast and big', it took me back to how we learn (my education training kicking in). We learn at our best, our most comprehensive, when we start with a solid foundation of information and then expand our knowledge on that topic/subject as we go along. It helps us not live with pre-conceived ideas, but to be open to possibilities...and yeah it helps us retain the information in a way that leads to the ability to be creative with the knowledge.

I keep thinking about this book ....they point out (and it's so true) "....negativity doesn't necessarily breed progress...."It can bring people together to solve a neighborhood issue, but then when it's resolved, usually people go back home and wait for the next problem. In order to affect something positive Instructions From The Cook recommends building trust amongst ourselves, having no pre-conceived goals set in stone, but let the community build on ideas. Get to know our neighbors.

It reminded me of the famous Jane Jacobs book The Death And Life of Great American Cities, written in the early 60s and yet it rings very timely now. One theme that ran through the book was how things kept getting built by city planners without much thought to how the residents would really use the building or space, and certainly without much input from them. Does this sound familiar? LOL Ah, the Clevelander's lament. And it keeps getting me back to the point that those of us in the community are the ones who can affect postive change, not our governments and our cdc's. How do they know what we want if we don't tell them???

The book gives examples of how people have done just what J and G recommend. They show why it works. And darn if it hasn't gotten me thinking. I find myself back in communication with my own CDC, I find myself talking to other people in the neighborhood. I find myself discussing ideas with a few friends (and yes, at this point they are 'like-minded' friends but I'm hoping it becomes more diverse).

Thought I've had, because of the book: Pick an establishment I'd like to support in my community, and start going there once a month at a regular time. Let people in my 'hood know when I'm going. And anyone else I meet, or anyone else they meet, can come too. It supports the neighborhood and allows us to start getting to know each other and see what kind of ideas might sprout.

Second thought I've had because of the book: If someone on my street needs their lawn mowed I could do that for them all summer. Maybe in turn, they could provide me with something I need in return. Maybe I could tutor someone's young middle or high school student in return for that student cleaning out my gutters and doing other jobs that are just a bit too much for me. You get the idea.

I've had quite a few more thoughts, but am more interested in what other people might want to do. And I'm also dying to get together with George Nemeth and talk about the book over some good coffee! What say you, George? And does anyone else want to come? Peace Out - 3C

(I debated where to post this: my outside blog or Active Rain. Shaking things up a bit by posting it here to see what others in the Active Rain community think about it, get the book some exposure around the country, and also then link it to my outside blog.)

talk with me on Twitter at @clevecarole

Here is an article in Inman news on some agents in San Diego who decided to switch to Tempo 5 for their MLS system. According to the article, there has been a bit of an uproar from agents now using this system. I haven't posted here in a while but I felt the urge based on this Inman News story. My short synopsis is this: progress never comes without bugs. Profound no? :-)

We've been using Tempo 5 in NE Ohio for what seems like about six months. Our NORMLS MLS system switched us over after months of announcements, trainings and manuals to download for assistance. Now I don't want to be all Pollyanna like and say it was smooth sailing. To say there were some 'bugs' is putting it mildly. I do a lot of stats and monthly sold data posts on my other blog. For quite some time the stats were not coming out accurately. There were things that normally get added to MLS listings that wouldn't load. Every week it was a long list of 'we are working on......'

But the truth is, there are added features now that really make it better for consumers and that's really what it's all about. And btw, I consider myself a consumer, since I use their service.

1. Attachments: as listing agents we can attach copies of the property disclosures, etc. to the MLS listing now that Tempo 5 is our system. I have town homes and condos for sale and I am able to also attach the condo disclosure sheet that provides contact names and telephone numbers of board members. I've also utilized this as a buyer's agent. I can download the property disclosures along with MLS print-outs for my buyers. You can't always count on these being provided when you do showings. It's very helpful to not have to make a phone call to an office and ask for them to be faxed to me.

2. I get to provide more photo description on my listings. And one more photo. May not sound like much, but it really allows me to showcase my listings.

3. There is capablity for voice overs and virtual tours and other things that can now be handled much quicker than before.

I could go on, but these are just a sampling of what is good for the prospective buyers or listers about Tempo 5.

Do I not think a few things may still be more cumbersome than they used to be? Yes. But when I look at the pros and cons, the pros win.

So i say to all of you who are now getting into this new system to hum the Guns n Roses song Patience and get ready for a user friendly (for the most part) and consumer friendly MLS system. Just MHO.

If you want a glimpse at how it looks on our NE Ohio MLS system, here is the home page for which you do not need to be signed in.

Peace out - 3C

We are real estate professionals of one sort or another right? So we always have goals. Well, some of these are work related and some aren't. But I'm hoping you guys can relate. A fellow Cleveland blogger asked me to do this, come up with 43 things I want to do in 2008...and the point is to make these reachable goals.

At first I thought og, how am I going to come up with 43 ‘things?' It turns out it wasn't hard. I took the Really Bad Cleveland Accent - Christine Bourne challenge. You can read about the challenge (and maybe do your own list. Today I am doing the list here, I will possibly go to the ‘43 Things' site and add it, but since one of my items on my ‘to do' list is limit my social networking sites, well, dunno. Here is my list:

1. keep meeting new people also interested in grass roots solutions to Cleveland's challenges

2. attend more Meet The Bloggers events (on my mind, just signed up for another one)

3. figure out a way to not have a car; it's a challenge, being a Realtor®. Even City Wheels thinks it's not possible. Moving closer to RTA would help....see later ‘things to do' lol

4. do a better job staying in touch with family

5. do a better job staying in touch with friends

6. learn as much as I can about Cleveland's government and how it can be lead to affect needed results by grassroots efforts

7. organize my closets - I don't even have real closets in my bedrooms but that can be corrected

8. paint two living room walls; I found a cool paint color at a broker's open - Spring project

9. put my ten speed back in working order

10. clean out my garage; there are things in there from the previous owner of my house, need I say more?

11. exercise

12. do better at meditation - I'm so much better than I was but still need to work on it

13. go to more concerts

14. make more money so I can go to more concerts

15. get a few friends and go hiking in the Emerald Isle parks this summer, or even somewhere more strenuous

16. take the RTA to work when I have no plans to show homes. Hard to convince myself as a Realtor but good for the environment.

17. learn how to make tasty beef soup; I make kick ass chicken soups and others but good beef soup is elusive to me

18. if I have to have a car, buy a mini cooper; that fantasy is pushed back to Fall now

19. keep fixing up my house so I can move by 2010 - yes I will be staying in Cleveland but on RTA line

20. meet out of town friends for the first time (we met on social networks)

21. figure out what my best efforts should be to help get The Ohio Hub up and running

22. learn a few on line organizational systems; my friend Linda Davis is the queen of this stuff; maybe paperport®?

23. actively work on three networking/social media sites and forget about the rest of them. I even removed my posts from Landbrkr

24. become more limber; seems like the best preventive medicine I can practice

25. get health insurance before the end of the year!

26. start going to movies at the new Capital Theatre in Detroit Shoreway. I can't wait for it to open

27. buy an ipod and enjoy filling it up with music

28. hang the paintings, artwork on my walls. I know I know, I've only been in this house three years LOL

29. hold a picnic in the park for all my friends and past clients. A nice late summer party.

30. go to the CSU debate between Hillary and Barack....I hope this can happen!

31. get back to running three miles every other day

32. ride a steam engine at least once this year

33. take a train somewhere!

34. take the dust off my guitar and start playing

35. go to Lola's. I mean really, I can't believe I haven't gone yet

36. attend as many of the CSU Levin College Maxine Goodman Forums as I possibly can, they are awesome

37. drink a bottle of Veuve Clicquot champagne with at least one good friend. It's been a while

38. go on the Detroit Superior Bridge Tour

39. walk more; I love walking why don't I walk more?

40. still debating this one but I would love a dog.

41. earn another designation; maybe ‘neighborhood' - alternatively, just learn something useful!

42. figure out how to convince an entreprenuer to open a coffee house near 150th and Puritas. I mean, that intersection has more traffic than you can shake a stick at. People in that neighborhood deserve good coffee (well, I'm not that far from it either). I'm just sayin!

43. Tell each of my friends they are important to me and why. Life is short

If any of you wish to do your own list, on just about any topic, go to the 43 Things website. It's pretty nifty.

Peace Out - 3C