Larry Bettag Illinois FHA Specialist

Due to FHA's concern that some homebuyers in these transactions may attempt to provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is instituting underwriting guidance designed to assure that the homebuyer can make payments on the full debt service of both mortgages. As a result, FHA issued a new mortgagee letter to discuss the major changes to this issue:

08-25 Converting Existing Homes to Rentals--Underwriting Instructions_0

The exclusion of rental income from property being vacated is being instituted on a temporary basis while FHA further analyzes this situation to determine whether permanent measures may need to be taken. This will assure that a homeowner either has sufficient income to make both mortgage payments without any rental income or has an equity position not likely to result in defaulting on the mortgage on the property being vacated.

THERE ARE 2 EXCEPTIONS:

RELOCATIONS: The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. A properly executed lease agreement (i.e., a lease signed by the homebuyer and the lessee) of at least one year's duration after the loan is closed is required. FHA recommends that underwriters also obtain evidence of the security deposit and/or evidence the first month's rent was paid to the homeowner.

SUFFICIENT EQUITY IN VACATED PROPERTY: The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property. The appraisal, in addition to using forms Fannie Mae1004/Freddie Mac 70, may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055, and for condominium units, form Fannie Mae1075/Freddie Mac 466.

Beware....this is a huge change. FHA is the wave of at least the near future, but you need to beware if the sellers are planning on keeping their home.

Time is always of the essence. It's time that the Citizens of Campton Hills band together to let their voices be heard. It's on the ballot and there's a lot of information for and against keeping this entity together. We already know that a special service tax has been created for a drainage district despite the claims of no new taxes. The villagers are free to vote any way they want, but the time to act is now. Check out the site www.stopcamptonhillspac.com. Although, I'm not involved with any organization, I have strong feelings towards this dissolution.

Judge Colwell wrote in his legal decision the following:

"The court is not persuaded that it may simply disregard such alternate sources of funding simply because the village has not yet attempted to utilize those sources (or, more accurately, because its elected officials fear it may be politically inexpedient to do so),"

Further he wrote: "(T)he village's position is self-serving. ... The village is opposed to the disconnection because it does not want to raise taxes," Colwell wrote in another. "If the citizens of Campton Hills refuse to pass a referendum to impose a property tax in order to have municipal services provided to them, then they will have to either live with fewer municipal services or dissolve the municipality."

I'm sure that the pro-village people think that more government is the greatest thing since sliced bread. I don't agree. I have received a number of calls from people who have read my posts on this stuff and want to know how they can get involved. I've pointed them to the group in charge of the Stop Campton PAC. I don't have the time, but I sure have a sincere heartfelt interest as I've lived in this area since 1972.

I have a lot of information on the amount of people who are upset at the new assessments in Campton, but I'll share that at a later date. Just take a look at your assessment. You only have a short time to contest it. But beware...what you don't know can hurt you. Just be informed.

All the best!

Last week a message urging residents to 'Vote No' was sent out using the Village of Campton Hills newsletter and notification mail list. The Village Publicity/Media Volunteer, Don Grillo, is also active in the Preserve Campton PAC. Hmmmmmmmmmmm.... Getting interesting here. Supposedly, he used the Village Mail list, the one used for newsletters, by 'mistake' and sent the political message to the entire distribution list. I'm thinking two thoughts.....

1) Either a blatant misuse of power....they guy's gotta go if that's the cae or;

2) The guy is so dumb that he doesn't belong in his position....please....ignorance about using a village mailing list for political game. If he's that stupid, then he just needs to go. Is he crooked or stupid? Not sure, but he still needs to go.

Our highly educated Village Attorney, Mr. Braithwaite was quoted:

Braithwaite said that volunteer Don Grillo - a volunteer who sends out the village newsletter and its electronic news updates - made an error when he sent the PAC's message on the village's e-mail list.

"He had an e-mail list for Preserve Campton and he used a village e-mail list inadvertently," Braithwaite said. "The basic rule is they should not be using public funds or public employees to electioneer when they're supposed to be working. He certainly did not do this intentionally. This is not a paid person, he is a volunteer ... and he's not going to do it again." I should hope not mr. Braithwaite (herinafter Mr. B).

The point is, he does not have to do it again, the message is aready out. The States Attorney was notified and said this was a grey area as no Village time or funds were used. The Teflon syndrome is there again as the Village has another questionable move slide right off. The link to the article is:

http://www.kcchronicle.com/articles/2008/09/16/news/local/doc48cf8af66ab2a231409006.txt

As Forrest Gump said....stupid is as stupid does.

I also went into McDonalds. They ask is this for here or to go. I had a conversation with one of the clerks. She said...that Campton has a dine in tax. That's why it's cheaper to get your food to go. Otherwise you pay Campton for the privilege of eating within one of Campton's finest restaruants. So sad....I dine in tax? I've heard that from a lot of people as well. Doesn't Campton want more businesses within it's boundaries. I'm sure there are businesses that want to leave b/c of the taxes that Campton will be charging them. In conclusion we have

1) Idiotic leadership within the village;

2) Taxation (or shall I say penalty) that people pay to DINE IN in Campton Hills.

VOTE FOR THE DISSOLUTION OF CAMPTON HILLS....OUR ECONOMY IS WEAK and the Village wants to weaken the consumer even more.

This post is not there to throw Countrywide under the bus. They are already living under the bus due to a lot of bad mismanagement. However, this is not to throw them under the bus.

Something bad happened and you as the consumer needs to know. A Countrywide employee took a myriad of CLIENT'S INFORMATION and distributed this information to unauthorized people outside of Countrywide. The ISSUE is that your information may be out there in some evil person's hands. Any company may have experienced the bad employee. What makes this so bad is that this affects so many people. Many of my clients and realtors have showed me the letter that they received from CW. CW is offering the ability to sign up for credit monitoring service for free.

If you're a client of mine, please be advised that you may have been compromised. Here's the letter that we received from Countrywide as a correspondent. If you feel that you may have been hurt, please contact me and I'll help you sort these issues out. Countrywide was not responsible for criminal activity, but you need to take action if you've been hurt. Here's the memo that I received:

Customer Notification of Possible
Information Theft

Recently Countrywide learned that some customer information may have been provided, by a Countrywide associate, to unauthorized persons outside of the company in violation of company policy. To ensure the protection of all involved, Countrywide is notifying customers whose information may have been exposed by this employee of the steps being taken by Countrywide and what they can do to protect themselves. We are providing these customers with the opportunity to receive two years of credit-monitoring at no charge to them.

We want to ensure you Countrywide values its customer relationships, and the security of their financial information is a top priority. We do actively monitor associates' actions in the workplace; however, for security purposes, we do not disclose details of our monitoring procedures.

While we appreciate your concerns, as this is an on-going investigation, the Correspondent Lending Division is not in a position to respond to questions or provide any additional information at this time. Sellers receiving requests from customers for additional information are encouraged to direct those customers to the Special Services Hotline at 1-866-451-5895.

Thank you for your cooperation and assistance in supporting our mutual customers.

Can't wait to coach my first football game tomorrow! I have a 7 year old and a 9 year old both in two different sessions of the same league. We have a more popular "Tri-City Football" that's been around from when I was a kid. The reality is that I loved football, but hated Tri-city football. They had practice every day of the week or 4 out of 5 days a week. Too much for kids that age. Saint Charles, Geneva and Batavia all participate in Tri-City programs, but I dont' want them to experience what I've experienced. I have a lot of dads say that the coaches and the program is "way too intense" and they've pulled their boys out despite the $500+ fee. Many just didn't sign up again.

I want my kids to play football....BUT I WANT THEM TO PLAY FOOTBALL ONLY IF THEY WANT TO. I'm not a parent who lives vicariously through my children....nor do I want them to make up for my inefficiencies then and now.

I want to ENJOY my kids. We joined the Geneva Park District football program despite the fact that we live in Saint Charles. It's run by All-Star Sports. Most of the people who have left the Tri-City Football program are playing over at this "low key" league and are having a blast doing it. This is a flag football leauge. They have one practice for 1 hour a week and one game every saturday. This league has exploded as parents are beginning to believe that 7-10 year olds don't need to be treated as junior high kids.

BACK TO COACHING....They asked for voluteer coaches. Since I happen to love my kids an "most" other kids and and I love football and am not a pedophile (and will pass the criminal background check).....I said YOU BET!

We had a blast. I let the kids play in the park if they weren't practicing. Then I alternated with the other son. Both kids are thrilled that they get to call me "coach Larry." I'm very enthusiastic about this. I want them to learn, but I want them to have fun mostly.

I worked at a camp for 4 of my 5 summers of college (slow learner). I taught swimming for 8+ years. When I went back to graduate school (before law school), I started my 2ndary ed degree, but I never finished it. I would really like to get in kid's faces to make a difference. Most kids today are looking for a male to inspire them. We don't have enough of them in education.

In the meantime, I'll just be the best dad that I can be. We'll see what tomorrow's game brings, but I can't wait. Mostly because my kids can't wait. They already have their clothes laid out for first thing tomorrow. I'll give an update later.