Fannie Mae has reached a new low when it comes to ethics. I am one real estate broker who is fed-up with Fannie Mae.

I am also fed up with a federal government that keeps backing them. It’s time to shut-down Fannie Mae. They are either corrupt, inept or both.

Last week I received an addendum to a contract from Fannie Mae. It was blank with lots of spaces to be filled in. In fact, 15 pages of fill-in-the-blank. That’s great for school quizzes; not so great for contracts. Does Fannie Mae really expect people to initial and sign blank contracts?

Based on the previous purchase and sales agreement negotiated with Fannie Mae, I filled in the blanks. The catch is that Fannie Mae will negotiate terms of a contract but they do not sign the contract. They are government created and above professional business practices. They are just too important and too busy.

When this contract was returned signed by Fannie Mae, it contained numerous changes from the negotiated agreement. The instructions were for the buyers to initial and return. The buyers refused and within hours came to terms on another home.

Within 24 hours (Fannie Mae took two weeks) the selling bank’s addendums were presented. There were no blanks and the info in the addendum was the same as negotiated.

I have written my Congressman, Tom Rooney and appreciate that his office contacted me. I have the impression the Congressman agrees with my view of Fannie Mae. But, I have yet to see any action.

Congress needs to stop talking about how bad Fannie Mae is and just get rid of them. Parents are suppose to show tough love when their kids need it. Well US Congress, Fannie Mae is your child. Get tough or get out of office.

Mortgage lenders made some very bad loans and then, compounded these bad decisions by stubbornly refusing to negotiate with homeowners.

Lenders continued to show arrogance by failing to negotiate with borrowers or prospective buyers and this greed has slowed the housing market to a crawl and pushed our nation's economy to the verge of collapse.

 Instead of a bailout where lenders are the primary beneficiaries let's reverse the role by bailing out homeowners; not that they deserve it but because it is necessary to keep our economy solvent.

 Of course, the lenders would be saved in the process, not that they deserve it either but because of the danger financial collapse would have on all Americans especially those in or near retirement.

 Instead of giving $700 billion to the banks and mortgage companies how about passing legislation as follows:

 Anyone who mortgaged a home purchased between January 1, 2003 and December 31, 2007 would receive from their lender 20 percent off of the purchase price to be credited towards their mortgage balance.

 This includes all homeowners who purchased during that period and have met their obligation. These responsible property owners need to be able to compete in the market place if they decide to sell their properties. Without this they would unfairly be burdened with mortgage balances above true value.

Their responsible handling of credit obligations would be rewarded not punished.  But, even more important they would have spendable cash to spend boosting the overall economy.

Additionally, mortgage holders would forgive all missed payments and late fees. This is one of the sacrifices to restart the cash flow to their institutions through mortgage payments.

Next, mortgage holders would receive a new 30 year fixed rate loan at six percent. No plan will work if payments are not affordable.

Mortgage holders would have 60 days to accept or decline the terms. If accepted they would be required to make all payments on time for the next three years or until they sold the property.

 These loans would also be assumable one time by buyers but any profit from the sale would be taxed at 100 percent.

 If a property owner did not apply and accept these terms, they could instead hand the deed over to the mortgage holder and walk away from the property without further obligation. The bank would then be free to sell the property on the open market.

 If the property owner failed to meet the new mortgage obligation the terms of the loan would revert to the original mortgage. A court order would be issued against the borrower for the entire amount of the debt. We are giving borrowers a second chance, not a third or fourth chance.

 This is only a short synopsis of this plan.

 Why is this plan better than the proposed $700 billion bailout?

 First, the greatest beneficiary is the homeowner.

 Second, banks benefit because they would begin receiving monthly payments or have a commodity to sell.

 And, finally nowhere in this proposal did the federal government need to give away $700 million dollars of taxpayers money.

Help me find the perfect front porch to rock myself into retirement. I’m turning 60 real soon and I think it time to get serious about where I want to retire.

Most people might think that is an easy question but I lived some great places and know that in our beautiful country we have so many great choices.

So, here is my challenge. I want to find the best home to live my retirement. I have only one item that is an absolute. The home must have a front porch with room for a few rockers and a spot for my hound.

Don’t think for a second that I am putting my dog before my wife. One of the rockers will be for her but since she is younger, she’ll have to work a bit after I retire.

It seems fair to me that if I started work first I should get to retire first. Right? Maybe?

It would be great to hear from people all over the country. Send some pics and just tell me why you think I would love your home. Hopefully, a lot of people will read the posts and you will get some exposure as well as have some fun.

Again, I am approaching this with an open mind – some might say an empty mind. The home can be in a big city, little city or no city. It can be on top of a mountain or sitting in the dessert.

Don’t worry about what I like. I want to know what you think is great. This way I can take advantage of a lot of sharper minds than mine.

I’ll be honest. I have a budget but so what. I’ll just dream about the one’s I can’t afford. At 60 one thing I have learned, never be afraid to dream, and never let anyone steal your dreams.

Please pass this blog around and let’s find some great front porches together.

It’s bad enough that a Judge in Tallahassee is so far removed from the Florida voters that he thinks at best they are confused. Now, the State Legislature and Governor are about to add insult to injury by proposing a property tax reform amendment written to help those who are already benefiting the most while ignoring the needs of the majority of homeowners.

Doubling the homestead exemption from $25,000 to $50,000 is a whopping $250.  This is insulting. However, those homeowners who tax burden is artificially low and has been shifted to the backs of new resident homeowners, second home owners and investors will be able to carry their oversized exemption provided by Save Our Homes to new property they purchase.

This means that non-homestead property owners and property owners who have bought property since around 2003 will not only have to continue supplementing a minority of property owners but the amount of that supplement will increase.

Save Our Home proponents would have you believe any change would tax grandpa and grandma out of their home when in reality the common man/woman property taxpayer is supplementing ocean front home owners and other wealthy estate owners whose tax increases are locked-in to a three percent yearly increase.

Property owners that bought homes for a $100,000, now own homes worth double or triple that amount. The same increase in value exists for those who purchased $300,000 or $400,000 homes now worth a $1 million or more. And, you can bet that not one of these owners contributes one penny of their huge capital gains from selling their property to help the overburdened majority of property taxpayers.

Just the opposite. They want to make huge profits from selling their existing home and then be able to transfer their huge exemptions to a new home so that they can continue to pay less taxes and make greater capital gains.

Phasing out Save Our Homes as written in the original proposed amendment would have protected the current homestead property owners – particularly grandpa and grandma - while providing equality in property taxation to all owners of homestead property. It should be noted that residential property tax owners now pay 67% of all property taxes while in 1974 they paid only 39%.

Now, with the help of a few greedy mayors, a far-away judge and a kowtowing State Legislator, government will continue to work hard to help the few at the expense of the majority taxpayer. If the judge thinks Florida voters are confused, the Legislature must think voters are just stupid.

How would you tell a client that they most likely have lost $1000, $10,000, $50,000 or even more? That’s the dilemma facing many agents in Indian River County this week.

Coastal Escrow of Vero Beach, has stopped operation and announced that any checks written by the escrow company would not clear banks.

A couple days later the State seized documents and computer equipment of Coastal Escrow. The owner, attorney Ira Hatch, voluntary surrendered his law license for ten years after the Florida Bar moves for an emergency suspension. However, Hatch is still licensed to practice law in New York.

Local newspapers reported that a State official said about $3 million is not available and the investigation could take months. This figure not only includes deposits on homes but rental security deposits and rents.

In Florida licensed real estate professionals are regulated by the Department of Business and Professional Regulation Division of Real Estate. Title companies are regulated by the Department of Banking and Finance. However, it seems anyone in Florida can setup an escrow account. Unbelievable!

As far as closings go, I know many real estate agents are paying the lost funds out of their commissions. I know others have written personal checks to cover client’s losses. I have no idea who is legally responsible but I expect it varies based on individual cases and disclosures.

Now the inevitable has happened. A lawsuit has been filed against a brokerage and individual agent stating that the brokerage received “kickbacks” and both brokerage and agent were negligent. For an industry already down this is a nightmare.

A reality check for all real estate professionals who have monies in escrow would be a very good idea. Make certain that whoever you are dealing with is bonded or insured.

This is such a negative for our industry that I published and then withdrew this blog. But, it would be wrong not to make other real estate professionals aware of a potential devastating loophole in escrow regulation.

For more information you can go to www.tcpalm.com and search keywords Coastal Escrow.

The “real estate diva” not only can’t help but now she doesn’t even want to be kept informed. She told me she doesn’t have time. It’s like this transaction doesn’t exist.

How dumb of me to even expect that she might care? If she didn’t return my telephone calls when I was presenting my clients offer, (refer to my blog of August 8) why did I think she would want to know that this deal is going to Hades in a hand basket.

Hold on! Wait! A thought occurred! It’s a commission; a payday. It’s money for the bills, the mortgage or in my divas case a diamond to stick on the end of her long skyward bound nose.

We have a contract. My client has cash. We are suppose to close Thursday but she doesn’t care that the closing attorney’s office isn’t returning phone calls, answering emails, hasn’t provided a title commitment or even shown the courtesy of an explanation.

It’s a foreclosure and her lender client is paying title and thus selected the attorney. If a problem exists with the title search or whatever, then let us know. Give us the professional courtesy of being informed.

If the foreclosing lender was my client, I would be letting them know that their title attorneys are about to blow the deal or at a minimum cost them a price concession. But, that’s just me.

Never have I worked with a group that is so undeserving of receiving their pay. They are so lucky that my client is buying this house to be her home. She’s a nice lady but just this once I wish she was an overbearing abusive investor yelling, screaming and demanding action.

I wish she was berating me up and down and demanding I tell them all to go to Hades or where to stick their home. I just hate that I have such a bad attitude and I’m not able to use it.

And, then there was the realtor from one county north that called me last night just before 8, put me on hold while he took another call and never came back. This wasn’t someone I knew. He wasn’t someone I ever met. He was someone that has a license and is suppose to be a professional.

I know what you are asking. Yes, I have his number in my caller id. It’s 5:00 am as I sit here. Maybe I should give him a buzz. I’m not going to but God have mercy on him if he ever calls back.

Welcome to Harbour Isle on South Hutchinson Island in Fort Pierce, Florida. Come to the less crowded and more affordable Florida. Made of solid concrete construction Harbour Isle was built in 2005 and sold out in one day. Now, you can take advantage of the buyers' real estate market to invest in your piece of paradise for as low as $110 per square foot. That's not a typo. This Hutchinson Island community has 1970 square feet units starting in the low $200s.

You can walk to restaurants, shopping and historic downtown Fort Pierce. The uncrowded beaches are only a mile away.

Most units overlook water including the beautiful Indian River Lagoon (intracoastal), the on-site marina, the ocean inlet or the channel to the marina. You will be able to cruise to the ocean in minutes from the protected marina.

Don't wait. Resales have never been priced lower. Do you really want to wait until the market goes up? For more information contact Randy Chapman at 772-532-2121 or email me at RandyJChapman@msn.com. And, visit my website at www.RandyJChapman.com to find more great values on Florida's Treasure Coast. 

Two weeks of "Rainmaking" and I'm an NOT an expert. Barely a cloud has formed. However, I have learned a couple things but I have a lot more questions than answers.

First, I need to know about the advertising of listings in blogs. What’s appropriate? What’s not? Once I know that it is appropriate where do I post it?

Another question has me baffled. In your ActiveRain personal settings what is the difference between Blog Description and Blog Description Text.

Finally, I know you can pick groups to send your blogs. But, I have no idea how all those people outside our groups and in cyber world are finding us here in our ActiveRain real estate world. Maybe I don’t need to know how it works but someone please tell me anyway.

Actually, what I have learned is just a repeat of what I from working in printing and publishing for 25 plus years. Of course, there are just a few cyber twists.

Want to say something but don't know how? Start at the beginning and that means the headline and first paragraph. You have less than 10 seconds to earn readership. E A R N. Your colleagues’ time and comments are a gift.

Headlines must be accurate but in the cyber world of blogging they must have flash. 

For example: “Florida's Tax Amendment Controversial” or “Florida’s Super Exemption: Definitely better but not super for all.”

Another example: “Using Pets for Branding” or “Hire me, I’m Fido Friendly.”

After the headline catches your reader’s attention then your opening paragraph must be the closer. By closer I mean it’s what makes them click on your blog.

This first line worked well for me: “Real Estate Diva!” Give me a break. It’s bad enough that it was my third unreturned phone call . . .

Fortunately, we are not writing for the wire services and are not held accountable for who, what, where, when and why.

I learned quickly the need to develop an audience.  Fido was easily my most read blog. My rage on Chinese imports was virtually ignored. Is China important? Yes. Is China appropriate for ActiveRain? The lack of response said it all.

Two other constants that are a must for me are writing the blog in a word processing program and proofreading.

 I use Word. It lets me write, edit and save more easily than on the ActiveRain new blog entry page. Also, if I need to research something from ActiveRain, it is easier and I don’t have to worry about closing the wrong tab by mistake.

Speaking of mistakes we all make them. Some are typos, some are syntax and some are misspellings. Spell check is nice but only a beginning. My wife not only knows spelling but she understands content.

I proof headlines letter by letter. Nothing is more embarrassing than having that mistake big, bold and spread across the top of your blog. It’s kind of like a big beautiful smile with spinach stuck between your teeth.

Finally, I read everything out loud. This helps me cut down on those dangling participles and misplaced modifiers.

Your comments and ideas are appreciated. I know you have a choice on how you spend your time.

Oops! My wife, Christine, just read this. She threw her hands in the air and said, “Finally, I get one line about me after all this proofreading.”

I guess that I more to learn than I thought.

How will the proposed Florida Super Exemption affect investors and second home buyers? This is an important question that is being asked more and more.

On the surface the benefits for owners of non-homestead property are not that great. However, depending on how the law is applied some relief should occur because the proposed amendment would level the assessed values of like-property equally.

Under the current Save Our Homes tax law a condo with a homestead and assessed at $125,000 in 2001 would receive the $25,000 exemption making the accessed value $100,000. Because of the three percent per year cap on the assessment, five years later the tax assessed value would be around $116,000.

A like-condo purchased in 2006 for $325,000 could be assessed at $300,000 based if the condo was a homestead and $325,000 if not a homestead. The assessment is based primarily but not totally on the purchase price. Under the current law we would have like-properties assessed at $112,500 and $300,000. This is just not fair. The politicians in 1992 when Save Our Homes passed had absolutely no foresight.

With the exception of homes grandfathered under the Save Our Homes exemption, the propose amendment would level the assessment equally. All the properties would be assessed the same and only then would the homestead exemption be applied. This is a definite step in the right direction.

One of the complaints myself and others have had is that the proposed amendment does not do enough to help investors and second home owners. These people are so important to our market. The second home owner uses the least amount of services  and pays the highest taxes. Let’s not forget these people have rights also.

It seems the legislature of 2007 only has slightly better foresight than their forefathers. Their vision is no farther than the next election.

I campaigned through letters and emails for a tax amendment very close to the one proposed. But I had hoped for a homestead exemption that would have been between 25% and 50% of the first $300,000 and 10% thereafter without a limit. The Super Exemption is 75% of the first $200,000 and 15% of the next $300,000.

With the smaller exemption I favored, residents with homesteads would have reduced their taxes by about 1/3 depending on the percentage. The tax savings on the proposed amendment is much higher especially on the lower end. It's too high.

The legislature in their haste failed to provide a plan that would spread the relief to all property taxpayers.  If taxes don’t come under control, the legislature will have “kill the goose that laid the golden egg.”

I’m in favor of grandfathering homesteads under the current Save Our Homes law. Not because I like it but as a necessary evil. The proposed amendment requires a 60% majority. It would be impossible to pass this amendment without the grandfathering provision.

Many people would like to make Save Our Homes portable. I am not certain how that would work but I can tell you I strongly oppose it. I don't want to tax residents out of their homes and that is why I support a homestead exemption that is higher for lower valued homes. But Save Our Homes is blatantly unfair. It's an example of the  myopic minds in Tallahassee.

The question Floridians have to decide in January is which is better: the current Save Our Homes law or the Super Exemption. That's an easy decision in my opinion.

However, the proposed amendment is meeting with a lot of resistance. Part of resistance results from the campaign of fear and ignorance being waged by some local government officials and municipal employees. They actually had a business plan that was distributed state wide to local governments on strategies to defeat the proposed amendment. They prey on residences fear of less police, fewer teachers and disappearing services.

Floridians have suffered huge increases in taxes over past several years. I’m still asking where has all the money gone? The truth is local governments are comprised of top heavy salaries and pork barrel projects.

I expect that resistance will lessen because the Super Exemption is far and away the better of the two laws. But, that is no guarantee it will pass. Right now one survey shows only an approval rate of 55 percent which would fall just short of the 60 percent needed.

I plan on attending an information seminar on the legislation. It is important as a realtor and a taxpayer to keep informed. We need to be able to explain the pros and cons of the proposed amendment and encourage Floridians to move forward and vote for approval.

They poison our food. They poison our toys. They even poison our pets’ food. You don’t have to be an economist to hate our relationship with China. It just toxic. Sorry, to be so blunt but that’s the way it is.

Now, it’s not the people of China. It’s not the yaks, the rice patties or the Great Wall. It’s our trade relationship. And, the absolute worst part of it is who’s to blame. We are. It’s us; not them. Look at our government and big business for a couple of the culprits, and look in the mirror for the third one.

Now, I’m not going to play politics. This is too big of a screw-up for one administration or one political party. And, it’s too big for one party to fix. In fact, anyone who thinks our Executive Branch or our Congress – no matter which party is in power – can fix this problem; raise your hand right now.

Maybe we all need to stay in a Holiday Inn Express. That includes Congress, the President and the American consumer. What a nightmare. The only trouble is that this one doesn’t go away when we wake up.

Our consumerism is blinding us to the long term consequences of our uncontrolled, unmanaged trade with China. Do you really think the Chinese government is in this relationship because they want to see our child’s smile when he opens a big red lead laden plastic fire truck? Do you think the Chinese government is gratified that our pets have a full tummy of pesticides?

I never had a class in economics. And, obviously our leaders in Washington, if they had an economics class, were not paying attention.

So here’s my solution. It probably doesn’t make any sense so I’ll at least be short.

The way I see it we have two major economic problems in this country. Too many imports from oversees and illegal immigration. Two problems but one solution.

Gradually, reduce oversee imports by applying reasonable tariffs. Use these taxes to encourage private sector investment in Mexico. Work with the Mexican government - as corrupt as they are - to establish minimum wages and working conditions in manufacturing plants.

At the very least here at home we should know a thing or two about government corruption.

Try to create a situation that would slow the need of Mexicans to become illegal immigrants. Don’t take jobs from Americans to give them to Mexicans. Take them from China. And while we are at it take jobs from India. I’d rather talk to a bad customer service rep in Juarez than in Calcutta.