READ THE ABOVE LINKS AND MAKE NOTE HOW THE DEMOCRATS/SOCIALISTS BLOCKED PRESIDENT BUSH’S OVERSIGHT AGENCY ON FANNIE MAE AND FREDDIE MAC IN 2003 AND HOW THE DEMOCRATS/SOCIALISTS BLOCKED S.190 IN 2005 THAT BOTH WOULD HAVE PREVENTED PREDATORY LOANS/BILKING OF AMERICA’S WEALTH. THIS WAS TO SET UP A WELFARE STATE SUCH AS THE FAILED STATES OF SWEDEN/ENGLAND/FRANCE/GERMANY ETC.
THE IMPETUS IS TO CAUSE A WELFARE STATE IN AMERICA TO TRANSFER WEALTH TO EUROPE (GREEN PROPAGANDA -PRODUCTS TO BE MADE IN EUROPE) AND MIDDLE EAST (BY NOT DRILLING AT HOME-GREEN PROPAGANDA) THIS IS WHERE GORE DID HIS PART TO SCARE MONGER AMERICA ABOUT FALSE CARBON POLLUTION. GREEN FARCE
Earlier this week, a Texas bank demolished 16 new and partially built homes in Victorville, California, a suburb 100 miles north of Los Angeles. The luxury homes originally planned to sell for more than $300,000, but Guaranty Bank decided it would be more cost-effective to cut their losses and end the project, than finish building the whirlpool-tubbed, granite-countertopped homes and try to sell them in a depressed market.
While it is not uncommon to hear stories of vacant homes in poor inner-city areas being torn down, suburbs like Victorville, which boomed during the housing bubble, are now being hit just as hard by this economic downturn.
And suburbia isn’t the only surprise hit. According to recent reports, people who were once thought of as being immune to the credit crunch are now in danger of losing their homes.
It’s no surprise that a large number of homes bought with subprime loans would be in danger of foreclosure during difficult economic times (see Portfolio magazine’s anecdote about the Mexican strawberry-picker in Bakersfield, who made $14,000 a year and was granted a loan to purchase a $720,000 house), but now wealthy borrowers who took out jumbo loans (loans that are too large for government backing, currently $417,000 in most areas) to cover pricier houses have joined subprime borrowers in the foreclosure arena. According to the Wall Street Journal, foreclosure starts have jumped 221% on prime borrowers who took out jumbo loans.
David Adamo, chief executive of a home-loan bank in Connecticut, told Bloomberg:
“‘It’s the trickle-up effect. Just like homeowners in smaller homes, these homeowners anticipated being able to refinance mortgages to continue making payments and at a future date sell for a gain and put it toward their next home. That strategy backfired when the market for jumbo mortgages dried up.”
Bloomberg also reports foreclosures have even found their way to the Hamptons. The posh beach towns 100 miles east of New York City had nearly 90 borrowers enter the foreclosure process in the first 10 weeks of 2009. And that’s in addition to the 109 in the same period last year and 73 in the first 10 weeks of 2007.
But unlike the average home-loan recipient trying to fend off foreclosure, borrowers with jumbo loans may not see any help soon. President Barack Obama’s Homeowner Affordability and Stability Plan has no provision to help jumbo mortgage borrowers, as the plan focuses on supporting only home loans eligible to be bought by Fannie Mae and Freddie Mac.
From cities to suburbs to wealthy communities to farms? When the economic crisis first began, economists believed rural America would be spared. According to the Wall Street Journal:
“Farms were prospering. The housing boom largely bypassed small rural towns. And exotic, new mortgages at first were seen as an urban and suburban phenomenon.”
While foreclosure rates remain higher in cities and suburbs, defaults in rural communities are on the rise. The WSJ also reports that rural foreclosures outside of the Minneapolis-St. Paul region have increased 232% since 2005, as rural borrowers are much more likely to have subprime loans. Economists say foreclosures are affecting rural economies faster than their urban counterparts. “When homeowners in small communities walk away from their homes, they often also abandon their towns,” the article notes.
Paul and Judy Perrine told the WSJ that when their five-bedroom farmhouse in northern Minnesota went into foreclosure, they packed their belongings, 13 children, and two horses, and left the small town where they raised their family.
REP. CHARLIE RANGEL (D., N.Y.): He is being “investigated by the House Ethics Committee in at least four areas, including his reported failure to properly report income taxes on a Caribbean villa in the Dominican Republic; use of four, rent-controlled apartments in Harlem; questions about an offshore firm asking Rangel for special tax exemptions; and whether Rangel improperly used House stationery to solicit donations for a school of public affairs named after him at City College of New York
“We overstepped common sense with regard to debt…[My] income was always pretty decent, so you always felt like you could make it up down the line.”
As the Senate is set to debate legislation to help troubled homeowners restructure their mortgages, Senators Russ Feingold (D-Wis.) and Kirsten Gillibrand (D-NY) have offered an amendment that would extend similar loan protections to farmers.
While America has long been a country that touted the benefits on home ownership, many renters feel they have dodged the bullet in the current crisis. As worried homeowners scramble to pay rising mortgages on their de-valued homes, renters were thanking their lucky stars they didn’t accept the seemingly free money that banks were doling out to purchase property.
But it’s not all good news. Some renters, too, are coming face-to-face with foreclosure. According to The New York Times, 30 percent of homes that received foreclosure notices this year were occupied by someone other than their owner. While Fannie Mae and Freddie Mac have started offering leases to renters of foreclosed properties, most other lenders have not followed suit. And many residents are being forced to abruptly evict their homes, through no fault of their own.
Marietta Rodriguez, director of national homeownership programs at NeighborWorks America, a nonprofit network of community housing groups, told the NYT:
“This has been a silent issue that is now gaining steam and attention. Is it explicable? Not really. It affects the displaced tenant, the value of the building, the neighborhood. Nobody wins.”
Barney Frank Sleeping With Sodomy Sweetheart Executive From Fannie Mae While Bilking America – Conflict Of Interest?
While it may seem like there’s no (financially) safe place to live in America, believe it or not there are pockets in our country where residents wonder what a recession feels like. Take for instance, Sioux Center, a rural town in Iowa that claims their “steady keel” helped them avoid the recession. And there’s always Pinedale, Wyoming, a town with too many vacant jobs.
– Allison Louie-Garcia
- Dismantling Obama’s Agenda: Bringing To Justice The Corrupted Politicians. (politicalvelcraft.org)
- Jumbo Loans: Financing in Texas (directmortgagelender.wordpress.com)
- Ruling could have impact on foreclosure suits (ajc.com)
- Homeowner Hell Continues: Mortgage Companies Fail To Abide Foreclosure Settlement (huffingtonpost.com)