Beware of Long Realty/Sly as a Fox - Recently Updated Pages

Letter to Megan Miller, February 10, 2008

ellasilveira — Sat, 05 Jul 2008 22:44:11 CDT

It is obvious that Long Realty Company is unable to admit to any wrong doing.
Apparently Long Realty Company thinks they are above the law.

see attachments:

Letter to Megan Miller, January 2, 2008

ellasilveira — Sat, 05 Jul 2008 22:30:54 CDT

Megan Miller requested additional information in her letter dated December 17, 2007.
We complied with her request, however to this day she has failed to respond.

see attachments:

Attorney’s Gabroy, Rollman & Bosse, P.C.

ellasilveira — Sat, 05 Jul 2008 22:22:47 CDT

Letter from Ronna L. Fickbohm, attorney for Roy H. Long Realty Company, Inc.
On October 22, 2007, Mr. Weiss handed me this letter while we were standing on the sidewalk peacefully protesting in front of Title Security Agency of Arizona on Broadway Blvd.

attachments to follow:

Attorney - Mr. Arthur L. Weiss

ellasilveira — Sat, 05 Jul 2008 22:09:17 CDT

Mr. Weiss called us a short time after our free consultation appointment with him. He said that he received a call from Megan Miller, General Counsel for Long Realty Company and that Long Realty wanted to pay for us to have another appointment with him. That appointment was on August 28, 2007 at 11:30 am

see attachments:

Attorney - Megan E. Miller General Counsel for Long Realty Company.

ellasilveira — Sat, 05 Jul 2008 22:01:07 CDT

Megan E. Miller
Megan Miller sent this letter to Mr. Weiss, P.C., dated November 15, 2007

see attachments:

Federal Truth-In-Lending Disclosure Statement

ellasilveira — Sat, 05 Jul 2008 20:52:18 CDT

Amount financed
The amount of credit provided to you or on your behalf.
$124,168.54?

see attachments:

Notices and Disclosures 61 - 119

ellasilveira — Sat, 05 Jul 2008 20:35:38 CDT

Pam Treece - 1/22/07

see attachments:

Affidavit of property value: $127,500.00

ellasilveira — Sat, 05 Jul 2008 20:30:22 CDT

Title Security Agency of Arizona
This is not dated nor notarized by Pam Woods at the COE. Why?

see attachments:

Letter to Megan Miller from my father, Ellis Herman

ellasilveira — Sat, 05 Jul 2008 20:12:43 CDT

Megan Miller’s reply to my father’s letter

see attachments:

Megan Miller’s reply to my father’s letter

ellasilveira — Sat, 05 Jul 2008 18:49:53 CDT

attachments to follow:

Arizona blackballed on some lender lists

ellasilveira — Sat, 05 Jul 2008 10:41:39 CDT

Arizona blackballed on some lender lists
State is among those where loan restrictions are in force

By Alan Zibel and J.W. Elphinstone The Associated Press Tucson, Arizona | Published: 03.21.2008

WASHINGTON — Mortgage insurance is becoming harder to get in those real-estate markets that are already performing the worst.
In recent weeks, mortgage insurers have flagged more than 9,600 ZIP codes in at least 34 states where they won't insure certain types of home loans — putting additional pressure on markets that are already suffering.
Mortgage insurers, whose backing is required for borrowers who can't afford the traditional 20 percent down payment on a home, have already flagged nearly a quarter of the nation's ZIP codes where they refuse to insure some home loans.
That encompasses a wide variety of neighborhoods: McMansions in Scottsdale; luxury South Florida condos; 1960 ranch houses in Flint, Mich.; and early 20th- century kit homes in Metuchen, N.J.
The entire states of Arizona, California, Nevada, Florida, Michigan and Ohio — which have seen the highest foreclosure rates and the worst price declines — are blackballed on some mortgage insurers' lists.
Banks that have lost billions because of bad bets during the housing boom are now reverting to strict lending standards not seen in nearly 20 years, according to industry data and interviews with lenders.
For new home buyers and those seeking to refinance, it can mean higher down payments and a higher bar for credit scores, among other requirements. The toughest restrictions are in markets where home prices are falling, though regions where property values are rising are not immune.
"We're in the midst of an epic, broad, sweeping change in the mortgage industry," said Chris Sipe, a loan officer with America East Mortgage in Frederick, Md. Leery lenders The reluctance to extend credit comes despite a flurry of government initiatives, including steady interest rate cuts by the Federal Reserve, intended to make it easier for would-be borrowers and those facing interest-rate resets on their mortgages.
Lenders' growing leeriness threatens to dampen sellers' already soggy prospects for the spring home-buying season — and that means more pain for the already battered housing sector and the broader economy.
With banks and mortgage insurers pulling back, state and federal programs for first-time buyers and people with poor credit are attempting to fill the void.
Don Brekke, an equipment operator from Colorado Springs, Colo., tried to buy a bank-owned 1950s ranch home for $113,000. At first he couldn't get a loan because the house was in a potentially declining market, and lenders required a 10 percent down payment, more than he could afford.
Ultimately, he was able to qualify for a 100 percent loan from Colorado's state financing authority, and he plans to close in the coming days.
"It was a bunch of headaches — going around and around to get this done," Brekke said.
The increasing austerity of banks is showing up in home loan statistics: The value of all new mortgages plummeted to $450 billion in the fourth quarter of 2007, down 38 percent from a year earlier, according to the trade publication Inside Mortgage Finance.
Subprime loans, made to borrowers with poor credit, plummeted 90 percent to $13.5 billion in the October-December quarter.
There is a silver lining: The Federal Reserve has repeatedly cut interest rates, helping borrowers whose mortgages were just about to reset to higher rates and people with student loans. Reflecting the Fed's efforts, rates on 30-year mortgages dropped below 6 percent this week for the first time in more than a month.
But the long-term impact of the Fed's strategy is far from certain, and the central bank's actions could end up feeding inflation and pushing up long-term rates.
"The credit crunch is much like the movie villain that refuses to die," said Greg McBride, a senior financial analyst at Bankrate.com. "The effects are spilling out, far beyond what was originally seen." Playing hardball Amid the turmoil, the mortgage industry is playing hardball with borrowers.
Wells Fargo & Co. now requires a 25 percent down payment in the most distressed markets, according to a document sent to mortgage brokers last month. A company spokesman said in an e-mail message that Wells Fargo is "focused, as we've always been, on fair and responsible lending and sound credit risk management."
Some borrowers who took out home-equity loans or second mortgages are being blocked from refinancing. The problem is most common among consumers using two different lenders.
Companies that made second mortgages are now denying requests — common in a refinancing transaction — to take secondary status in the event of a foreclosure. Especially in markets where prices are declining, holders of those loans want to be paid off before a loan is refinanced rather than take on the risk of default, industry experts say.
Lenders' changes have removed 30 percent to 40 percent of the borrowers who could have qualified in recent years, estimated Tom LaMalfa, managing director at Wholesale Access, a Columbia, Md.-based mortgage research firm.
Lenders and mortgage insurers are also requiring proof of income and employment, something they didn't always do during the housing boom.
"It's no longer people buying pools of loans, strictly written by a computer, and no one knowing what's in a pool," said Marc Schwaber, chief executive of Preferred Empire Mortgage Co. in New York. "The loan is going to have to make sense." 9 Comments on this story 1. Comment by ralfie 1. (ralfie12) — March 21,2008 @ 1:00AM Ratings: -9 +5
PMI was put upon us by the Democratic Congress in the late 80s, after they gutted the S & L's...Coming home to roost again. The only thing left will be Habitat for Humanity homes, section 8, and FEMA trailers. The government will take it all over. Report this comment 2. Comment by Paul D. (toxman) — March 21,2008 @ 4:06AM Ratings: -6 +8
maybe if people put more money down, like the 20% needed for a conventional mortgage, they would be more careful about the single largest purchase in their lives
yes, I know low-income families can't come up with that kind of money...
hell, nobody saves anymore
redistribute the wealth and give everyone an opportunity
do you think this "philosophy" got us in this mess? Report this comment 3. Comment by Don H. (dhart) — March 21,2008 @ 6:35AM Ratings: -2 +8
Greed wins out in the end...
This too shall pass. Report this comment 4. Comment by francis w. (#6565) — March 21,2008 @ 8:10AM Ratings: -2 +2
I just hope the gummint doesn't come up with a solution to this problem like the one they came up with for the "red lining" problem. Report this comment 5. Comment by LAURI C. (#6530) — March 21,2008 @ 8:41AM Ratings: -3 +8
I can't understand why the lenders want 25% down and I am sure that they also want whomever is apply for the loan to have a credit score of 775-800.
We live in AZ--a right to work state, which keeps our wages down. It is almost impossible to save that much money for a down payment. Report this comment 6. Comment by Mr. D. (nemesis) — March 21,2008 @ 8:43AM Ratings: -1 +7
#1,
I was unable to find any legal requirements for PMI outside of Homeowner's Protection Act of 1998, which covers notification to borrowers of the option to drop PMI. How did "the Democratic Congress in the late 80s" put PMI on the mortgage industy? Report this comment 7. Comment by dail k. (question authority) — March 21,2008 @ 9:52AM Ratings: -6 +1
crash & burn........ CRASH & BURN...... crash & burn..... even the wealthy are going to crash & burn.... Report this comment 8. Comment by Peter V. (#4711) — March 21,2008 @ 1:29PM Ratings: -0 +1
If "redlining" is NOT ALLOWED, because it is an arbitrary criterion on a map that individuals are NOT personally responsible for, then today's "zip code" lining and "state or county" boundary lining should be disallowed for the same reason.
Even a 100% Conservative has no sanguine ties to banks. They have NO community interest at heart, and they are not expected to have any community interest -- only their own "interest" is what they exist for. Conservatives do not hold this selfishness against them, any more than tigers should be blamed for eating sheep. Making a profit is in their job description.
However it is only the government in this case that wields the necessary Community Interest. The accepted method is for the government to set rules and regulations for banking that will keep the banking function honest and fruitful community-wide.
So from this Conservative point of view, I say the government SHOULD regulate against ANY geographical criteria in public lending as being "capricious and arbitrary, contrary to public interest." Report this comment 9. Comment by Rude S. (W Dejavu) — March 21,2008 @ 8:44PM Ratings: -0 +1
Do Arizonans not remember Keating and how John McCain helped him until it all fell through that hole. Put the blame where it belongs, Republican cronyism with a Chinese ****e. Report this comment

Home foreclosures up 430%

ellasilveira — Thu, 03 Jul 2008 22:02:05 CDT

Tucson Citizen
Published: 05.08.2008

Foreclosures in Tucson are increasing dramatically and local government and nonprofit officials are moving fast to keep a national trend from becoming an overwhelming problem here.
County officials are looking at ways to stem neighborhood blight that vacant foreclosed homes will cause. One county supervisor is contemplating the ripple effects brought about by the financial crisis in the community.
In 2007 there were 4,471 foreclosure filings in Pima County, according to RealtyTrac, an online foreclosure listing service.
An analysis of RealtyTrac data shows filings increased from 322 in the fourth quarter of 2006 to nearly 1,700 in the last quarter of 2007, an increase of nearly 430 percent. The majority of the 2007 filings came during the second half of the year.
Economists and real estate experts say the increase in foreclosures is adding to the already overstocked housing inventory, which in turn is leading to fewer construction jobs and more families unable to make mortgage payments.
But real estate experts point out that the decline in the housing market means prices are correcting from the overinflated values from the housing boom a few years ago.
The median home price dropped from $280,000 in January 2006 to $244,000 in late April of this year.
According to Housingtracker.net, more than 10,000 homes were on the market at the end of December, more than double the inventory in December 2005.
Data from the Tucson Association of Realtors show the total value of homes sold in 2007 was $1.5 billion less than in 2005.
Another wave of foreclosures may soon hit the metro region, according to an analysis of figures provided by the Federal Reserve Bank.
The data show that nearly 70 percent of the subprime loans issued in Pima County are adjustable rate mortgages. Nearly half of the borrowers will see their interest rates reset in the next 12 months.
"From what we understand, foreclosures will probably peak in August of 2008," said Bruce Tunell, deputy superintendent of the Arizona Department of Financial Institutions. "We're gearing up for that."
The Federal Reserve Bank has released data that is a sampling of the subprime loans throughout the nation. The loans included in the data typically were repackaged and sold to investors.
According to the data, nearly 60 percent of the subprime loans were taken out by borrowers who were capitalizing on their home's equity and walking away with cash in their pocket.
That cash is now gone, and for many, so is their house.
Richard Elías, chairman of the Pima County Board of Supervisors, says foreclosures will have a large impact on the local economy, which is structured around new homes and population growth.
"There's not really manufacturing in this community. There's not really other kinds of industry jobs that are out there for people," he said. "Instead, growth is what funnels our economy in large part, so when growth gets damaged by a lack of investment in housing or something like the foreclosure crisis that we're facing, our economy is hurting. The reverberations are deep throughout our economy.
"Neighborhood issues become very tough when there is a number of vacant and abandoned homes in a community," Elías said. "There are so many deleterious effects to having abandoned homes in neighborhoods, particularly in the toughest parts of town.
"We have to respond to that and we have to find a way to create a stronger sense of neighborhoods in those places to combat the deterioration that's happening."
Discussions are under way among local government officials and nonprofit organizations to start programs to buy foreclosed homes that would otherwise remain vacant in an effort to prevent neighborhood blight and at the same increase the number of affordable houses.
"What that does is, it provides an opportunity for people who were priced out during the high times when homeownership was out of reach for so many people, especially the lower income people," said Betty Villegas, a program manager with the county's Community Development & Neighborhood Conservation Department. "In this tragedy there's opportunity for those individuals that are ready for homeownership."
Tucson officials also are looking at purchasing homes that have been foreclosed on.
Jaime Gutierrez, president of the board overseeing the city's Industrial Development Authority, said that agency has been looking at ways to fund home purchasing programs.
Gutierrez said local governments may be best-equipped to deal with the increase in foreclosures but that they cannot do it alone. Buying just 10 homes in the inner city could cost from $750,000 to $2 million.
The federal government needs to provide funding and local nonprofits and banks need to also be a part of the process, he said.
"It really needs to be a contribution of a whole lot of people and not just local government or county government," Gutierrez said. "It really is going to be a communitywide obligation."
Rep. Raúl Grijalva, D-Ariz., said Congress should provide federal dollars to help with the foreclosure crisis by paying down interest rates.
"We are not bailing out these borrowers," Grijalva said. "There are homeowners that need not to be given charity or be given a handout, but to be given the support for them to retain their home."
A bill in the House of Representatives would provide up to $300 billion in funding to the Federal Housing Administration to help refinance home loans and reduce interest rates.
Another bill would allocate $10 billion to foreclosure prevention efforts carried out on a local level throughout the nation.
City Councilwoman Karin Uhlich said the city may be able to dip into Community Development Block grants to help stabilize neighborhoods. The county is also looking at federal dollars and bonds for funding sources.
Uhlich is worried that cheap foreclosure homes will attract speculators and absentee landlords looking for investments.
She also is concerned about a possible increase in foreclosure filings in areas that have high concentrations of rentals.
"When you see it creeping into neighborhoods that are high in rentals, it's clearly not just homeowners, but renters that are affected as well," she said. "The fabric of many of those neighborhoods are going to be more complex."
Villegas, of the county neighborhood conservation department, said the county has been getting more phone calls from tenants whose landlords are going through the foreclosure process, a trend echoed nationwide.
She said there also are more calls for emergency relocation assistance from people who need to move but don't have the money to do so.
Studies have pointed to the connection between large numbers of foreclosures and increases in crime in neighborhoods.
A 2005 study by Dan Immergluck of the Georgia Institute of Technology and Geoff Smith of the Woodstock Institute found that for every one foreclosure out of 100 properties, the violent crime rate increased by 2.33 percent.
Uhlich said seeing large numbers of foreclosed homes or "for sale" signs in a neighborhood is a telling statement.
"It just sends a message that the neighborhood is destabilizing," Uhlich said. "It sends a message that is unsettling for the residents that are staying there."
Midvale Park, on the Southwest Side, is one of the areas hardest hit by foreclosures, according to the Citizen analysis of RealtyTrac data.
"When you have problems with finances, you start to see some of the decay as far as crime going up, graffiti and those types of blight happening," said Joseph Miller, president of the Midvale Park Neighborhood Association. "I don't know that that's happening any more. We've actually been seeing things go the other way."
Miller said a lot of work has been done to clean up the neighborhood and he hopes those efforts will prevent the area from decaying.
But factors beyond the impact to the economy and neighborhoods need to be considered, Elías said.
"There's human costs related to all these foreclosures that aren't shown in statistics and in economic forecasts," he said. "That's the deterioration of the family that happens when you lose a home. Things happen. Divorces spring up, people have drinking problems or drug abuse problems, (and) you have a higher incidence of domestic violence going on in your community.
"There's a number of really awful cause-and-effect relationships that transpire related to foreclosures in our community," he said. "I think we need to be particularly sensitive about that and recognize that our families really are in jeopardy as well."

1. Comment by don y. (#1745) — May 8,2008 @ 6:18AM
Rating: 1 Thumb Up
seems to me politicians are protecting the thiefs and loan sharks by allowing the foreclosures take place. prohibit forclosures on illegal mortgages. what happened to the truth in lending law? or was that just more republican bs.
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2. Comment by Steve H. (#4002) — May 8,2008 @ 6:31AM
Rating: 19 Thumbs Up
A little history lesson:
Truth in Lending Act - 1968
Equal Credit Opportunity Act - 1974
Democrats controlled majority of House of Representatives from 1931 to 1995.
I call BS on your Republican BS.
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3. Comment by francis w. (#6565) — May 8,2008 @ 6:44AM
Rating: 33 Thumbs Up
Hints at the possibility of a bailout will only increase the number of people who stop making their payments. Afterall, why should a homeowner continue to struggle with those payments when his neighbor is going to get a ride on the back of the taxpayers?
The last I heard, Arizona had a foreclosure rate of 1 out of 95 households, or slightly over 1%. Best to let the bubble continue to burst, then maybe give some help to those who are most obviously in need of it. Bad choices should not be rewarded with taxpayers money, especially if many of those bad choices were made by speculators hoping to make a quick buck.
http://www.bizjournals.com/philadelphia/stories/2008/04/28/daily12.html
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4. Comment by R F. (toma) — May 8,2008 @ 7:08AM
Rating: 27 Thumbs Up
Good job #3, many of these numbers that the media continues to hype are created out of unethical opportunists looking for an easy way out of their responsibilities. Most would rather foreclose and deal with those circustances versus hunkering down and living within their means. I doubt that many of these same people are giving up their trips to the casinos or 12 packs of beer.
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5. Comment by Bruce S. (#276) — May 8,2008 @ 7:15AM
Rating: 14 Thumbs Up
"Tucson officials also are looking at purchasing homes that have been foreclosed on."
Ugh. Are there no grammar editors at the Citizen?
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6. Comment by Corky E. (cesqy) — May 8,2008 @ 7:27AM
Rating: 2 Thumbs Up
With unbridled faith, the modern day Republicans (neocons) let predatory lenders give massive credit to speculators who bought real estate with "liars" loans. They believe that free markets work without regulations and that the expanding national and personal deficits don't matter. Now, we pay the price for infecticious greed and a lack of oversight...with a housing crunch that is the worst since the Great Depression (GD). FDR during the GD said, "The only problem with capitalism is the capitalists. They are too greedy." Our will be paying the price for the next decade and beyond for the belief that debt doesn't matter and free markets control themselves.
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7. Comment by Rick M. (Ramman) — May 8,2008 @ 7:41AM
Rating: 32 Thumbs Up
"According to the data, nearly 60 percent of the subprime loans were taken out by borrowers who were capitalizing on their home's equity and walking away with cash in their pocket. "
I think I will start here! This line is very telling.
Harry sees a way to get some quick bucks. His home is worth a lot more than he owes on it, so he grabs a home equity loan to cover the cost of some repairs or maybe a car he needs. Soon he sees a new BBQ grill and decides he can just use a little more of that equity he has. Then it's the vacation he always wanted, maybe that new flat panel television etc...
All of a sudden he is denied the purchase of a new camper or boat and Harry cannot believe he is out of money! On top of that, the interest rates went up and the bill is out of his reach.
As Harry gets further and further behind, he decides he is better off just walking away from the house, and another home sits empty.
Others have been looking around and digging into the news stories of how the government is looking for ways to help people keep their homes, so they take a long breath and file for the applications.
We also know that reports have shown over 45% of all applicants for these subprime loans lied on their applications.
The horror stories pile up on the news channels. A woman in Maryland, (true story,) claims how she was victimized by the lender who was all too willing to give her money. She based the loan on a job she hoped she would get, lying on the application by using numbers from what the new position would pay. She did not get the job.
As the cameras slowly pan in on the tow truck taking her new Escalade away, we hear the woman sobbing about how it is all unfair.
In another case, (Also true,) we hear a man describing about how he was victimized by the loan originator as well. He knew his income was only $32,000/year, yet he could not help himself as he listed assets he did not actually have, and inflated those he did have.
He also could not keep himself from signing the mortgage for a new $875,000 house, and the monthly payments that exceeded his pay by over $1000/month. It is just not fair that he should lose his home, the dream home he always wanted.
Head down to Florida and we have the story of the investor who had flipped over 200 houses before the bottom fell out of the market. He got stuck with 14 properties, but he had also already made over $14 million. He simply decided to walk away from the properties he had little of his own money in. The man was also the first in line for a new state program that may bail him out, allowing the investor to keep about half the homes he still intends to sell when the market recovers.
And still, the facts are that over 95% of all mortgage holders are not only making their payments, but on time as well!
As much as it will hurt, I too believe the best thing to do is allow market forces to solve the problem. Soon the bottom will be hit, prices will stabilize at more realistic and sustainable levels, people will start to buy again, (as they already are,) and the taxpayers will not be forced to pay out more of their hard earned money, money they need to pay their own mortgages.
Responsible people should not be forced to bail out those who were irresponsible with their money.
However, we should not forget some of these unscrupulous lenders who wrote notes they knew would never be paid, but they did not care as they had no intention of ever collecting, instead selling all the notes in blocks to investors who relied on reports that all notes were checked and sound.
We should also not forget institutions such as Bank Of America who wrote more than their share of bad mortgages by actively seeking out illegals with promises they would not have to verify their status or provide documentation to obtain loans.
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8. Comment by Rick M. (Ramman) — May 8,2008 @ 7:52AM
Rating: 14 Thumbs Up
Corky, could you please provide some links to your "facts"?
My problem with your statements are that I have been researching these since before the market went bust, and there is nothing to show anything you have claimed is true, in fact, quite the opposite.
Democrats, led by Nancy Pelosi and Harry Reed, pushed to loosen up monies and credit so more people could buy a house. They claimed it was unfair that the poor could not participate in the "American Dream". They called for hearings and made demands of the Fed, threatening the loss of autonomy and investigations on the regulators if their demands were not met.
Suddenly, large credit blocks were met with enthusiasm and the large numbers of mortgage brokers started popping up all over the internet and in neighborhoods.
As the lenders were pushed harder to make more money available to lower income people, the subprime market exploded, and many people who should never have been given a loan were extended credit, even for properties they could not afford on present incomes, and even though some of these people had been foreclosed upon before and had terrible credit otherwise.
Just who is the majority in the Congress? Who was the majority when this whole mess started? Who headed the committees that allowed all of this? And now, who is saying the responsible should be forced to bail out the irresponsible?
How is this worse than the great depression when more people than ever own homes? How is it worse when over 95% of those owners are making their payments on time and are in no danger of losing their homes?
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9. Comment by Bill J. (jonzie) — May 8,2008 @ 8:01AM
Rating: 13 Thumbs Up
Have you ever known the media in general and especially TNI to ever report the truth and do so accurately?
Nahhh .... I didn't think so!
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10. Comment by demospolis p. (demospolis) — May 8,2008 @ 8:43AM
Rating: 13 Thumbs Up
Inflate, deflate and consolidate.. See JP Morgan acquiring Bear Stearns or Bank America buying Countrywide.. We are witnessing the greatest quantum leap in the history of financial consolidation..This is what everyone should be fearing..All underwritten by Federal Reserve policy..I am thinking over 600$ billion injected into the financial system ..The root cause of the recent price inflation.. Suprime crisis=higher commodity prices
There is plenty of blame to go around.."Securitization" ..packaging mortgages and a selling to unsuspecting investors partly created the whole mess. Mortgage originators could care less as long as they could offload junk debt rated AAA.. Wall street could care less generating fees from transactions. Ultimatly "The maestro" Allen Greenspan flooded the economy with cheap credit..All systemic finacial bubbles are created by Central Banks. Current FED policy has created another bubble in commodities..If this bubble pops we may see hyperinflation Germany style followed by deflation 1929 style..These are scary times!
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11. Comment by Dennis M. (leftin 1978) — May 8,2008 @ 8:47AM
Rating: 3 Thumbs Up
In the Reno/Sparks area there are over 3600 units in pre or full blown forclosure. The area's home values of all types have fallen >25% in 2 years. We were way over priced before hand. Needed to happen. I'd say jail a few brokers and title agents to solve the problem.
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12. Comment by Lila S. (#2245) — May 8,2008 @ 9:00AM
Rating: 1 Thumb Down
Its terrible the prediatory lending practices allowed here, something needs to be done to stop these companies from putting people in harms way.
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13. Comment by Sam L. (samlig) — May 8,2008 @ 9:18AM
Rating: 27 Thumbs Up
Moral of this story: Don't spend more money than you make, save some money every month, don't ever borrow against the future, the only proven way to make money is through honest, hard work, and don't complain about what happens to you if you don't follow this advice.
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14. Comment by demospolis p. (demospolis) — May 8,2008 @ 9:26AM
Rating: 10 Thumbs Up
Examine the facts ..Over the past +35 years the dems & republicans collectively gutted our finacial system..The Federal Reserve has been nothing more that a support system for the large money center banks.
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15. Comment by JACOB K. (Jake001) — May 8,2008 @ 9:31AM
Rating: 5 Thumbs Up
What happened to the "personal responsibility ethic" our parents had?
I guess those 60+ (1931 to 1995) years that the Democratic "Let The Government Do It People" were running this great nation of ours is now showing up in the Bottom Line!
Chickens really do Come Home to Roost!
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16. Comment by demospolis p. (demospolis) — May 8,2008 @ 9:48AM
Rating: 2 Thumbs Down
#13... If you legally recieved a gov't rebate check for $10,000 along with several million citizens would you spend it? Would millions of others spend it? Would it be a bad policy? My point is society generally plays the hand that is delt to them. There was a time when 18yr old college kids were not solicited by credit card issuers..Why? because the credit issuers were responsible & would be a high risk.. In more recent times credit issuers have packaged debt & sold to unsuspecting investors...Overated Junk debt rated AAA by prestigous rating agencies..The same concept has been applied with Mortgages.
Stop blaming the Victim & look at the big picture
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17. Comment by Rick M. (Ramman) — May 8,2008 @ 10:08AM
Rating: 12 Thumbs Up
Lila, the best defense is an educated consumer.
It used to be that you would never buy a home without a lawyer. How many of these homes do you think were without any legal aid?
I am not defending the lenders here, but the buyers have some responsibility. They were the ones who signed contracts without reading or understanding them.
It is everyones responsibility to understand what they are signing before they put their names on the bottom line.
As many contracts, especially mortgages, are complex, and the fact that we are talking about one of the most expensive things the average person will ever buy, it becomes more important than ever to make certain the buyer understands all the terms of the contract.
Even for those who could not afford a couple hundred bucks for a lawyer to go over a contract there is legal aid available. However, if you cannot afford even the most basic forms of legal representation, maybe you should think about the afford-ability of the house you are trying to buy!
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18. Comment by Bob L. (blee1958) — May 8,2008 @ 10:22AM
Rating: 10 Thumbs Up
Just out of curiosity, what that heck is Chairman Elias trying to say:
"Instead, growth is what funnels our economy in large part,"
"funnels???"
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19. Comment by Rick M. (Ramman) — May 8,2008 @ 10:25AM
Rating: 7 Thumbs Up
#16, please show me one person who had a gun to their heads forcing them to buy a house!
I am not excusing irresponsible behavior by the lenders or the government, in fact, I have pointed it out, but the buyer went to the lender. The buyer applied for the loan, the buyer accepted the loan. None of this would have happened if the buyer did not start the process.
There is also something called common sense. The old adage about if something appears too good to be true, it usually is applies here. If someone is telling you you can have a very expensive house and the payments are affordable, my first question is, "How?"
When my mind starts to reel from the numbers and terms being tossed at me, I call a stop to the proceedings until I can make sense of what I am being told.
I have bought and sold homes. I have a solid, albeit basic, understanding of contracts and legal terms. Not everyone does. This is why there are so many lawyers. This is also why they should be used to buy a house... so you do not get ripped off!
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20. Comment by demospolis p. (demospolis) — May 8,2008 @ 10:28AM
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#17..Some don't have the presence of mind to critically think in terms of contracts..They hear what they are told & sign on the line.
"Personal responsibilty" gives political cover for the sharks...
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21. Comment by Rick M. (Ramman) — May 8,2008 @ 10:31AM
Rating: 5 Thumbs Up
All the more reason to use a lawyer when you are about to borrow a couple hundred thousand bucks on a contract you do not understand!
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22. Comment by stacey o. (tinker 05) — May 8,2008 @ 10:31AM
Rating: 4 Thumbs Up
I agree with both #7 and # 16. For those responsible homeowners who were fooled into these mortgages I blame the lenders. aas for those described by # 7 I blame the homeowners.
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23. Comment by becky t. (blaze) — May 8,2008 @ 10:32AM
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#3 not all of the choices were made to make a quick buck but to purchase a home for their family. Do not be so quick to judge. Most of these home owners pay taxes and it should be used to help them in a time of need. Why not? If people who are perfectly able to work collect a check because they decided to have a baby without a job than you can help out the people who have always worked and in a bad situation.
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24. Comment by demospolis p. (demospolis) — May 8,2008 @ 10:34AM
Rating: 3 Thumbs Down
Rick..Have you ever worked with funtionally illiterate people?..
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25. Comment by Sam L. (samlig) — May 8,2008 @ 10:38AM
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#16 - "#13... If you legally recieved a gov't rebate check for $10,000, would you spend it?"
No. I might spend $300 of it (at most, assuming the expenditure has been budgeted, otherwise $0) and I'd put the remaining $9,700 into savings/investments. And if the government wanted it back, I'd still be in a financially stable position even after giving it back.
That is what is called being responsible with one's finances. Spending less than one makes creates financial stability. Not as "exciting" as spending money willy-nilly but it does create a safe, stable environment.
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26. Comment by demospolis p. (demospolis) — May 8,2008 @ 10:38AM
Rating: 2 Thumbs Down
Rick..Some can't even conceptialize "legal aid" ..There is no excuse for predatory lending created by lack of oversight..
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27. Comment by demospolis p. (demospolis) — May 8,2008 @ 10:48AM
Rating: 6 Thumbs Up
Sam, You are judging actions of others through your own circumstances..We are all different. Have you ever been stuck with huge medical bills & no insurance? The Journal Of American Medicine recently conducted a study(obviously before the subprime crisis) showing almost half of bankrupt individuals filed because of medical bills.
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28. Comment by jodi l. (jodirae) — May 8,2008 @ 10:53AM
Rating: 0 Thumbs Up
#7 said it all!
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29. Comment by Corky E. (cesqy) — May 8,2008 @ 11:03AM
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@Ramman, as a stubborn Republican supporter, you bought into the political misinformation and can't see the forest for the trees. Since President Ronald Reagan, the Republican party has communicated the principles of less regulation, free markets, and "trickle down economics". Being a fiscal conservative, I voted for many of the conservative candidates I thought would lower the national debt and decrease the size of government. They betrayed my naive trust in their message.
For six years, the Republican party controlled both the presidency and congress. The result was a war, out of control spending, tax cuts for the rich, and rampant cronyism. In Bush's time in office he signed five national debt increases. The national debt skyrocketed from $5.7 Trillion to $9.81 Trillion. Meantime, the oil and bank lobbyists and their Republican "friends" (Republicans are known as the party of the rich) pushed through many rules that effected bankruptcy, banking, and tax rules. The collapse of the internet boom and the housing debacle are the result of their lack of oversight. Yeah, let the greedy bankers, Greenspan, Bernanke, and the Fed and their cronies, regulate themselves.
Google these headlines to get more background on the facts
1. Bush Admits Free Market Failures Even As He Touts Free Market Housing Solutions:Mar 17th, 2008
2. President Bush and the National Debt.
Rick, many other examples but I know you don't want to hear them.
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30. Comment by John J. (nojoker01) — May 8,2008 @ 11:09AM
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It's not just sub-prime loans. It's spilling over to other loans as well. This mess will continue well into 2009.
It will get better once $1 to $1.5 Trillion dollars in mortgages get written off by banks and investment firms. Depending upon the data, we have an additional $750 Billion to a $1 Trillion left to write off.
It's about 4,000,000 homes nationally at a average price of $250,000. So, Arizona's share is about 40-50,000 homes. So, Pima County's share is about 10,000 based upon population estimates.
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31. Comment by Ken L. (theowlknows) — May 8,2008 @ 11:10AM
Rating: 4 Thumbs Up
Un-bridled capitalism has sown what we are now reaping.Many consumers lie to get loans; some lies are small, some are big. They are, however, insignificant compared to the lies perpetrated by the lenders and the corporate giants that own most of them. Those are the lies that seriously affect this country's well-being because their scale is so much larger in terms of the economy.
Many, from the single consumer to the largest corporation,believe that, as Gordon Gecko famously said, "greed is good!". I believe we have a crisis of ethics(and lack thereof) in the U.S. and many other "1st World Countries" that condones and may even encourage lying to get what one wants or to achieve one's goals. It would seem that until the issue of ethics (basic right and wrong) is addressed, these problems will continue. Organised religion is no solution; The answers will need to come from the more analytical part of the brain. I DO like the "Do unto others..." phrase, though, and I hope people will think about that one a bit more.
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32. Comment by Corky E. (cesqy) — May 8,2008 @ 11:12AM
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@Ramman, by the way, another housing factoid is that today's American homeowner owns the smallest amount of equity in their homes since the year 1945. More Americans own their homes but have less equity. I wonder who they owe it to.
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33. Comment by Jeff B. (#2389) — May 8,2008 @ 11:17AM
Rating: 1 Thumb Up
#15 JACOB !! "What happened to the "personal responsibility ethic" our parents had?" Stop it, your going to scare all the Libtards with that kind of crazy talk. Personal responsibility, they don't know the meaning of that word.
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34. Comment by Walter C. (#2487) — May 8,2008 @ 11:28AM
Rating: 9 Thumbs Up
"City Councilwoman Karin Uhlich said the city may be able to dip into Community Development Block grants to help stabilize neighborhoods. The county is also looking at federal dollars and bonds for funding sources.
Uhlich is worried that cheap foreclosure homes will attract speculators and absentee landlords looking for investments."
Ah, yes. The Commissars of the People's Republic of Tucson are going to save us from ourselves.
Ugh.
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35. Comment by David G. (#2694) — May 8,2008 @ 11:28AM
Rating: 3 Thumbs Up
#6 Cork, do reserach on the neo-conservative movement before tagging us with libelous statements. Here's an objective source:
http://www.sourcewatch.org/index.php?title=Neo-conservative
Nearly every position taken by those calling themselves neo-conservatives is correct and grounded in liberty. Of course, if all one reads are liberal rags, then the prejudice is understandable, but not excusable.
Too many have a kneejerk reaction that says they are either poorly read, hate the U.S. or are just garden variety socialists. Perhaps all three.
Government that governs least governs best. Thomas Jefferson
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36. Comment by Corky E. (cesqy) — May 8,2008 @ 11:38AM
Rating: 2 Thumbs Down
#35 @David G.
I get neocons, theocons, and libertarians confused. Thomas Jefferson is great example of an American hero. He was a true patriot, and at the same time, a rich, plantation owner. I wonder what he would think about today's housing situation.
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37. Comment by Dale H. (T-Dog) — May 8,2008 @ 11:43AM
Rating: 11 Thumbs Up
Many of these "homeowners" bought the houses as investments. If my investments go down I don't expect the government to bail me out. Also those that took out the cash through refiing should not be bailed out.
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38. Comment by Corky E. (cesqy) — May 8,2008 @ 12:09PM
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#37 Dale
The exorbitant fees, predatory interest, and excessive profits made by the banks, builders, and brokers should be confiscated and returned to the taxpayers who will end up paying. Naive lenders and naive buyers should both be responsible and suffer consequences. We don't want to create a moral hazard by "privatizing the profits and socializing the losses." This would happen if we only let "caveat emptor"buyer beware rule the day of closing.
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39. Comment by demospolis p. (demospolis) — May 8,2008 @ 12:10PM
Rating: 2 Thumbs Up
Probably none of the people posting comments on this site are extremely wealthy.. It is easier to look at the Middle Class & Poor to assess problems because it is easier to put into context what we see. But the facts are it starts at the top. The Subprime Crisis was caused by lobbyist for the rich. Anybody here have direct access to the President or The Fed Chairman? If you did it would probably be to line your pockets. As the philosopher Machavelli said while advising the Prince on how to control/manipulate citizens "the many can see but few can feel"
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40. Comment by David G. (#2694) — May 8,2008 @ 12:29PM
Rating: 3 Thumbs Up
#38 Strongest points. Well said. I don't want to pay for anybody's ill-gotten McMansion.
Straight to the poor house, losers.
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41. Comment by Tucson R. (TucsonRat) — May 8,2008 @ 12:42PM
Rating: 1 Thumb Down
Buy high, sell low and hope the government bails you out! The new American Dream.
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42. Comment by Tucson R. (TucsonRat) — May 8,2008 @ 12:55PM
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Home owner lesson No. 2 -- don't use the equity in your home for consumer purchases. You have just put your house up for collateral for that new TV, car or vacation. Your house is quite a price to pay for spending beyond your means.
A home-equity loan is best used to benefit the asset backing the loan. In other words, a new roof would be an example of a good use of your home's equity. That's why you buy a house, after all, so you have a roof over your head. Not so you can go on a vacation.
What a concept!
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43. Comment by Chris C. (Blythechris) — May 8,2008 @ 1:34PM
Rating: 3 Thumbs Up
Why doesn't any government official list home loan abuses? How many of these foreclosures are liar loans, absentee owner loans,and loans procured by illegals? Congress relaxed lending standards and lenders, primarily Countrywide Financial (CFC) surfaced. People over spent for their inflated homes. They failed to consult a financial attorney before signing debt papers---see the libor (correct spelling) rate link. Why should taxpayers bail them out? Let the market work. Take your medicine. Ya' loved the growth, while bragging about how much your home/house had evaluated. Never forget---a hot houseing (stock) market is like a hot stove. Keep playing with it and you will get burned! See .com stock bubble for additional info.
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44. Comment by Dabil G. (Red Star) — May 8,2008 @ 1:39PM
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The piece by Tucson Citizen reporter Sagara unwittingly does a fairly good job of detailing some of the shipping and handling charges that go along with your corporate capitalism...
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45. Comment by David G. (#2694) — May 8,2008 @ 1:56PM
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46. Comment by Brian C. (Viking88) — May 8,2008 @ 2:01PM
Rating: 6 Thumbs Up
I'd like to know what pctg of those being foreclosed tok advantage of mortgage counseling... the kind that congress is so eager to fund more of? I'm betting zero, because they couldn't encourage people to lie, and they'd probably advise them that these types of loans weren't right.
To be fair, there was no integrity in the entire system. did anyone from First Magnus go to jail, or are they even being investigated? No and probably no.
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47. Comment by David G. (#2694) — May 8,2008 @ 2:06PM
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From the TC map of foreclosures, it's obvious that this shenanigan was designed to empower the poor and speculators, but had the opposite effect.
Tucson is representative, and about 50% of the foreclosures happened in Texas, California, Arizona, Florida and one other state.
The feel-good philosophy was let's create a home ownership ethos and prod lenders into making (unsound) loans.
Whoever is responsible should resign from their offices ASAP and be forced to live in teepees. Let's see the names as we did with Enron, etc.
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48. Comment by J V. (GEORGIEPORGIE) — May 8,2008 @ 2:10PM
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RAMMAN IS GARBAGE. you must be an old retired rich man bored tha u take so much time and write these long comments that nobody reads cause they are so garbage.
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49. Comment by Joseph C. (Arafel) — May 8,2008 @ 2:15PM
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Rep. Raúl Grijalva, D-Ariz., said Congress should provide federal dollars to help with the foreclosure crisis by paying down interest rates.
"We are not bailing out these borrowers," Grijalva said. "There are homeowners that need not to be given charity or be given a handout, but to be given the support for them to retain their home."
THAT'S A BAILOUT PAID FOR BY THOSE WHO WERE WISE ENOUGH DON'T TO GET INTO THE MESS.
Uhlich is worried that cheap foreclosure homes will attract speculators and absentee landlords looking for investments.
SHE'S COMPLAINED ABOUT HIGH HOME PRICES FOR YEARS AND NOW SHE WANTS TO PROP THEM UP. WHAT ABOUT THE LOW INCOME PEOPLE THAT CAN NOW AFFORD CHEAPER HOMES? HER APPROACH IS THAT GOVERNMENT MUST INTERVENE IN THE MARKET WHEN PRICES ARE GOING UP AND GOING DOWN. TO HER IT IS ALL ABOUT MORE GOVERNMENT FOR ITS OWN SAKE.
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50. Comment by Sam L. (samlig) — May 8,2008 @ 3:02PM
Rating: 2 Thumbs Up
#27 - "Sam, You are judging actions of others through your own circumstances..We are all different. Have you ever been stuck with huge medical bills & no insurance? The Journal Of American Medicine recently conducted a study(obviously before the subprime crisis) showing almost half of bankrupt individuals filed because of medical bills."
You are right. We ARE all different and some are struggling more than others. But don't get me wrong, I'm struggling too. My response was specifically to your question of what I personally would do with $10,000 if it arrived this month. Just because $10,000 drops in my lap, I don't automatically assume it is mine to keep. There is ALWAYS a catch. Spending a pre-budgeted $300 is a reasonable limit, especially if the government will want the money back.
By the way, this article is about housing, NOT medical insurance.
Also, owning a house and land is a privilege, not a right. A privilege for those who live within their means, budget accordingly, and can actually afford it. Buying against the future (home equity) is a surefire way to get oneself in trouble in the future (<1% might escape retribution).
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51. Comment by dennis c. (777TRmech) — May 8,2008 @ 3:42PM
Rating: 1 Thumb Up
WOW 244,000 for a house here in fort worth you can buy a hugh mcmansion,for 140,000 i cant imagine paying out that much,i got incourage when i heard Bush was going to bring in 24 billion to help the crises most going to realitors contractors ,you know that special 6 percent at the top 100 million going for counciling to homeowners losing their homes and francis as far as people making money off a investment as Dick cheney says "WHATS WRONG WITH MAKING MONEY".
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52. Comment by Corky E. (cesqy) — May 8,2008 @ 3:57PM
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Bush says he'll veto foreclosure relief legislation
http://www.latimes.com/business/la-fi-housing8-2008may08,0,5072674.story
WASHINGTON -- President Bush declared Wednesday that he would veto the foreclosure relief legislation under consideration in Congress, surprising Democrats who believed that they had administration support for key portions of the bills.
In brief remarks after meeting with congressional Republicans, Bush issued his veto threat, complaining that the legislation would "reward speculators and lenders."
Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said, "the notion that this helps lenders is bizarre."
wow, the democrats and repubs sure see this differently!!!!!!!
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53. Comment by Corky E. (cesqy) — May 8,2008 @ 4:10PM
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Saving big banks a costly proposition for middle class.
“It took from 1914 until November 2007 for the Federal Reserve to accumulate $800 billion worth of Treasury debt. It has taken from December 17 to the end of April for the Fed to divest itself of $260 billion of this portfolio, a decrease of one-third. In its place, it has placed AAA-rated mortgages. At the current swap rate, the Federal Reserve System will be out of Treasury debt in December of 2008. But by adding car loans to the list of eligible paper, the Fed will most likely greatly accelerate this.”
- Economist Gary North
Who would have thought that we would nationalize insolvent banks under a Republican administration? Makes me ill!!!!
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54. Comment by Rick M. (Ramman) — May 8,2008 @ 4:11PM
Rating: 4 Thumbs Up
This might take a while to get to everyone looking for a response, but here goes.
"Rick..Have you ever worked with funtionally illiterate people?.."
As a matter of fact, yes. I also have a son who has a learning disability. Thanks to the fact that my wife and I struggled with him his whole life, he is living on his own and managing the job Wal Mart gave him as well as his finances. (No one else would give him a chance due to his disability, but over the last few years, this boy has proved himself and earned raises and promotions.)
In fact, he is soon going to purchase his own home, but he will be buying a modest home within his means and he will be putting about 15% down. He will not be rolling any of the closing costs into the mortgage. He has prequalified for a fixed rate loan at 5.25%. The loan is through a sound financial institution who does not have a track record of selling their better loans.
This all was made possible because my wife and I took our responsibilities as parents seriously and taught him well. His counselor told him to simply lay back and collect disability, but he would have none of that as he believed he could work and manage his own life.
In fact, he does much better than many people who are considered to be normal!
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55. Comment by Brian C. (Viking88) — May 8,2008 @ 4:12PM
Rating: 2 Thumbs Up
I'm supporting the prez on this one... something I rarely do.
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56. Comment by Rick M. (Ramman) — May 8,2008 @ 4:21PM
Rating: 2 Thumbs Up
"Rick..Some can't even conceptialize "legal aid" ..There is no excuse for predatory lending created by lack of oversight.."
True, there is no excuse for predatory lending. Be that as it may, there is no excuse for signing a contract you do not understand.
I have never excused the lenders nor the government for their parts in this debacle. Apparently I also have to add in the school system for failing to properly teach people about basic finances. This used to be a fundamental part of education.
When I was in school, a public school to boot, we learned about balancing checkbooks and keeping savings accounts. We were taught the basics about the stock market and their role in the economy. We were taught about banks and loans, even how to figure simple interest. Of course we did not have a schedule full of social programs to get in the way of learning the basics we would need to become functional adults.
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57. Comment by David G. (#2694) — May 8,2008 @ 4:26PM
Rating: 0 Thumbs Up
#52 Cork--"...chairman of the House Financial Services Committee, said, 'the notion that this helps lenders is bizarre.'"
By making sure the lenders (financial institutions) don't eat more losses. That's how a bail-out would help lenders.
Keeping families in their too expensive homes is tied to them making payments to whom, Barney? Oh yeah, the lenders.
Could Barney Frank be any dumber?
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58. Comment by Dabil G. (Red Star) — May 8,2008 @ 4:29PM
Rating: 1 Thumb Up
The difference between "reason" and "excuse" can be difficult for some to understand...
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59. Comment by Corky E. (cesqy) — May 8,2008 @ 4:35PM
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@David G
You notice Barney used the term bizarre instead of "queer" in his response. Sorry couldn't help myself. Sarcasm button off.
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60. Comment by Rick M. (Ramman) — May 8,2008 @ 4:42PM
Rating: 1 Thumb Up
"Rick, many other examples but I know you don't want to hear them. "
I have read those stories you pointed to as well as many others. And? What I don't want to hear is the incessant crap that is being dumped all over the public.
I have not bought into anyone's political definition of economics. I know what works and what does not. I know this from not only studying it for many years, but from personal experience.
I do know that the best way to expand the economy is to allow private industry to do what they do best.
The surest way to destroy an economy is to have the government meddle where it does not belong.
The opportunities for the housing mess was created in Congress while the Democrats were running things. It wa also the Democratic leadership wh pushed things along. They did have the support from the RhINO Republicans who touted themselves and their actions during the height of the boom so they could insure reelection.
The government should not be meddling in the fix either. This will fix itself if left to its own deices.
The only role government should have is to make certain the lenders do not break the laws in the process.
BTW, you may be interested to know that while I am a life long registered Republican, I have not stood by my party in all circumstances. In fact, especially lately, I have been highly critical of the Republican party and many of its members. I have even worked for a couple Democrats in the past because I believed in them and knew they were the better candidate. But, this all gets off topic.
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61. Comment by Tucson R. (TucsonRat) — May 8,2008 @ 4:45PM
Rating: 3 Thumbs Up
The stories I hear in the news all seem be the same. Someone wanted a home they couldn't afford outright, got one of these subprime loans and then something happens. That something is either they didn't read the fine print and didn't understand what they were signing (though they tend to blame it on the broker); they overextended themselves by taking out an equity line and spent all their equity on things they could have done without; or their income hopes didn't jive with their realized income.
Each story I heard had a refrain: Well, I didn't do things the way I should have, but I still shouldn't lose my house.
Every single one.
Wait, there is one group I do feel their pain. Those who were renting and had the property foreclosed out from under them. Those people could use some relocation relief to get settled into another place.
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62. Comment by Dabil G. (Red Star) — May 8,2008 @ 4:50PM
Rating: 0 Thumbs Up
"I have not bought into anyone's political definition of economics."
and:
"I do know that the best way to expand the economy is to allow private industry to do what they do best.
The surest way to destroy an economy is to have the government meddle where it does not belong."
Okey dokey...
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63. Comment by Rick M. (Ramman) — May 8,2008 @ 4:54PM
Rating: 1 Thumb Up
"@Ramman, by the way, another housing factoid is that today's American homeowner owns the smallest amount of equity in their homes since the year 1945. More Americans own their homes but have less equity. I wonder who they owe it to."
This was already answered. It is also common sense!
The article states that over 60% of all sub-prime loans were made as home equity loans. This obviously means that people took the equity out of their homes.
In addition, many of the new home buyers bought at very inflated prices and are now upside down on the mortgages. In fact, as many also rolled all closing costs into the home and put nothing down, they owed more than the home was worth from the outset!
Who do they owe it to? Do I even need to answer this?
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64. Comment by Rick M. (Ramman) — May 8,2008 @ 5:00PM
Rating: 2 Thumbs Up
"33. Comment by Jeff B. (#2389) — May 8,2008 @ 11:17AM
Rating: 1 Thumb Up
#15 JACOB !! "What happened to the "personal responsibility ethic" our parents had?" Stop it, your going to scare all the Libtards with that kind of crazy talk. Personal responsibility, they don't know the meaning of that word.
"
May I refer you to the book, "It takes A Village" by Hillary Clinton? Don't buy it though. It is not worth the price!
Since the great FDR, the liberals have been actively and incrementally eroding personal responsibility, assigning this to the government. We are reaping the rewards of this now!
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65. Comment by Rick M. (Ramman) — May 8,2008 @ 5:05PM
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"Why doesn't any government official list home loan abuses?"
Because they don't want their own names published!
I do not remember the name of the company Algore was part owner of, but they were responsible for many sub-prime loans, especially in Louisiana in he Hurricane Katrina recovery efforts. They ended up foreclosing on hundreds of borrowers.
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66. Comment by Corky E. (cesqy) — May 8,2008 @ 5:09PM
Rating: 3 Thumbs Down
@ramman
Your life-long Republican Party membership has overwhelmed your idealism and practical thinking. The Republican party has been meddling in your personal finanaces for many years, and you got shafted just like the American public. Being stubborn about your political affiliation at the expense of America's future doesn't make you right. Even if your mortgage is paid off, please think about the future and vote for what is proper come November.
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67. Comment by Rick M. (Ramman) — May 8,2008 @ 5:18PM
Rating: 1 Thumb Up
" you must be an old retired rich man"
Not at all. In fact, I am merely a working man with a lot to say! I hold one full time job, a blue collar job at that, and run a part time business as a journalist, freelance researcher and consultant.
I own a modest home with very reasonable payments. The loan is low rate and fixed due to being responsible with my credit and finances. I have over 50% equity in my home which I have no intention of ever tapping into.
I have had some very bad things happen to me and my family, including huge uninsured medical bills accumulated when my wife was diagnosed with cancer. I did not go around blaming anyone for my problems, nor did I turn to the government who would have turned me away anyway. I made arrangements to pay the bills and most are now done.
I never asked anyone to feel sorry for me, nor have ever held myself above anyone. I merely took responsibility and went on with life.
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68. Comment by stacey o. (tinker 05) — May 8,2008 @ 5:27PM
Rating: 2 Thumbs Up
61 I agree with you. My grandmother has been in the same duplex for over 15 years. In April she (and all the other tenets in the duplex) received a letter that they would have to be out of their homes they were renting because foreclosure. Not only are their lives getting uprooted and now they have to pack up their lives, they will not be getting their deposits back. So on top of having to look for a place to live on such short notice (6 weeks) they have to come up with money some of them will not have for a deposit on a new place. Then the bank posts notices on their doors inviting them to the auctioning of this place. This is just so sad. My grandmother is very upset because this is the home my grandfather lived in with her before he died. She will no longer be able to go outside her back door and see all the flowers he planted for her. She is lucky she has a family she can count on. She will be living in my home, as it is best for all concerned due to her age. There are others who are not as fortunate. Now we have the daunting task of packing up 15 + years in boxes. This was not only a roof over people's heads this was their home. This was their sanctuary. Some had no real time to prepare their children for the move. Now some will have to change schools at the end of the year. This is so devastating to them. This is not right!
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69. Comment by Rick M. (Ramman) — May 8,2008 @ 5:33PM
Rating: 0 Thumbs Up
The bill being pushed by Frank does in fact reward lenders, speculators and investors who were part of the problem as opposed to being victims. In fact, as written the other day, these people would receive most of the bailout money.
The bill passed the House an hour or two ago. Its fate is still unclear, but many changes have been made. The final version has yet to be published, but I will look at it once it is.
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70. Comment by Suse R. (gofigure) — May 8,2008 @ 6:29PM
Rating: 1 Thumb Up
what about the realtors? they are bidding on the foreclosed homes. who's against the law here? sales realtors. end of story. who ever says anything about the sales people.
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71. Comment by Rick M. (Ramman) — May 8,2008 @ 7:00PM
Rating: 3 Thumbs Up
It also appears as the investors now have the incentive to walk away from their loans as the feds are supplying monies for cities and towns t buy delinquent mortgages, repair the buildings and rent them out.
This could make the government the largest landlords in the country, putting them in direct competition with private landlords. This is unconstitutional. In addition, governments on any level are not qualified to be landlords and are not even prepared for this. It will require a whole new branch of government to oversee all of this, as well as new offices in local governments to run the business of renting homes.
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72. Comment by Rick M. (Ramman) — May 8,2008 @ 7:08PM
Rating: 2 Thumbs Up
Suse R, I am not completely familiar with real estate law, but I know of nothing that would prohibit a Realtor from buying a foreclosed home.
I would think it would be somewhat of a conflict of interest to bid on a foreclosed home that they sold, but again I am not familiar with all the rules and regulations they must follow.
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73. Comment by Ed C. (onlyed) — May 8,2008 @ 8:16PM
Rating: 2 Thumbs Up
Expect another round of foreclosures when the next scam plays out. The latest deal is a kickback where the lenders and a "charity" steal from the buyers to get people who don't belong there into houses. Check out: http://www.nehemiahcorp.org/
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74. Comment by Ken P. (Pimpinken) — May 8,2008 @ 8:17PM
Rating: 0 Thumbs Up
I bet that makes all you bush loving idiot republicans proud!
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75. Comment by Ceramic G. (CeramicGod) — May 8,2008 @ 8:21PM
Rating: 0 Thumbs Up
Can we please stop building track homes for a little while now?
They're getting tiresome to look at.
Thanks.
Rate this comment
76. Comment by russell k. (klinkenberg) — May 8,2008 @ 8:50PM
Rating: 2 Thumbs Up
Have you ever tried to buy a foreclosure in Tucson?
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77. Comment by Thomas B. (Tmax) — May 9,2008 @ 7:36AM
Rating: 0 Thumbs Up
no
Rate this comment
78. Comment by Alice J. (#4288) — May 9,2008 @ 8:40AM
Rating: 0 Thumbs Up
If we live in a neighborhood where there are vacant houses sitting with yards going to weed, we, the lucky ones, should organize the neigbors to step in and keep up the yards. It will be to our advantage in the long run.
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79. Comment by M T. (gerber) — May 10,2008 @ 12:01AM
Rating: 0 Thumbs Up
It's just getting started.
Subprime ain't nothing.
Get ready for "option ARM"
where the mortgage holder can choose to pay less than the interest due on the monthly payment.
These mortgages can go for at least 14 months with the minimum payment being made, then tack on 7 more months for the foreclosure process.
Wall street (especially Lehman) was lending money to ANYBODY. Option ARMs were being given out with no proof of income, and a crappy credit rating. Get ready, City of Tucson, County of Pima, cos' the mess is gonna get bigger. There are still a lot of people sitting in their overpriced house making the minimum payment. (When you pay even less than the interest due each month, the remaining interest gets added to the principal, then when the principal goes over a certain amount, the mortgage automatically resets to the max. for example $400 minimum payment goes to $2500.)
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80. Comment by don y. (#1745) — May 11,2008 @ 6:03AM
Rating: 0 Thumbs Up
steve, time for you to wake up and smell the coffee. republicans have controlled congress since 1974
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81. Comment by Nancy R. (#5758) — May 12,2008 @ 1:32AM
Rating: 0 Thumbs Up
One word solution: BULLDOZER.
Get rid of those stinkin' houses. Return the space back to the beautiful desert.
Rate this comment
82. Comment by Mary A. (aztxslady1) — May 16,2008 @ 8:02AM
Rating: 0 Thumbs Up
It's amazing to me that no one blames all the California Investors who came over in buses and were buying up to 10 houses a piece in the new subdivisions driving up the prices and now no one wants to realize that the prices do not correlate with the salaries in Arizona. It isn't that people don't want to buy homes it is the fact that the prices are too high for the salaries here. If we could get rid of all out of State people especially the ones from California and the Mid West we might get back to a decent economy and prices that our salaries can afford. Those out of State people don't demand the salaries they got in California and that keeps our salaries low here in Arizona.

New home sales and prices both drop in May..

ellasilveira — Thu, 03 Jul 2008 20:10:39 CDT

Martin Crutsinger - The Associated Press
Thursday, 26 June 2008
Daily Herald

WASHINGTON -- Sales of new homes tumbled for the sixth time in seven months in May while median prices kept plunging, underscoring the depth of the nation's housing woes.
The Commerce Department reported Wednesday that new homes were sold at a seasonally adjusted annual rate of 512,000 units in May, down 2.5 percent from the April level. The median price of a new home sold last month fell to $231,000, down 5.7 percent from a year ago.
The report on new home activity in May followed reports Tuesday that showed record home price drops in April, indicating the nation's housing slump is not only deepening but also widening to include previously untouched parts of the country.
The inventory of unsold homes rose to 10.9 months in May, meaning it would take that long to exhaust the current supply of unsold homes. Because of the unusually high inventories, economists believe that home prices will keep falling until the spring of next year.
"Home builders have been doing everything they can to limit the production of new units and move existing inventory, but it hasn't been enough to make a significant dent in the backlog yet," said David Seiders, chief economist at the National Association of Home Builders.
The prolonged problems in housing have dragged down the overall economy, raising the risks of a full-blown recession.
For May, new home sales were down the most in the West, falling by 11.6 percent. Sales dropped 7.9 percent in the Northeast. But sales posted increases in the Midwest of 5.1 percent and were up 0.4 percent in the South.
In other economic news, orders to factories for big-ticket manufactured goods were basically flat in May after declines of 1 percent in April and 0.2 percent in March.
Strength in demand for aircraft and computers was offset by widespread weakness in other categories.
Cliff Waldman, an economist with the Manufacturers Alliance/MAPI, said that business plans to buy new equipment continue to be hampered by the troubles besetting the economy, from housing and credit woes to global inflation, reflected in soaring oil prices.
Separately, the Federal Reserve kept a key interest rate unchanged as it wrapped up a two-day meeting on Wednesday, bringing to an end a consecutive string of aggressive rate cuts dating back to last September.
However, economists said they did not expect rate hikes to begin for some time, possibly not until March of next year, when the economy should be starting to mount a sustained rebound.
On Wall Street, stocks closed out an erratic day with a modest gain. The Dow Jones industrial average closed up 4.40 points at 11,811.83 after rising more than 100 points shortly after the Fed announcement.
On Thursday, the markets will be looking for the government's revised report on overall economic growth, as measured by the gross domestic product, for the January-March quarter. The expectation is that it will show the GDP expanding at a 1 percent rate in the first quarter, a slight improvement from the 0.9 percent estimate made a month ago.
Wednesday's report on durable goods, items expected to last at least three years, showed that strength in May came from a 10.3 percent jump in demand for commercial aircraft and a 14.9 percent increase in orders for military planes and parts. This helped cushion a 3.3 percent decline in orders for motor vehicles. The auto industry is struggling with slumping sales, reflecting the weak economy and soaring gasoline prices, which have dampened demand for sport utility vehicles and other gas-guzzling vehicles.
Total orders in the transportation sector were up 2.6 percent as the strength in airplanes offset the weakness in autos.
Excluding the volatile transportation sector, orders for durable goods fell 0.9 percent, reflecting weakness in a number of areas outside of transportation. This drop was slightly worse than expected and was the biggest decline for these categories in three months.
Orders for primary metals such as steel dropped by 1.3 percent, while demand for machinery was down 5.3 percent. Demand for computer equipment rose by 10.1 percent, while orders for communication equipment were up by 2.4 percent.
Orders for non-defense capital goods excluding aircraft, considered a good proxy for business investment plans, fell by 0.8 percent in May after having

New home sales and prices both drop in May

ellasilveira — Thu, 03 Jul 2008 19:54:11 CDT

Posted on Wed, Jun. 25, 2008
By MARTIN CRUTSINGER
AP Economics Writer
Ted S. Warren, file / AP Photo

In this May 27, 2008 file photo, a sign indicating a reduced price is seen in front of a home for sale in Tacoma, Wash. U.S. home prices tumbled at the fastest rate ever in April, a closely watched index showed Tuesday, June 24, 2008, with all 20 metropolitan areas posting annual declines for the first time.
WASHINGTON -- Sales of new homes tumbled for the sixth time in seven months in May while median prices kept plunging, underscoring the depth of the nation's housing woes.
The Commerce Department reported Wednesday that new homes were sold at a seasonally adjusted annual rate of 512,000 units in May, down 2.5 percent from the April level. The median price of a new home sold last month fell to $231,000, down 5.7 percent from a year ago.
The report on new home activity in May followed reports Tuesday that showed record home price drops in April, showing that the nation's housing slump is not only deepening but also widening to include previously untouched parts of the country.
The inventory of unsold homes rose to 10.9 months in May, meaning it would take that long to exhaust the current supply of unsold homes. Because of the unusually high inventories, economists believe that home prices will keep falling until the spring of next year.
The prolonged problems in housing have dragged down the overall economy, raising the risks of a full-blown recession.
For May, sales were down the most in the West, falling by 11.6 percent. Sales dropped 7.9 percent in the Northeast but posted increases in the Midwest of 5.1 percent and 0.4 percent in the South.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) - Sales of new homes tumbled for the sixth time in seven months while median prices kept plunging, underscoring the depth of the nation's housing woes.
The Commerce Department reported Wednesday that new homes were sold at a seasonally adjusted annual rate of 512,000 units in May, down 2.5 percent from the April level. The median price of a new home sold last month fell to $231,000, down 5.7 percent from a year ago.
The report on new home activity in May followed reports Tuesday that showed record home price drops in April, showing that the nation's housing slump is not only deepening but widening to include previously untouched parts of the country.
AP Business Writer J.W. Elphinstone in New York contributed to this report.

Renters Hit Hard By Valley's Foreclosure Crisis

ellasilveira — Thu, 03 Jul 2008 18:58:50 CDT

Travell Eiland, Reporter
Updated: June 23, 2008 01:20 PM CDT

The valley's foreclosure crisis is hitting everyone hard. Especially those who don't even own homes. Renters are being kicked out with little notice and no where to go because their landlords are losing their homes to foreclosure.
Eight months ago, Unfonda Richards packed up her family, and moved to Las Vegas hoping for a new start. But her dreams were shattered when she found out the home she's renting is in foreclosure.
"A couple of weeks ago I got a letters saying I have to be gone in three days. I was paying my rent, and she wasn't paying her mortgage so my rent went to her pocket."
Ufonda's not alone. Attorney Heather Anderson-Fintak with Nevada Legal Services says many foreclosures have been filed against owners who rent out their homes. The renters have no clue about the financial problems until they get a notice from the bank to get out.
Fintak says renters have little rights when the home they live in goes into foreclosure and until the economy gets better the problem will only get worse. Fintak says renters have to educate themselves so they don't end up in a situation like Richards.
Fintak says it's unlikely the owner will tell the renter about their money problems. Most renters wont even get their security deposit or rent paid back, unless they take the owner to court.
But there is a way to take your destiny into your own hands. There is a county website to find out if the property is in foreclosure or default.
Unfonda wishes she would have known about that website. It may have saved her the heartache and trouble of uprooting her family and finding a new home.
To find out if your rental is in foreclosure you can contact the Clark County Recorders Office at (702) 455-4336, or just log onto www.accessclarkcounty.com/recorder

Foreclosure crisis hurting renters, too

ellasilveira — Thu, 03 Jul 2008 17:26:27 CDT

Tenants can be forced to move in matter of days
CODY CALAMAIO
Tucson Citizen
Published: 07.02.2008

As soon as they saw it, they fell in love. The modest four-bedroom house had everything they could want: a large studio for art, plenty of room for their many animals, wheelchair accessibility and even a spare room they were saving for a future foster child.
Gayle Knowlton, 50, and Sarah Bollt, 27, signed their two-year lease in October, a few months after their commitment ceremony at their synagogue. The house near Golf Links and Pantano roads was supposed to symbolize a new life.
That new life crumbled when they noticed a letter in the pile of mail addressed to but abandoned by the property owner. The letter said that their house was going up for auction Aug. 5.
"When we got the letter, my heart got broken," Knowlton said. "I feel like a victim and I don't like that feeling."
Knowlton and Bollt are among what is believed to be a growing number of renters losing their homes as the nationwide mortgage industry collapse unleashes a flood of foreclosures.
There were in the first quarter of 2008, an increase of 118 percent from the same period in 2007, according to preliminary findings in a study on foreclosures by the Southwest Fair Housing Council.
The study projects that the number of foreclosures in 2008 will hit 8,000 with up to an additional 12,000 in 2009.
How many of these are rental homes is not certain, but Betty Villegas, a program manager with Pima County's Community Development and Neighborhood Conservation Department, called the rental foreclosures "a big problem."
"We've had quite a few people in the same position," Villegas said. "Once that property turns over, the renter has no rights."
In the state of Arizona, neither the landlord nor the bank has any legal obligation to inform the tenant of the foreclosure, and tenants can be required to vacate in a matter of days, said Cheri Horbacz, project manager of the Southwest Fair Housing Council's "Don't Borrow Trouble" hot line.
The hot line frequently gets calls from renters going through foreclosures, and Horbacz said she has talked to people who have had it happen to them twice.
The Arizona Residential Landlord Tenant Act of 2007 does not allow tenants to break leases when their landlords' properties are in foreclosure, said housing attorney Katie Rogers of Southern Arizona Legal Aid, a free legal service for those with small incomes..
"Their rights are pretty much nil," Rogers said. "Their only cause of action is against the former owner," she said, adding that a lawsuit is usually not worth pursuing.
Tenants can sue for breach of contract in small claims court, but it is expensive and time consuming, with no guarantee of success, Rogers said.
Villegas' office sends a letter to owners of properties in foreclosure, giving them information on their options and encouraging them to notify any tenants as soon as possible. But that doesn't always happen, she said.
"It's really up to them if they want to do it or not," Villegas said. "I don't think anyone expected this. There's a lot of unanswered questions."
Knowlton and Bollt discovered that the owner of their home had stopped paying the mortgage in December. The couple were never notified and continued to pay him $1,150 a month in rent. They attempted to contact him through letters sent by certified mail but have received no answers.
Not expecting to be booted from their home, they had begun expensive modifications on the house including installing a wheelchair ramp at the front door and planting a garden. Those investments, as well as their security deposit, probably can't be recovered.
"He gave us a lease, he told us we had a home. He knew that we were doing expensive things to the house," Knowlton said. "If a man takes lease money when foreclosing, isn't that fraud?"
Knowlton and Bollt are left in a sort of limbo between honoring their rental contract and facing the reality that they could be evicted.
Knowlton said she has been advised not to try to break her lease, but she knows they may be forced to leave.
It can be harder for renters evicted because of foreclosures to recover their losses and move to their next home because many get into credit trouble or have problems with utility companies, Horbacz said.
Knowlton and Bollt are the coupon-clipping type, pinching every penny to afford their current lease.
Surviving on her disability income and Bollt's limited income as an interpreter at the Arizona State Schools for the Deaf and the Blind, Knowlton said she fears that rentals will be hard to come by in August when University of Arizona students arrive for the fall semester.
She's also concerned they won't be able to find a wheelchair-accessible house.
"We have three strikes against us," Knowlton said. "We have animals, I'm in a wheelchair, and we have an alternative lifestyle."
The one area of relief the county was able to provide displaced tenants is now depleted. Up to $2,000 for moving costs was available for qualified people from the Emergency Services Network State Housing Trust Fund, administered by the Pima County Community Action Agency, Villegas said.
The available $50,000 is gone, Villegas said. The funding was not renewed for the 2008 fiscal year, which began Tuesday, because of state budget cuts.
"We live from paycheck to paycheck, and we live from paycheck to paycheck happily," Knowlton said. "We just need to have a happy home."
The problem of rental foreclosures is not going unnoticed in Pima County.
Rick Rhey, executive director of the Southwest Fair Housing Council, said council staff plans to research the rental foreclosure situation thoroughly and provide more information to the City Council when the final foreclosure report is due Aug. 30.
He also plans to present a comprehensive localized plan of what the city can do to reduce the number of foreclosures.
"Chances are it's going to get worse before it gets better," Rhey said.
The study was contracted by the City Council at the request of Councilman Steve Leal.
Leal is waiting for the study's final results to get a better understanding of the severity of of rental foreclosures.
"Its almost like waiting for the second wave of the tidal wave to hit you," Leal said.
Ken Volk of the Tempe-based Arizona Tenants Advocates supported Arizona House Bill 2733, which he said on his Web site would help tenants going through foreclosures by giving them more notice, more time to move, and legal claim to get some of their money back. The bill did not make it out of committees. Volk calls that "a major loss for all Arizona tenants."
Knowlton and Bollt's house is scheduled to join many others up for auction in August. Knowlton said she and her partner will do everything possible to keep it. They plan to be at the auction with photos of the home they've made. They hope to persuade potential buyers - or the bank, if no one buys it - to let them stay and pay rent.
"We would give them a 15-year lease. We don't want to move," Knowlton said. "We need a loophole to stay. I have no idea what to do."
In the meantime, Knowlton and Bollt are debating packing up their belongings.
"This weighs on you. Every time we drive into the driveway I cry," Knowlton said. "Everything is out of your control."
1. Comment by Bruce D. (Bruced923) — July 1,2008 @ 8:40PM
Rating: 23 Thumbs Up
This is a very sad story! I feel sorry for these two people and hope some good luck comes their way!
This shows exactly what I have been saying for a long time now, STOP BUILDING NEW HOMES!
2. Comment by L B. (sever) — July 2,2008 @ 6:57AM
Rating: 25 Thumbs Down This comment is below your threshold.
time to move into a trailer in Marana
3. Comment by Robert B. (#2136) — July 2,2008 @ 7:08AM
Rating: 19 Thumbs Up
Could they possibly get help to BUY the discounted house? It is to bad Arizona renters do not have more clout when we sign a lease in good faith.
4. Comment by k d. (ksdavis) — July 2,2008 @ 8:00AM
Rating: 18 Thumbs Up
Since when do renters start making capital improvements to property that they do not own? Am I missing something here?
5. Comment by mary s. (noone123) — July 2,2008 @ 8:00AM
Rating: 36 Thumbs Up
That owner is a thief and should be in jail, when he took the rent money it should have gone to the mortgage holder. He or she belongs in jail because he was aware of what he was doing.
6. Comment by sylvia g. (sedona1) — July 2,2008 @ 8:20AM
Rating: 32 Thumbs Up
this happened to a family member and it was devasting. no recourse but to move.
The landlord should be required to disclose that the property may be going to foreclosure. I'm sure he never made
a mtg pmt with the rents he received.
7. Comment by Rick C. (KRCarson) — July 2,2008 @ 8:32AM
Rating: 10 Thumbs Down This comment is below your threshold.
Just bridge the gap with more foster children,..on to the next rental.
Keep playing the victim. How's that workin for you? Oh, government please take care of me.
8. Comment by Nancy P. (#3282) — July 2,2008 @ 8:56AM
Rating: 21 Thumbs Up
I want to know who wrote that legislation and how on earth it got passed just last year, giving landlords no accountability whatsoever to their tenants. It's a simple breech of contract, in my view. I hope it works out for these two and that they can continue to live there.
9. Comment by joel l. (#3555) — July 2,2008 @ 9:14AM
Rating: 16 Thumbs Up
Unfortunately, if a landlord is cash-strapped and can not make house payments, fines for lack of notice are not going to be paid either. It would only be a civil penalty, never criminal, and a judge would be looking down at someone in bad way financially, and cut them a break. Buyer/renter beware. 10. Comment by Mary Ann H. (writerlady71) — July 2,2008 @ 9:20AM
Rating: 15 Thumbs Up
Our country, much like Humpty Dumpty, is broken. Rerun that litle nursery rhyme in your mind, and recognize the analogy.
Neither of the candidates for office is talking about how to fix what is broken. We're so busy trying to solve the problems of others in the world, that we've forgotten us. Time to look homeward.
11. Comment by Terry W. (#2785) — July 2,2008 @ 9:35AM
Rating: 13 Thumbs Up
It's sad that this happened to these two women. I hope someone who reads this article can help them find another suitable place to rent or a place with option to buy, if they can afford to pay that much in rent they could possibly purchase a home, that would be the best thing with all the foreclosures, maybe they can get a good price on a home of their own. TW
12. Comment by Sue C. (Suzy C) — July 2,2008 @ 9:56AM
Rating: 16 Thumbs Up
I think the women should contact the Attorney General's office, there is an investigation going on into one man that owns many houses and has done this to all of them, it might be their landlord. In addition, I think they should visit with a mortgage broker to find out if they qualify to actually buy the house off of the auction block. It is a shame if they have to move out because of one person's issues.
13. Comment by Jane L. (#5022) — July 2,2008 @ 10:21AM
Rating: 1 Thumb Down
Hey, this is NOTHING...you should see the numbers of these in the Phoenix area!!!
One of the problems is, the owner is the BANK, the owner of record/recorded is the supposed owner they are renting from.
BIGGEST problem is, investors are not getting the amount of rent it costs to MAKE THE PAYMENT, PAY THE INSURANCE, and TAXES...so the houses are going back to the REAL OWNER...THE BANK.
Renters want to live in a nicer home, but one they couldn't afford to purchase on their own. Many renters are taking advantage of the owners as much as the owners are taking advantage of them.
IF IT SEEMS LIKE TOO GOOD OF A DEAL (rent, neighborhood)...TO BE TRUE...IN THIS REAL ESTATE ENVIRONMENT...IT PROBABLY IS...SO KEEP YOUR OPTIONS OPEN TO MOVE.
14. Comment by S G. (12009) — July 2,2008 @ 11:41AM
Rating: 3 Thumbs Up
Rent these people your place...
15. Comment by DAVE C. (OMAHARED) — July 2,2008 @ 11:42AM
Rating: 3 Thumbs Up
Uh... are you still paying rent?
How do you send check after check without even talking to landlord on regular basis?
16. Comment by marlo s. (marloannshedlock) — July 2,2008 @ 12:25PM
Rating: 1 Thumb Up
I would like to help them - is there a way for folks to make a donation - even if it's a food donation for their animals - just something!!
marlo
marloannshedlock@gmail.com
17. Comment by demospolis p. (demospolis) — July 2,2008 @ 12:31PM
Rating: 10 Thumbs Up
The real fraud starts with the AZ Foreclosure Laws which allow this kind of antisocial behavior. Tenants are required to honor leases but are kicked out without notice if the house is foreclosed? To the AZ legislatures which contributed"thumbs down" to AZ house bill 2733..they need to be voted out of office.
18. Comment by Mae C. (geezerman) — July 2,2008 @ 12:33PM
Rating: 8 Thumbs Down This comment is below your threshold. this is a very unfair section of a law written in 2007 and mortgage forclosure were already prevalent so why was this not addressed in that law. that is outrageous that a law written in 2007 did not include something to protect renters from this. they should get rid of the animals to make them more rentable. don't expect owners to put up with thier wants. if they want animals buy a house. I am a landlord and I refuse renters with animals. they want what they do not deserve to expect the landlord to allow animals just because they want them.
19. Comment by demospolis p. (demospolis) — July 2,2008 @ 12:39PM
Rating: 1 Thumb Up
Jane L:
I understand your logic but clearly the laws are screwed up. You are in the know about real estate but that does not mean some of those tenants understand..
20. Comment by jodi l. (jodirae) — July 2,2008 @ 1:15PM
Rating: 4 Thumbs Up
We just had the same thing happen to us and the house were in for 3 more weeks is up for auction in August-we found out through the internet on a auction site for the deed company,not the owner's- who knew it was happening and NOT TELLING US! We were pisted to say the least-now we are moving in the nick of time to a rent -to-own home(very happy)those incosiderate jerks left us hanging and now they'll pay the price by losing thier home.
21. Comment by jodi l. (jodirae) — July 2,2008 @ 1:24PM
Rating: 0 Thumbs Up
Oh! The owner told us to live here for free for 2 or so more months since they haven't paid the mortgage from March-nice,huh? I don't think so!!!!
22. Comment by Mark M. (markmann) — July 2,2008 @ 1:37PM
Rating: 3 Thumbs Up
I like #3's comment... They both have income... Get a loan and buy the place...
23. Comment by Thomas B. (Tmax) — July 2,2008 @ 1:41PM
Rating: 3 Thumbs Up
" Many renters are taking advantage of the owners as much as the owners are taking advantage of them."
What?? The renters are in essence making, or helping to make, the mortgage payments on the landlords property. The landlord gets the equity, the renter gets nothing but the roof over his head and a hefty deduction from his bank account. When you buy a home, do you expect someone else to make the payments for you? Rental speculators have no god given right to expect their tenants rents to cover all their expenses, while they reap all the equity accrual. It's not renters who caused the mortgage crisis. It's greedy real estate investors, wanting to make something for nothing, who drove prices up until the bubble burst. Now they they are flippin' out because they can't "flip" anymore.
24. Comment by LAURI C. (#6530) — July 2,2008 @ 1:41PM
Rating: 5 Thumbs Up
I feel for all those renters that are on the losing end of the foreclosure messs. I wish them all the best of luck
25. Comment by Ed R. (Ed R) — July 2,2008 @ 3:31PM
Rating: 2 Thumbs Up
Did anybody else catch the two words in the picture? (Hint: look below the armrest on the wheelchair.) Better yet, ask your kids to find them!
26. Comment by Bernadette C. (#6124) — July 2,2008 @ 4:27PM
Rating: 0 Thumbs Up
#25 Ed LOL leave it to the kids....I had to get my glasses even after enlarging the pic.
27. Comment by Ardy M. (capt.Ardy) — July 2,2008 @ 4:43PM
Rating: 2 Thumbs Up
Maybe "good 'ol George" will put 'em up at the White House,huh?
28. Comment by menowanna b. (#6969) — July 2,2008 @ 5:56PM
Rating: 0 Thumbs Up
There are plenty of houses for rent on the east coast. If you are from there then you should go back.
29. Comment by Chelle P. (cmp) — July 2,2008 @ 6:35PM
Rating: 3 Thumbs Up
Renters should be noticed when the house they rent goes into foreclosure and then be allowed to quit paying rent so that they can save the money for moving when the foreclosure goes through. Renters need more protection!
30. Comment by sarah b. (Princessdiva) — July 2,2008 @ 9:49PM
Rating: 3 Thumbs Up
Just to respond to a few of the comments...first we are not nor have we asked for the goverment to "give me give me give me" I am on Social Security Disability INSURANCE...you know the one that you work your whole life and pay into and is INSURANCE in the event you become disabled...I do NOT get SSI or food stamps nor have I applied. My partner works in the school district and is paid nine months out of the year. We pay taxes, volunteer when we can, take care of the stray animals in every nieghborhood we live in, we recycle, walk and roll whenever we can to save energy and gas, the home was built in the sixties, nothing fancy, swamp cooler NOT air conditioning, and skylights to save on energy. We planted our garden for the health and enviroment, we BOTH vote, and NOT a party but the CANDIDATE. So do not lump us into a category that suits you. Yes this is happening all across the country. That is why this story IS important, because there ARE NO rights. The rent we paid is about 300 more a month than the other houses in this neighborhood. WHY would we do upgrades, because it SHOULD NOT be the landlords responsibility to put a ramp on the house, it is not his fault, nor anyones that I am in a wheelchair, my responisibily, my bill. Also we believe in Tikkun Olam, "Repair the World" you leave a place better than you find it...we have a long lease we wanted a home, we wanted to do upgrades and make it better for us and the next person. As for our animals, the owner was fully aware and had no problems...again our responsibility. We made a safe and coexistable enviroment for all, without cages and with love. We would love to buy this house, but unfortunately we are unable. What do we want...we want accountablility for landlords, we want some rights, we want a safe comfortable enviroment, we want a house we can call and make a home...oh and about the foster child...the system will NOT let us adopt, and that is expensive so why not go where there is a need and give a child a loving caring safe home...thanks for reading our story, but it is not just ours it belongs to many...Cody did a great job in researching and find out what I had told her, we appreciate this. Oh and the house is NOT discounted to our knowledge, the house is over mortgaged and under assessed, and the starting bid at auction will be high...but if I could I would still buy it...smile...thanks for those who are in agreement to this plight...Gayle and Sarah
31. Comment by jodi l. (jodirae) — July 2,2008 @ 10:06PM
Rating: 1 Thumb Up
Gayle and Sarah-I'm Jodi and this is happening to us,I also am on S.S.I. Disability and it sucks when you are thrown into a class of shame--totally wrong! I go to college and plan on working again someday(if my body will let me)like you we've been through it to and only wanted better in our lives-that day is just around the counter and I thank god this company we are dealing with is giving us a chance to make it....best of luck to the both of you.
Jorae
32. Comment by sarah b. (Princessdiva) — July 2,2008 @ 10:12PM
Rating: 1 Thumb Up
#15 Oh we were in contact...every month in fact he came in April got the rent check and put in a dishwasher...however he has NOT paid the mortgage since December...the letter we got was not addressed to him but to "People in Possession" so that is when we found out. He has not responded since we sent him a letter and stopped payment on our rent.
Again the issue is not as much that we HAVE to move but that we are binded by a contract and a long lease that IF we DO move out we are in violation of breaking the lease and COULD be sued for the remainder of the lease...however on day of auction if it sells we will then be given a max of FIVE (5) days to pack up, find a place and to move...the issue is that the renter when paying rent every month on time, when taking care of the home, when doing ALL we are supposed to, are being forced out...we told the owner on the day we moved in if he ever wanted to sell to let us know we would like to buy it...he said he does not and never would sell...two months later he stopped paying the mortgage. Because of the laws we cannot purchase the home unless it is approved by the mortgagee which is protected by the privacy act and we cannot talk to them, I think it is called a short sale, something like that we were told...day of auction they want 10,000 cash and the remainder guaranteed by 5 p.m. following day...not something we can do...
33. Comment by sarah b. (Princessdiva) — July 2,2008 @ 10:16PM
Rating: 1 Thumb Up
Oops meant "lender" brain working to fast...smile...not mortgagee...duh
34. Comment by sarah b. (Princessdiva) — July 3,2008 @ 12:06AM
Rating: 1 Thumb Up
#25 & 26
lol...forgot about that sticker...a friend bought it for me after witnessing me yelling at a driver who had turned right on red, without looking, nearly hitting a woman and a stroller and side swiping me and my wheelchair, we had the crosswalk right of way and the signal...he hits me, the car gets a dent and he wanted me to pay him for the damage...it is kind of a joke with my friends...my mode when I am defending hope I did not offend anyone with it...Gayle
35. Comment by david w. (windsor castle) — July 3,2008 @ 12:59AM
Rating: 0 Thumbs Up
Sarah and Gayle,
I'm in the same position as you two are, in a way. Hopefully my experience can help you emotionally if nothing else. Just maybe I can educate someone, too! I love animals too and helped in every neighborhood I've ever been in, vote, recycle, would be in an so-callled "alternate" lifestyle if I could ever find someone sane, and am an excellent tenant. I have always pinched pennies. And I have always improved my apartment in some way and left it much cleaner than I found it! No, I'm not a racial monority (not that it should matter), and no, I haven't reproduced. My FICO score is 840 out of a possible 850. I have 3 college degrees.
In Arizona, businesspeople have complete and total control, and in my experience care NOTHING about tenants basic stability. FRAUD IS THE NORM IN THIS STATE. In the real world, money and power seem only to matter; your being a nice person matters very little. I know, I don't want to hear that, too.
Due to very bad health, I have to rely on the "system" to survive. It certainly is not an enviable position to be in as at least one of you must know. You are looked upon as worthless and sometimes much less. During the condo craze hitting Scottsdale in 2004, the few people in the apartment complex I lived in (who were on Section 8) were given a 30 day notice to vacate. No one else was! Apartments were and are VERY few and far between for people that have a Housing Choice voucher (Section 8). Rents have increased $200-400 per month, apartment conversions sold almost solely to speculators and ALMOST EVERY landlord in Scottsdale- and throughout Arizona- says no to Section 8 status. Many people became homeless and never heard from again, and are considered "missing" by their family and friends. These are the MOST vulnerable types of people in our society. At the time the regional manager very rudely and curtly told me that "It's just business, it's nothing personal." I later discovered that they received MASSIVE tax incentives on most of their properties in Arizona alone just because some of their apartment doors were a few inches wider for a wheelchair. Did I ever see a wheelchair on the property in the 7 years I've been to the property? NO!! NOT ONE. In addition, their screwing the taxpayers for MILLIONS of dollars was over after the magical 10 year period, and they didn't have to please HUD in any way. So, many people there and their other properties were tossed to the curb. (To the people who think this can't happen to you, you had better hope that you either have a large trust fund, or a guarantee from God that you'll always will be able to work and find a job, and have no serious health problems in your life!!!!) If you were not able to use your Voucher, it was taken away from you with very little chance to get it back. If you became homeless, you were invisible to the Housing Agencies since you could not prove that you "lived" in any particular city. In addition, I took care of a stray cat at the former property. Because she is a 100% outdoors kitty, she had been passed up too many times to count. So, now 4 years later, I have racked up about 2,000 daily trips to this property to look after a cat that was abandoned about 14 years ago. Since you seem to be an animal lover, you can understand the heart break. If I brought her where I'm at now, she may run away or become coyote bait. I am the same person that this former property management used to secure millions of dollars, all the time looking down on me through their uptight, North Scottsdale noses while throwing me to the streets without any extention to their 30 day notice. These are the same people who would sell theirs mothers into slavery for a job promotion. I don't know about you, but I have come to have no respect for property owners especially in Scottsdale.
For the people reading this, the next time you come across a job applicant, please look for their trainable POTENTIAL and not their past job experience based on bad health conditions.
Well, it looks like this was more for me than you two. I can offer some advice. Don't give up! If you can train successfully and gain employment, great! However, if for many reasons you can't do the former, and in reality can't make ends meet, try to get on a Housing Agency's waiting list for a Voucher, or seek out Section 8-based properties. For the most part, these are places no one would want to live. That's why I mentioned the Voucher. You may be able to find a small house that's owned by an individual on the outskirts of the area. I certainly hope you don't have to because of all the restrictions and NO's you will hear. You will be in a better position than I am in since you could have a 2 bedroom voucher. One of you would be listed as a "caregiver." I hope I have helped a little with you ladies and with anyone out there who still thinks that the "system" favors lazy people with easy giveaways and not the corporations!
36. Comment by Anisa R. (ChargerMom) — July 3,2008 @ 6:08AM
Rating: 2 Thumbs Up
Well people built the matchbox houses and it sprang up like weeds in areas of town. People bought houses that don't live here and own homes eles where in the United States. Then they turnaround and rent them out or flip them to make extra money or use them as there homejob. There is all these laws infavoir of the landloard but not for a rentor. When you rent in these times we the consumer or rentor need someone or some enity to back us up.

Coffee Crisis? Starbucks Closing 600 Stores

ellasilveira — Wed, 02 Jul 2008 22:42:23 CDT

Effects of Economic Woes Hit the Coffee Shop Chain
By CHARLES HERMAN
July 1, 2008

With the coffee sitting around getting cold at hundreds of Starbucks across the country, the nation's largest coffee chain announced today it will close nearly 600 stores that were not profitable.
Starbucks Corp. has announced it's closing 600 underperforming coffee stores in the U.S.(AP Photo)
As national economic growth grinds to halt, worried consumers have saved their pennies (more likely, $5 bills, if we're talking about those mocha whip fraps) and visited Starbucks less frequently. In the three months that ended on March 30, Starbucks profits fell 28 percent compared with the same time a year earlier.
"We believe absolutely we are seeing a major impact from [the] economy," Starbucks CFO Pete Bocian said in a conference call with investment analysts today.
Previously, Starbucks had announced it would close 100 poorly performing stores. But with nearly 600 stores now slated to be closed, it is almost as if Starbucks faces its own version of the collapse in the housing market.
More than two thirds of the stores to be shuttered opened since the start of 2006, with the largest number opening in 2007, Bocian said. That sounds eerily similar to the same period when there was a surge in home sales financed with risky loans, many of which are now in default or in foreclosure.
In April, Starbucks CEO Howard Schultz told Terry Moran in an interview for "Nightline" that the coffee business had been affected by the mortgage crisis. "I think people also underestimate the impact of the economy right now, which is very acute, I think more significant than people realize," Schultz said. "I was in California last week and I got a tour of the impact of subprime issues and the foreclosures around Starbucks stores, and it was stunning to me just how many empty houses there were."
The company would not disclose the exact locations of the stores that will start closing starting later this year.
"The stores targeted for closure are spread relatively proportionally across all major U.S. markets," Starbucks spokeswoman Deb Trevino said in an e-mail to ABC News. "Consideration was given to the impact of current and anticipated economic trends in making this decision."
Starbucks also said it would open 200 fewer stores than expected in 2009. These changes are in addition to the plans to eliminate breakfast sandwiches, as the company re-focuses coffee, offering a new, smoother blend – Pike Place Roast – in every store, and grinding and brewing fresh batches of coffee more frequently throughout the day.

At the end of March, there were more than 16,226 Starbucks stores globally and 11,434 in the U.S.
The store closings will result in full and part-time jobs being eliminated, though the company says many employees will be placed in stores that remain open. Earlier this year, Starbucks announced it would cut its workforce by 600 jobs.