Home Modifications and the Home ATM Resurgence
The Treasuries Bail-Out Program called the Home Affordable Modification Program or HAMP has repeatedly been called a failure. It has been called a failure not only from inside the treasury by Neil Barofsky, who is the special inspector, for the treasury but also by numerous outside sources. Neil Barofsky has also spoken out against a number of other initiatives and poor decisions made by the treasury and the federal government. He is know for telling the truth in situations which put him under potentially harsh internal pressures. 1
The problems with HAMP are but are not limited to, software problems, constant changes in rules and processes. Owners were pressured into temporary modifications with the same total lack of documentation just like the original loans that created the problem. The result of influx of undocumented modifications was a dire backlog for scarce resources. 1
Bad underwriting followed by further bad underwriting creating even more problems for the people they were supposed to be helping in the first place. 1
The program was infused with 75 Billion dollars in TARP funding. The initial goal was to help 3-4 million families and individuals stay in their homes through modification of existing mortgages.1
The program is overseen by former Fannie Mae executive Herb Allison. Fannie Mae and Freddie Mac have both been bailed out and are mostly owned by the US Government. 1
Direct quote from the article below….
And then came Mr. Allison, who wanted to make sure we all understood that the original goal of the program was not to get 3-4 million borrowers into permanent mods but to offer 3-4 million trial modifications. He even cited some document where that was written.
Okay, semantics aside, I don't believe that was the initial message. I guess it just wouldn't sound too good for the President to stand up at a big rally in Cleveland and say, "Folks, we're going to take 75 billion of your hard earned dollars and try to keep 3-4 million troubled borrowers in their homes. And when we're done you're going to see that less than half of them actually succeeded!!!" 1
February foreclosure Rate of 3.31% a 51.1% increase year over year. 7.9 million loans are not current. The biggest change occurring seems to be that homeowners are less likely to pay their mortgage before their other bills. Many home owners are doing this because they are forced to BUT not all others are actually strategically paying their mortgage last. 2
So lets do some math 7.9 million home owners are not paying their mortgages. Lets assume the median home loan is $1000.00 a month that is 7.9 billion dollars available for consumer spending or to pay other bills every single month those homes stay in foreclosure and payments are not made. Another article estimated that half of consumer homeowners were using that money for other purposes giving us a total of roughly 3.95 billion in consumer spending moving directly into the economy.
In a case study a person with an $1880.00 monthly mortgage payment they defaulted on was actively spending their mortgage payment from their bank account. The spending was not on necessities; but included premium cable with additional charges for premium services, nail salon, tanning salons, liquor stores, shopping at the Gap, Old Navy, Home Depot, Sears and more. 2
Studies also show that if you know someone who has or had defaulted they are more likely to also default. It takes over a year to two years in some cases to be thrown out of your home. 2
Works Cited
1. Olick, Diana. “Treasury Confirms Underwater Help”. www.CNBC.com. Published: Thursday, 25 Mar 2010
3:23 PM ET.
http://www.cnbc.com/id/36039123
2. Olick, Diana. “Mortgage Defaults May Be Driving Consumer Spending”. www.CNBC.com. Monday, 12 Apr 2010
11:15 AM ET. http://www.cnbc.com/id/36422316
Monday, April 12, 2010
Migration of American Families
Migration of American Families
It is a common thing today that I hear the stories of struggling families or individuals leaving their homes to move south. The purpose and problem is simple while American median home sizes are shrinking there is a part of the equation which seems unidentified by the mainstream media. What is missing is the fact that there is a migration of sorts happening across America as homeowners under water or under foreclosure are seeing the last means of shelter as living in a moving home of one sort or another.
Many Americans are loosing or giving up their homes, loosing their cars and giving up on the credit system entirely . With one common exception the RV in the driveway. Whether a late model they own outright or something they must continue to make payments on.
The stories are simple as jobs are lost and unemployment runs out citizens are leaving the state for jobs in other states they are taking their homes with them. Enrolling there children in schools or home schooling them in a mobile home of one kind or another. Campgrounds over the last ten years or so have commonly had Section Eight or Catch housing of one kind or another as families have been placed in motels and campgrounds alike during the summer months as no other housing was available. But now it is much more common.
While it is not apparent at first glance this does have a global impact. Smaller houses greatly impact GDP and global economies. As homes shrink there is less room to store items there is less in the way of overall assets and these families will spend less on most aspects of there lives in the scope of products whether domestic or global products.
The effects are much larger than most realize as every single week I hear stories of those who cannot find work and who are leaving to find work in a Mobil home pickup truck with a mattress in the back, or van. Older couples are often giving up there second homes or giving up their vacation homes.
It has always been the case that young professionals move to where the work is or create opportunities in their own communities. It has not been commonplace for a long time for families to uproot there children on a regular basis to move to where work is. The stress on the family can bring them closer together or rip them apart.
Other global implications are also significant as for the first time in many years immigration has slowed from the Mexican border and border enforcement and deportation has increased as Visas expire and less work is available. The result for these families and all of us will be a lower standard of living, increased taxations on communities suffering as a result of the increased population housed in campgrounds within their communities.
It is a common thing today that I hear the stories of struggling families or individuals leaving their homes to move south. The purpose and problem is simple while American median home sizes are shrinking there is a part of the equation which seems unidentified by the mainstream media. What is missing is the fact that there is a migration of sorts happening across America as homeowners under water or under foreclosure are seeing the last means of shelter as living in a moving home of one sort or another.
Many Americans are loosing or giving up their homes, loosing their cars and giving up on the credit system entirely . With one common exception the RV in the driveway. Whether a late model they own outright or something they must continue to make payments on.
The stories are simple as jobs are lost and unemployment runs out citizens are leaving the state for jobs in other states they are taking their homes with them. Enrolling there children in schools or home schooling them in a mobile home of one kind or another. Campgrounds over the last ten years or so have commonly had Section Eight or Catch housing of one kind or another as families have been placed in motels and campgrounds alike during the summer months as no other housing was available. But now it is much more common.
While it is not apparent at first glance this does have a global impact. Smaller houses greatly impact GDP and global economies. As homes shrink there is less room to store items there is less in the way of overall assets and these families will spend less on most aspects of there lives in the scope of products whether domestic or global products.
The effects are much larger than most realize as every single week I hear stories of those who cannot find work and who are leaving to find work in a Mobil home pickup truck with a mattress in the back, or van. Older couples are often giving up there second homes or giving up their vacation homes.
It has always been the case that young professionals move to where the work is or create opportunities in their own communities. It has not been commonplace for a long time for families to uproot there children on a regular basis to move to where work is. The stress on the family can bring them closer together or rip them apart.
Other global implications are also significant as for the first time in many years immigration has slowed from the Mexican border and border enforcement and deportation has increased as Visas expire and less work is available. The result for these families and all of us will be a lower standard of living, increased taxations on communities suffering as a result of the increased population housed in campgrounds within their communities.
Migration of American Families
Migration of American Families
It is a common thing today that I hear the stories of struggling families or individuals leaving their homes to move south. The purpose and problem is simple while American median home sizes are shrinking there is a part of the equation which seems unidentified by the mainstream media. What is missing is the fact that there is a migration of sorts happening across America as homeowners under water or under foreclosure are seeing the last means of shelter as living in a moving home of one sort or another.
Many Americans are loosing their homes many are loosing their cars and giving up on the credit system entirely loosing or giving up their homes. With one common exception the RV in the driveway. Whether a late model they own outright or something they must continue to make payments on.
The stories are simple as jobs are lost and unemployment runs out Citizens are leaving the State for jobs in other states they are taking their homes with them. Enrolling there children in schools or home schooling them in a Mobil home of one kind or another. Campgrounds over the last ten years or so have commonly had section eight or catch housing of one kind or another as families have been placed in motels and campgrounds alike during the summer months as no other housing was available. But now it is much more common.
While it is not apparent at first glance this does have a global impact. Smaller houses greatly impact GDP and global economies. As homes shrink there is less room to store items there is less in the way of overall assets and these families will spend less on most aspects of there lives in the scope of products whether domestic or global products.
The effects are much larger than most realize as every single week I hear stories of those who cannot find work and who are leaving to find work in a Mobil home pickup truck with a mattress in the back, or Van. Older couples are often giving up there second homes or giving up there vacation homes.
It has always been the case that young professionals move to where the work is or create opportunities in their own communities. It has not been commonplace for a long time for families to uproot there children on a regular basis to move to where work is the stress on the family can bring them closer together or rip them apart.
Other global implications are also significant as for the first time in many years immigration has slowed from the Mexican border and border enforcement and deportation has increased as visas expire and less work is available. The result for these families and all of us will be a lower standard of living increased taxations on communities suffering as a result of the increased population housed in campgrounds within their communities.
It is a common thing today that I hear the stories of struggling families or individuals leaving their homes to move south. The purpose and problem is simple while American median home sizes are shrinking there is a part of the equation which seems unidentified by the mainstream media. What is missing is the fact that there is a migration of sorts happening across America as homeowners under water or under foreclosure are seeing the last means of shelter as living in a moving home of one sort or another.
Many Americans are loosing their homes many are loosing their cars and giving up on the credit system entirely loosing or giving up their homes. With one common exception the RV in the driveway. Whether a late model they own outright or something they must continue to make payments on.
The stories are simple as jobs are lost and unemployment runs out Citizens are leaving the State for jobs in other states they are taking their homes with them. Enrolling there children in schools or home schooling them in a Mobil home of one kind or another. Campgrounds over the last ten years or so have commonly had section eight or catch housing of one kind or another as families have been placed in motels and campgrounds alike during the summer months as no other housing was available. But now it is much more common.
While it is not apparent at first glance this does have a global impact. Smaller houses greatly impact GDP and global economies. As homes shrink there is less room to store items there is less in the way of overall assets and these families will spend less on most aspects of there lives in the scope of products whether domestic or global products.
The effects are much larger than most realize as every single week I hear stories of those who cannot find work and who are leaving to find work in a Mobil home pickup truck with a mattress in the back, or Van. Older couples are often giving up there second homes or giving up there vacation homes.
It has always been the case that young professionals move to where the work is or create opportunities in their own communities. It has not been commonplace for a long time for families to uproot there children on a regular basis to move to where work is the stress on the family can bring them closer together or rip them apart.
Other global implications are also significant as for the first time in many years immigration has slowed from the Mexican border and border enforcement and deportation has increased as visas expire and less work is available. The result for these families and all of us will be a lower standard of living increased taxations on communities suffering as a result of the increased population housed in campgrounds within their communities.
Tuesday, March 23, 2010
A small history of just how high taxes have been
In 1932 the top marginal tax rate was increased to 63% during the Great Depression and steadily increased, reaching 94% (on all income over $200,000) in 1945. Top marginal tax rates stayed near or above 90% until 1964 when the top marginal tax rate was lowered to 70%. The top marginal tax rate was lowered to 50% in 1982 and eventually to 28% in 1988.
And of course it was easier to subvert as the world has only become smaller since then. Innovation, Evasion, Loopholes, growth and changes over time have resulted in a much more complicated tax system the fact is taxes were higher and will be again....
Check out the history of US taxes on Wikapedia if you want to know more....
And of course it was easier to subvert as the world has only become smaller since then. Innovation, Evasion, Loopholes, growth and changes over time have resulted in a much more complicated tax system the fact is taxes were higher and will be again....
Check out the history of US taxes on Wikapedia if you want to know more....
The Federal Reserve and its insurmountable expansion over the last three years
http://www.federalreserve.gov/boarddocs/rptcongress/annual08/sec6/c3.htm
The above link connects to the Feds anual report for last year There is a ton of information straight from the horses mouth about what the Fed is up to and where money is being loaned to some extent in addition to information on how much debt the fed has taken on from 2007-2008 .... If you have questions about the facts ask ask ask but do some research you may be surprised what you learn I was....
The above link connects to the Feds anual report for last year There is a ton of information straight from the horses mouth about what the Fed is up to and where money is being loaned to some extent in addition to information on how much debt the fed has taken on from 2007-2008 .... If you have questions about the facts ask ask ask but do some research you may be surprised what you learn I was....
Monday, March 22, 2010
Medicare Medicade and The Overhaul of Healthcare in America Obamas ideals and whole first year in question every action in one basket
25 percent of all Americans are covered by Medicare and Medicade per GAO's statistics... I would note in many cases these are the most expensive to care for as they are those who are disabled, elderly or unable to maintain a reasonable standard of living on their own. It was much easier on the Brits initially Churchill took over the healthcare system... See More during the war as many fled to the country from the cities and their was no one to care for them.
Healthcare solutions do not come all at once its like pulling off a band-aide slowly as the system has to change to improve efficiency etc. But hey look where we are today look at how many people are out of work and between jobs initially there were only about 10 million legal citizens who were uninsured.. the Democrats bought off a number of states including at least one paid for life through the federal government which is clearly unconstitutional bringing up the state of the union address which is why our president love him or hate him called out the Supreme court for overruling an unconstitutional law.
Healthcare solutions do not come all at once its like pulling off a band-aide slowly as the system has to change to improve efficiency etc. But hey look where we are today look at how many people are out of work and between jobs initially there were only about 10 million legal citizens who were uninsured.. the Democrats bought off a number of states including at least one paid for life through the federal government which is clearly unconstitutional bringing up the state of the union address which is why our president love him or hate him called out the Supreme court for overruling an unconstitutional law.
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