Housing Anarchy is here. And a big thank you to the monkeys running the show in Philadelphia. You have just lit the fuse, and you have just told the people to stop paying their mortgages. Amazing.
The credibility of the United States of America is now at risk. NOBODY in the world is going to have confidence buying US debt anymore. The monkeys running our government are now telling investors that loans no longer have to be paid in the good ol' USA. Crime pays. Mortgage fraud will not be prosecuted. Loans do not have to be paid back. And money will fall from the sky.
Head to the shelter ma. Storm is coming.
Philadelphia suspends sales of foreclosed homes
Authorities in Philadelphia will suspend foreclosure sales of homes whose owners have fallen behind on adjustable-rate subprime loan payments -- potential relief for tens of thousands of struggling debtors.
Sheriff John Green said on Friday he would halt sales of foreclosed properties in April and would seek a court order extending a moratorium for an unspecified period.
Philadelphia becomes the first U.S. city to halt foreclosure sales in the current crisis, although Cleveland and Baltimore are considering similar measures, said ACORN, an advocacy group for low-income families.
March 31, 2008
ATTENTION PEOPLE OF PHILADELPHIA - YOU NO LONGER HAVE TO PAY YOUR MORTGAGES! YOU CAN LIVE IN THE BANK'S HOME AND PAY ABSOLUTELY NOTHING!
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56 comments:
Stop paying property tax in Philadelphia now! If the house can not be foreclosed, why pay property tax at all?
"potential relief for tens of thousands of struggling debtors."
and potential heartburn for those who can't afford a home because now supply will artificially be kept off the market.
Putting millions of people on the streets isn't a good idea I think...
Dear Banker,
You never should have rented to those niggers in the first place. Now look what you gots??? Shit. Shit from the shitums.
Sincerely,
REDLINE for a REASON
This should shake up the financial world. . .if they realy understand what is going on. . . those CDO's that they think "might" be worth 80 cents on the dollar (and pension fund are now buying them) will be worth 20 cents on the dollar. . .look out below!!
The insane have taken over the asylum.
shocking, wonder how long the suspension will be. 2011?
Philadelphia is trying to stop a potential tidal wave of properties for Sheriff's sale. The ACORN group should be exposed for what it is, a socialist movement.
As to the issue. It is like this. A young couple buys a house and starts paying a seven percent mortgage. Amount: 900 per month (fixed rate) Within a month they are told it is wrong, they will now have to pay 1050 per month. Within six months they get another letter, they will have to pay 1,250 per month. Then a year afterward, they are told that they will have to pay $1,650. The couple try to keep paying but they fall 3 months behind. The Philly Sheriff is notified. While they try to work out another mortgage deal they get a letter in the mail that the house is going to be foreclosed. This, after they are trying to get new financing and paperwork is already in the works. Also, most transactions reported in the papers here are over a year behind now.
This won't work of course. Suspending payments of debts will only make matters worse. Prices did not go up too much here, so lowering them won't be so serious. The real problem is in the surrounding counties, where high taxes, older homes and old homeowners are asking prices way out of line for what you get for your money. Most are wooden shacks from about 1920, with no improvements and no acreage since they were built, but because it is "outside" the city, they are for sale for an average quarter million at least. with tax at about 7,000 per year most old timers can't retire on pension and even though their sons and daughters left long ago they are stuck with the old shack. (most flood everytime it rains heavy as well)
We are just so far down the rabbit hole right now it's absurd. I am ashamed of people in this country, this is just the low fat eat all you want have something for nothing mentality. Pathetic!
It's like I died and went to...an alternate reality.
So the bonds that were securitized under these motgages simply go poof, and the pension funds etc. and banks get no servicing dollars ,as well?
LOL, the smart bet is whether team bush can kick his scheitt sandwich down the road so another can clean up the fallout from no oversight and lending to anyone with a pulse with no down and no job. My bet is that he will succeed in kicking this to the elections because the people still love him and trust him.
'A nation is a reflection of its leadership'.
I would argue that this action is easily defeated in the courts as it is an ultra vires act not supported by police powers, power to regulate commerce or any other legal theory to which the state (city) is disposed. Plus it is easily argued as tortious interference in contractual relations and a taking without a public purpose. I'd also argue it is a misappropriation of private property by the state and file a writ of mandamus to compel the city to perform the foreclosures.
I'm sure the banks will file an injunction and writ of mandamus first thing on Monday morning.
Philly? Shocking.
When will forclosures be halted in Nevada, Florida and California?
aw heck , no problem keith, just tell them to put it on my tab.......
For a second there I thought you were getting in an early April fool's joke on us all, Keith. I mean, how do you just decide that noone is going to get foreclosed on and think that people will continue to pay their mortgages?
I guess there are certain dire circumstance which cause people to just completely abandon logic.
Why would I loan you money with no legal ability to force repayment?
Why would anyone pay back a loan if failure to do so bears no consequences?
Seriously now, Keith, this isn't an April fool's joke?
Is it a free decision of the sheriff to do foreclosure or to not do them? If yes, I am surprised; if not, I am surprised, too, by the apparent lawless attitude of the sheriff. Do we have to pay his salary, too, or do we have a choice not to?
What could be the consequences for the US, apart from higher mortgage interest in the future: If Fannie or Freddie are among the hurt lenders, their demise would be faster and the housing panic sooner.
This, in essence, renders mortgage loans as unsecured. Best of luck obtaining a $400,000 unsecured loan to purchase a house in Philly!
Maybe you can rent a room with Joe Frazier...one of my heroes.
Stop payment without walking away... Sweet...
So, if you are a lending institution in Philadelphia do you continue making new loans.
I would tell the politicians, "guess what fellas, we are closed for new business" have a nice day!
The more I hear of this ****, the more I am seriously considering pulling cash from everything I've got and leaving this country! Why should I act responsibly and be punished while Jo Blow gets a free pass! Eff this!
The banks will sue the cities to have the ruling overturned. If they lose then watch out.
I am sure the financial markets will be thrilled if nobody pays their mortgage anymore. The more government tries to fix the problem the worse it'll get. Enjoy the show.
The sherrif does not have the authority to do that. His blathering will go nowhere.
And so it begins.... There will be mass defaults on ALL debt and the ship is taking on water now.
Best to be thinking about the kind of ship you want built to replace her rather than worry about how much time is left to argue about how she will sink.
"Yajaira Rivera, a mother of four, said she took out a $106,000 mortgage on her Philadelphia home with GMAC in February 2005 and expected to pay $920 a month. Instead, she was presented with an initial payment demand of $1,235, which increased to $1,671 before she negotiated a lower payment."
WTF? How in the hell do you end up with a $1671 payment on a 106k loan?
"Local and national branches of the Mortgage Bankers Association did not immediately return phone calls seeking comment on the Philadelphia plan."
That's because they were probably all on the phones with their legal departments.
Future dialog between banks and people of Philadelphia:
Homie: "Yo, Bank of the Whatever, gimme a loan dawg..." I promise not to pay it back, city says I don't have to.
Bank: F*ck You.
Bank #2: OK Homie, but it's gonna be 12% OK?
Homie: F*ck You.
City of Philly: Yo, Bank, you gotta give my homies 6%, dawg..
Bank #2: F*ck You, we are withdrawing business operations from the state of Pennsylvania.
Fed: Yo Foreign banks, give loans to the homies, and we'll buy those loans from you, OK? No worries if they default, we got cho back...We got this thing called a "printing press".....
Foreign Bank: F*ck you. Already have enough toilet paper.....
Buahhhhhhhh,
Bitter renters keep renting while we owners live for free and take your money!
Who are the real Debt Slaves now?
Buahahah!!
100k mortgage at 20% = $1671/mo.
hmmmm...
How conveeeeeenient.
I find the figures quoted in the story to be questionable.
Notice that it's for ARMs only. So responsible people have to keep paying while morons who took out suicide loans can stop paying. If you have a fixed rate mortgage, it's time to refi nito an ARM so you can stop paying too.
to put it into perspective.
With good credit, at a 5.75% interest rate on a 30 year fixed mortgage, you can finance roughly $285,000 and have a payment equal to that womans.
She got raped by the bank IMO.
Something like this could become the lead domino to finally start the collapse skyrocketing downhill.
It sounds all so good and caring, at first. Then you think for a minute. Hold on here, the SHERRIFF wants to suspend foreclosure sales. His deputies have to be in quintuple overtime by now, pay wise, with all the dead shacks mounting up. All those people to throw out on the street, all those homes to auction off.
Now all of a sudden, this bastard actually CARES about the people he's giving the heave-ho to. No f*ckin way!
Sounds like higher-up-the-ladder politics at work here. Somebody had an epiphany:
“Once this snowballs down hill, and EVERBODY is thrown out of their homes, there will be no one living in Philly, at all, to pay the taxes that go to line our pockets!”
You're right Keith. NOBODY in their right mind will invest once they realize that a SIGNED CONTRACT is worthless in America!
And that’s what will start the ball rolling down hill big-time. Since big banking..... come on, you didn't really think this was for the poor little homedebtor did you..... can’t seize the property, it puts the dead wood on the banks books in total limbo. Think about it.
"What dead assets on our books, Mr. bank Examiner Sir??? The local state/municipality/court system says we can't touch it, therefore it doesn’t exist. See, here’s the court order. The laws the law, sorry!!"
I would imagine that all the people complaining about are just as upset by the 200 billion in loans that the FED is giving the wall street banks.
This is the great unwind of the trade deficit and has very little to do with who took out a loan.
The fundamental problem is that we have not had inflation over the past 6 years to keep up with the housing prices. Inflation is a product of wage growth. People have not been able to grow their incomes do to the Chinese pegging their currency to the dollar.
Think about it. I get a loan. I buy a bunch of junk for my house. 90% of that junk comes from China. The Chinese keep prices low artificially. There workers never get raises.
There is no economic growth in the U.S. from all those loans, except in the industries directly related to the industries directly associated with.
Giving the Loan.
Building or Upgrading home
Retail or Wholesale suppliers in U.S.
There have been very few jobs created in the past 7 years in the U.S. in any other industries but these.
The problem is so called free trade. I doubt that there are very few people who have bought and moved into a home in the past 6 years are looking forward to giving up their home at a loss.
So if you want to help out these people. Buy American. Start a business. Employee more people. Give people raises.
Most of all stop buying cheap Chinese junk because their is a cost to neighbor and for you.
Oh yah, one last thing. Look around at the manufacturing jobs that are still clinging in the U.S. They all have very strong Unions. So support your Unions and get organized.
ha ha, good one Keith. april 1st isn't until tuesday.
Same stuff happened in the last depression too.
I live near Philly - western suburbs to be exact. Having dodged a bullet (literally) in a drive by shooting two nights before I was to get married in 1980 (I was driving by - they were shooting - on or about 54th and Walnut in West Philly) I can tell you that the only thing left to do with the place is to isolate and sterilize. I avoid the place like the plague.
philly? they dont even show up in the top 50 metro areas having problems!
A nation is a reflection of its' leadership.
A culture is a reflection of its' ruling class.
This is a preview of what life under OBAMA will be like.
IF THE SHERIFF CAN DECIDE TO IGNORE ILLEGAL IMMIGRANTS, WHY CAN'T HE DECIDE TO IGNORE LOCKING UP HOMEDEBTORS???
DOPES!!!
PHILADELPHIA - AMERICA'S FORECLOSURE SANCTUARY CITY!!!
GIVE US YOUR TIRED, HUNGRY HOMEDEBTORS AND WE SHALL SHELTER THEM!!!
DOPES!!!
"Putting millions of people on the streets isn't a good idea I think..."
Foreclosure doesn't euqal putting people on the streets! A comparable house can be rented for half as much as an interest-only mortgage. This whole thing is about helping banks avoid write-off's.
BTW, rent-control experience should have demonstrated that keeping people squattering houses bigger than they can afford at market price only means keeping people on the streets: less housing is available both due to the squattering and lack of new construction. If foreclosure can not take place in the city, nobody would lend.
It seems to me that this is the worst thing that can happen in a liquidity crunch. The banks are already loathe to lend any money, if their contracts can be arbitrarily overturned by politicians, the lending will stop cold.
Oh, and by the way, preventing these homes from going into foreclosure only delays the inevitable...
Stop paying property tax in Philadelphia now! If the house can not be foreclosed, why pay property tax at all?
Because I guar-un-tee that the sheriff hasn't stopped property tax sales, dingleberry.
Still, it's nice to see it happening somewhere else besides Cali, Florida, Arizona or Nevada in such an honorable "blue" area. Yep, Yankees play by the rules, while all the people in the sunny states bend & twist them. Riiiiiight......
"The Chinese keep prices low artificially. Their workers never get raises. There is no economic growth in the U.S. from all those loans, except in the industries directly related to the industries directly associated with.
Giving the Loan. Building or Upgrading home Retail or Wholesale suppliers in U.S. There have been very few jobs created in the past 7 years in the U.S. in any other industries but these. The problem is so called free trade."
No, the problem is the socialist managed money. Wage in China and India are actually going up at 20% annual rate (and food, too) because of the worldwide inflation. In a real free-trade world with real money, jobs can not be "exported" unless a more productive job is discovered locally (otherwise, the local currency would drop). A more productive local job is what makes local living standards higher. With the managed fiat money system however, this natural drive towards more productive/lucrative job leads to government-underwritten gambling: head the gamblers win, tail the gamblers lose everyone else' not their own money!
Protectionism would only make life even worse . . . specialization is what makes economy efficient. Imagine what life would be like if cities can not import food but have to grow food locally.
Anonypuss 12:47 barfed:
"Putting millions of people on the streets isn't a good idea I think..."
-----------------------------
Anonypuss, you are a complete moron. What you just wrote is the most idiotic thing ever rendered in binary code.
No one is going to be living on the street because their house (which they never even owned) went into foreclosure. They will be "reduced" to renting, like they obviously should have been doing in the first place, as witnessed by the very fact that they are now IN FORECLOSURE!
Also, their credit scores will be wrecked, but that is just and proper, for they have done this to themselves through their greed and imprudence.
Now go do the world a favor, and drink a bottle of Clorox.
This is a preview of what life under OBAMA will be like.
This is a clear view of what life under a Republican administration is like.
Vote for further ruin! Vote for McCain!
ET said:" philly? they dont even show up in the top 50 metro areas having problems!"
If Philly is in deep 'forclosure' trouble, what about Florida and California? Will sheriffs stop throwing people out of their homes in these states too?
FYI-Interesting article posted this weekend on SFGate - it listed the highest paid employees by city, here in the bay area. Let me tell you, these salaries $140-350+ per year!!
Could it be, the reason property taxes are so high is because cities have to pay outragious salaries to city employees??
Cities HAVE to make salary cuts NOW otherwise, how will they survive paying their highest salaries when forclosures via(property taxes) are not giving cities any more revenue????
This is really getting scary now!
calm down people, this is just election fodder.
NO WAY this survives a lawsuit.
it is an "unlawful taking" outside the scope of free-roll-Philly's government police powers
I'm agog. Aren't we talking only a few hundred homeowners in the entire city? I understand when whole neighborhoods go under that hurts a city with falling comps, tax bases and rise in crime - but it hasn't actually been determined that these places will necessarily turn into crack dens once their tenants are evicted. The Sherrif is probably scared his own abode will lose too much value.
I didn't read far enough in - so they expect 3,206 foreclosures - there are still 590,071 households in Philadelphia - So all of this because 0.54% of the households that were stupid enough not to read about what an ARM is or who took on more than they could afford might bring down the comps of the other 97.46% households
I'm willing to bet that the Philly pension plans own a big chunk of mortgage debt too.
So they shot themselves in the foot.
You can see it now. "What do you mean our pension fund lost half its value?"
Suspending sales for a month will only prolong the suffering for another month. This is news, but it'll be even bigger news if the sheriff is granted the moratorium, and for how long. Postponing auctions now will only create a much larger wave of them when the government tries to catch up. Then the legitimate foreclosures will all be dumped on the market at once, dragging down prices even further, making it harder for future foreclosure victims to sell or refinance.
No, the problem is the socialist managed money. Wage in China and India are actually going up at 20% annual rate (and food, too) because of the worldwide inflation. In a real free-trade world with real money, jobs can not be "exported" unless a more productive job is discovered locally (otherwise, the local currency would drop). A more productive local job is what makes local living standards higher. With the managed fiat money system however, this natural drive towards more productive/lucrative job leads to government-underwritten gambling: head the gamblers win, tail the gamblers lose everyone else' not their own money!
I can't believe how completely brain dead you globalists are. City of 10,000 has income base of 10 per anum savings of 100. City is greedy evil vile pigs and outsources 5 its income base to boost profits for politicos and their greedy evil masters. Cost of living keeps increasing income base decreases. Savings tapped to compensate for lost income. Savings gone, city bankrupt, evil politicos and masters blame citizens because they are lazy and stupid. They leave the city on their newly purchased private jets. USA and global economy.
why is it google news has no mention of this?
'A nation is a reflection of its ownership.' In other words, how many people in a country own (homedebtorship) their homes is a reflection of that nation's greatness.
Ownership nation.
Mad losses!
Such bizarre news! It does seem like it must be a joke, although I know it is true.
Where is presonal responsibilty? Every action has an opposite reaction unless the government steps in right?
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