Detour

There is a horrible piece of journalism in ‘The USA Today’ today (I love saying today twice I a row) with the title ‘Foreclosure crisis has ripple effect’ by Haya El Nasser.

Haya relies on a survey of 1240 politicians, with only 211 responses, by the National League of Cities. Not exactly an unbiased scientific sample…but this isnever mentioned by the writer.

“The American dream for individuals has now become the nightmare for cities,” says James Mitchell, a Charlotte councilman and head of the group’s National Black Caucus of Local Elected Officials.

Foreclosed homes are the target of vandalism, he says, and there’s been an increase in police calls.

In Peachtree Hills, one of the many neighborhoods of starter homes that sprouted around Charlotte this decade, 115 of the 123 homes are in foreclosure, Mitchell says.

What does Haya think city fficials are going to say. Cities are in a revenue squeeze looking at a likely recession. They have a vested interest in hyping a crisis in the hopes that the sugar daddy, the US Federal Govt., will ride in to the rescue with piles of money to throw around.

A quick Google search of Peachtree Hills in Charlotte hits on the following from The Charlotte Observer December 10, 2007 labeled New suburbs in fast decay

In Peachtree Hills, police are summoned nearly 300 times a year, mostly for property crimes in the 147 homes. But the 4-year-old neighborhood, near Sunset Road, has also seen robberies, shootings and gang displays more commonly associated with violent urban areas — not new subdivisions.

Sounds like a place I would walk away from even if I had money coming out of my ears. The article continues…

She bought a home in Peachtree Hills for $129,000 early last year, and moved in with her 3-year-old son. Houses were still being built and her street looked good. She didn’t know builders were selling homes to investors from California and New York and New Jersey, or that a handful of homeowners had defaulted on their loans.

Hall also didn’t know crime was rising, or that gunshots would sometimes wake her.
“I was born and raised in Queens, in the middle class, and I never had these problems,” Hall says.

But Hall’s fighting to change things.

After months of trying, she finally revived Peachtree’s homeowners’ association.
Its first move was to persuade Duke Power not to cut off the street lights. Peachtree was $4,000 behind on its electric bill.

Next, a letter went out to all property owners: Pay your dues or we’ll put a lien on your home.

So investors and people that cant afford the payment on a $100,000 home are the people that are at risk. I say, so what?

If speculators in from California and New York lose their shirts no one should cry a tear. They knew the risk when they took the negative amortization zero down interest only loan. They gambled trying to make easy money and bet incorrectly. Too bad…so sad!

The average rent in Charlotte is $725 according to rent.com. The payment on a $130,000 house with a 30 year mortgage @ a rate that has increased to 10% (which is not realistic…most people in ARM pay far lower rates) is $1141 a month. If they re-finance to a 6% fixed rate,available at this very moment is just a few dollars more than the average rent. If you can’t afford these reasonable payments than you SHOULD NOT be a homeowner. No one lied to you! You could have done the math and you can afford payment at 10%. If youcan’t afford this than you never should have been a homeowner and you were living on a borrowed American Dream thatwas never yours in the first place. Sheesh.

Who is on top…Obama or Hillary? I really can’t answer the implied question here. I mean Obama is the man….but so is Hillary. I think if the two had to figure out the answer to this question the battle to win would be even bloodier than the fight for the Democratic nomination. Either way, Obama loses…even if he figures out how to get on top…which Hillary will never give to him easily.

Haven’t news personalities been in hot water for making this error?