Archive for housing foreclosures
The economic collapse, this new Great Depression, is afflicting States and Municipalities as never before also. New strategies are required for the citizens to survive this coming disaster, and set themselves up to succeed and prosper in the years to come.
Recently Rep. Marci Kaptur captured everyone’s attention by telling homeowners facing foreclosure to “Stay PUT.”
Readers of this blog will know that several months ago I recommended a similar thing, and as wonderful of an idea that this representative from Toledo has, I suggest that Americans begin taking this idea much farther.
I call it ‘The New Homesteading.’
Finally this year, the local municipalities are suffering so much from foreclosures, that they are beginning to realize that their interests actually lie with the CITIZENS, and NOT with the bankers, the investment class, the wealthy.
A few years ago I had a direct and very painful experience with the prevailing attitude of a local municipality when my house burned down to the ground. The city, in the habit of picking the carcass of every citizen, made sure that they got as much money as possible from my disaster- going out of their way to charge huge fees for unnecessary mowing & other stupidities; requiring things that were completely senseless but damaging to the re-building process and charging huge amounts of money for those things, refusing to negotiate reasonable rebuilding plans (like a smaller, more affordable house) and so on, and therefore finally the entire project was cancelled- my being tens of thousands of dollars poorer and the entire catastrophe becoming a total loss.
Worse, the authorities refused to hold the insurance company accountable to the insurance contract as written.
The State of Michigan, its politicians and its cities have long been in the pocket of the insurance companies, bankers and mortgage companies.
Now, however, as the cities see growing areas of wastelands in their towns- formerly occupied homes that no longer pay taxes, no longer use the utilities, no longer receive maintenance, because they are ‘owned’ by some vague financial institute through some vague financial instrument somewhere in the world, the cities are discovering that their best asset is what it always has been- its citizens.
I want to point out one very important thing here- one of the most FOUNDATIONAL aspects of wealth building and equality that ever occurred in these United States was HOMESTEADING. There were VAST tracts of land that were unoccupied, uninhabited, undeveloped, unproductive, and a growing immigrant population that was desperate to get a good start in this country- by the sweat of their brows, by their work and ingenuity.
The government, at that time set out a program of ‘homesteading’ whereby landless peasants could go and find a piece of unowned property, and if they developed it, after a certain length of time could lay claim to that property and become its owner.
The modern version of this is the ‘squatters laws’ that are on the books almost everywhere.
Up until now, the State would claim properties because of unpaid taxes, and sell them to the investing class for the tax money only, and the mortgages and liens on those properties would simply be void.
However, there is no longer an ‘investment’ class that is able or willing to take on ‘abandoned properties’, fix up and maintain them and offer them to sale to a population that doesn’t even have work enough to sustain them.
Just because the State SAYS it is ‘owed’ taxes does not MEAN that those taxes are ‘owed.’ There are altogether too many cushy tax breaks for the friends of any given administration that do not apply to the citizens at large.
How many times have you heard the scream to heaven by government saying ‘WE ARE LOSING MONEY to taxes that are OWED to us because people are …. buying stuff from another state… aren’t paying enough cigarette taxes…. have stopped vacationing here and we are losing tourists tax dollars…’
Let us be clear here. The STATE DOES NOT LOSE MONEY because they have failed to find enough ways to tax people! THOSE MONEYS WERE NEVER OWED TO THE STATE UNTIL THE LEGISLATION LAID CLAIMS IT SHOULD NEVER HAVE LAID. Sales taxes are not OWED until a person decides to purchase, for example.
In the boom times, the ‘state’ made YOU and every working American pay over half of their money in taxes. Rather than being in service to YOU, the citizen, YOU the citizen were enslaved six months of the year to a vampire government.
Properties that ‘belong’ to the State ACTUALLY belong to the PEOPLE who ARE the state. They belong to the citizens, to the taxpayers. All the infrastructure that supports these buildings was paid for by the taxpayers- infrastructure that is going to hell in a handbasket as the citizens lose their jobs and lose their incomes and no longer even qualify to pay taxes or stay in their homes because of the usury charged them- usury that the laws SHOULD have protected the people from in the first place.
It is time for the citizens to begin a NEW government policy of their own- the New Homesteading. Are you and your family homeless already? Go find a decent foreclosed house and move into it. Get it livable, see if you can find work. This spring plant the entire yard as a food-producing garden. Set out your garbage and recyclables for city collection. Enroll your kids in the area school. Turn on the cable and utilities. BELONG there.
Life is much more affordable with no mortgage payment, no insurance payments and no property taxes.
Homestead the place as Americans used to do.
Make the city, the state, and any ‘investor’ pay the expense of throwing you out, the expense of proper records, the lawsuits to evict or ‘foreclose.’ Do everything you can to transform the legislation in your new city to permit homesteading, to lift wasteful lawn requirements and home-based business restrictions. Demand the city permit animals besides cats and dogs so you can keep chickens, or goats or sheep.
There is a limit to how much any of these entities will spend, especially if there is a mass movement of citizens laying claim to the properties of this country that belong to them and no one else.
It is a true statement that possession is 9/10 of the law. It is time that it worked for the citizens and not the elites only.
Ron Paul’s predictions are all coming true. Here is a particularly unfortunate one.
It took long enough, but perhaps sooner there wasn’t enough economic misery among the American people to accept this plan as a good idea. It may not be enough misery yet, but to float this idea now, before the economic collapse and/or inflationary depression actually hits, makes it look like the Fed is ‘ready’ and prepared to ‘help’ us.
The NY Federal Reserve President, Timothy Geithner, has obliquely announced the benefit of, and the intention for, a global reserve bank. Of course, he has his own interests, as being the key architect of the HUGELY EXPENSIVE Bear Stearns bailout implies. For the Fed, financial structure over any other interest, any other consideration, is critical, particularly if your goal is to have ONLY ONE GLOBAL BANK.
In what can ONLY be construed as a complaint, given the unbelievable authority over all things economic that our so-called ‘representatives’ just gave the Fed,
“At present the Fed has broad responsibility for financial stability not matched by direct authority and the consequences of the actions we have taken in this crisis make it more important that we close that gap,” Mr Geithner says, in an excerpt of a speech to be delivered today at the Economic Club of New York.
A global bank will need to have assets to back up their system- destroying all the savings, acquiring through foreclosure millions of homes and business properties, buying up assets for pennies on the dollar, ALL ON AMERICAN TAXPAYER FUNDS, explains the flaccid impotence of Bernanke to act in such a way as to protect the American dollar, American assets or the taxpayer financed banking structure.
The ONE WORLD GLOBAL BANK is coming, at YOUR expense. You won’t have any assets left to provide for yourself, your children, your retirement. There will be NOTHING except a depression so great that unless we accept the electronic Amero (or other global currency) funds made available only through implantable electronic RFID chips, you will most likely die of starvation, homelessness or imprisonment.
Welcome to the fruits of the Federal Reserve Banking system.
Today was my lucky day and I discovered in my mail box the FIRST new Corporate Welfare Package of our new Depression Era, courtesy of our State Representatives! Given that, of course, the next batch of property tax bills have all been sent, this gentle and kind letter reminded us that despite the downturn in our economy (which ranks BELOW Louisiana now) that we can expect a minimum INCREASE in our property taxes due to Proposal A (a bitterly fought trade off), and so our taxes will increase 2.5% even though the properties have taken a HUGE fall in value.
We’ve LOST over 40,000 families from our state, because we’ve lost hundreds of thousands of jobs. The people who remain cannot sell their homes, cannot rent them out, and more than 1 out of a hundred remaining homeowners are facing foreclosure regardless of whether or not they had these ‘sub-prime’ loans.
However, despite the continuing free-fall of the state economy, our representatives have seen fit to INCREASE the State budget anyway even though there are fewer and fewer citizens left to serve, in any way, by the hour.
Now these genius legislators are working on a ‘package’ to help ‘struggling families’ through the worst economy in the nation and the highest rates of foreclosures and concurrent homelessness. Among a range of worse than useless but expensive ‘legislation,’ the mortgage companies and over-builders get their fair share: the State will ‘attack mortgage fraud’ and pay to ‘provide more training for loan officers‘ and reducing the ‘pop-up’ tax (whatever the hell that is) and extending the homestead credit to facilitate sales. The assessors can expect a run up of business too, at the expense of unemployed families, because in order to appeal the tax increase, one needs a current assessment by a ‘reputable’ assessor, which run around $1500 total, the last I heard.
Aside from the fact that this does NOTHING to ease any burden for ‘struggling families’ but in fact increases their expenses or they can just suffer with more taxation; it also gives ONE MORE shot in the arm to the mortgage industry- why should taxpayers have to pay to train loan officers WHO ALREADY KNEW WHAT THEY WERE DOING?
In a hard-working state like Michigan, the loan fraud for purposes of mortgage lending was extremely low in percentage. Those fraudulent loans were especially prominent in other areas of the country with hot housing markets where ‘investors’ were hoping to buy and ‘flip’ ownership at hefty profits. There was no such market here.
Those losing their mortgages here were working families, usually two income with kid type families, who began their downward slide when the job market finally collapsed. Instead of HELPING these homeowners, our state wants to play further games with its suffering families and increase their fees, costs, and taxes all in the smoke and mirror games of ‘helping’.
Almost any long-term citizen of this pathetic state can think of a list of thousands of ways our representatives have made it less and less desirable to be here, thousands of mistakes that did nothing but hurt the citizens and suck them more and more; thousands of things that could be UNDONE at no cost that would actually ease the suffering.
But, no, our representatives want to ‘attack fraud’, and train the poor misguided mortgage industry, all the while increasing the taxes and the burdens on already devastated people.
Look out America, Senatus reports similarly impressive ‘stimulus’ packages for YOUR area.
If you need further proof that Government CAN’T OR WON’T solve your problems, as Ron Paul says, just wait a bit. You’ll find it right in a mailbox near you!