Monday, February 25, 2008

It's not just mortgage payments that are behind anymore....

Americans are not just behind on their mortgages anymore....now we can't pay our car payments or our heating bills, either.

Besides leading the nation in home foreclosures, Nevada has seen a 50% increase in deliquent utility accounts from one year ago. In New York, there has been a 12% increase in deliquent utility bills in the last 90 days. Many of the midwestern states do not allow heat to be shut off during the winter months, so families use the opportunity to let the bill slide for a month or two so they can pay their mortgage and/or car payment.

With Michigan having the highest unemployment rate in the nation, and some of the highest heating costs, families are struggling to keep up with their utility payments.

Though it seems that natural gas is super expensive to heat with, propane and heating oil are even worse! And, because the companies that furnish propane and heating oil are generally smaller and not regulated, they do not offer shut off protection programs.

Last spring, 1.2 million households were without heat after being shut off for nonpayment. Those families were an average of $850 behind on their payments and many were unable to scrape together the balance due before this winter hit and so still do not have heat!

Mark Wolfe, executive director of the National Energy Assistance Directors' Association, states "We're back at the point of crisis again this winter." Congress is considering adding $1 billion to the existing $2.57 billion funding for heating assistance under the Federal Low Income Home Energy Assistance Program.

Gosh, I can't wait for spring!

'Til next time, it's all good!

Deb

Wednesday, February 13, 2008

Who is going to help Michigan?

I have talked before about Michigan helping Michigan....it is a point that I cannot stress enough, it seems.

We opened our doors two years ago in April, and have contacted literally thousands of Michigan companies. We asked for one or two orders per month from each of our new contacts....not too much to ask, is it? One or two orders per month from each of our new contacts would not put their current appraisal company out of business and would give us the boost in sales that we need as a relatively new startup. We received some response to our request, but not nearly enough!

I say again - "If Michigan won't help Michigan, who the h*ell will?"

Every business in Michigan has the responsibility to help each other, or none of us will survive! Send us work - we will not disappoint you! Get out of your comfort zone a couple times a month - it will do you good to talk to and to meet new people!

On the same note, Senator Clinton announced in January her plan to assist homeowners that are in jeopardy of losing their homes to foreclosures; the Mortgage Refinancing Initiative Act. Clinton says that those states with the highest foreclosure rates will receive the greatest assistance. (Michigan is number 1 - not something to be proud of in this case!)

Clinton's plan includes a 90 day moratorium on subprime foreclosures, a five-year freeze in rates on subprime adjustable rate mortgages, and $30 billion in assistance to states and communities to fight foreclosures and offset the costs associated with mounting home vacancies.

Clinton states that any plan to jumpstart the economy is useless without tackling the foreclosure crisis.

And, I state, Amen to that!

So, 'til next time, it's all good!

Deb

Tuesday, February 05, 2008

21 Lenders Being Sued for Causing Foreclosure Mess

Hhhmmm, this is an interesting twist on the whole real estate mess.

The city of Cleveland, Ohio, is suing 21 of the nation's top lenders for violating Ohio's public nuisance law. Mayor Frank Jackson, along with his Law Director Robert Triozzi have announced that the city is seeking damages from the lenders for their part in the mortgage meltdown currently plaguing the US.

Jackson and Triozzi allege that underhanded lending practices have wreaked havoc on Cleveland's neighborhoods, creating a public nuisance.

Mayor Jackson claims that it is extremely costly for a city to rebound from the declining tax revenues caused by the fallout of foreclosures and believes that the 21 lenders should be responsible for partial reimbursement to the cities affected by their reckless lending practices.

The 21 defendants named in the suit are as follows:

Ameriquest Mortgage Company
Bank of America Corp.
Bear Stearns Companies
Citigroup, Inc.
Countrywide Financial Corp.
Credit Suisse (USA)
Deutsche Bank Trust Company
Fremont General Corporation
GMAC-RFC
Goldman Sachs Group
Greenwich Capital Markets, Inc.
HSBC Holding, PLC
Indymac Bancorp, Inc.
J.P. Morgan Chase Co.
Lehman Brothers Holdings, Inc.
Merrill Lynch & Co, Inc.
Morgan Stanley
Novastar Financial, Inc.
Option One Mortgage Corporation
Washington Mutual, Inc.
Wells Fargo & Company

This is the second lawsuit of its kind filed in 2008. The City of Baltimore also announced that they are suing Wells Fargo Bank, claiming that the lender harmed Baltimore's African American and minority communities and created high rates of foreclosure with unscrupulous lending practices.

So, the band plays on....
'Til next time, it' all good!
Deb