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Guest yobob1

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Porter-How in heck would 2 School Bus Drivers qualify for a mortgage on a plus $500 K home?? and what would be their combined income?? ;)

Sunday's New York Times has very a long article on a campaign to make homeowners of middle- and lower-income Americans has led to financial struggles and foreclosure for some families in the Poconos. Essentially, some renters in Nork York were allured to Poconos, Pennsylvania, by a brunch of greedy homebuilder. They are offered easy financial terms, which later turned out to be disasterious. JPM is featured very well in the mess. Here are some quotes of the article:

 

But homebuyers say there was often pressure to buy now, buy fast, and the best deals seemed to be always nearly gone. There were free decks and fireplaces and an advertised monthly mortgage of $685, but in limited quantities. They were also tempted by numerous extras that ended up raising home prices beyond what they first thought they would pay. One buyer, David Johnson, recalls hearing a cellphone exchange that he now suspects was staged; his sales agent fought with a colleague over whose customer would get the lot where they stood.

 

"It just seemed like such a real good deal," Ms. Davis said. "I mean these people were willing to build us a brand-new home for not much more than we were paying in rent for a tiny apartment. Who would walk away from that?"

 

It did not take long for many of them to start having second thoughts. Their lakefront lots would become mysteriously unavailable, forcing them to settle for lesser spots. Also, Pennsylvania, unlike most states, had no building code to set standards for critical matters like foundations, plumbing and insulation; only this year did state officials finish writing such a code to become law this month.

 

At her housewarming party, Ms. Davis's father, a builder from Chicago, pronounced the house "a rip-off." There was no polyethylene sealant wrap under the vinyl siding, he told her, and almost no insulation in the walls or in the attic. "We'd walk around all winter bundled up in sweaters and coats," she said, shivering at the memory

 

 

Local lenders who dodged the foreclosure mess say they did so by knowing the market and players on intimate terms. They also handle the loan work themselves from the moment homebuyers walk into their banks.

 

As a result, two of Monroe County's eight local lenders say they have no foreclosures at all. Five have averaged three filings a year, county records show. And the largest, ESSA Bank and Trust, which has made 3,500 loans there since 1997, says it has foreclosed on 60 homes, well below the national foreclosure rate. By contrast, 50 of the 377 Pocono homebuyers who used Chase have lost their homes to foreclosure, and to prevent even more failures, the bank has taken the extraordinary step of forgiving a total of $6 million in debt owed by 210 of its homebuyers.

 

 

Some of Chase's loan practices differed markedly from local lenders.

 

Chase ran its Pocono venture from a regional office in Independence, Ohio, whose manager, William K. Spaner, has said in legal proceedings that he never visited the region or met Mr. Percudani. Chase then farmed out much of the work that borrowers had expected the bank to perform.

 

For starters, Chase paid Mr. Percudani's mortgage concern to be its broker in the Poconos, which put him in charge of hiring the appraiser who is supposed to independently assess a home's true value.

 

Larger banks commonly assign this task to their mortgage brokers in a process that in recent years has come under criticism by some experts and institutions in the industry. More than 7,000 appraisers nationwide have signed a petition saying they felt pressured to produce inflated evaluations in part because of who was hiring them

 

Just how much profit Mr. Percudani built into his prices is not clear. While builders typically make $7,500 to $15,000 on homes that sell for $150,000, he cited figures in the lawsuit with his partner indicating that they made roughly $62,000 on each of the 150 homes they sold in 1994 and 1995.

 

The United States attorney for middle Pennsylvania decided against pursuing criminal action against Mr. Percudani, citing Chase's own reluctance to pursue the matter. "According to Chase's counsel, this whole episode has been a public relations nightmare, and they do not want to publicize this matter any further," an assistant United States attorney, Bruce Brandler, wrote in an Aug. 18, 2003, letter to state officials that was obtained by The New York Times. Chase says it told Mr. Brandler that it would cooperate.

 

 

You can read the long article here

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Porter-How in heck would 2 School Bus Drivers qualify for a mortgage on a plus $500 K home?? and what would be their combined income?? ;)

Muni bus drivers in SF rake in 100k/year, not to mention great benefits. So a 200k income more than qualifies for a 500k+ home, even with less than 20% down.

Budfox,

 

I really wish you hadn't posted that. It is becoming more clear every day that public sector government employees are getting rich off private sector taxpayers, especially when taking the generous benefit, pension, and other union negotiated perks into account.

 

Even in San Francisco, driving around a bus for $100k is a ton of money, especially for such a low skill job.

 

Isn't anyone guarding the treasury doors?

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That is a Classic-Easy Al- with the builder,in league with the Bank and the Appraiser "Caveat Emptor" has a new meaning! I am still shaking my head over a Bus Driver making a $100-K in Californicate-that is just plain Stupid and why the State is broke and the Cities are broke, they have a long, long way to fall. ;)

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Brian, part of it was that I thought Bush to be [deleted by Doc]

Also ...that Mental Health was at root the issue ...on National scale...

for alot of what we discuss ...nay...try to trade around..

 

If Doc deleted it..all I ask is explanation, so that I may better

understand guidelines..............and not feel invalidated.

 

And if Doc did not delete....let the one with the big balls come forward who did..........

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According to Larry Tomlinson, We should be watching 4-19-04 for problems to occur. This statement is inregards to an outside event NOT the market.

Arch Crawford was also talking about 2004-04-19 on marketviews.tv.

 

"Now, the ninteenth is a solar eclipse, and it has many of the signatures of extreme violence from the ninteenth to the twenty-fourth, partly because of the eclipse but partly because if you draw the chart for the eclipse for Washington D.C. it'll bring the most hostile, ugly, mean-spirited planets rising and setting at that time at that place. So I've been saying that looking at the skies makes the hair rise on the back on my neck. It looks extremely violent."

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Forget about it...There are plenty of times when I spend a couple of hours constructing a post then delete it myself...on top of the occasional vaporizing post...

 

Another little fragment...

 

"The officer, who agreed to the interview on the condition of anonymity, said that part of the problem was that American troops viewed Iraqis as untermenschen - the Nazi expression for "sub-humans". Speaking from his base in southern Iraq, the officer said: "My view and the view of the British chain of command is that the Americans' use of violence is not proportionate and is over-responsive to the threat they are facing. They don't see the Iraqi people the way we see them. They view them as untermenschen. They are not concerned about the Iraqi loss of life in the way the British are. Their attitude towards the Iraqis is tragic, it's awful."

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HiHat,

I read your post earlier on HyperTiger .. "Last post thread"

Perhaps this will ease your mind:

 

HIHat

Posted on: Apr 11 2004, 11:30 AM

 

What is at core the real issue here, as we filter down from the Top elite, through

sundry layers of the Zietgeist, all the way to the Bottom strata of society, is the

problem of MENTAL HEALTH.

 

ALL the Events that will transpire while looking through the looking glass..darkly..

in the future will prove ........this is so.

 

I care not that they obtain REDEMPTION. .for.. ALL EVIL IS DISEASE.

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The greatest American in History IMO

 

George Washington...period.

 

Three things he wanted for America

 

1 a currency.

 

2 A Navy.

 

3 No foreign entanglements.

 

We have one of three of unbelievable power.

 

The nuclear submarine fleet has power beyond comprehension.

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TE, fwiw, April 21 will be 360 degrees from the July 24, 02 low.

also the [Gruff] 18day cycle low I think

Notice there is no material adverse change in the futures tonight.

 

Tops are not made the day after YHOO gaps up $7 to a multi-year high on huge volume.

 

Patience must be exercised before shorting.

 

Lots of time must be burned off to work off these high volume breakouts on key NDX stocks.

 

Next Tuesday after Scam Week and Yearnings Enemas will be an ideal time to start legging in on the short side.

 

I'll wait until then.

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