Saturday, February 21, 2009

USA become Third World Country

ABC News
Acorn Breaks into Home

Some community activists could face criminal charges after breaking into a home in Southeast Baltimore.

Police were at the home Thursday night looking for fingerprints and other evidence.

The activists who staged the break-in belong to the Association of Community Organizations For Reform Now or ACORN.

After snapping a lock with bolt cutters, ACORN member Louis Beverly told supporters "this is our house now."

ACORN staged the demonstration to protest the foreclosure crisis sweeping the nation.

The home in the 300 block of Ellwood Avenue used to be owned by Donna Hanks. She lost this home in September, after owning it since 2001. When things got tough she struggled to make her payments. Her mortgage? $1995 a month. Her income? $2200. Donna's story is one that ACORN is taking a stand against.

"We feel that it was unjust, we feel as though she was strong armed robbed, we feel that Wells Fargo could have modified her loan and that is what we are asking for right now," says Beverly.

Acorn chapters across the country are staging similar scenes to drive their point home. They want state governments to enact moratoriums on foreclosures until this crisis can be worked out.

ACORN says that they will move Donna Hanks back in despite the fact that she no longer owns the house. During the taping of this story a man by the name of William Lane told ABC2 News that he owns the house currently--and plans to sue Acorn.

Unbelievable. I know it's probably a publicity stunt but nevertheless, I hope they throw his ass in jail for a long time. This is why I hated the "stimulus" package (other than the fact that ACORN gets $billions); what ever happened to personal responsibility? I'm fine with my tax dollars going into actual projects that will stimulate the economy but a lot of the package just gives money to stupid/greedy people. Also, why is "owning" a house a right? I'm still living in an apartment and now I have to pay for other people's mortgages? If you bought a house that you can't afford on an ARM, you gambled and lost. Stop whining and go rent an apartment like the rest of us.

This story doesn't even make sense. If she bought the house in 2001, I'm pretty certain that it's worth more now than when she bought it. She probably got greedy and refinanced with an adjustable rate mortgage while pulling out equity. A $2000/month mortgage assuming 30-year fixed rate of 5.0% is a $375k loan. On, there are 5000+ houses listed for sale in Baltimore at an average of $140k. Even if her house lost half it's value, it's still <$300k (on average). Something doesn't add up.

When I owned a house, I refinanced several times but always with a 30-year fixed loan. I know that by going with an ARM, I could have saved on payments at the beginning. Since we sold the house after 3 years, an ARM loan probably would have been better in hindsight. However, a fixed rate loan means a fixed mortgage payment. To take out a mortgage where the monthly payment can increase to equal ~100% of your take home pay is just irresponsible.

As for ACORN, they're nothing but a bunch of crooks and thugs working for the Democratic Party. I exaggerate (a little), but if the USA is turning into Zimbabwe, I'm going to Newport Coast to break-in & squat in a $10M home and say, "this is our house now."


Sherry said...

Thought you might be interested in some REAL information related to this foreclosure; Donna Hanks initially purchased her home (315 South Ellwood, Baltimore, MD 21224) on 7/06/2001 for $87,000. At some date between 2001 and 2006 she re-financed the original mortgage for the amount of $270,000 with a mortgage payment of $1,662.00. The FIRST foreclosure on this home was filed 5/31/2006. Donna Hanks filed for bankruptcy 6/16/06 during which a payment plan was approved for the $10,500 she was behind in her payments. This action stopped the original foreclosure. When she did not meet the terms of the bankruptcy re-payment, a second foreclosure action was started in January 2008. At the time she had not made her mortgage payments since September 2007. It should be noted that her salary per the bankruptcy paperwork was $1625 per month and she was working a 2nd and 3rd job (supposedly giving her an additional $1,275 in monthly income - the employers were not listed). Over extended? Also, during 2007 she was renting our her basement illegally (she was taken to court) and receiving rent while she was not making her mortgage payments. The mortgage company "raised" her payment $300 a month - right? Well, not exactly it was $340. The amount that she had agreed to pay back in arrears. Not exactly truthful, but what I would expect from a person with her criminal record (theft and assault 2nd degree and possession of a dangerous weapon with intent to injure). Oh and there is the small matter of breaking and entering. The house at 315 South Ellwood had already been sold at auction on 6/26/08 for $192,000. It just took them until September 2008 to get her out. Nothing like public information - it seems Acorn could have found this same information before they helped this "poor" victimized woman.....................

totochi said...

Wow, thanks. I knew a refi was in there somewhere. They should throw her in jail along with the ACORN idiot.

Why are we "bailing" out these people? The money is just going in a black hole. Obviously Ms. Hanks can't manage her finances. From Zillow (I know that data is not 100% accurate), the house in question didn't get close to $300k until Jan06. Somehow the bank allowed her to pull out $200k in equity. Where did all that money go? She file bankruptcy 6-9 months later?!

Unfortunately, this non-stimulus bill/law is going to encourage more of this fiscal irresponsibility, both in the government, business, and in private.

Anonymous said...

Well, at least Acron activists are facing criminal charges for what they have done. So I wouldn't worry too much about the US turning into a law-less country.

However, All the bad things the house owner did took place when the Republicans were in control of the white house and congress. I'd still blame them for letting such a broken mortgage system persist.

And are you certain that ACORN will get any money from the stimulus package. I was under the impression that all the money granted by the stimulus package will go to federal and state government organizations. Do correct me if I'm wrong on that.

totochi said...

Whoever you are, there's enough info on the web for you to decide whether your impression is right or wrong. There's no need for me to do your research.

As for the cause of the financial crisis, I blame mostly the current culture of irresponsibility and believing that the nanny state should bail everyone out; this ~$1T spending act just perpetuates the problem. Your mileage may vary (obviously since you blame the Republicans... I don't think they had control of the Senate during Bush's terms as POTUS).