Election 2012

[xoxoxoBruce]

“This is a guy running for President who says he’s a great businessman and that he knows how to create jobs…He was such a monster there … To me, he’s a demon. How could this guy have any compassion? How could this guy really care about this country? … This new scam, leverage buyouts, it doesn’t produce a product! It takes money and puts it into other people’s hands … If this is a guy who is fundamentally out for himself and not altruistic and want to help other people? How could a guy like that be President? … This was just an industry of moving money around…It reminds me of, like, a bank robbery.”

NSFW

[DanaC]

Excellent.

[Lamplighter]

When the stars align in the NY Times Editorials...

EDITORIAL

Mr. Romney's Government Handout

Mitt Romney has proposed making the dysfunctional tax loophole system,
which provides benefits only for the very rich, even more unfair.
EDITORIAL

To Combat 'Modern Slavery'

President Obama has begun meaningful new initiatives against human trafficking.

[Spexxvet]

I heard a story from a credible source yesterday, a frame salesman. It's the flip-side of the welfare queen story.

An ophthalmologist in South Jersey makes over a million dollars a year. He owns a rental property, which has 4 units, at $2,000 per month. Three years ago, he refinanced, taking out a significant portion of the equity. Two years ago, he decided to stop paying his mortgage. He's going to pocket $8,000 a month during the foreclosure process, and then he'll walk away, screwing the bank, the taxpayers, the tenants, and who knows who else?

Asshole.

[Adak]

Seriously?

We're supposed to choose our President from advice by a shock jock, who has become famous for saying things unwelcome in polite company?

And who is Mr. DJ beholding to? Let's see -- oh! the FCC, by golly! Who could yank Mr. DJ's license, and his job would be ALL GONE.

But I'm SURE Mr. DJ is COMPLETELY UNBIASED - oh sure!

He knows about a Mormon, like he knows about the Higgs Bosun particle, and why it gives us mass.

[glatt]

I don't follow Howard Stern much at all, but I know enough that I know he made the jump to satellite radio a few years back. The hoopla at the time made a big point of saying that because it was a subscriber only service, the FCC had no jurisdiction. And oh boy what was Howard Stern going to do once there was nothing to hold him back?

Howard Stern doesn't remotely care about the FCC. Even when he was on the radio, he didn't care.

[Adak]

Originally Posted by Spexxvet

I heard a story from a credible source yesterday, a frame salesman. It's the flip-side of the welfare queen story.

An ophthalmologist in South Jersey makes over a million dollars a year. He owns a rental property, which has 4 units, at $2,000 per month. Three years ago, he refinanced, taking out a significant portion of the equity. Two years ago, he decided to stop paying his mortgage. He's going to pocket $8,000 a month during the foreclosure process, and then he'll walk away, screwing the bank, the taxpayers, the tenants, and who knows who else?

Asshole.

I'll tell you why he's doing it.

Three years ago, he refinanced, and was given a much higher interest rate than is currently available. Now, he wants to re-negotiate the interest rate (or refi), but the bank wants that higher interest, and won't budge. He can't refi, because now he doesn't have the equity in the property to do it.

So he's stuck, and he's VERY pissed at the bank - which has been given programs to help cases like this, but has chosen NOT to help him.

Yes, the bank will be screwed (but not terribly), the tenants will have no losses, and neither will the taxpayers. Property taxes must be caught up when the property reverts to the bank's ownership, or at least, not too far in arrears. Otherwise the property reverts to the local gov't which collects the property taxes.

[BigV]

Originally Posted by Adak

Seriously?

We're supposed to choose our President from advice by a shock jock, who has become famous for saying things unwelcome in polite company?

And who is Mr. DJ beholding to? Let's see -- oh! the FCC, by golly! Who could yank Mr. DJ's license, and his job would be ALL GONE.

But I'm SURE Mr. DJ is COMPLETELY UNBIASED - oh sure!

He knows about a Mormon, like he knows about the Higgs Bosun particle, and why it gives us mass.

I think I understand your logic here Adak.

Yes, just exactly as seriously as the legions of zombie dittoheads who get all they know from that other Mr DJ, El Rushbaugh, Rush Limbaugh. Because we all know he's not beholden to those who provide his "obscene profits", yeah. He's COMPLETELY UNBIASED.

Aren't you guilty of some kind of ideological miscegenation having even admitted to listening to Howard Stern? What's the penalty for that? Or are you looking for asylum?

[Adak]

Originally Posted by glatt

I don't follow Howard Stern much at all, but I know enough that I know he made the jump to satellite radio a few years back. The hoopla at the time made a big point of saying that because it was a subscriber only service, the FCC had no jurisdiction. And oh boy what was Howard Stern going to do once there was nothing to hold him back?

Howard Stern doesn't remotely care about the FCC. Even when he was on the radio, he didn't care.

Of course, he cared. That's his "shtick", that he doesn't care.

Howard's no dummy, and he knows the dear old President has an enemies list. If you get on it, you WILL have an IRS audit, and any other nuisance the fed's can give you - which is usually plenty.
Just like Joe the Plumber.

Howard does NOT want to be on the President's bad side - and he's a liberal (definitely!) anyway. So why would he have ANYTHING good to say about Romney?

Would Romney be a guest on Howard's show, or approve of it personally? No.
Would Romney supporters be subscribers to Howard's show? No.

Howard's an ass, but he's certainly not a stupid ass. He knows which side of the toast has the butter on it.

[Cyber Wolf]

Originally Posted by Adak

... the tenants will have no losses...

They will lose their homes within 3 months if they're month-to-month renters or if the new owner (the bank, initially) wants to occupy or re-purpose the property. The new owner has to follow eviction procedures and the tenants will have to deal with that, but in no way to they come out completely unscathed because this guy, for whatever reason, failed to pay the mortgage. That is certainly a loss, a financial, emotional and possibly social loss too, if they have no back-up plan. There doesn't even appear to be any stipulation to provide notice to tenants of a rental property, warning them the property they rent is in foreclosure.

What Happens to Tenants When a Property is Foreclosed?

Tenants whose rented homes were the subject of a foreclosure almost always lost their leases before federal law, signed in 2009, changed the rules. Under current law, leases survive a foreclosure; the tenants can't be evicted unless the new owner intends to occupy the home -- in which case the lease can be terminated with 90 days' notice. Month-to-month tenants, who were always subject to termination upon proper notice, can now be terminated after a foreclosure with 90 days' notice.

Even if the lease or rental agreement can be terminated with the notice above, the new owner of the property must still follow state eviction procedures in order to remove a tenant from the rental unit. (To learn more about eviction procedures, read How Evictions Work: What Renters Need to Know.)

[BigV]

Originally Posted by Adak

I'll tell you why he's doing it.

Three years ago, he refinanced, and was given a much higher interest rate than is currently available. Now, he wants to re-negotiate the interest rate (or refi), but the bank wants that higher interest, and won't budge. He can't refi, because now he doesn't have the equity in the property to do it.

So he's stuck, and he's VERY pissed at the bank - which has been given programs to help cases like this, but has chosen NOT to help him.

Yes, the bank will be screwed (but not terribly), the tenants will have no losses, and neither will the taxpayers. Property taxes must be caught up when the property reverts to the bank's ownership, or at least, not too far in arrears. Otherwise the property reverts to the local gov't which collects the property taxes.

Do you know this guy? Have actual knowledge of the circumstances in this specific case? If you do, say so, produce some kind of evidence for this narrative.

If not, then I'll give you my version that is equally made up but better supported by historical facts.

Originally Posted by Spexxvet

I heard a story from a credible source yesterday, a frame salesman. It's the flip-side of the welfare queen story.

An ophthalmologist in South Jersey makes over a million dollars a year. He owns a rental property, which has 4 units, at $2,000 per month. Three years ago, he refinanced, taking out a significant portion of the equity. Two years ago, he decided to stop paying his mortgage. He's going to pocket $8,000 a month during the foreclosure process, and then he'll walk away, screwing the bank, the taxpayers, the tenants, and who knows who else?

Asshole.

Three years ago mortgage interest rates were substantially higher than they are now. http://mortgage-x.com

Even assuming he'd financed before three years ago for a rate lower than the rate listed at Sep 08 (approx 6.25), the lowest rate would have been about 5.25%, one percent lower, maximum. So, your point about him getting a much higher rate three years ago is baloney.

As for refinancing now, he had his equity back in 08, right? Where did that equity go? Now, he had it in cash, which hasn't depreciated that much since inflation over the interim has been mild, and his property is likely worth LESS, making his cash in hand a greater percentage of the value of the property. Maybe he doesn't have that money anymore you say? Ok, fine, but he had his value, and he did with it whatever he wanted. He could put it into the property, or not.

Most likely what's happened is that he's making a strategic default. The building was the security for the mortgage, like practically all mortgages. But since he doesn't live there, he isn't as attached to the property as I am or as most other resident owners. *I* want to keep living in my house, but he doesn't have that motivation. Imagine if the value of the property declines, say he gets "upside down". Whose problem is that? Why shouldn't he walk away from the mortgage? You want the property for the price we agreed? Fine, take it.

I think it's a legal smart move.

Now, who pays for the money that wound up in his pocket? Who pays when any exchange takes place for money? I buy a house, I spend money, the money's gone. But look! I have a house. The seller, they get money, but they don't have the property. In this case, the bank has a house instead of their money. Just like they agreed.

What the former property owner did is no different than Bain Capital's modus operandii. Find a property, spend some money, make some changes, get yourself and your money out. The rest is not his problem. Now the tenants likely do have a problem. The bank has a problem, they don't want to be a property owner, but they made a contract and now they're paying the consequences. The costs they incur will be paid by the bank customers, you and me. Well, you actually, I fired banks long ago. The city will likely have trouble collecting the property taxes, ('cause who's gonna pay that?) and that impacts many people. But all these costs, they're spread out somewhat. The net value of what those costs cost wound up in the guy's pocket. He bet right. I still think he's a jerk though.

[BigV]

Originally Posted by Adak

SNIP

Howard's no dummy, and he knows the dear old President has an enemies list. If you get on it, you WILL have an IRS audit, and any other nuisance the fed's can give you - which is usually plenty.
Just like Joe the Plumber.

SNIP

This shows you are a total idiot.

[glatt]

A complete and total idiot.

If Stern is trying to avoid getting on lists, why would he say anything at all? The election looks pretty close right now. Why would he risk getting on Romney's enemies list?

(I don't think either man has an enemies list, but I'm just throwing your own "logic" back in your face.)

[Adak]

Originally Posted by glatt

A complete and total idiot.

If Stern is trying to avoid getting on lists, why would he say anything at all? The election looks pretty close right now. Why would he risk getting on Romney's enemies list?

(I don't think either man has an enemies list, but I'm just throwing your own "logic" back in your face.)

WHY WOULD HOWARD STERN SAY ANYTHING AT ALL?

<Holy Molly!>

HOWARD is THE *MOUTH*. He talks endlessly about anything or anybody who is controversial!! Howard would LOVE to get acknowledged for being on Romney's enemies list (if Romney has one, which I seriously doubt). THAT is what makes Howard -- HOWARD! I'm not sure you understand Howard Stern's niche in life.

But Howard would NOT want to be on Obama's enemies list. Obama's people are the one's Howard wants to keep. They want to hear "crotch" and "snatch" and such, on the air. Mormons? Not nearly so much. I believe Howard would starve to death as a shock jock in Salt Lake City. Yeah, I'm sure he'd starve.

And when Howard was on regular radio and TV, it was difficult to always avoid the guy. I have to say he IS a smart guy, with a real talent - he's twisted it up, but it's still a talent.

[Adak]

Originally Posted by BigV

This shows you are a total idiot.

Tell that to all the people who have been harassed by some federal agency, immediately after having a difference of opinion, with Obama.

Start with Joe the Plumber, and work your way on up through his term in office. IRS, SEC, FTC, ATF, Dept. of Justice, etc. They've all been used on different citizens who have not agreed with Obama.

Latest example was the whistle blower on the "Fast and Furious" guns to Mexico idiocy by the FBI and ATF. Although we have a law to protect whistle blowers, the agent who blew the whistle, has just been fired by the agency.

If you embarrass Obama's administration by telling the truth, you pay.