Bailout - Real Estate, Taxes and the Mortgage Crisis
Are we missing the outrage for being sold down the river by a band of numbskulls in the mortgage crisis? Even our choice for presidential candidates show heavily embedded lobby and financial interests for a Marxist socialist solution or a watered down free market solution. Both are sleepwalking in lobby money and favoritism.
Unqualified buyers were encouraged into mortgages, the root cause for the financial meltdown. Our financial subprime woes started with Jimmy Carter who, though well meaning, dumb-headedly enacted legislation to make easy loans to people who were bad credit risks. Buying a home and paying property taxes was supposed to be the cure all for financial happiness and getting ahead. His administration began distancing itself from conservative lending and accounting standards.
With the Clintons in the White House, the problem skyrocketed. They passed legislation punishing the mortgage companies if they did not lend to non-deserving borrowers. They put laws with teeth in them thus encouraging easy credit with eyes shut to risk. Sound lending practices were thrown out the window.
Who bought these counterfeit high risk loans? Fannie Mae and Freddy Mac. They, furthermore, became a root for sending political contributions to politicians encouraging this bad credit homeownership cancer to keep growing. Mortgage company lobbies' threw hundreds of millions of dollars to politicians' greed in order to perpetuate this circus even as residents of high-foreclosure neighborhoods suffered additional pain from high property taxes.
To insure these bad mortgages, AIG and other insurance companies evaluated the risk and sold insurance to cover these mortgages in case of default. Their leverage was set at a 12 to 1 ratio. They too threw millions of dollars into legislator's coffers and asked for and got the permission to raise their leverage to a 30 to 1 ratio. This spectacurlary increased their risk as well as greatly increased their short term profits.
Federal Reserve economists put their stamp of approval on this financial gimmickry and allowed this charade to continue. Acorn (Association of Community Organizations for Reform Now) and other similar socialist leaning organizations further aided in twisting banks to make even more fraudulent loans.
SEC Chairman, Banking Committee Chairman, The House Finance Chief and scores of public official's rubber stamped this cancer because of the easy lobby money directed at them. Greed for lobby money tempers sound judgment it seems. The only way to end this type of self perpetuating system is to put anyone who accepts lobby money into prison and banish them from government service.
Hot air balloons have a way of crashing when their fuel runs out. When the rise in real estate prices came to a halt and the value of real estate assets declined combined with a foreclosure explosion, the market imploded. The government created the problem and a 700 billion dollar bailout (laden with funding for pork projects) is meaningless. The credit boom is over. But, where is the outrage?
The other news: Lower real estate prices has many towns raising tax rates to compensate for lower assessments. If you compare your home's value to comparative values of recently sold homes there is a good chance you qualify for a property tax appeal. At least, you should look into whether you have a case.
Property tax services provides a tested approach to minimize tax liabilities in addition to usher help to those overcharged.
Unqualified buyers were encouraged into mortgages, the root cause for the financial meltdown. Our financial subprime woes started with Jimmy Carter who, though well meaning, dumb-headedly enacted legislation to make easy loans to people who were bad credit risks. Buying a home and paying property taxes was supposed to be the cure all for financial happiness and getting ahead. His administration began distancing itself from conservative lending and accounting standards.
With the Clintons in the White House, the problem skyrocketed. They passed legislation punishing the mortgage companies if they did not lend to non-deserving borrowers. They put laws with teeth in them thus encouraging easy credit with eyes shut to risk. Sound lending practices were thrown out the window.
Who bought these counterfeit high risk loans? Fannie Mae and Freddy Mac. They, furthermore, became a root for sending political contributions to politicians encouraging this bad credit homeownership cancer to keep growing. Mortgage company lobbies' threw hundreds of millions of dollars to politicians' greed in order to perpetuate this circus even as residents of high-foreclosure neighborhoods suffered additional pain from high property taxes.
To insure these bad mortgages, AIG and other insurance companies evaluated the risk and sold insurance to cover these mortgages in case of default. Their leverage was set at a 12 to 1 ratio. They too threw millions of dollars into legislator's coffers and asked for and got the permission to raise their leverage to a 30 to 1 ratio. This spectacurlary increased their risk as well as greatly increased their short term profits.
Federal Reserve economists put their stamp of approval on this financial gimmickry and allowed this charade to continue. Acorn (Association of Community Organizations for Reform Now) and other similar socialist leaning organizations further aided in twisting banks to make even more fraudulent loans.
SEC Chairman, Banking Committee Chairman, The House Finance Chief and scores of public official's rubber stamped this cancer because of the easy lobby money directed at them. Greed for lobby money tempers sound judgment it seems. The only way to end this type of self perpetuating system is to put anyone who accepts lobby money into prison and banish them from government service.
Hot air balloons have a way of crashing when their fuel runs out. When the rise in real estate prices came to a halt and the value of real estate assets declined combined with a foreclosure explosion, the market imploded. The government created the problem and a 700 billion dollar bailout (laden with funding for pork projects) is meaningless. The credit boom is over. But, where is the outrage?
The other news: Lower real estate prices has many towns raising tax rates to compensate for lower assessments. If you compare your home's value to comparative values of recently sold homes there is a good chance you qualify for a property tax appeal. At least, you should look into whether you have a case.
Property tax services provides a tested approach to minimize tax liabilities in addition to usher help to those overcharged.
About the Author:
Before accepting the correctness in checking the correctness of your assessment, investigate and read a guidebook. Learn how to make a property tax appeal and win and continue to actually minimize and trim your property tax for years in the future. Only those who challenge their tax get a reduction.
posted by Vittoria @ May 17, 2013
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