Program Will Pay Homeowners to Sell at a Loss
By DAVID STREITFELD
New York Times
Published: March 7, 2010
http://www.nytimes.com/2010/03/08/business/08short.html

The home owner gets $1500 bucks in “relocation assistance”... seriously.


In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.


More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.



Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.

“We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury senior adviser.



“This is not an opportunity for the customer to just walk away,” Ms. Huey said. “If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way, I’m losing my job and moving to another city, and have all the documentation,’ we’re not going to do a short sale.”

“A short sale provides peace of mind... If you’re in foreclosure, you don’t know when they’re ultimately going to take the place away from you.”

Now, you know...

Funny how they didn't apply such principles to to the banks.

kidding!

Oh, and the Capitalist shit-eaters need not worry: “This is not an opportunity for the customer to just walk away...If someone doesn’t come to us saying, ‘I’ve done everything I can, I used all my savings, I borrowed money and, by the way, I’m losing my job and moving to another city, and have all the documentation,’ we’re not going to do a short sale.”
In other words: 'These lower class, dirt-people will be absolutely on their knees before we even pretend to help their subhuman asses out of the bind we put them in.'

God I really hate these fucks...

Detroit wants to save itself by shrinking
AP


By DAVID RUNK, Associated Press Writer David Runk, Associated Press Writer – Mon Mar 8, 4:33 pm ET

DETROIT – Detroit, the very symbol of American industrial might for most of the 20th century, is drawing up a radical renewal plan that calls for turning large swaths of this now-blighted, rusted-out city back into the fields and farmland that existed before the automobile.

Operating on a scale never before attempted in this country, the city would demolish houses in some of the most desolate sections of Detroit and move residents into stronger neighborhoods. Roughly a quarter of the 139-square-mile city could go from urban to semi-rural.

Near downtown, fruit trees and vegetable farms would replace neighborhoods that are an eerie landscape of empty buildings and vacant lots. Suburban commuters heading into the city center might pass through what looks like the countryside to get there. Surviving neighborhoods in the birthplace of the auto industry would become pockets in expanses of green.

Detroit officials first raised the idea in the 1990s, when blight was spreading. Now, with the recession plunging the city deeper into ruin, a decision on how to move forward is approaching. Mayor Dave Bing, who took office last year, is expected to unveil some details in his state-of-the-city address this month.

"Things that were unthinkable are now becoming thinkable," said James W. Hughes, dean of the School of Planning and Public Policy at Rutgers University, who is among the urban experts watching the experiment with interest. "There is now a realization that past glories are never going to be recaptured. Some people probably don't accept that, but that is the reality."

The meaning of what is afoot is now settling in across the city.

"People are afraid," said Deborah L. Younger, past executive director of a group called Detroit Local Initiatives Support Corporation that is working to revitalize five areas of the city. "When you read that neighborhoods may no longer exist, that sends fear."

Though the will to downsize has arrived, the way to do it is unclear and fraught with problems.

Politically explosive decisions must be made about which neighborhoods should be bulldozed and which improved. Hundreds of millions of federal dollars will be needed to buy land, raze buildings and relocate residents, since this financially desperate city does not have the means to do it on its own. It isn't known how many people in the mostly black, blue-collar city might be uprooted, but it could be thousands. Some won't go willingly.

"I like the way things are right here," said David Hardin, 60, whose bungalow is one of three occupied homes on a block with dozens of empty lots near what is commonly known as City Airport. He has lived there since 1976, when every home on the street was occupied, and said he enjoys the peace and quiet.

For much of the 20th century, Detroit was an industrial powerhouse — the city that put the nation on wheels. Factory workers lived in neighborhoods of simple single- and two-story homes and walked to work. But then the plants began to close one by one. The riots of 1967 accelerated an exodus of whites to the suburbs, and many middle-class blacks followed.

Now, a city of nearly 2 million in the 1950s has declined to less than half that number. On some blocks, only one or two occupied houses remain, surrounded by trash-strewn lots and vacant, burned-out homes. Scavengers have stripped anything of value from empty buildings. According to one recent estimate, Detroit has 33,500 empty houses and 91,000 vacant residential lots.

Several other declining industrial cities, such as Youngstown, Ohio, have also accepted downsizing. Since 2005, Youngstown has been tearing down a few hundred houses a year. But Detroit's plans dwarf that effort. The approximately 40 square miles of vacant property in Detroit is larger than the entire city of Youngstown.

Faced with a $300 million budget deficit and a dwindling tax base, Bing argues that the city can't continue to pay for police patrols, fire protection and other services for all areas.

The current plan would demolish about 10,000 houses and empty buildings in three years and pump new investment into stronger neighborhoods. In the neighborhoods that would be cleared, the city would offer to relocate residents or buy them out. The city could use tax foreclosure to claim abandoned property and invoke eminent domain for those who refuse to leave, much as cities now do for freeway projects.

The mayor has begun lobbying Washington for support, and in January Detroit was awarded $40.8 million for renewal work. The federally funded Detroit Housing Commission supports Bing's plan.

"It takes a true partnership, because we don't want to invest in a neighborhood that the city is not going to invest in," said Eugene E. Jones, executive director of the commission.

It is not known who might get the cleared land, but with prospects for recruiting industry slim, planners are considering agricultural uses. The city might offer larger tracts for sale or lease, or turn over smaller pieces to community organizations to use.

Maggie DeSantis, a board member of Community Development Advocates of Detroit, said she worries that shutting down neighborhoods without having new uses ready is a "recipe for disaster" that will invite crime and illegal dumping. The group recently proposed such things as the creation of suburban-style neighborhoods and nature parks.

Residents like Hardin want to keep their neighborhoods and eliminate the blight.

"We just try to keep it up," he said. "I've been doing it since I got it, so I don't look at nobody trying to help me do anything."

For others, Bing's plans could represent a way out.

Willie Mae Pickens has lived in her near east-side home since the 1960s and has watched as friends and neighbors left. Her house is the only one standing on her side of the street.

"They can buy it today. Any day," said Pickens, 87, referring to city officials. "I'll get whatever they'll give me for it, because I want to leave."

http://news.yahoo.com/s/ap/20100308/ap_on_bi_ge/us_downsizing_detroit

What? They've been around 50... 100 years? It's nothin'. Move 'em out. It's good for 'em. Keeps 'em from getting lazy.

http://farm3.static.flickr.com/2104/3531807384_d8127b51e8.jpg
http://www.museumoffamilyhistory.com/mfh-multitude-immigrants-1910.12.18-2.jpg
http://awearnessblog.com/2088513258_2ded15c874.jpg
http://www.latinamericanstudies.org/ellis-island/ellis-island-1907.jpg
http://assets.nydailynews.com/img/2009/04/13/alg_trail_tears.jpg
http://img.timeinc.net/time/photoessays/2008/10_under_reported_stories/under_reported_immigration.jpg

We were born walkin'...

said its because it does more to flatten the arches than broaden the mind..

I always kinda thought Twain was a little overrated because everybody is so quick and eager to celebrate "Americana" but then I turned on TV, realized most of the popular shows were little more than toilet humor (seriously, the one with Charlie Sheen is just one potty joke after another)