Posts tagged housing
You Can Buy A House For One Dollar Or Less In Economically Depressed Cities All Over America
Would you like to buy a house for one dollar? If someone came up to you on the street and asked you that question, you would probably respond by saying that it sounds too good to be true. But this is actually happening in economically-depressed cities all over America. Of course there are a number of reasons why you might want to think twice before buying any of these homes, and I will get into those reasons in just a little bit. First, however, it is worth noting that many of the cities where these “free houses” are available were once some of the most prosperous cities in the entire country. In fact, the city of Detroit once had the highest per capita income in the entire nation. But as millions of good jobs have been shipped overseas, these once prosperous communities have degenerated into rotting, decaying hellholes. Now homes that once housed thriving middle class families cannot even be given away. This is happening all over America, and what we are witnessing right now is only just the beginning.
The photo that I have posted below was sent to me by a reader just the other day. It is a photo of a house in Yakima, Washington that is apparently being given away for free. At one time it was probably quite a lovely home, but now nobody seems to want it…
This piqued my curiosity, so I started doing some research and I discovered that homes all over the nation are being sold off for a dollar or less. The following are just a few examples…
-Buffalo, New York: “The Urban Homestead Program that is offered by the City of Buffalo enables qualified buyers to purchase a home that has been deemed ‘homestead eligible’ for $1.00 and there are plenty of properties left. There are three main requirements when purchasing a homestead property; the owner must fix all code violations within 18 months, have immediate access to at least $5000, and live there for at least three years. You also have to cover the closing costs of the purchase.”
-Gary, Indiana: “Officials say that a third of the houses in Gary are unoccupied, hollowed dwellings spread across a city that, like other former industrial powerhouses, has lost more than half its population in the last half-century.
While some of those homes will be demolished, Gary is exploring a more affordable way to lift its haggard tax base and reduce the excess of empty structures: sell them for $1.”
-South Bend, Indiana: “How could you refuse this offer? The city of South Bend, Indiana wants to give this handsome circa-1851 Italianate farmhouse away to anyone willing to properly restore it. Aside from the boarded up windows (the boards are painted to look like real windows), the place is in pretty good shape, with a completely restored exterior, new roof, and all new HVAC, plumbing and electrical systems. All you’ll need to do is restore the gutted (but clean as can be) interior.”
-Detroit, Michigan: “Now that the motor city has effectively run out of gas and declared bankruptcy, some rather eye-popping deals are presenting themselves to first time home buyers who appreciate the challenge of a fixer-upper.
Hundreds of Detroit homes currently listed on Zillow have asking prices below $5,000, with at least one seller so desperate as to offer his house for just $1, ABC News reported.”
And guess who is selling more “one dollar homes” than anyone else?
If you guessed “the federal government” you would be correct.
Right now, the federal government is selling foreclosed homes to low income families all over the country for just one dollar…
HUD’s Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each.
Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.
By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings.
Before you get too excited, there are a whole bunch of reasons why you wouldn’t want to actually buy any of these one dollar homes.
First of all, most of them have been totally trashed. Just to get them up to livable condition would take thousands of dollars in most cases. Many of them are full of asbestos, and severe wiring and plumbing issues are quite common.
Secondly, you assume all of the liability for a home when you buy it. So if a homeless person stumbles in and injures himself, you could be liable for his injuries.
Thirdly, many of these homes are in very high crime neighborhoods. In some of these areas, people will literally rip up and carry away anything that is not bolted down.
Fourthly, property taxes are very high in many of these cities. Local governments are desperate to get people into these homes so that they can get the taxes flowing again. In many cases, what you would pay in taxes for a year is more than the true value of the home itself.
So, like I said, these homes are not the “great deal” that they may appear to be at first glance.
But that is not really the issue.
The real question is this: What is causing our communities to decay so dramatically?
And of course a big part of the answer is that the middle class in America is dying.
According to Time Magazine, one new report has discovered that nearly half the country is constantly living in a state of “persistent economic insecurity”…
But as evidenced by a report out Thursday from the Corporation for Enterprise Development, nearly half of Americans are living in a state of “persistent economic insecurity,” that makes it “difficult to look beyond immediate needs and plan for a more secure future.”
That same report also found that 56 percent of all Americans now have “subprime credit”.
We are a nation that is losing our independence and sinking into poverty.
Right now, 49.2 percent of all Americans are receiving benefits from at least one government program, and the U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.
Millions of our jobs have been shipped overseas, the control freak bureaucrats that are running things are absolutely killing “the little guy”, and poverty in the United States is exploding at a frightening pace.
Things are “changing” in this country, and not for the better.
One way that the death of the middle class is manifesting itself is in the death of shopping malls all over America. The following is an excerpt from a recent Business Insider article…
All across America, once-vibrant shopping malls are boarded up and decaying.
Traffic-driving anchors like Sears and JCPenney are shutting down stores, and mall owners are having a hard time finding retailers large enough to replace them. With a fresh wave of closures on the horizon, the problem is set to accelerate, according to retail and real estate analysts.
According to that same article, one prominent retail analyst believes that we could see up to 50 percent of the shopping malls in America close within 20 years…
Within 15 to 20 years, retail consultant Howard Davidowitz expects as many as half of America’s shopping malls to fail. He predicts that only upscale shopping centers with anchors like Saks Fifth Avenue and Neiman Marcus will survive.
And did you catch that last part? Only the shopping malls in wealthy areas will survive because the wealthy will be the only ones with enough money to support them.
For much more on this phenomenon, please see my previous article entitled “What Recovery? Sears And J.C. Penney Are DYING“.
At this point, things have already gotten so bad that now even Wal-Mart is having trouble. In fact, Wal-Mart is blaming the recent slowdown in sales on cuts to the federal food stamp program…
Wal-Mart announced today that cuts in a federal food stamp program as well as record cold temperatures hurt its fourth quarter profits.
After previously reporting “relatively flat” sales for the quarter, Wal-Mart Stores Inc. now says that sales for its namesake store and its Sam’s Club locations would be “slightly negative” for the November-January quarter, according to Agence France-Presse.
Wal-Mart’s Chief Financial Officer, Charles Holley, blamed the revised forecast on deeper-than-expected cuts to the U.S. Supplemental Nutrition Assistance Program (SNAP) and the extreme cold weather occurring in the past month.
This is how far the middle class in America has fallen. So many people are now on food stamps that even a slight reduction in benefits has a huge impact on the largest retailer in the entire country.
And actually, many rural communities could end up losing their Wal-Mart stores in the years ahead as the economy continues to deteriorate. In a recent CNBC article entitled “Time to close Wal-Mart stores? Analysts think so“, it was suggested that Wal-Mart should close about 100 “underperforming” supercenters in rural locations around the nation.
We are rapidly becoming “two Americas”. In the “good America”, the wealthy will still have plenty of retail stores to choose from within easy driving distance from their million dollar homes.
In the “bad America”, which will include most of us, our shopping malls will be closing down and the rotting, decaying homes of our neighbors will be sold off for next to nothing.
So which America do you live in?
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
Image credit: http://theeconomiccollapseblog.com
Time to sell? Greenspan says there’s no bubble in the stock market
He says he didn’t see the housing bubble emerging 7 years ago and that regardless the bubble wasn’t his fault anyway.
Now Greenspan doesn’t see a bubble in stocks. Valuations are increasingly out of whack. The Fed has held rates at 0% for a half decade, but there’s no bubble.
I think this thing runs a bit more but to say that the market isn’t bubbly ignores the obvious.
Click here for the article.
Image credit: http://www.againstcronycapitalism.org
Lies of the Banks/Politicians/Media – Las Vegas Proves it! Vegas Underground City of Homeless while thousands of houses empty
The amount of lies that come out of banks, politicians and the media is enormous!
Las Vegas is a perfect example that proves the lies.
Here is an article from May, saying how Vegas has bounced back and how the property prices have risen and there is lots of building going on.
Portions From article:
Home prices in Las Vegas and Phoenix, two of the hardest-hit cities when the housing market collapsed, are outpacing improvement in overall U.S. prices by a significant margin.
In Las Vegas, prices have soared as the supply of available houses lags behind demand.
Dennis Smith, president of Las Vegas-based Home Builders Research, said in his Las Vegas Housing Market Letter that the median price of April new home closings climbed 19.2% to $238,820. Home sales totaled 2,279 during the first four months of the year, an 86% increase that Smith called “an unbelievable change.”
Utility data showed nearly 64,000 vacant homes in Las Vegas at the end of last September, only 8,000 of which are on the market. Meanwhile, new home sales are up 87% and new building permits are up 52% this year.
“It has been a nightmare,” says the 37-year-old U.S. Air Force officer. “There are plenty of empty houses, but they’re just not for sale.”
Among the nation’s 30 largest metro areas, Las Vegas had the highest share of loans that were 90 days or more past due but not yet referred to foreclosure as of April, according to the most recent data from Lender Processing Services.
How has society gotten so far down? How is it the banks are so callous, not to even rent the house for a dollar a day or something as that…and instead allow the houses to deteriorate and the people homeless?
Phen, from GLP forum contacted me and let me know they (GLPVC – Raw Feed) will be going to Las Vegas and doing shows about the homeless in the tunnels.
The Raw Feed’s team of investigative journalists, who host a net radio show, is taken there show on the road and will be going to Nevada onMonday Aug 19 thru Aug 22 2013 to report LIVE on the underground cities and the homeless who live beneath, and in the rain tunnels.
They will be doing two things. Shining the light on the people’s situation more and trying to raise money for them.
I remember how Las Vegas flooded last year and I wondered about the homeless there. Imagine how they lost everything last year during the floods.
We the People need to have more compassion for those who have not been able to stand up for themselves and to try and help, however we can.
When we bring truth out together and bring others up, we not just help them but we help ourselves and our world. When we begin to truthfully face what is happening to others we can add light to the situation and try and make our world better.
On Monday, Ron Paul continued his examination of failed Fed policies in his latest “Texas Straight Talk”.
Dr. Paul said:
Although many were up in arms when the Fed said it would buy $600 billion in government debt outright for the previous round, QE2, all seems quiet about the magnitude of QE3 because it doesn’t come with huge up-front total price tag. But by year’s end the Fed’s balance sheet could hit $4 trillion.
With no recovery in sight, where’s all this money going? It is creating bubbles. Bubbles in the housing sector, the stock market, and government debt.
The stock market has been hitting record highs for the past two months as investors seek to capitalize on the Fed’s easy money. After all, as long as the Fed keeps the spigot open, nominal profits are there for the taking. But this is a house of cards. Eventually, just like in 2008-2009, the market will discipline the bad actions of the Fed and seek to find the real normal.
Here’s the full broadcast:
Even a fiat currency and the casino game of fractional reserve standards are not enough to cover the never ending greed. Banks use your deposited money plus imaginary reserve policy funds to make bad bets, and lose. But who really lost? The banks get bailed out by Washington D.C. criminals, you get foreclosed on and then you are responsible for the cost of the bailout.
Part 1 of 4. To view complete please follow the link provided above. Bernie Madoff and other smaller fish got constant mainstream media coverage while the big ponzi scheme rolls along with white glove treatment, as it seems only the Wall Street thieves approved by D.C. are officially too big to fail.
Your thoughts appreciated below.
Plans to build nearly 100 homes for veterans in Santa Clarita and Sylmar advanced this week as the California Department of Veterans Affairs said it would fund the project and released new details.
The so-called Habitat for Heroes veterans village would be built by Habitat for Humanity San Fernando/Santa Clarita Valley using a $21-million award from the California Department of Veterans Affairs, plus private donations, agency officials said. The announcement was marked at a ribbon-cutting ceremony in Santa Clarita on Monday.
Eighty-seven three- to four-bedroom homes measuring 1,450-square-feet each would be built in Santa Clarita. At least nine would be designed for adults with disabilities, said Donna Deutchman, chief executive of Habitat for Humanity San Fernando/Santa Clarita Valley. An additional 12 homes would be built in Sylmar. Advocates are seeking additional donors to help fund the project.
Deutchman said the green energy-efficient properties would be priced lower than their market value–$276,000 or less in Santa Clarita and $256,000 or lower in Sylmar.
To qualify for a home in Santa Clarita, a veteran’s family income must range between $52,000 and $83,000 a year, and between $45,000 and $83,650 for a home in Sylmar. If there is more than one applicant per home, the decision to award the home would be based on need, Deutchman said.
CalVet home loans would be available to eligible veterans in addition to a Habitat SF/SCV second loan, according to information published about the project. In the case of the Sylmar homes, a deferred silent third loan would be available from the California Department of Housing and Community Development, CalVet officials said.
Veterans would be encouraged to provide “sweat equity” to help reduce the costs of building the homes, officials said.
Deutchman said that about 11,000 veterans live in Santa Clarita, and about700 of them — mostly young people — had served in Iraq and Afghanistan.
Purchasing these new properties would allow the ex-service members to “acquire a piece of the American Dream,” CalVet Secretary Peter J. Gravett said in a statement.
“These planned veteran communities will not only bring veterans together but will also offer them a neighborhood that promotes self-sufficiency,” he added.
Veterans wishing to participate in this program must first apply to Habitat for Humanity SF/SVC at www.HabitatSCV.org.
Austrian Economics Would Save Europe: Nigel Farage Debunks Keynesians
It’s a royal irony that if Brussels somehow found a way to impose political union on the people of Europe, anti-EU iconoclast and UKIP leader Nigel Farage would be its most popular candidate. His speeches regularly become YouTube hits. Widely scorned by British pundits as a xenophobic right-winger, scrolling down through the comments you see that ordinary citizens from Poland, Greece, Ireland, and right across Europe are thanking Nigel Farage for being the only one to speak truth to power.
In a world of grey civil servants, his speeches are rather like the hand that lifts the boulder to reveal the lice (or more accurately… lies) beneath. His latest, addressing the aptly-named Spanish “failout,” Nigel points out the folly of mutual indebtedness.
In this remarkable situation, Farage points out that bailing out Spanish banks makes things worse not better: ”A hundred billion [euro] is put up for the Spanish banking system, and 20 percent of that money has to come from Italy. And under the deal the Italians have to lend to the Spanish banks at 3 per cent but to get that money they have to borrow on the markets at 7 per cent. It’s genius, isn’t it?”
“Ron Paul invented the notion of a populist, activist, modern movement thats transpartisan” says Reason’s Brian Doherty
Brian Doherty sat down with ReasonTV to talk about his new book and how Ron Paul has changed politics in America. Doherty wrote about the evolution of the libertarian movement in his 2007 book “Radicals for Capitalism: A Freewheeling History of the Modern American Libertarian Movement”. He has been following and writing about Ron Paul and his movement since then. Doherty examines Ron Paul’s influence in a new book out May 15, “Ron Paul’s rEVOLution: The Man and the Movement He Inspired”.
Brian Doherty “documents the meteoric rise of Paul from relative obscurity to national prominence, and examines the fanatically devoted political movement that has arisen around him.”
Doherty spoke with ReasonTV in January while covering the Iwoa caucus to talk about Ron Paul’s campaign and the movement that has been built around him primarily over the past four years.
Approximately 3:30 minutes.
Produced by Sharif Matar
The time is NOW to take back our personal liberties and freedoms!
Ron Paul 2012: Restore America Now
Please visit Ron Paul’s official campaign site by following the link below and donate today!
By Steve Forbes
This article originally appeared int he Feb. 27, 2012 issue of Forbes magazine.
You thought socialism was dead, other than in miserable countries such as North Korea and Cuba? Think again. It’s alive and well at the Federal Reserve, and we and the world are paying a price for it.
Our central bank tries to manipulate our economy in ways befitting a Soviet commissar. Take interest rates. Fixing the price of money is a form of price control, pure and simple. Until Ben Bernanke our central bank was content to fix short-term interest rates, which he announced would be kept at virtually zero through 2014. But in the aftermath of the financial crisis Bernanke is, in effect, dictating the price of all money, regardless of duration.
By owning so many long-term government bonds, Bernanke has created an artificial shortage of these financial instruments. Like a good central planner, Bernanke is using his policies to subsidize the still rapidly growing, gargantuan debt of the U.S. government. He also holds a huge stash of mortgages so that mortgage rates can be kept low in order to revive the battered housing industry. Big companies also find credit abnormally easy to get.
All of this means the government is picking winners and losers. And in this case the losers are savers. Bernanke & Co. want to effectively force Americans to put their cash in riskier assets, such as stocks.
Another category that’s hurting is small business. Bernanke pays a nominal interest rate on reserves that banks leave at the Fed—a totally risk-free return. On paper an institution would do well lending to a local restaurant or dry cleaner, where rates are significantly higher. But if it does, it had best be prepared to undergo a regulatory third degree.
Ben and his apologists say that one of the Fed’s mandates is to bring about full employment; therefore, it must engage in these statist actions. History, however, shows us that the best thing a central bank can do to create prosperity is to keep the currency stable in value. Whenever the dollar veers in value, as it’s done chronically since the link to gold was severed 40 years ago, market distortions result and capital is misallocated.
The Fed’s socialist tendencies, as one would expect, ride roughshod over property rights. If you sold a bottle of wine for five loaves of bread and Washington came along and confiscated two of those loaves, that would be “takings.” The Constitution guarantees that the government would have to pay you for that seized property. Yet the Federal Reserve routinely confiscates people’s property when it undermines the value of the dollar.
One inconvenient fact Bernanke and his acolytes ignore is that before the creation of the Fed the U.S. economy grew at an average rate of 4%. Since then the average is just about 3%. But in this hyperactive Bernanke era we’ll be lucky to get a long-term average of 2%.