Philadelphia Area Mortgage Blog

Hmmmm......  One would think that a Presidential Candidate who believes that spreading the wealth around is "good for everybody" would take some of that $4.2 million that he earned last year and spread it to his dear Aunt who lives in a Boston Public Housing project.  Now mind you this is not just any aunt, or a relative that Obama never met, but a woman mentioned affectionately in his best selling memoir, a book which contributed in a large part to creating some of Obama's multi-million dollar earnings. 

From the UK Times Online:

Barack Obama has lived one version of the American Dream that has taken him to the steps of the White House. But a few miles from where the Democratic presidential candidate studied at Harvard, his Kenyan aunt and uncle, immigrants living in modest circumstances in Boston, have a contrasting American story.

Zeituni Onyango, the aunt so affectionately described in Mr Obama's best-selling memoir Dreams from My Father, lives in a disabled-access flat on a rundown public housing estate in South Boston.

A second relative believed to be the long-lost "Uncle Omar" described in the book was beaten by armed robbers with a "sawed-off rifle" while working in a corner shop in the Dorchester area of the city. He was later evicted from his one-bedroom flat for failing to pay $2,324.20 (£1,488) arrears, according to the Boston Housing Court.

So let's see, Obama wants to take our hard-earned money and spread it around to less fortunate people that we don't even know but he can't take some of his own wealth and help his blood relatives live the American Dream?  Afterall, if spreading the wealth is good for everybody, then surely it is good for your own family.

 ***********UPDATE : More information has been uncovered on Auntie.  Turns out that not only is she an illegal alien and deportation fugitve but she is also an Obama campaign illegal donor giving a reported $250 of money she doesn't have to support her nephew's run for president.  Guess she was thinking of the investment return she would get if he were to become elected...

The Democrats have been saying that John McCain is out of touch with the American people.  Well I happen to think they are right.  I mean here is a man who is running with a campaign slogan of "Country First", how out of touch is that?  What year does McCain think it is 1961?  Americans today are no longer asking what they can do for their country, but rather what the country can do for them.   And if Barack Obama is elected, apparently the country's going to be doing a whole heck of a lot.

Perhaps, McCain should have ran with the slogan "Me First" instead and Americans would have related to him better.  Look, I know he is a celebrated war hero and has spent most of his life serving his country.  I even know that he has the scars to prove it.  But patriotism in American is so passe, having come in to fashion again for a short time after September 11, 2001 and quickly fading out shortly afterwards. It's 2008, John McCain, get a clue.  Real Americans don't want to be bothered with serving their country.  They don't care for your plans that will both eliminate our dependence on foreign oil and create millions of jobs.  Jobs?  Why that would mean you'd have to work and Americans don't want to do that! 

Americans don't think those greedy rich people pay their fair share of taxes so they favor Obama's plan which will raise taxes on the rich, small businesses and large corporations (you know all those people who actually create jobs) a plan which then takes all of that additional tax revenue and ... um, eh, well I haven't exactly figured out how a few hundred dollars in tax cuts will enable all of the middle class folks to move to the 90210 but maybe that's not really the point. As long as we stick it to the rich people and corporations so they can't create any more jobs everything will be ok.   Well at least until that unforseen international crisis ( the one that only Joe Biden is aware of) comes along in order to test Obama but hey that's another story...

Then that silly, old McCain wants to allow insurance companies to compete across state lines in order for consumers to be able to purchase the best insurance to meet their needs.  He'll even give families a $5000 tax-credit to do so.  Purchase insurance?  Americans can't afford thousands of dollars for health insurance premiums, how on earth would they be able to buy that new flat screen TV that just came out?  Out of touch doesn't even begin to describe you, John McCain.

Now  Obama says his healthcare plan will save the average American family $2500 per year in health insurance premiums by requiring companies to adopt cost cutting measures.  Now we all know that major corporations have no obligations at all to people like their shareholders when it comes to profits and such and they always pass the savings back to the customers don't they?  Don't they???  Ok, maybe not, but Obama's also going to mandate that everyone have access to health insurance and that no one is denied coverage because of pre-existing conditions and that sounds good too.   Healthcare for everyone?  How 1992!  I guess making promises that you can't deliver never goes out of style. 

Now if you are one of those people who don't really care about the "issues" I leave you with this to prove to you just how out of touch McCain really is.  You see while John McCain is out there being patriotic and putting his country first, Obama knows that patriotic gestures like putting your hand over your heart during the national anthem are soooo outdated.

Instead today's Americans want a leader who can throw their hands in the air and "Drop it Likes It's Hot".  Check this out as Snoop Dogg Obama shows us he knows how to "keep it real" like any 2008 world leader should.

***************Breaking News***********

It was announced today that since the majority of the American public cannot be trusted to make informed decisions regarding the election, and don't really vote based on the issues anyway, that the election will now be decided via a dance competition.   No need to worry anymore about which candidate has the better tax plan, healthcare plan, or energy plan or who will be the better commander-in-chief of the military.  Don't bother understanding capitalism versus socialism or why this election is so important.  Just vote for the better dancer.  It's that simple!

No one understands the electoral college anyway, we're more used to voting a la American Idol or Dancing with the Stars.  So watch the video and then call toll-free 1 (800) MCCAIN01 to vote for McCain or 1 (800) OBAMA01 to vote for Obama.  Or you can text the word VOTE to 1936 for McCain or 1961 for Obama (standard text messaging rates will apply).  Or cast your vote in the comment section of the post.  You can vote as many times as you'd like up until 11:59 PM, November 4, 2008.  Under 18 please get your parents permission, there is no need to be a registered voter.

As you probably know, Joe the Plumber has become sort of a star because of John McCain's political campaign.  He clearly represents so many Americans who are hoping to achieve the American Dream.  As a business owner I can relate to Joe's feelings of not wanting to be taxed more because of higher earnings, since small businesses are a great benefit to the American economy.

The McCain Campaign recently called for business owners across America to submit their own "Joe the Plumber Videos" which are being aired on the website.  Since many of us here own are own businesses this should be of interest to us all.  You can't pay for political advertising like this.

Don't Tax Me For Working Hard: "I'm Joe the Plumber" Video Gallery.

Obtaining a small business loan is becoming increasingly difficult thanks to the mortgage meltdown and subsequent tightening of lending by banks for all loans.  Luckily, there is still a small business loan alternative that can get you the funding you need for your already established business and requires no credit check or personal guarantee.  If your business accepts credit cards, a merchant advance loan can be just the solution your small business needs. 

Just how tough is it to get a small business loan these days?  A recent article in Smart Money Magazine has details about two large national banks that have cut funding to McDonald's and Sonic Restaurant franchisees leaving these business owners strapped for cash.  Now, if owners of large international restaurant franchises cannot get funding, how much more difficult do you think it will be for owners of small family run businesses and mom and pop shops?  To learn more about how to beat the credit crunch and get the small business funding you need, contact us today or visit www.ezmerchantadvance.com.

Whew!   I should be relieved right now.  As a mortgage broker, I wasn't too happy when mortgage professionals like myself were being solely held responsible for the mortgage and real estate meltdown that our country is currently experiencing.  You see I understand  that obtaining a mortgage and buying a home are complicated transactions, with a number of different parties involved - buyers, real estate agents, brokers, lenders, appraisers, and yes even Wall Street and the US Government to some degree - and I was disgusted at so-called professionals pointing the finger and passing the buck since I for the life of me could not understand how just one segment of the industry could be blamed for the mess. 

Yet, thanks to the extent of the financial crisis and this being an election year, it seems that we have a new scapegoat for this mess and his name is Uncle Sam.  Guess the folks over at this site aimed at mortgage brokers will have to shut it down, and lawyers can now reclaim their spot as America's most hated profession.  Hooray!  It is no longer the mortgage person's fault, because "The Government Made Me Do It!"

First, let's make this clear.  I do understand that there has been legislation going back a number of years in an effort to expand homeownership in the US, and that there were government mandates and quotas, and probably other behind the scene pressures on banks to lend that we may never know about.   And I also am aware that certain politicians warned of the dangerous financial crisis we were facing and others denied anything being wrong allowing these practices to continue to occur.  And yes there were specific government agencies and programs set up for the sole purpose of making mortgage loans to those who could not qualify through conventional means.  I will concur that the government may have indeed opened the door to this financial disaster, but you can also point fingers in about six other directions.  The governement may have opened the door but... none of us had to walk through it. 

Mr./Mrs.  Homeowner, why did you buy a house for $500,000 when you only make $50,000 per year?  The Government Made Me Do It!

Realtor, why did you  sell your client a home that was both overpriced and out of their price range?  The Government Made Me Do It!

Loan Officer, why did you give your client a 2-year ARM with a 3 year prepayment penalty earning 3 points on the front and 2 on the back?  The Government Made Me Do It!

Lenders, why did you offer  loan programs where  anyone with a pulse could qualify regardless of credit, income, savings, etc?  The Government Made Me Do It!

Wall Street Investors why did you  buy and sell all these mortgage backed securities that you really didn't understand ?  The Government Made Me Do It!

Let me make this clear as well.  While I am not enamored with most of our elected officials, I do think the US Government is in the ultimate position of "being damned if you do and damned if you don't".  Take the Community Reinvestment Act, which is a law designed to force encourage banks and savings associations to lend in low to moderate income communities.  This law was no doubt passed because of pressures on certain groups who thought they were discriminated against by lending institutions, when in reality they didn't meet the credit requirements for a mortgage loan.  So the law was passed, standards were lowered, mortgages were obtained and homes were bought, but now these same groups want to sue because they feel they were unfairly targeted for subprime mortgage loans.  You can't have it both ways.

But government mandated loans for homeownership are only one of the reasons for the mortgage mess. What about bad loans made for investment properties, second homes, refinancing, speculation etc.?  What about people who already owned a home yet wanted to move-up to a bigger, more expensive home via a subprime loan?  Did the government mandate suburban McMansions, vacation condos,  quick-flip houses, and cashing out home equity as well?

Let's be real.  Most of us in the industry, up until very recently, had a limited understanding (or perhaps no idea at all) about the government's role in the mortgage and housing industry.  So it is beyond absurd to think that the notion of everyone's right to buy a home somehow got ingrained in all of us by our government leaders.    Not one homebuyer, loan officer, real estate agent etc. was under any pressure at all by the government or any politicians.  

On second thought, maybe that's not exactly true.   We may have indeed been pressured and motivated by politicians, but not any that are currently living... The biggest influence of all were the Dead Presidents.

Homeowners and Real Estate Professionals, want to point the finger at someone and place blame for the mortgage mess?  Forget the government.  Start right here.  

Written by Michelle Chamberlain of Above All Financial Services, a Delaware County Mortgage Broker. To apply for a Pennsylvania Mortgage loan or to learn more visit www.aboveallmortgage.com.

So it seems that the surprise of Tuesday night's Presidential debate was one candidate's plan to rescue homeowners from home mortgages that they could no longer afford.  The $300 billion dollar plan calls for the Secretary of the Treasury to buy up bad home loans in American and to renegotiate the terms of the loan - even to adjust the principal owed in cases where the mortgage balance is greater than what the home was currently worth.  In essence, if a borrower has a $300,000 mortgage at a say 7% interest rate and the house is now only worth $200,000 they would be able to keep their house, get a better interest rate, and have the balance of their loan reduced courtesy of Uncle Sam.  Sounds like a great deal, where do I sign up?! 

You see I was all ready to write a rant about my own personal situation.  Buying my first home in 2002, moving up to a larger and more expensive one in 2006, the declining home values in my neighborhood along with my declining income which was based 100% on the mortgage business, and my own mortgage loan which I may not have been able to afford. See, I don't have a crystal ball and I  wasn't counting on a government bailout plan, so even though we had to tighten our purse strings and look for additional sources of income,  we are not in danger of losing our home and can't get in on this plan.  But I would definitely love a lower interest rate and for my principal balance to be reset to what my home is currently worth,  but sadly it seems that being financially responsible disqualifies you from this deal.   I bet a lot of other homeowners were feeling angry like me and felt that this bailout was unfair as well. 

But I did some investigating  and it seems this plan is not as unfair as it sounds. Here are some more details on the plan from CNN (I've underlined a key phrase):

"Millions of borrowers" would be eligible for the program, dubbed the American Homeownership Resurgence Plan, according to McCain economic advisor Doug Holtz-Eakin.

To qualify, homeowners would have to be delinquent in their payments already, or be likely to fall behind in the near future. They would have to live in the home in question - no investment properties would be eligible - and have had demonstrated their credit-worthiness when they purchased the property by making a substantial down payment and by providing documentation of their income and assets - no liar loans.

Now call me crazy but once you eliminate investment  properties (which you rightfully should) and also borrowers with purchased the home with little or no down payment, less than perfect credit and no documentation of income and assets , who exactly are the "millions of borrowers" that are going to be helped by this program?  I thought the precise reason for the whole mortgage mess was the fact that borrowers were led into these subprime, or non-conventional loan products with no money down and no proof of income, only to find out that the payments were more than they could handle?  Are we now to believe that the millions of foreclosures or pending foreclosures in the US are against borrowers in their primary residence who put 20% down, had a decent credit score, and verified their income and assets?   No way! And what about all of the borrowers who are facing foreclosure because they refinanced all of the equity out of their homes?  It doesn't seem like they would be covered by this plan either. 

So I guess this is good news or bad news depending on where you stand.  The economy is still in the toilet without any real plan to fix it in sight.  Or maybe we should just let the market run its course?  Does anyone else wonder if we would have all of these plans and bailout programs if it weren't election year?

Above All Financial Services is a Pennsylvania Mortgage Broker serving Delaware County, Pennsylvania, the city of Philadelphia and the surrounding suburbs.

Start your own mortgage rescue plan and save yourself from your high interest or adjustable rate mortgage.  Visit www.aboveallmortgage.com to find out about refinancing and other mortgage options.

Business owners and residents in Chinatown and the surrounding areas of Center City are concerned about the new proposed Foxwoods Casino development in Center City Philadelphia.  I received an email from a good friend who owns a business in the area alerting me to a Town Hall meeting to dicsuss those concerns.  The information is as follows:

There will be a town meeting next Thursday, Oct 9th, 7pm at the Holy Redeemer Church regarding the proposed Foxwoods casino at the Gallery.  City and State Representatives will be on hand to discuss and answer questions and concerns regarding the proposed casino.  I urge you to please come and attend the meeting next Thursday, as a casino will most certainly have a negative impact on the Chinatown community.  Many of the concerns include: traffic, parking, crime, and especially the quality of life and the negative social and moral impact in our community. 

Holy Redeemer Church is located on 10th and Vine Streets and you are allowed to park in their parking lot for this meeting.

Personally, I think there has to many other better locations for this proposed casino than right on top of the Gallery Shopping Mall in an already congested area of the city.  Perhaps the city of Philadelphia already has too many other planned casino developments and is running out of locations? 

Anyone seeking more information or wishes to voice their concerns should plan on attending the meeting.