http://www.politicalgateway.com/news/read/140497
By Bob Hoffman
Political Gateway April 4, 2008 Deerfield Beach Florida - In 2004 and
2005 I suggested to people to sell their homes immediately and to
rent. I told them the prices of homes were not true, they were not
real. I implored them and even wrote a few articles about the coming
land bust.
Editor's note: the articles can be read here
May 2005 http://www.politicalgateway.com/news/read.html?id=3721
Dec 2005 http://www.politicalgateway.com/news/read/5723
It was a bit worse than I thought it would be. No other TV, online
writer, or business entity was even in the ballpark back then. My
articles were correct and the bust started in 2006, shortly after the
last article. At the time I wrote those pieces, people were standing
in line for days to buy a condo.
A note: Home values never went up, only the prices. By lowering the
interest rate like they did is basically like printing money and
giving it to everyone. Throughout our history this has been done and
always has the same results. The ability for you to buy a higher loan
increased, not the value of the property. No one's income went up, in
fact many are going down. 2001 prices here we come.
So, enough of 'I told you so'. Now I want to help those in need. What
do you do now that you are screwed? The bankruptcy laws have changed
for the worse (thank you congress) and you are in deep financial
trouble. I am here to help you see what to do. Based on the fact that
I was the only one to foresee what is now happening, I will give you
my advice for the next year.
Your house - lose it. Give up on it (assuming you are having problems
paying for it.) You can buy the same house in 2 years for 2001 prices
and get it for a few hundred thousand dollars less. If you are in
duress and having problems with the payment, stop paying it. Stay in
the house as long as you can. Fight the foreclosure at every turn.
Doing the 'right thing' by paying your bills until you go broke and
lose everything anyway is not good economic sense for you and your
family. If you continue to try to keep up you will not only lose the
house but you will be destitute and heading towards homelessness.
Pride destroys finances.
Fight the foreclosure - Answer any papers sent to you by the bank. You
will have 20 days to respond, wait til 18 go by and overnight it.
Complain about the loan and the company and the mortgage broker. They
will have 20 days to respond. And so on and so on. This will give you
3 to 12 months in your house rent and mortgage free.
The bank is overwhelmed with properties. Law forbids them from owning
too much property. Due to this, the foreclosure could be pushed off
for a long time. You can even try to 'fake' sell it with a realtor for
some real high price or some 'never going' to happen short sale.
These methods, depending on the lender could give you 2 years or more
in your house with no payments. Why go broke? Save your money in a
hole in the ground. Help your family survive and forget your 'honor.'
The lender could not care if you lived or died. They knew what they
were doing. Until someone else owns it, it is your property.
Plan for your bankruptcy- Don't go nuts on your credit cards, but use
them up if you cannot pay them. Do not go bankrupt until the month
your house is going to foreclosure sale. This will give you an
additional three months. Even more if you can work something out with
the attorney to delay the proceedings. That is at least 3 more months
of living free. Watch excessive spening on cards or huge items going
back 12 months before bankruptcy. Hide your cash.
This is especially im****tant if you lost your job. The bank will not
go under if you do not pay them, but your family will starve if you
feel honor bound to pay the crooks, I mean lenders and credit card
companies, til you are really broke and destitute.
Learn how to send cease and desist orders to creditors you are going
to bankrupt so they leave you alone.
Realize you are talking about surviving here. You need your car and a
roof over your head. You need money to live and eat for you and your
family. Don't worry about breaking the hearts of the crooks that made
this mess or the credit card companies (read: loan sharks.) Worry
about you.
Feel bad, like you are using the system? These s***bags have received
100s of billions of dollars of our taxpayers money for being crooks.
And the CEOs made millions more. So, F#ck em, burn em back. Worry
about you and your family not some billionaire. They borrowed the
money to lend to you. They got it at 0.25% interest (that is a quarter
point) and sold it to you on some screwed up plan that is going up to
8% or more. They will (and are) being bailed out by our loving
congress and the lender still made tons on the interest they earned
from you over a few years.
After your bankruptcy move into a nice rental and relax. You should
have little or no debt. If you still have your job you may be on a
small repayment plan, but you will be fine.
In two years from now the prices will have hit real rock bottom and
stay there. 2001 prices. Now you can look into buying a house, maybe
even the same one, at less than half of what you had originally bought
it for. Yea, you will have a bankruptcy, but so will everyone else.
You have some credit, maybe a card or two, a car loan.
Best of all, your family is well fed, safe roof over their head, and
you still have a lot of money in that hole somewhere.
In other words, survive and let the multi billionaires who have ripped
everyone off for so long get some heat. You and your family come
before any crooks like the lenders. Your family first, lenders last.
Wisdom - you did not get out when you could have. The experts, who
have a vested interest in making you spend your money, told you it
would be fine. They lied. Take care of yourself, the next year is
going to be a *****.
Predictions for the next 12 months -
-Home prices will flip around but continue down. Drastic drop when the
Dem president takes over in January (you will almost think it was
timed).
- After the Dems take the whitehouse the sup****ts trying to hold up
the economy will finally buckle. It's not personal, its politics.
Perfect planning to ensure a Republican ticket win in 2012. Look for
2009 to be a bad year financially. Gotta love top level political
strategy.
-Prices on condos will drop and be close to 2002/3 levels on their way
down to 2001 levels. Many small condo complexes will be bought as
apartments or most likely timeshares.
-Home prices will fall and keep falling, then stagnate for at least 4
years. Bargain hunting time (in about 2 years). Loans will suck as 7%
will be the new 'good fixed rate.' But your total debt will be a few
hundred thousand less if you buy during the stagnate period.
-A whole bunch of fake baloney will happen on capitol hill regarding
the lending industry but nothing will happen, other than your taxpayer
money making sure the lenders did not lose a penny.
-All those bankrupt sub prime lenders? Wow, hey, they all started new
companies. Wow, amazing how that worked out. Look for that beginning
next year.
-Wall street and major news outlets will continue to talk about
'downturns' and other things to make you feel rosey. That is mostly to
suck the money out of those people who can still be gullible enough to
fall for it. Remember who they work for. It ain't you.
- Gold, silver, and Oil will bankrupt many as it drops to the floor,
bringing dumb investors to their knees. Oh yea, oil is gonna go to two
hundred you say. Hey, it is your money, go ahead and gamble it like a
moron. It will start dropping back down on its way to 34 bucks a
barrel by year's end (it will eventually get to 34, not at years end,
but heading towards it on its way down.) As for gold and silver, if
you buy it now you are really stupid.
Don't believe any of this? Look me up next year. You did not believe
me in 2004/2005 either.
- Iraq - Now that the 'nuclear peace' is over, things are going back
to the way they were (and have always been) pre- 1945. Big countries
make puppets of little countries. Iraq no longer exists. Many
dictators want it for different reasons. Saudis want a buffer state,
or part of one, to make sure Iran is not their next door neighbor.
Syria and the other little countries want a spot at the table and part
of the spoils. Iran wants a piece of the action and will be part of
the political process (read: puppet) in Iraq. America will not leave
Iraq, America will have a small 'American Iraq' in there somewhere.
Iraq as a country on the world stage is over. And it will be a long
time before it will really be one again, if ever. The question is,
which country will it be a part of in 2020? Or will it be split into
other countries? No matter which it is, the war in Iraq is over Iraq
and nothing else. Greedy dictators are wringing their hands with
excitement over owning something new.
Some Understanding - RIght now it is hard to get an adjustable rate
mortgage, the lenders are not pu****ng them. During the boom, when
interest rates were lower than ever, they pushed adjustable rate
loans. The reasons are simple. They make money charging you more for
loans. Selling you fixed rates when interest is low is not good for
their pockets. Selling fixed when rates are high is great for their
pockets. You see how this works?
If you bought an interest only or adjustable rate mortgage in the last
6 years you made a mistake. The bank is happy though and that is all
that matters, at least in congress.
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