Akron, OH. A 90 year old woman facing eviction from her foreclosed home attempted suicide by shooting herself. Bad news, she got shot and is in critical condition. Good news, Fannie Mae has announced they will forgive her mortgage. Her home of almost 40 years will be free/clear when she recovers. What stood out about this to me is that she had a vanilla 30-year fixed loan at 6.375%. Not bad at all. Balance was around $45k so payments were under $300. Regardless, this was not an adjustable loan, this wasn't a fancy pick-a-pay loan nor was it a balloon loan. She just couldn't afford it. I am guessing with rising costs of groceries, fuel and other expenses, the mortgage became a lower priority giving way to the cost of living.
In other recent developments, the government has passed a $700B Bailout Bill to 'save' the country. Its about 450 pages of allocations, laws, and hidden agendas. How will this help us? Well, for one it will hopefully instill confidence in the banking system and alleviate this 'tight money' we are experiencing. Maybe rates will drop, maybe some people will get help from Uncle Sam. Not really sure yet. Even though the Bill has passed, it will still take time to implement the changes.
Stuck in this bill are other provisions and tax breaks that aren't always publicized. These are all paid for by our tax dollars.
Wooden Practice Arrow Tax Exemption. Early reports portrayed this like a low-budget Bridge-to-Nowhere boondoggle. But Archery Trade Association president Jay McAninch said the provision corrects an error in a 2004 bill that slapped a 43 cent per arrow tax on children's wood and fiberglass arrows retailing for about $1 apiece. The tax was intended to apply only to hunting and competition arrows typically costing between $8 and $15 each. Lifting the tax on kids' arrows will cost the treasury $2 million, McAninch said.
Wool Trust Fund. Makers of suits and other wool products made from imported wool get tariff relief worth $148 million. Some of the money goes into a Wool Trust Fund to promote the competitiveness of American wool. Legislation to give clothing makers this break was co-authored in 2007 by Illinois Democratic Rep. Melissa Bean, but Bean's office said she supports the bail-out without all the sweeteners and that she had nothing to do with the wool tariff relief provision.
The NASCAR provision. Owners of race tracks would get to keep writing off the cost of their facilities over seven years, instead of over 15 years as sought by the IRS. Worth an estimated $100 million, the biggest beneficiary of the amendment stands to be International Speedway Corp., the racetrack arm of NASCAR. Both entities are controlled by the France family.
Puerto Rican and Virgin Islands Rum. Rum imported from Puerto Rico and Virgin Islands gets an excise tax rebate of $13.25 per gallon. The rebate lasts through the end of 2009 and is worth $192 million.
Movie and TV Production deduction. Film and TV production companies get up to $397 million in tax breaks over ten years through expansion of a domestic production deduction
Hi Michael;
Great post!!
I it very sad and I do hope she will be OK..................................................
Incredible week and it is too early to know the significance of the bailout! I can't believe the "pork" that was included! I just hope that this works!
Its too bad about that woman.
About the pork.. who cares at this point? What difference does it make as ridiculous as it sounds. Spending a few hundred million here and there is nothing for the government.
Wait till the next couple of weeks. No energy policy is going to effect car sales and jobs as this is still a big part of our economy. Its a dymanic change. Americans are going to begin to save and retail sales will suffer. This is long over due.
Ca. has some big debt as well and needs some cutbacks.
I don't like it. I think now that this ladies debt has been forgiven, many more will try to do something drastic get out of their debt. The people that benefit from this will be people who should not have bought what they couldn't afford. It is personal responsiblity. I do not care what the banking industry was doing. Many say that they were predators. But, the people that bought the house decided to sign the contract. No one forced them to sign. If they didn't know what they were filing then they should have had a lawyer, or someone who could read the contract and explain it to them. A lawyer would have charged a few hundred dollars to provide that service, a fraction of the cost of the house. This could have protected them.
I have just started a business and my wife has recently gone back to work. We were doing great until recently. If everyone else gets a handout, why don't I? Because I dont' want it. We have made decisions about what we want in life and will reap the rewards or suffer the consequences of those decisions. I do not WANT ANYONE PAYING FOR MY DECISIONS, GOOD OR BAD.
If you have a home that you can't afford, then tough sh**. Do what you have to do to pay for it. Get a second job, collect cans, sell some of the furniture, find a way to pay the debt that you incurred by your own actions. PAY YOUR DEBTS!! You're an American for Heavans sake!! Americans do what needs to be done, we don't ask for handouts.
Shame on those people that want the U.S. taxpayer to pay for your foolish, stupid decisions.
I have simliar more expansive post on my blog