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Tag Archives: forclosure

Rev “Mack Daddy” Church Repossed

Reverent Mack Daddy, Aka Pastor James David Manning of Atlah Worldwide Church and YouTube fame as a black conservative willing to attack President Obama…

Is going down. His Church is now up for Auction. Apparently being Hannity’s House Negro didn’t pay enough to pay the bills.

I have posted about him previously –

Rev Mack Daddy At It Again

Rev Mack Daddy is Back!

Rev Long Legged Mack Daddy’s Meltdown – “Black People are Stupid”

Now it seems Mack Daddy has picked on the wrong folks in NYC…

This Vehemently Anti-Gay Church Might Get The Ultimate Karmic Smackdown

An LGBT advocacy group hopes to secure the ATLAH World Missionary Church for its homeless clients.

A New York church notorious for posting homophobic messages on its billboard may be on the auction block. But if fundraising efforts are successful, the parish’s history of hate could be repurposed into something truly beautiful.

A New York state judge has ordered the ATLAH World Missionary Church to be sold at a public foreclosure auction, according to court records cited by DNAinfo New York. The church, which has been known to display messages like “Jesus would stone homos” and “Obama has released the homo demons on the black man” on its billboard, has reportedly amassed debts and tax liens totaling more than $1.02 million.

The Harlem church could prove to be a commodity in Manhattan’s cutthroat real estate market. But the Ali Forney Center, an advocacy group dedicated to homeless lesbian, gay, bisexual and transgender (LGBT) teens and young adults, hopes that an online fundraiser will help raise $200,000 to secure the property as housing for its clients.

Carl Siciliano, who is the Ali Forney Center’s founder and executive director, said in a press release that repurposing the church to house homeless LGBT youth would “truly be a triumph of love over hatred.”

“The biggest reason our youths are driven from their homes is because of homophobic and transphobic religious beliefs of their parents,” he said. “Because of this, it has been horrifying for us to have our youths exposed to Manning’s messages inciting hatred and violence against our community. It has meant the world to us that so many Harlem residents have stood up to support our young people, and are now urging us to provide urgently needed care at the site of so much hatred.”

LGBT rights activist Scott Wooledge, who is working with the Ali Forney Center to raise the funds to buy the church and has raised over $200,000 for homeless youth over the past two years, echoed those sentiments.

“We, as a community, have a golden, once-in-a-lifetime opportunity to turn what was once a center of appalling hate into a home where our youth can be safe, nurtured, supported and thrive into self-sufficient adults,” he told The Huffington Post in an email. “Let’s seize the day, and turn the page on an ugly chapter in Harlem’s history.”

Stacy Parker Le Melle, founder of Harlem’s “Love Not Hate” Movement, told The Huffington Post, “When the ATLAH story broke on Thursday, immediately I heard from neighbors: Wouldn’t it be amazing if an LGBT group could acquire the property? What if it were the Ali Forney Center? We all knew that this would be poetic justice. We need to care for those kicked out of homes, often on religious-based grounds. We need to care for those most vulnerable to ATLAH’s hate speech.”

ATLAH’s pastor seemed to downplay his parish’s debts in an interview withDNAinfo New York, and vowed to cite the church’s tax exempt status in its fight against the foreclosure order, which he called a “land grab.”

“I assure you, it’s about a water bill and a tax that can’t be levied against this church,” Rev. James David Manning, who made headlines in 2014 when he argued that Starbucks flavored its coffee drinks with “sodomites’ semen,” told DNAinfo.

 
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Posted by on January 30, 2016 in Black Conservatives

 

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The Housing Bust and the Destruction of Black Wealth

The 2005 Housing bust destroyed more black wealth than any event in American HIstory since slavery.

 

Black Americans Would Have Been Better Off Renting Than Buying

The first several years of the 21st century were relatively good ones for the housing market—at least on the surface. Homeownership climbed to around 70 percent, and all that demand meant lots of new construction and increasing home equity for existing owners. If someone was lucky enough to buy and sell before the market went bust, or if their home wasn’t in an area with catastrophic value loss, they probably increased their net worth just by keeping a roof overhead. Unless they were black.

“Becoming a homeowner was not a fruitful asset accumulation strategy for low- and moderate-income black families in the 2000 decade, in either the short- or medium-term,” write Sandra J. Newman and C. Scott Holupka, authors of a new study from Johns Hopkins University.

To come to that conclusion they looked at data from the Panel Study of Income Dynamics (PSID), a representative survey of 5,000 American families. They find that white Americans with low net worth who bought during the boom years made out much better than black Americans who had the same timing and similar financial circumstances. Black families who bought in 2005 lost almost $20,000 of net worth by 2007, according to the paper. By 2011 those losses were more like $30,000. White homeowners didn’t have quite the same problem. Those who purchased in 2007 saw their net worth grow by $18,000 in two years, and then those gains eroded, leaving them with an increase of $13,000 by 2011. All told, the black families lost, on average, 43 percent of their wealth.

That news is perhaps to be expected given the inequities that exists in the housing market, including the quality of financing people have access to and the prospects of the neighborhoods they are buying into. The researchers note that neighborhood location, predatory loan practices, and how long families were able to hold on to homes all likely played a role in how white and black families fared during the early aughts.

Newman and Holupka also investigated how black families would have fared if they had chosen to rent instead of buy. In order to do that, they took a look at the net worth (that is all assets minus all liabilities) for families that did have a mortgage and families who didn’t. Generally, net worth for renters increases marginally each year—as workers get raises, or families pay down debt. For first-time homebuyers, those increases can be much faster, thanks to both the acquisition of a large asset and home value appreciation. But they found that in general black families would have been better off if they hadn’t bought homes at all.

According to the data white families who rented would have ultimately gained $6,600 between 2005 and 2011—less than they earned as homeowners, but still a nice gain. But for black families the choice to rent instead of buy could have moved them from negative to positive net worth. In two years, between 2005 and 2007, wealth would have increased to $1,300, and it would have hit $2,700 by 2011.

Those gains, to be certain, aren’t astronomical, but they are also certainly more promising than the tens of thousands in disproportionate losses that black homeowners experienced and are still trying to overcome. For black homeowners, there were never enough financial gains to offset the massive losses they sustained. But sadly, renting may not be much of a solution. In most places, rent just keeps on rising, which means fewer options for families already struggling to build wealth.

 
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Posted by on October 11, 2015 in American Greed

 

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Walking Away From the Pain

The New Mortgage Revolution: Walk Away

Underwater on your McMansion? Dump the Mortgage!

Big real estate developers do it all the time – like yesterday, when the owner of New York City’s Stuyvesant Town complex decided to stop paying its $3 billion mortgage. So why are you still writing a check every month on that mortgage that’s much bigger than your home is actually worth?

Good question, University of Chicago economist Richard Thaler says. Thaler tells New York Times readers that it’s not just alright to walk away from one’s over-sized mortgage — it may actually be a moral imperative. (An earlier Times article, by Roger Lowenstein, said much the same thing.) After all, lenders had no second thoughts about lending more than many borrowers could afford or than the homes might actually be worth. It’s just not fair to expect borrowers to follow rules that the lenders don’t.

But why stop there? Some commentators are now calling on borrowers to start a mass mortgage strike.
“Remember burning draft cards? Burn your mortgage,” the blog DailyKos told readers recently:

“The real risk to the banks and investors is that the people in those homes might just decide to walk away. And that’s what we must do. Doesn’t have to be everybody, of course; but anyone who finds themselves seriously underwater with no hope of ever recouping their investment….just walk away Renee. Morality has nothing to do with it. You are a cog in the wheel of a machine that is killing this country and if you remain a cog you enable it. Remove your cog and the machine will not keep running. Remove millions of cogs and the machine gets replaced.”

Now the call for a borrowers’ revolt is being joined by folks who know an opportunity when they see it: real estate agents. Over the past month, agents have been rushing to declare 2010 “the year of the strategic default.” Here’s Connecticut Realtor Minna Reid

Loan modifications do not address the real problem of heavy negative equity and are sure to fail most of the time. Even if the homeowner lowers their current payment they are left more trapped than ever. There will be no quick recovery this time. Years later when there is a need to HAVE TO move, the original problem of being upside down remains and the modified homeowner is left to short sell or foreclose once again.

Isn’t it better to just cut the losses upfront ?

I know many will consider strategic default wrong or immoral, but as for me, I stopped passing judgment long ago.

Reid is far from the only real estate agent using mass revolt against the banks as a sales strategy. San Diego broker Bob Schwartz asks, “How many homeowners will suddenly wake up to the fact that their home is now worth tens of thousands of dollars less than their mortgage balance? Only the naive will believe that their San Diego home’s value will bounce back anytime soon…. Defaulting “strategically” can entice more walk-aways by buying all the major items they may need in the near future, such as a car or even a house, right before they take a hike. As long as you stay current with other mortgage lenders, one could potentially have a good credit standing in 2 years after the walk-away.”

Ouch for the banks! But strategically not a bad move.

 
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Posted by on January 26, 2010 in News

 

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Forclosure Goes Upscale

Remember back when the Foreclosure crisis started all th Republicans running around claiming it was the fault of all those poor and black folks in taking out loans they couldn’t afford?

ForclosureWell – Now foreclosure in the top market tier is nearly 1/3 of all foreclosures in the market.

About 30% of foreclosures in June involved homes in the top third of local housing values, up from 16% when the foreclosure crisis began three years ago, according to new data from real-estate Web site Zillow.com. The bottom one-third of housing markets, by home value, now account for 35% of foreclosures, down from 55% in 2006.

The report shows that foreclosures, after declining earlier this year, began to accelerate in the late spring and that more expensive homes have more recently accounted for a growing share of all foreclosures. “The slope of that curve in recent months is much sharper than it was recently,” said Stan Humphries, chief economist for Zillow. Rising foreclosures among more-expensive homes could create added pressure for a housing market that has shown signs of stabilizing in recent months as sales of lower-priced homes pick up.

The Zillow research compared homes against the median values for their local market and broke each market into three tiers by value. Zillow then looked at the share of monthly foreclosures in each tier over the past decade.
[Moving Up chart]

Foreclosures are rising in more expensive markets as home values in those areas fall, leaving more homeowners with mortgages that exceed the value of their properties. Prime loans accounted for 58% of foreclosure starts in the second quarter, up from 44% last year, according to the Mortgage Bankers Association. Subprime mortgages accounted for one-third of foreclosure starts, down from one-half last year.

The issue here is that these homeowners typically are massively under water on their homes. A house which could have sold for $1.4 million in 2005 is now only worth (in some markets) $750,000. This issue if exacerbated by financing vehicles in the high-end market allowing the buyer to make only (sometimes partial) interest payments for 5 Years, at which point the purchaser has to pay off the “balloon”. In a hot real estate market with prices climbing 7% a year, this was a good deal – because the home could be “flipped” for more than the balloon payment…

With the market crash, it’s death.

The second issue is the economy – supply and demand. The number of high-end homes far exceeds the demand – or the number of folks with the income to afford them. There are just so many folks who can afford a $5,000, $10,000, or $15,000 a month mortgage anymore – and that number isn’t expanding because the number of folks “movin’ on up” isn’t expanding… it’s shrinking.

Indeed, the only way to make sense of some of this may well be “multimillion dollar tear downs” where there is enough land to build several units – or a reverse McMansion creating a duplex or triplex …

The lower end of the market seems to have bottomed, and is on it’s way to recovery. However the huge, ugly elephant in the room is that 30% of all mortgages in the country are under water.

 
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Posted by on October 14, 2009 in You Know It's Bad When...

 

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Sub-Prime McMansions?

Back when the Sub-Prime crisis first hit, the Republicans sought to blame the crisis not on the financial incompetence of the banks, or the failure of the Federal Government to regulate the banking industry…

Price Reduced

Price Reduced

But poor (minority) folks who obviously took out loans they couldn’t afford.

Like damn near everything conservatives say – that was a lie, too!

LITTLE TORCH KEY, Fla. — Jack Warner leaned against his home bar and checked his watch before resuming his blank stare at the white tent outside his multimillion-dollar dream house, with its swimming pool and views of the Florida gulf, soon to be sold at auction.

“My whole life happens in two hours,” he said. “I feel like I am playing the part of Old Yeller,“ wondering if he will survive financially or perhaps just be put out of his misery, like the fictional dog. An auction, and having people traipse through a house in previews before bidding, smacks of desperation. But increasingly, people with multimillion-dollar homes who need to raise money are discovering they have few alternatives, as the luxury real estate market is especially moribund.

“We are seeing more people with homes that were on the market for $4 million to $7 million that are not selling and they are calling us,” said Jim Gall, president of Auction Company of America.

Mr. Warner, 61, bought his house and an adjacent property that once had a trailer park on Little Torch Key, north of Key West, in 1993. It was appraised at nearly $14 million just two years ago. But after losing a large amount of money, he liquidated his construction business in Elkhart, Ind. Last year, another company he owned, Lucky’s Landing, which essentially owned his Florida real estate, filed for bankruptcy protection and its assets came under court oversight.

When no buyer emerged at the listing price of $5.9 million, Mr. Warner asked the United States Bankruptcy Court in Miami to approve the property’s sale at auction. He had a lot riding on the request. To avoid personal bankruptcy, he said, the sale had to generate more than $3 million, roughly the remaining amount of the mortgages.

The gavel ultimately came down at $2.5 million. Mr. Warner’s hopes withered as he uttered softly: “O.K., I’m broke.”

Now obviously, the bankers and stock market guys who created this mess aren’t anywhere near selling their McMansions. Especially with the sort of $10 million bonuses still being handed out by Banks and investment firms to their 5,000 “most valuable” employees.

But a lot of others are being whipsawed by a failed economy, and a reduced need for the sort of services business which generates the sort of income to afford one of these monsters.

Has the market hit bottom? Probably for the low to mid market. Houses are beginning to move in the under $1 million range. However the McMansion market, which is vastly over built in many areas will likely continue to plummet.

 
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Posted by on August 9, 2009 in You Know It's Bad When...

 

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