"I Am Sick Of Robbing Peter To Pay Paul!" Says Bankrupt Buffalo Area Homeowner
Times are getting tough here in the Buffalo, NY USA area. The home-mortgage bankruptcies I predicted in my financial white paper of two years ago, "Will You Survive The Coming Financial Crash?" which was published on June 6, 2005 -- are now coming to pass. The woman with whom I spoke to for this story would rather declare bankruptcy than to continue to participate in a corrupt system, paying a loan-shark level of interest on her home mortgage.
"I AM SICK OF ROBBING PETER TO PAY PAUL!" SAYS BANKRUPT BUFFALO AREA HOMEOWNER
The Buffalo area homeowner named "Michelle" who had recently decided that the only way out for her and her family was bankruptcy -- was nearly in tears, as she described to me her families' financial situation. This is someone whom I met with earlier today, and this individual is neither a family member or a friend. She is just a mother-of-two who is at wits' end, as far as her own families finances are concerned.
"No one ever told me about the home mortgage scam," she said, dejectedly. "I was young and dumb, and signed a contract I had no business signing -- a home mortgage at 12.5% interest."
When I asked her if she believed that her TRUE interest-rate was 12.5% or some higher percentage, "Michelle" began to get a bit agitated and upset.
"Oh, it is a lot higher than 12.5%," she said.
When I had put the figures together, I was able to show "Michelle" that the mortgage interest-rate was much more than 12.5%. In fact, I showed her a website called MORTGAGE-CALC.COM, where the following revealed itself -- her true interest-rate was 284% -- where her $24,000 30-year fixed-rate mortgage suddenly becomes $92,210.40 that she has to pay back. This creates a $68,210.40 interest-rate, which she is contractually obligated to repay.
The only problem, is that her $24,000 house is now worth ONLY $18,000 because of the depressed economy in the Buffalo, NY USA neighborhood in which she lives, here in Western New York!
"I am NOT paying $92,000 for an $18,000 house!" "Michelle" stated emphatically. "It makes no sense to continue paying for something that is becoming worth less and less as time goes on."
She then began to give me details of her families' financial condition -- which is all too typical for this area, in which many companies have left town, leaving their workers to fend for themselves. At the beginning of 2007, "Michelle" had injured her ankle, and went out on disability, where she could not work for several weeks at her two jobs, where she spends eighty hours per week, rarely seeing her husband, son (age 16), and daughter (age 14).
"Michelle's" husband had spent all of 2006 laid off from his job, which itself placed tremendous stress on the family and their finances. "I cannot sleep at night," "Michelle" said. "I wake up at three or four in the morning, thinking about how deep in debt we are." "Michelle" further stated that when she came to the point where she could not sleep at night, it was time to pack it all in, and move into an apartment at least for the next few years. "My husband didn't like the idea, but, I told him that I was doing this, and if he wanted to move in with his mother again, then I and the kids would see him whenever we could."
A few years ago, "Michelle" bought her home in Buffalo with a $24,000 mortgage, from a company in California, which calls itself WASHINGTON MUTUAL BANK. They signed up this woman and her family to a mortgage contract that is a complete LOAN-SHARK situation. She was not allowed to refinance her loan, even when the mortgage rates dropped BELOW 6%. This was a $24,000 loan that will end up costing her $92,000 -- for a house that has since lost 25% of its' market value!
TROUBLE IN OTHER AREAS OF FAMILIES' FINANCES
Of course, once this problem rears its' ugly little head, there are plenty of other areas in which the families' finances get all messed up. In this case, this hard-working low-income family has gotten behind on their mortgage, the water bill, the gas bill, and the electric bill. In February 2005, "Michelle" recalls receiving an $800 gas bill, which was for a single month! In the past couple of years, her garbage fee with the City of Buffalo has TRIPLED.
In total, this one family is in debt to the tune of $100,000+, and if we extrapolate this across the board, it is fairly easy to see HOW so many people are fighting a losing battle as far as debt is concerned. This is also WHY seven families per day are now LEAVING the Western New York metropolitan area FOR GOOD -- going to any place where there are more jobs, cheaper taxes, and a better standard of living.
"Michelle" did one thing right, however. While she admitted to not knowing about the home-mortgage scam, she DID know and was fully informed about CREDIT CARDS. She does not carry any credit cards, and this is because of her husband's IMPULSE PURCHASES. He thought that because he was working hard for his family, he was justified in purchasing a new car stereo, or a big-screen television.
But, this only played into the hands of those who became their financial captors, holding them prisoner to their own desires. So, she got rid of the credit cards. I congratulated her on this, and told her that at the conclusion of our interview, I would be giving her some solutions that she could implement immediately for the betterment of her families' financial situation, which had become dire.
"You stay here [in Buffalo], and everything just falls apart," "Michelle" sighed at the conclusion of our meeting. This area has been hit especially hard, and this is because it once was an industrial base and shipping lane that straddled the Great Lakes and Niagara Falls area. The Erie Canal is a well-known and famous shipping lane that travels down the Niagara River, towards Niagara Falls.
Thanks to NAFTA, our area has been decimated. We are no longer an industrial center of importance, but merely yet another city of fading prominence that suffers the ill-effects of so-called "free trade" of the globalists. At the end of our meeting, I presented "Michelle" with a bound copy of my June 6, 2005 financial white paper WILL YOU SURVIVE THE COMING FINANCIAL CRASH? I pointed out that there are several pages of solutions at the back of the report that she could use to help dig herself out of debt.
This is just one families' story. There are many similar stories just like this one, and chances are, you know someone in this predicament -- it might even be YOU and YOUR FAMILY who are on the verge of losing YOUR home. As I explain in my article series on the home mortgage scam, this type of thing is going to contribute to literally tens of millions of Americans losing their homes, simply because they will no longer be able to afford the payments.
When one or both wage earners in a family suddenly find themselves laid off, it is only a matter of time before BOTH Peter and Paul demand their payments. With this being endemic to the bigger picture of EMINENT DOMAIN, there is a larger issue here, of asset forfeiture, and the transfer of more wealth from out of the hands of the MIDDLE CLASS, and into the exponentially-growing coffers of the GLOBAL ELITE.
© 2007 Kentroversy Papers
All rights reserved. Used with permission.
The following sources were used in the creation of this Kentroversy Paper . . .
Home Mortgage Calculator - Simple Loan Payment Calculator
Housing Bubble: Bankrupting Suburbia (July 18, 2005)
My Meeting With A Mortgage Broker (July 27, 2005)
Housing Bubble Insanity (August 7, 2005)
Home Mortgage Defaults At A Tenfold Increase (May 6, 2006)
Top Investor Sees U.S. Property Crash (March 18, 2007)
Will You Survive The Coming Financial Crash? (Full Report - HTML Version) (April 30, 2007)
Will You Survive The Coming Financial Crash? (Full Report - PDF Download Version) (June 6, 2005)
Kentspiracy Kronicles Newsletter
U.S. Consumer Debt
U.S. Home Mortgage Debt