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I Lost Everything

A report from the Port Charlotte Sun in Florida. “Matthew Harden turned himself in to law enforcement Monday in Hamilton County, Florida. Harden, 53, and his partner Stephen Dukes, 47, owned the now-defunct HD Custom Homes in Englewood. Charlotte County Sheriff’s Office detectives issued warrants for each man last week, charging them with one count each of fraud and 13 counts of misapplication of construction funds.”

“The two are accused of leaving more than 50 homeowners with unfinished homes — in some cases never-started — while cleaning out construction accounts. Former customers including subcontractors estimate the pair took more than $8 million in deposits and services. former HD customer, Tammy LePoer, said she’s disgusted by HD Custom Homes practices. ‘They would take photos of cabinets they put up in one home and send it to the out-of-state customer, saying the work was done,’ she said. ‘Then they would pull the cabinets out and put them in another customer’s home and take a picture and send it. Meanwhile, neither of them had cabinets, but these men had their customers’ money.'”

“According to the Charlotte County Clerk of Court documents, Matthew Harden’s unfinished Burwell Circle home was once listed at $479,999 in South Gulf Cove. The house went into foreclosure in August. The home, which has several liens on it and is overgrown with weeds and has cracks in the concrete, went on the auction block Monday for $372,858. It was sold for $2 more than the bank bid to a third-party bidder, court foreclosure records show.”

The Greenville News in South Carolina. “For five years, Michael and Dana Roush offered a path to home ownership and financial freedom through Kingdom Connected Investments (KCI), a rent-to-own scheme that collapsed by 2018. Tuesday in Anderson, a federal judge sentenced both of them to prison. Raymond Fenner, of Charlotte, said he got a flyer in the mail offering to purchase the home he was 11 years into paying off. Months after he agreed to work with KCI, he got the foreclosure notice. ‘They made a couple payments,’ Fenner said. ‘Then you couldn’t get a hold of them, and I couldn’t get a loan to fix the problem.'”

“Maria Girarfe, who now lives in Georgia, broke down in tears as she testified about how she used her own money to repair the home she got through KCI, only to lose everything she owned. ‘I lost everything,’ she said. ‘Everything. Everything. Everything.'”

“After the hearing, Gustavo Cruz of Easley said he still felt helpless. He had lost about $40,000 he had spent to fix up a property he got through KCI before it entered foreclosure. ‘I cried when I got the letter that these people were caught,’ he said. ‘I work every day to earn the money I had put into the house that was taken away from me.'”

The Dallas Morning News in Texas. “Dallas-Fort Worth, Houston and San Antonio are among the U.S. cities that are seeing the biggest increases in late payments on federally backed home loans. More than 17% of the Federal Housing Administration’s almost 8 million home loans nationwide were delinquent in August, according to a new study from the American Enterprise Institute.”

“‘Rising FHA delinquency rates threaten homeowners and neighborhoods in numerous other metro areas across the country,’ American Enterprise Institute researchers said. ‘It would be expected that these delinquency percentages will increase over time. At some point, a significant percentage of the then-delinquent loans would be expected to be placed on the market by owners under distressed conditions or become foreclosures, and then enter the market.'”

“In August, Houston had the second-largest share of FHA loans that were late — more than 22%. In the Dallas-Fort Worth area, more than 19% of homeowners with FHA loans were behind in their payments. And in San Antonio, 19% of FHA loans were late in August.”

From Reuters on California. “Hospitality workers – chefs, hotel staff, theme park workers, golf course attendants – make up nearly 10% of the workforce in Los Angeles. Before COVID-19, that added up to nearly half a million jobs. The pandemic has decimated the workforce. So far the only support Walter Almendarez has gotten from his employer was $5,000 from a fundraiser. But he is months behind on the mortgage for his home, which he bought in 2009.”

“Almendarez has been cutting costs, withdrawing savings, buying fewer diapers for his baby and going to food banks. ‘You don’t think of shame. It’s food. You do what you have to do,’ he said.”

“Elizabeth Mejia, an out-of-work waitress, vowed that she and her husband would not lose their home they bought in South Central Los Angeles six years ago for $250,000, where they are raising their young daughters. They have cut costs, cancelled their cable television and were about to pull their daughters out of Catholic school. The family has had a tradition of filling up unicorn piggy banks with coins. When the banks are full, the family breaks them open and puts the money toward a visit to a national park.”

“But after she was laid off, Mejia broke open one of the banks to get the $100 of coins inside. ‘We needed the money for food,’ she said.”

From Realtor.com. “The sports bettor Billy Walters is hoping that his luck will turn around with his real estate. He’s placed his massive mansion in Carlsbad, CA, on the market for an equally large sum: $26,950,000. The massive oceanfront estate has come on and off the market since 2011, when it featured a $29 million price tag. Even at that sky-high sum, it was reported to be a number ‘a bit less than he spent assembling it,’ the Wall Street Journal reported at the time.”

From Mansion Global on New York. “Twenty-one homes asking $4 million or more went into contract in the week ending Sunday, the most since the second week of March, according to a weekly report from Olshan Realty. Luxury deals last week totaled $173 million, also a level not seen since before the lockdowns in March. That included two trophy homes asking $20 million or more—albeit after steep discounts. The second biggest deal was for a six-bedroom penthouse at 35 North Moore St. in Tribeca, asking $20 million—though it once asked as much as $33.5 million when it hit the market five years ago.”

From Maui News in Hawaii. “Maui County vacation rentals logged 9.8 percent occupancy in August, which was close to the hotel rate of 8.6 percent for the month, the Hawaii Tourism Authority reported. Maui continued to have the largest vacation rental supply of all four counties with 123,129 available unit nights — which was down 57.9 percent from a year ago.”

The Aspen Times in Colorado. “A Woody Creek woman is facing as much as $10,000 in fines for renting out a room in her deed-restricted home on AirBnb, which is a violation of Aspen-Pitkin County Housing Authority regulations. Diane Kessler, who owns a house in the Woody Creek subdivision, appeared Monday during a virtual APCHA compliance hearing making her case that she was unaware of the rule that she can’t do short-term rentals on the property, or that she use it for income generation.”

“Kessler, a massage therapist and ski instructor, as well as a single mother, told APCHA hearing officer Mick Ireland that she was using the income to help make ends meet with the mortgage, HOA fees, property taxes and special assessments, among other expenses. She asked to not have to pay the fines, as she struggles like many in the valley living paycheck to paycheck. ‘Please show me some compassion; it was not intentional and I am already being penalized because now I have to find other ways (to pay for the house),’ she said.”

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  1. ‘Maria Girarfe, who now lives in Georgia, broke down in tears as she testified about how she used her own money to repair the home she got through KCI, only to lose everything she owned. ‘I lost everything,’ she said. ‘Everything. Everything. Everything’

    But interest rates?

  2. ‘You don’t think of shame. It’s food. You do what you have to do’ …’We needed the money for food’

    But weather? UHS says you can always sell!

    1. ‘California’s economy began to bounce back this summer thanks to an infusion of federal jobless benefits and business loans along with the reopening of some workplaces, but a full recovery from the coronavirus downturn will take more than two years, UCLA economists predict. The UCLA Anderson quarterly forecast released Wednesday suggested California payrolls will drop 7.2% this year to 16 million jobs, a loss of some 1.5 million since the COVID-19 pandemic hit. They are expected to climb back slowly, by just 1.3% next year and 3.5% in 2022.’

      ‘The Golden State’s unemployment rate, which was 3.9% in February, will average 10.8% this year.’

      https://www.latimes.com/business/story/2020-09-30/california-economy-ucla-anderson-forecast

      1. I just got this in an email:

        ‘Construction employment decreased in 241, or 67 percent, out of 358 metro areas between August 2019 and last month, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials urged Congress to pass new coronavirus relief measures before leaving town.’

        “Although residential construction is picking up in many areas, public and nonresidential construction are shrinking,” said Ken Simonson, the association’s chief economist. “Project cancellations are spreading, and fewer new projects are starting up. That combination makes further employment declines inevitable unless the federal government steps up support for infrastructure.”

        ‘Simonson noted that construction employment was stagnant in 29 metro areas and increased in only 88 areas (25 percent) over the past 12 months. Nineteen metros had all-time lows for August construction employment, while 33 areas had record highs for August, in data going back to 1990 for most areas. Houston-The Woodlands-Sugar Land, Texas lost the most construction jobs over 12 months (-22,800 jobs, -10 percent), followed by New York City (-21,700 jobs, -13 percent). Brockton-Bridgewater-Easton, Mass. had the largest percentage decline (-38 percent, -2,200 jobs), followed by Johnstown, Pa. (-34 percent, -1,000 jobs).’

  3. ‘In August, Houston had the second-largest share of FHA loans that were late — more than 22%. In the Dallas-Fort Worth area, more than 19% of homeowners with FHA loans were behind in their payments. And in San Antonio, 19% of FHA loans were late in August’

    But the REIC would have you believe these markets are to the moon Alice! Note how few in the media have touched this report.

  5. ‘The two are accused of leaving more than 50 homeowners with unfinished homes — in some cases never-started — while cleaning out construction accounts’

    Eat yer crowz jingle.

    ‘They would take photos of cabinets they put up in one home and send it to the out-of-state customer, saying the work was done,’ she said. ‘Then they would pull the cabinets out and put them in another customer’s home and take a picture and send it. Meanwhile, neither of them had cabinets, but these men had their customers’ money’

    So where were the building inspectors?

    ‘Matthew Harden’s unfinished Burwell Circle home was once listed at $479,999 in South Gulf Cove. The house went into foreclosure in August. The home, which has several liens on it and is overgrown with weeds and has cracks in the concrete, went on the auction block Monday for $372,858. It was sold for $2 more than the bank bid to a third-party bidder’

    Matt walked away.

        1. Non-banks gaining market share of purchase loans and refis, large banks continue to get out. In refis large banks are almost at zero %. Non-banks are near 100% of refis.

          1. “Non-banks gaining market share of purchase loans and refis, large banks continue to get out. In refis large banks are almost at zero %. Non-banks are near 100% of refis.”

            From Wikipedia …

            “A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency.”

            For these guys it is a free-for-all.

            “NBFI facilitate bank-related financial services, such as investment, risk pooling, contractual savings, and market brokering. Examples of these include insurance firms, pawn shops, cashier’s check issuers, check cashing locations, payday lending, currency exchanges, and microloan organizations.”

            Wait for it …

            “Alan Greenspan has identified the role of NBFIs in strengthening an economy …”

            Strengthening an economy.

            😁

            “… as they provide ‘multiple alternatives to transform an economy’s savings into capital investment which act as backup facilities should the primary form of intermediation fail.'”

            Non-bank financial institution – Wikipedia
            https://en.m.wikipedia.org/wiki/Non-bank_financial_institution

          3. “In refis large banks are almost at zero %. Non-banks are near 100% of refis.”

            According to the alleged thinking of Allen Greenspan this is a good thing in that it shows that the economy is being strengthened.

            This entire thread is reminding me that now is not a good time for me to try to get off of doing crack.

          4. So nonbanks are crowding in as Megabank, Inc clears the deck.
            Are the nonbank mortgage lenders perhaps systematically important?

  6. ‘Kessler, a massage therapist and ski instructor, as well as a single mother, told APCHA hearing officer Mick Ireland that she was using the income to help make ends meet with the mortgage, HOA fees, property taxes and special assessments, among other expenses. She asked to not have to pay the fines, as she struggles like many in the valley living paycheck to paycheck. ‘Please show me some compassion; it was not intentional and I am already being penalized because now I have to find other ways (to pay for the house)’

    This shouldn’t be a problem Diane. What does a Woody Creek shack cost, 10 or 20 grand?

      1. I chatted with some Colorado skiers at Denver International Airport, wondering where they were going with their ski gear. Utah, more elevation drop!

    2. Early this morning, the media was playing up the negative DOW futures, tying it to last night’s crappy debate. The media clearly wanted to infer that a drop in the DOW signaled Wall Street’s disapproval for Trump being a meanie. Meh, I don’t think the Fed cares who the President is.

      1. Meh, I don’t think the Fed cares who the President is.

        Exactly. They only care about their own power, which is protected – enhanced – by both parties.

          1. 👀 🔮⚡✌

            Sep 29, 2020

            $tock Market Cra$h: The End Game Approache$!

            By Clem Chambers/ Senior ContributorIntelligent InvestingContributor Group

            Inve$ting

            The market$ are high because of bailout$, and those bailouts are in the short term coming to an end. Economic gravity will have its way.

            This is a deeply wounded economy and the situation is only getting worse.

            To me this comes from a U.S. crash, which will crush all markets and all instruments and I for one am trying very hard not to be under the window when that particular grand piano falls from it.

            I sincerely hope to be proved wrong, but I prefer to hope with my capital safely in cash.

            $mart a$$et allocation can wait until after.

            ——

            Clem Chambers is the CEO of private investors website ADVFN

            Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018.

  10. “Dallas-Fort Worth, Houston and San Antonio are among the U.S. cities that are seeing the biggest increases in late payments on federally backed home loans. More than 17% of the Federal Housing Administration’s almost 8 million home loans nationwide were delinquent in August, according to a new study from the American Enterprise Institute.”

    I realize the oil price crashed, but Texas still has one of the strongest economies in the country. I guess “comparatively affordable” isn’t affordable.

  11. “‘I lost everything,’ she said. ‘Everything. Everything. Everything.’””

    Thats what happens when you pay a grossly inflated price for what is always a depreciating asset. Then double down on those losses by financing for decades. Dumb DebtDonkeys….. Dumb dumb DebtDonkeys.

    Arlington, Va Housing Prices Crater 27% YOY As Double Digit Price Declines And Soaring Mortgage Defaults Envelop Northern Virginia

    https://www.movoto.com/arlington-va/market-trends/

    As one Arlington County broker lamented, “How can we possibly sell a resale house when builders are selling new houses on the same street for 20% and sometimes 30% less?”

  12. Here comes this nonsense again:

    Democrats are pushing for another round of stimulus checks and $600 in weekly unemployment benefits

    2. Doe$ anyone need to u$e an aeroplane to travel to exotic private re$ort location$? The rumor i$: Need covid.free private plane$?, Knot a problem @ all, there’$ a.plenty, kinda $pendy! >$600.00

  13. “He’s placed his massive mansion in Carlsbad, CA, on the market for an equally large sum: $26,950,000. The massive oceanfront estate has come on and off the market since 2011, when it featured a $29 million price tag.”

    Even if he manages to get out at his current list price, he’s lost a bundle to supposedly low inflation since 2011.

    2. On top of that, he also has/had to pay fines and forfeit the money he made through insider trading.

      ‘Las Vegas gambler Walters loses insider trading appeal’

      “The court also upheld Walters’ $10 million fine and $25.35 million forfeiture. It ordered the trial judge, Kevin Castel, to recalculate Walters’ $8.88 million in restitution to Dean Foods in light of a recent U.S. Supreme Court decision.”

      https://www.reuters.com/article/us-usa-insidertrading-walters-idUSKBN1O328K

  15. More than 17% of the Federal Housing Administration’s almost 8 million home loans nationwide were delinquent in August, according to a new study from the American Enterprise Institute.”

    Is that a lot?

    1. More than 17% of the Federal Housing Administration’s almost 8 million home loans nationwide were delinquent in August

      Makes one wonder how many could pay, buy chose forbearance, perhaps with the hope that the missed payments would be forgiven?

      2. Choosing forbearance even if you have the money to pay, is probably not a bad strategy… IF you were smart enough to pack the money away in some safe investment. Then just wait for the outcome and use the saved money accordingly. All of the options are favorable to the homeowner, listed from more favor to less:

        1. Outright forgiveness (chances are slim but not 0) 👉 blow the money on toys.

        2. Defer the payments to the end of the loan without penalty (most likely) 👉 take the deferment and blow the money on toys.

        3. Defer the payments to the end of the loan (with a penalty): 👉 take the deferment, grudgingly pay the penalty, blow the rest of the money on toys, and then b!tch about the penalty to the sob-story media.

        4. Balloon payment without penalty (likely) 👉 Just pay it. All you lost was a little time.

        5. Just pay the mortgage on time: 👉 works, but it’s for chumps.

        But this assumes you have the fortitude to actually save the money. If you blow the money first and the outcome requires that money, you’re in trouble. But it won’t stop you from b!tching to the sob story media.

  18. Will a wave of white collar layoffs short-circuit the recovery?: Morning Brief
    https://finance.yahoo.com/news/will-white-collar-layoffs-short-circuit-recovery-morning-brief-101027523.html

    (snip snip snip)

    “A second wave of layoffs could soon hit Corporate America.
    The economy’s K-shaped recovery is now a consensus view.”

    “This idea outlines how some workers, companies, stocks, and areas of the economy have thrived during the pandemic-induced recession while others have faltered. Even Democratic presidential candidate Joe Biden referenced the K-shaped recovery in the first presidential debate Tuesday night.

    “And a key part of this thesis is driven by who has been hit hardest by the labor market’s disruption so far. Through six months of this crisis, white collar workers have been far less impacted by job losses than those in the hospitality and food services industry.

    “In the leisure and hospitality industry, for example, the unemployment rate in August stood at 21.3%. In professional and business services, unemployment was 7.2% in August. As a result, average hourly earnings for workers have actually increased as more job losses accrue at the lower-end of the wage scale.

    “This dynamic has bolstered the housing market as those well-positioned to make a large purchase like a home keep their jobs while restaurants and services that support white collar office workers have been decimated. The stock market — where the top 1% of earners own 50% of the market — is another area where the haves enjoy a robust rebound and the have nots are left behind.

    “But news this week from companies across industries perhaps calls into question the health of the office worker class that has so far evaded the worst impacts of the recession.

    “And at least makes it worth taking note of the possibility that a ‘second wave’ of layoffs could hit the economy as corporates take stock of how much business has been hit in 2020 and what costs will need to be in 2021 for companies to make it through to the other side of this crisis.”

  19. WATCH: Portland BLM ‘security’ tackles man to the ground, puts him in chokehold

    1 Oct, 2020

    As protesters gathered in Portland at a vigil for a black man killed by police two years ago, BLM security at the event were filmed tackling a man and placing him in a chokehold, which police are forbidden from using.

    @MrAndyNgo
    “Shut him down!”

    At the BLM-antifa gathering in Portland, the BLM “security” knocks a man to the ground, hits him and puts him in an elbow choke to force him out of the public rally. #PortlandRiots #antifa #BLM
    2:05 AM · Oct 1, 2020

    @SanFranKAREN1
    Replying to @MrAndyNgo
    Funny how they want to defund the police and then have their own police acting like this.
    2:07 AM · Oct 1, 2020

    @thatonemedina
    Replying to @MrAndyNgo
    Of course “their” own “police” can use choke holds
    2:06 AM · Oct 1, 2020

    https://www.rt.com/usa/502210-portland-blm-security-chokehold/

  20. Andy Ngô
    @MrAndyNgo
    ·
    6h
    Letha Winston, the mother of Patrick Kimmons, gives a sexually graphic speech at tonight’s BLM-antifa rally attended by families and young children. Kimmons was killed by Portland Police when he shot 2 people & aimed his gun at responding cops. #BLM

    From
    Brittany
    1:49 AM · Oct 1, 2020·Twitter for iPhone

    https://twitter.com/MrAndyNgo/status/1311543619271098370

    1. I don’t think she can climb mountains and for that matter I don’t think she is a black queen either.

      However, I do have to agree with her statement that she is un- ##ckable.

    2. “…attended by families and young children.”

      Children can easily be trampled by a mob, or worse. WTF?

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