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US mortgage crisis creates ghost town (near Cleveland, Ohio)
http://www.breitbart.com/article.php?id=080127183107.ahcwfxrz&show_article=1&image=large ^

Posted on 01/27/2008 5:03:23 PM PST by traumer

The streets are empty. Trash rustles down the road past rusted barbecues, abandoned furniture, sagging homes and gardens turned to weed.

This is Shaker Heights, a suburb of Cleveland and a town ravaged by the subprime mortgage crisis roiling the United States.

Faded "for sale" signs sit in front of deserted houses. The residents are gone, either in search of new jobs after the factories shut down, or in shame after being evicted for missing their mortgage payments.

A red, white and blue American flag flies over windows and doors which have been boarded up to keep the drug dealers away.

Thieves have stripped many homes of the plumbing, the doors, the windows, the aluminum siding.

The police station parking lot is full. The officers, who have seen their numbers triple since 2006, are coming back from their rounds. They speak of installing alarms in some of the homes claimed by squatters.

At 9422 Chagrin Street, a hand-scrawled sign attached to a window indicates someone lives there: "Please Used."

After three rings of the bell, Sarah Evans, 60, opens the door with a mixture of curiosity and alarm.

She says she is one of the last people left on the street. And she is on the verge of losing this two-bedroom house in which she has lived for more than 30 years because she simply cannot afford her monthly payments.

It is a complicated story. She refinanced in 2003, but did not realize the document she signed included provisions to radically increase the interest rate.

She stopped making payments in 2006 and shows her unpaid bills totaling 24,000 dollars.

Her bank is in the midst of eviction procedures.

"When folks buy a home they expect to die in it, I guess," she said as she stood outside in the cold. "I had my American Dream but it became a nightmare."

Her words are echoed by the angry barks of the guard dogs pacing behind a chain link fence two houses away that was installed by the new owner: a bank.

The massive parking lot of the Eagle Fresh supermarket is empty.

Behind her till, Myra Bibldwit lifts her head when a bell signals the entrance of a customer.

"Not many folks come anymore. We're used to it," said the 24-year-old cashier, one of the few in the neighborhood who managed to hold onto her job.

In the five hours since she started working today she has served just 10 customers. "Maybe you will buy something," she says with a smile.

Then comes customer number 12.

Laura Johnston, 50, says that her street -- about 10 minutes away by car -- was alive two years ago. Today, half the houses are abandoned.

"Folks could not afford their payments. They were asked to pay loans which doubled. They could not afford it, some lost their job. Lenders were greedy. They threw them out of their homes," she told AFP.

"I'm very upset. I missed my friend Helen. She disappeared overnight. She did not even say goodbye."

There are plenty of cases like Helen. They are called the neighbors who disappear in the night.

For county treasurer Jim Rokakis, the greed of the banks is to blame for this man-made disaster.

"All you needed was a pulse to buy a house. Some loans were written with no money down, no proof of buyer's incomes. They did not even check what people were saying. Most of those folks were jobless," he said in an interview.

"Shaker Heights was the perfect storm: poor folks, unemployed and a desire to get a piece of the American Dream."


TOPICS: Business/Economy; News/Current Events; US: Ohio
KEYWORDS: cleveland; mortgage; ohio; realestate; shakerheights; subprime
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To: traumer
Holy Frijoles. I did a zillow.com search for Chagrin St. in Shaker Heights, OH and they show an 8br, 2ba home for 186,000 dollars.

Who can't afford that?

21 posted on 01/27/2008 5:14:00 PM PST by Texas Eagle (Could pacifists exist if there weren't people brave enough to go to war for their right to exist?)
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To: Graybeard58

Was it a fair trade? I’ve been to Shaker Heights but have never been to East St Louis. ;)


22 posted on 01/27/2008 5:14:08 PM PST by kalee (The offenses we give, we write in the dust; Those we take, we write in marble. JHuett)
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To: traumer

Oh good grief.

Are we led to believe that an entire town took on loans they couldn’t afford?

Th truth is that the town has been in decline for decades, as has most of the Cleveland area.

What’s next? A picture essay on how the “mortgage crisis” has destroyed Detroit?


23 posted on 01/27/2008 5:14:27 PM PST by kidd
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To: kalee
Was it a fair trade? I’ve been to Shaker Heights but have never been to East St Louis. ;)

I think we s****** them royally.

24 posted on 01/27/2008 5:16:32 PM PST by Graybeard58 ( Remember and pray for SSgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: kalee

Absolutely!! Just never go there to find out why.


25 posted on 01/27/2008 5:17:03 PM PST by abishai
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To: traumer
She stopped making payments in 2006 and shows her unpaid bills totaling 24,000 dollars.

Sounds like she stopped making payments not only on her mortgage but also her electricity, her water, her swerage, her phone, her credit cards, and every other bill that was coming in........

30 years living in the same house and she re-mortgages? Wonder what she did with the cash............

There certainly is a heck of a lot more to this story than is being reported.......

26 posted on 01/27/2008 5:17:10 PM PST by Hot Tabasco
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To: traumer; All
I know Clevelend is in Ohio, and I'm pretty sure shaker heights is one of the more affluent suburbs, and I don't think anyone has really relied on the steel industry for a long time...

maybe this ought to be posted under fiction.

27 posted on 01/27/2008 5:17:17 PM PST by the invisib1e hand (what would the founders do?)
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To: Texas Eagle
an 8br, 2ba home for 186,000 dollars

I want at least one more bathroom.

And I understand their property taxes are astronomical. Shaker Heights is where John Ogbu did the cross-racial education analysis that showed that black students didn't achieve at the same level as white students because of cultural formation.

28 posted on 01/27/2008 5:17:30 PM PST by Tax-chick ("Gently alluding to the indisputably obvious is not gloating." ~Richard John Neuhaus)
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To: traumer
A friend sent me the URL for this article from BBC News that does seem to me to do a real good job of explaining the whole sub-prime mess and how it affects other investments and the broader economy. I'm no expert on this stuff and it helped me to get a better handle on this stuff. The US sub-prime crisis in graphics
29 posted on 01/27/2008 5:17:34 PM PST by NoCountryForLiberals
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To: traumer

Actually, ghost towns are tourist attractions (just ask anyone in Arizona or New Mexico). But then, if they were brain-dead enough to borrow beyond their means, they’re probably too stupid to recognize an economic opportunity.


30 posted on 01/27/2008 5:18:26 PM PST by Larry Lucido
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To: traumer

“All you needed was a pulse to buy a house. Some loans were written with no money down, no proof of buyer’s incomes. They did not even check what people were saying. Most of those folks were jobless,” he said in an interview.


The lenders were careless and greedy but how does one expect to own a home with bad credit and no job? If many of these people paid nothing down then just what did they lose but a place to stay. You can rent a place to stay which is what they did before they bought and will have to do now. I’d say these people are in a sad state not because of greedy lenders but because of their own financial situation which would exist with or without the greedy lenders. Let’s not turn this situation into a civil rights issue when it isn’t.


31 posted on 01/27/2008 5:19:02 PM PST by Joan Kerrey
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To: kalee

We know that you have never been to East Saint Louis. Had you been there, you would be typing from the Great Beyond.


32 posted on 01/27/2008 5:19:17 PM PST by MIchaelTArchangel
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She refinanced in 2003, but did not realize the document she signed included provisions to radically increase the interest rate.

Sounds like she fell for a line by a real scum bag.

33 posted on 01/27/2008 5:19:19 PM PST by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: vladimir998

Sounds like a great deal. You buy a house for no down, live in it, don’t pay and get to walk away.


34 posted on 01/27/2008 5:19:38 PM PST by Kozak (Anti Shahada: There is no god named Allah, and Muhammed is a false prophet)
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To: Hot Tabasco

She’s also been living rent-free for at least 13 months.


35 posted on 01/27/2008 5:19:42 PM PST by Larry Lucido
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To: hinckley buzzard

Google maps shows that the address 9422 Chagrin Street, Shaker Heights, Ohio directly neighbors two golf courses and the Shaker Heights Country Club.


36 posted on 01/27/2008 5:19:50 PM PST by bvw (Title doesn't clear through securitized derivative instruments. Not a valid lien.)
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To: Texas Eagle
Completely unemployed people on welfare or slacking criminals with no get up and go? lol.

I just love trying to blame the banks for taking all their money to overpay for houses then defaulting to them and running the whole thing into the ground. Of course they were supposed to just give the whole neighborhood to the newcomers gratis, along with some fat checks.

Cry me a river...

37 posted on 01/27/2008 5:20:11 PM PST by JasonC
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To: traumer

Next time BUY what you can afford!

When you’re positon runs out - join the rest of us and find another one!

Few have a job for life!

Get used to it!


38 posted on 01/27/2008 5:21:41 PM PST by nmh (Intelligent people recognize Intelligent Design (God) .)
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To: D-fendr
Hardly, she just got an ARM when the rates were like 3% and probably cash out refinancing that gave her plenty of dough. She says she has lived there for 30 years, remember? How do you live in a house for 30 years without paying it off? Answer - you take as much money out as you put in, or more. Otherwise it simply isn't possible.
39 posted on 01/27/2008 5:21:54 PM PST by JasonC
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To: Non-Sequitur
what else can you call a company that would write mortgages with no money down, with no proof of income, and without even confirming employment except 'greedy'? M

According to the article the lady had been in that house for almost 30 years.........sounds to me like she re-mortgaged for the cash then blew the cash........

40 posted on 01/27/2008 5:22:37 PM PST by Hot Tabasco
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