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A Dream Foreclosed: Residents of the region are losing their homes in record numbers
Pittsburgh Post-Gazette ^ | Monday, June 07, 2004 | Steve Levin and John Beale

Posted on 06/07/2004 9:53:30 AM PDT by Willie Green

Foreclosures caused by bad choices, the allure of low interest rates and predatory lenders.

The cleaning crew and real estate agent arrived early. An Allegheny County Sheriff's deputy was there, too, watching Joyce and Konrad Schachner run back and forth from their North Side home of five years to the U-Haul truck that now carried their lives.

"Why are the cops here, Mom?" asked 5-year-old Konrad Jr., standing wide-eyed in front of his house on Van Buren Street.

"Because we gotta go," she answered. "I told you, we gotta go."

And within 45 minutes the Schachners were gone, driving to a relative's home for lack of other options. In the wake of their eviction, everything they decided to leave behind -- toys, furniture, clothing -- had been discarded.

(Excerpt) Read more at post-gazette.com ...


TOPICS: Business/Economy; Culture/Society; Government; US: Pennsylvania
KEYWORDS: americandream; eeyore; foreclosures; homeownership; joebtfsplk; thebusheconomy
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To: Jimmy Valentine
I wonder how many people are "upside down" in their homes?

Very few. Such a small number as to be insignificant.

61 posted on 06/07/2004 11:39:08 AM PDT by Phantom Lord (Distributor of Pain, Your Loss Becomes My Gain)
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To: Antoninus

Part of why we are selling our house is because they are taxing us to death. ( AND the price of propane! )

Still, it will be okay. When we bought the place we got it cheap because it was in such awful shape. We've done a lot to it, and since it's out in the country and in a decent school-systen, we should make a nice bit of cash when we sell.


62 posted on 06/07/2004 11:55:50 AM PDT by tiamat ("Just a Bronze-Age Gal, Trapped in a Techno-World!")
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To: Rubber_Duckie_27
"How on earth can someone buy a home and NOT know that they have to pay local taxes?"

There are lots of ways. One such way is that the lender refuses to pay those property taxes if you've failed to make your own payments to the lender.

63 posted on 06/07/2004 12:03:13 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: 3catsanadog

You poor thing!

You've been through a lot and you have my sympathy.

Will sister go in with you for a mobile home?

We just closed on one today. ( Downsizing from the big old house for various reasons) They can be very nice and the newer ones have neat features like sky-lights and fireplaces and spa tubs.

NOT at all a nasty old trailer!

I'll keep you in my prayers!


64 posted on 06/07/2004 12:03:23 PM PDT by tiamat ("Just a Bronze-Age Gal, Trapped in a Techno-World!")
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To: Mears

Wait until it hits here in Southern California. Hopefully, I will have taken my equity and left.


65 posted on 06/07/2004 12:06:02 PM PDT by Hildy (...love like you've never been hurt and live like it's heaven on Earth. - Mark Twain)
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To: ladywolf7
I live in a ~400K home in Northern Jersey...about 8500/year in taxes.

My best friend lives in a 880K (now worth about 1.2 million) house in Ringwood NJ and pays about 22k a year in property taxes. No sewers, no streetlights, just garbage pick-up.

All my money goes to the "disadvantaged children" in Newark, all his money goes to the "disadvantaged children" in Paterson.

must...leave...Jersey...
66 posted on 06/07/2004 12:08:26 PM PDT by motzman
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To: Southack
"How on earth can someone buy a home and NOT know that they have to pay local taxes?"

There are lots of ways. One such way is that the lender refuses to pay those property taxes if you've failed to make your own payments to the lender.

The lender refusing to pay the taxes because the homeowner has not made a mortgage payment translates to "not knowing that they have to pay local taxes" how?

Also, if memory serves me right, the buyer didn't set up an escrow account, so regardless of payment history, the lender is under no legal obligation to pay the taxes. And even with an escrow account the account holder is not legally obligated to pay your taxes if you have failed to pay the funds into the account.

67 posted on 06/07/2004 12:16:31 PM PDT by Phantom Lord (Distributor of Pain, Your Loss Becomes My Gain)
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To: motzman

I thought that in NJ the property taxes stayed in town, and the income taxes are what go to the Abbott districts.


68 posted on 06/07/2004 12:16:41 PM PDT by HostileTerritory
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To: Mr. Jeeves
Oh, but you are forgetting that everyone deserves to own their own home...

And "affordable" housing at that.

69 posted on 06/07/2004 12:18:42 PM PDT by yankeedame ("Born with the gift of laughter & a sense that the world was mad.")
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To: Mears

Pittsburgh has HUGE Plusses IMHO... its just got city and county leaders stuck in the past and a state that is very business unfriendly.

The only reason jobs moving here is the tax base, and the generally poor running of things by local governments.

You have a top 3 university, CMU you have 2 nationally ranked business schools CMU's GSIA and KATTS School of Business (U of PITT). You have a very low cost of living and housing, and a very long history of solid workers and educated work base.

You could open a business here paying employees $10-$20 an hour plus benefits and have quality applicants around the block waiting for jobs... yet due to the insane 9.9% corporate income tax at the State level, and rediculous other taxes and malfeasance at the local level... the area gets passed over again and again and again.

You can raise a family on 30k a year here.. you honestly can. Hell the median household income is around 38 or so. Its just sad that the leaders of the region and the state have their heads so far up their collective butts.


70 posted on 06/07/2004 12:26:04 PM PDT by HamiltonJay
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To: martin_fierro

Ha! I almost had to move to Long Island once. Yeah, I could swing the $700,000 for a home on the north shore, but the taxes were mind-boggling, like $15,000 to $20,000!!! I guess they have to pay for all the school computer admins skimming millions of dollars out of their budgets.


71 posted on 06/07/2004 12:27:34 PM PDT by eno_
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To: Willie Green
"Joyce Schachner, a food service employee, and her husband, who works odd jobs, made a $1,500 downpayment on his grandparents' home -- a two-bedroom, one-bath, 1,080-square-foot frame structure. The $44,900 mortgage came with 15 percent interest, about twice the market interest rate at the time. Although she knew their monthly mortgage would be $456, the couple didn't realize there also would be more than $1,000 annually in property taxes."

Something fishy here. Did you look at the picture? That's the biggest 1080 sf house I've ever seen.

Reminds of my Sister--bless her heart--(A phrase which any Southerner will tell you must immediately be placed after the name or description of someone you're really about to/have dis'd.). She and her ex-con hubby borrowed the down payment on a house from me a few years back. They moved in, made a couple of payments, then stopped. It took five years to kick them out. Five years of free rent, not bad, huh?

"And she's relieved that the anguish of their foreclosure and eviction is over."

Not to mention losing Granny's house. Or what this did to their kid. My Pop was a gambler (the bad kind). In 1959 he paid Cash for a house. In 1962 it was Repossessed. I am still embarrassed to this day.

How is being upside down on a high-interest loan on your Grandma's house GW's fault? The High-Interest, "Buy Here, Pay Here" Used Car lots have a high re-pop rate too, you know. No one's blaming that on GW, 'cept maybe you and Michael Moore.

72 posted on 06/07/2004 12:42:30 PM PDT by TommyUdo (John Kerry voted for the Vietnam War, before he voted against it.)
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To: Jimmy Valentine
I wonder how many people are "upside down" in their homes?

I'm afraid the numbers are pretty high. I imagine they've just about exhausted all of their resources trying to keep from losing their houses. I'm sure they've hit their families up for money to make their house payments, and probably maxed their credit cards cashing them out for money to pay their payments with. In the end, they're going to go bankrupt and take all their other creditors with them.

73 posted on 06/07/2004 1:36:53 PM PDT by NRA2BFree (I am a nobody, and nobody is perfect; therefore, I am perfect.)
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Comment #74 Removed by Moderator

To: TommyUdo
Something fishy here. Did you look at the picture? That's the biggest 1080 sf house I've ever seen.

Look closer.
See where the front porch has two front doors?
It's a duplex.
One family owns the left side, somebody else owns the right.

75 posted on 06/07/2004 1:48:31 PM PDT by Willie Green (Go Pat Go!!!)
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To: HamiltonJay

This couple was in culture shock at the low cost of living but loved the area.

They come from the city in the western suburbs of Boston where I live (median house price $650,000 as of today) and they loved it out there.Much more bang for the buck and similiar weather.

His job took them there and she had no trouble getting a great job. The needs of aging parents brought tham back or they probably would have stayed.


76 posted on 06/07/2004 3:17:06 PM PDT by Mears
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To: Graybeard58
I live in central Illinois and know where my property taxes go. About 90% goes to public schools.

Yep. Lousy schools, ignorant teachers -- I finally gave up fighting the system 3 years ago and started homeschooling.

I hate paying for something I'm not using.

77 posted on 06/07/2004 3:33:33 PM PDT by reformed_democrat
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To: Mears

Pittsburgh has jobs, however its a city still in decline... There are a few regional banks, the hospitals, the colleges, a small amount of steel still going on, Alcoa, USX headquarters, Federated, and various medium and small businesses....

However, compared to what it once had, or with the rest of the nation its economically dead. Pittsburgh internally does not have much capital investment and outside investment largely shys away from the region. This place should be a kicking hub of activity, but it isn't due to many factors. If policies were changed so that it wasn't so damned prohibitive in terms of taxes and regulation you couldn't keep companies away.

Pittsburgh really is nowhere near its potential and is far far from its glory days and continues decline. Gulf Oil left, Westinghouse gone, USAir headquarters gone.... etc etc etc... Most people have no idea how wealthy this town was at one point.


78 posted on 06/08/2004 7:08:52 AM PDT by HamiltonJay
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To: TheDon

" Although she knew their monthly mortgage would be $456, the couple didn't realize there also would be more than $1,000 annually in property taxes. "

What this country fails to "teach" its youth is BUDGETING and living WITHIN that budget. Parents and schools need to make this mandatory for future generations! A household should spend only 25% of their income on housing and utilities instead they're over extending themselves and blowing the extra cash they should save on frivilous items like cell phones, cable tv, ridiculous car payments, auto insurance, eating out four nights a week. $100 dollar gym shoes.


79 posted on 06/08/2004 7:14:40 AM PDT by SunnySide
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To: xcullen


And pray tell, why is the media not coming down on the county for its astronomical tax burden on these people? Why should the government tax people out of their homes, should be the question.


80 posted on 06/08/2004 7:18:10 AM PDT by kittymyrib
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