[jonnycsd]

Once they take her to court and get a judgement they can put a lein on any real property – car, jewelry, etc. They can, with no notice, suck money out of checking and savings accounts, brokerage accounts and any other finanical assests (retirement assets are exepmt). They can levy her wages and take 50% to 65% of wages depending on the situation.

Rather than BK it would be better to try to negotiate a settlement with the card companies. Try starting with 20 cents on the dollar and removal of negative credit marks.

Use an attorney and threaten BK.

Do not use one of the “counselling” agenecies. They are funded by the card issuers and just try to get as much money out of people as they can.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Bill Gross (of PIMCO fame) called for a big increase in Federal spending on infrastructure, etc. back in February – an interesting read for anyone on this thread.

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+February+2008.htm

[jonnycsd]

Bill Gross (of PIMCO fame) called for a big increase in Federal spending on infrastructure, etc. back in February – an interesting read for anyone on this thread.

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+February+2008.htm

[jonnycsd]

Bill Gross (of PIMCO fame) called for a big increase in Federal spending on infrastructure, etc. back in February – an interesting read for anyone on this thread.

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+February+2008.htm

[jonnycsd]

Bill Gross (of PIMCO fame) called for a big increase in Federal spending on infrastructure, etc. back in February – an interesting read for anyone on this thread.

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+February+2008.htm

[jonnycsd]

Bill Gross (of PIMCO fame) called for a big increase in Federal spending on infrastructure, etc. back in February – an interesting read for anyone on this thread.

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+February+2008.htm

[jonnycsd]

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

The whole idea of a capitalist system is that people who make poor capital investment decisions with THIER money do not get to keep it – rather capital accures to others who make good decisions and flees those who make poor ones. The lenders who abdicated thier responsibilities and MISALLOCATED thier capital into BAD LOANS should loose it to people who can be better shepards.

Dotherightthing – it is not your responsibility that some idiot lender made the decisions they did with THIER money. You should act within the boundaries of the law to maximize your outcome. It is a business question, not a moral question. If you doubt that it is all about business, ask yourself how many days reprieve on foreclosure and eviction that any lender would give to people whith hardship if it was going to cost them money? NOT ONE DAY. They would (and DO!) boot the bewlidered elderly coupe onto the street. They would (and DO!) have the sherrif remove cyring children and pile the toys and clothes on the curb.

Ironman’s idealism has no bearing on the reality of this industry. It is ruthless and you should play savy hardball.

[jonnycsd]

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

The whole idea of a capitalist system is that people who make poor capital investment decisions with THIER money do not get to keep it – rather capital accures to others who make good decisions and flees those who make poor ones. The lenders who abdicated thier responsibilities and MISALLOCATED thier capital into BAD LOANS should loose it to people who can be better shepards.

Dotherightthing – it is not your responsibility that some idiot lender made the decisions they did with THIER money. You should act within the boundaries of the law to maximize your outcome. It is a business question, not a moral question. If you doubt that it is all about business, ask yourself how many days reprieve on foreclosure and eviction that any lender would give to people whith hardship if it was going to cost them money? NOT ONE DAY. They would (and DO!) boot the bewlidered elderly coupe onto the street. They would (and DO!) have the sherrif remove cyring children and pile the toys and clothes on the curb.

Ironman’s idealism has no bearing on the reality of this industry. It is ruthless and you should play savy hardball.

[jonnycsd]

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

The whole idea of a capitalist system is that people who make poor capital investment decisions with THIER money do not get to keep it – rather capital accures to others who make good decisions and flees those who make poor ones. The lenders who abdicated thier responsibilities and MISALLOCATED thier capital into BAD LOANS should loose it to people who can be better shepards.

Dotherightthing – it is not your responsibility that some idiot lender made the decisions they did with THIER money. You should act within the boundaries of the law to maximize your outcome. It is a business question, not a moral question. If you doubt that it is all about business, ask yourself how many days reprieve on foreclosure and eviction that any lender would give to people whith hardship if it was going to cost them money? NOT ONE DAY. They would (and DO!) boot the bewlidered elderly coupe onto the street. They would (and DO!) have the sherrif remove cyring children and pile the toys and clothes on the curb.

Ironman’s idealism has no bearing on the reality of this industry. It is ruthless and you should play savy hardball.

[jonnycsd]

I think you are very “easy going” and carefree when it comes to speculating with other people’s money but you are very prudent when it come to saving yours.

The whole idea of a capitalist system is that people who make poor capital investment decisions with THIER money do not get to keep it – rather capital accures to others who make good decisions and flees those who make poor ones. The lenders who abdicated thier responsibilities and MISALLOCATED thier capital into BAD LOANS should loose it to people who can be better shepards.

Dotherightthing – it is not your responsibility that some idiot lender made the decisions they did with THIER money. You should act within the boundaries of the law to maximize your outcome. It is a business question, not a moral question. If you doubt that it is all about business, ask yourself how many days reprieve on foreclosure and eviction that any lender would give to people whith hardship if it was going to cost them money? NOT ONE DAY. They would (and DO!) boot the bewlidered elderly coupe onto the street. They would (and DO!) have the sherrif remove cyring children and pile the toys and clothes on the curb.

Ironman’s idealism has no bearing on the reality of this industry. It is ruthless and you should play savy hardball.

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