Skip to comments.North Miami mayor faces foreclosure
Posted on 03/03/2012 7:12:31 AM PST by Nicojones
This Article was carried in today's Miami Herald. What is shockingly sad that it was carried as straight news. The article failed to question the decision by this Mayor, a lawyer, to cease paying his mortgage "because its underwater" even after he was provided significant loan modifications, which included a reduced principal by over $125,000! Has the Government or anyone ever given you $125k and allowed you to live rent free?
Read the whole article here: http://www.miamiherald.com/2012/03/02/2671560/north-miami-mayor-faces-foreclosure.html#storylink=cpy
Pierre said when he bought the house he took out a 20 year loan of about $282,000. He said he was making monthly payments of roughly $3,250 on that loan. In November 2007, around the height of the real estate bubble, Pierre refinanced and borrowed $560,000 against the value of his home. He took out two loans, one for $417,000 and another for $150,000....
.....The 2,495 square-foot house was valued at about $233,552 in 2011, according to the county property appraisers office.
That same year his mortgage was modified to $432,538 with an interest rate of 4.375 percent annually for about 40 years.
Even with the modification, his mortgage was about $200,000 more than the assessed value of the home.
Pierre said he couldnt remember the last time he made a mortgage payment......
.....It seems to me the banks dont care about the people, Pierre said. He said he stopped paying his mortgage when he realized his home was underwater. If I can be negotiating with the bank and we are constantly on the phone trying to negotiate the best deal possible under the sun, then I can see how this is happening to ordinary folks.
Read more here: http://www.miamiherald.com/2012/03/02/2671560/north-miami-mayor-faces-foreclosure.html#storylink=cpy
What a waste of money (I'm sure the principal reductions were paid for with TARP or other tax money). He should of been foreclosed on years ago. Instead, he was allowed to live rent free, and the banks and we the taxpayers took on his loss. Unfortunately, the Communist rag known as the Miami Herald didn't delve into these issues while reporting this story. Sad indeed.
Curious how it got changed. Must be some kind of glitch.
I wonder if Pierre was singing the same tune when the bank gave him a second mortgage, then modified his loan at a $125K + interest loss? My guess is that the banks were good guys then.
he’s an educated Lawyer!
He’s a lawyer but what is his education?
Oh, having a budget I guess its not necessary to know.
Otherwise, its not about how awful a US President he is. Because he is without a doubt the worst. Its about the freebies ( if that means taking a crap on the USC),tax paying suckers.
Reach down and smite this man, lord!
How about the morality of having a monetary system where banks get to create $9 dollars for every $1 in “assets” and then you have to pay them back with interest? If banks are stupid enough to make loans to losers and said losers pay, they get huge bonuses and when losers don’t pay they force taxpayers to pay and still get huge bonuses...
If you want to talk about morality, nothing is less moral than our banking system. Screw the banks, every person with and underwater mortgage should default.
Maybe I’m missing something, but it looks like he took out a $417,000 home equity loan and now he doesn’t want to pay it back. And that’s after the bank took $125,000 off. Man, you can buy a really nice car for $125,000. Or, I should say, the bank bought him a really nice $125,000 car. Wish my bank would buy me a $125,000 car. What happens when those who play by the rules are punished, while those who cheat the rules are rewarded?
I agree with you on the no more intervention for homeowners and banks. However, the Government intervened in the mortgage and banking industry, forcing them to abandon sound credit requirements, for fear of being sued for discrimination. Yes, the banks should have fought back, but if the Government didn’t intervene in the housing/mortgage industry, we wouldn’t be anywhere near the mess that we are in. The concept of a “liar loan”, where there is minimal credit checks/due dilligence came out of FNMA/FHLMC underwriting standards, not the banking industry.
That is the best possible title for your post and it is a definite portent to a society that is low hanging fruit for tyrants.
We are begging to be slaves.
This immediately brought to mind a video I uploaded right before the financial meltdown and the real estate debacle began.
The warning that was the catalyst for making it was Jim Cramer of CNBC publicly advocating this type of behavior.
(My video quality left much to be desired back then as this was about 5 years ago.)
This guy looks like another Poster Child for an Obama give away.
Great video, publius321. What people don’t seem to realize is that this lack of integrity and responsibility transcends all of our current issues. The market moved against me, let the Government bail me out. I want to have lots of protected sex, let taxpayers buy my contraception, etc. We are on a death spiral as a Nation and most don’t even know it.
“Pierre refinanced and borrowed $560,000 against the value of his home.”
71k down in 2003
Borrowed $560k in 2007
valued at about $233,552 in 2011
“Pierre said he couldnt remember the last time he made a mortgage payment.”
Appears to me he put $560,000 in his pocket and has been living rent free for YEARS!
If his payments equaled rent when he did pay them he is still ahead by over ONE HALF MILLION DOLLARS.
Will this be shown as income on his taxes????
Mayor? This chump should not be a custodian!
What this shows is that connected and/or wealthy people live by a different set of rules, usually ones they make up as they go. The wealthier or better connected, the more extreme the difference in rule of law application.
I just saw the movie "Tower Heist" and the Alan Alda character was a prime example of this mentality, as is the current occupant of the white house and his co-conspirators. This is not a new mentality, as it has existed as long as there have been class/wealth/power levels. However, the biggest joke here is the lie that we all live by the same set of rules and consequences. This is why we all cheer when we see these powerful people fall after years of abuse of others. However, these are invariably the results of other powerful people taking umbrage with their competition for whatever reason and taking action against the now-fallen. Turf? Perceived slights? Whatever, this is a world and existence that the great majority of us never see and have no knowledge that it exists and what forms it takes, and that's the way these folks like it. In this case, this mayor is small potatoes in this world.
Watch, and learn...
(NOT A GOOD LOCATION FOR HOPE AND CHANGE:)
As of the census of 2000, there are 59,880 people, 20,541 households, and 13,577 families residing in the city. The population density is 7,080.0 inhabitants per square mile (2,732.8/km2). There are 22,281 housing units at an average density of 2,634.4 per square mile (1,016.9/km2). The racial makeup of the city is 34.8% White (18.1% were Non-Hispanic White,) 54.9% African American or Black (with a large majority being of Caribbean ancestry,) 0.3% Native American, 1.92% Asian, 0.1% Pacific Islander, 3.2% from other races, and 4.9% from two or more races. 23.2% of the population are Hispanic or Latino of any race.
Does that mean that the banks had no reason, no overwhelming financial incentive, to do NINJA loans? That is amazing information, considering my first job out of college was in a bank specialising in mortgages. Hedging mortgage bonds. Amazing information considering what I saw, and how it was necessary to keep the stream of loans coming since they were the raw material that fed securitisation. Even more amazing was the fact that when there were not enough people with messed up credit being given loans (that is there were not enough people taking loans from January 2007 until the crash of the Market) some of the bigger banks actually started taking triple-B tranches of subprime mortgages (basically stinkers of the worst kind) and using them to create CDOs, of which the 'best' would be triple A. The government sure forced the banks to do that, right?
Anyways, I have seen all sorts of myths about that crisis (and yes, they are myths). The fact is the CDO engine was making a lot of money for all involved, and there was huge incentive to keep loaning money to any breathing human being that could sign their name on a document. So much so that when, come 2007 heading into the fireworks later that September (and into the grinder that was 2008) banks were literally synthesising stuff since those warm bodies had started to taper off. Yes, the government does have some blame in all this. However, saying The concept of a liar loan, where there is minimal credit checks/due dilligence came out of FNMA/FHLMC underwriting standards, not the banking industry' is simply not accurate. The banking industry made money like crazy, and the Securitization Machine needed a lot of bodies to take out loans to supply the raw material, and when there were not enough of them what we were doing is taking absolute cr@p, creating a tower of bonds of them, having a rating agency say the topmost 80% of that cr@p was triple A, and voila - new material to sell to pension funds. If the government is guilty (it was) then the banking industry was guiltier 9 times over (if I use the money multiplier) and once I start adding leverage and looking at the CDS taken out on that stuff, many thousands of times as guilty. At the very least.
The banks want him to make 317 payments on a 40 year loan before the principal equals the current valuation... not a good deal for anyone .. I’d turn it down ... Curiously if it was refi’d at current valuation at the same rate for 30 years the payments would be identical .. Banks? F’Em
If you think this is the only thing this mayor has done, you would be wrong! He is the most corrupt politician holding office in South Florida right now! Here are links to a couple of my blogs about him. Enjoy!
Andre Pierre’s Corruption Body Count: http://www.votersopinion.com/?p=3057
North Miami: The hit’s just keep on comin’: http://www.votersopinion.com/?p=3384
OMG! WHAT A COINCIDENCE!: http://www.votersopinion.com/?p=3167
There are others, but these are the most recent. This guy needs to be removed from office by the governor. People in the community are working on it.