Posts tagged with: housing

detroitDetroit home owners are being put out of their homes, but it’s not because of bankers. Then by who?

It’s the Detroit city government seeking to collect back real estate taxes. There are always tax foreclosures, but foreclosures are growing from 20,000 in 2012 to an expected 62,000 in 2015. Who is putting poor people on the streets in Detroit? The government.

There is a twist here based on the fact that Detroit homes have an old (and therefore way too high) assessed valuation that the taxes are based on. So for the homeowners, it’s easier to let the property go into a tax foreclosure and then buy it back at a tax sale than it is to pay the overdue taxes based on assessed property values that have fallen 70% in recent years. People follow incentives.

We have a narrative in America stating that all financial evils come from the banks. Even Scott Burns used his space to hammer the banks for the 2008 collapse. His proof: The fines that large banks have paid to the government. (more…)

Blog author: jballor
Friday, March 9, 2007
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Joe Knippenberg reflects on President Bush’s speech earlier this week about advancing social justice in the Western Hemisphere:

Bush has lots to say about encouraging what he calls “capitalism for the campesinos.” He ties this to “social justice,” by which he means, above all, “meeting basic needs” to education, health care, and housing so that people can “realize their full potential, their God-given potential.” But social justice, thus conceived, doesn’t require massively redistributive government action; rather, it requires unleashing the potential of individual initiative, sowing some seeds, and leveraging the efforts of non-governmental organizations, especially faith-based ones.

In comparison to a speech from President Kennedy in 1961, Knippenberg concludes, “If you compare GWB to JFK, you’ll see that the goals aren’t all that different, but the thought put into the methods is.”

See also today’s WSJ editorial, “Capitalism for Campesinos.” More on Bush’s visit in the context of socialism in the NYT today.

Mortgage foreclosure rates soared 53 percent in August, compared with a year earlier, and many people who were eager to buy a house with low “teaser” interest rates and creative financing are in trouble. Acton Senior Fellow in Economics Jennifer Roback Morse expects new calls for goverment oversight of the mortgage industry, which is already highly regulated. A better idea, she suggests, would be for buyers to examine their motives for acquiring real estate with gimmicky loans and take some responsibility for their actions.

Read the full commentary here.

Blog author: jspalink
Wednesday, April 12, 2006
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In this week’s commentary, Jennifer Roback Morse takes a look at the socio-economic factors that influence the age at which young people aim to get married. Many are waiting. One reason why so many young people put off marriage unitl their late 20s or early 30s, says Morse, is that the cost of setting up an independant household is too high — unjustifiably high. Physically, humans are ready to reproduce in the mid-teens; financially, young people are not ready to be independent until their late 20s; the cost of housing and debt are often obstacles. During this waiting period — a time of sexual-economic tension — young people pick up many habits and expectations that are not compatible with maintaining a healthly marriage.

So, what can be done? Read Morse’s commentary to hear one approach to the problem.

On a related note – Zenit interviews Maggie Gallagher about the importance of a healthy marriage in the lives of children. In a nut-shell:

  • Marriage reduces the risk of poverty.
  • Fatherless households increase the risk of involvement in crime.
  • Marriage protects childrens’ physical and mental health.
Blog author: kschmiesing
Friday, January 6, 2006
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The Chronicle of Higher Education reports on the closing of a federal housing loophole. The full article is accessible only to subscribers, so I’ll summarize. College students for a number of years have been taking advantage of Section 8 (federally subsidized housing) rules to live in “projects” while they go to school. Such housing is, obviously, supposed to be for the needy, but decidedly un-needy students have been benefiting. The Des Moines Register originally investigated the story (described here) and Senator Tom Harkin of Iowa initiated the legislation to close the loophole. One student living at the expense of taxpayers was the son of the Univeristy of Iowa’s football coach, who earns $2 million per year.

So kudos to Harkin for addressing the issue. But the deeper and more intransigent problem is that massive government programs to help the needy will always be vulnerable to abuse. By necessity they must be subject to complicated and cumbersome bureaucratic rules, which cannot be adapted by administrators on the ground level making reasonable judgments. The existence of federal dorms for middle and upper class collegians over the last decade is only the latest example of the absurdity invited when the principle of subsidiarity is ignored.