Tax hikes: Another bitter pill for ho...

Tax hikes: Another bitter pill for homeowners in Central Florida

There are 383 comments on the Orlando Sentinel story from Feb 4, 2009, titled Tax hikes: Another bitter pill for homeowners in Central Florida. In it, Orlando Sentinel reports that:

Property values are plummeting across Central Florida -- by double digits in many areas -- leaving school districts and local governments bracing for service cuts and tax-rate hikes in the next budget year.

Join the discussion below, or Read more at Orlando Sentinel.

Citizen

Dallas, TX

#315 Feb 7, 2009
Betsy wrote:
<quoted text>
I teach the lower quartile high school students so I do have a very good idea of the kind of commitment and perseverance it takes to educate the masses. I also have a child who was recently accepted at UF, and I have a good idea of what it takes to get into a community college vs. a state university these days. I was shocked that students who struggle in remedial classes are often now at a community college. When I went to college in the 70's and 80's, it was only expected that the upper 25% of the student population would consider college. Now it is the expectation that all students will attend. I have sat in on conferences where parents have stated that their child must go to college, despite an IQ that barely touches the 100 line and despite a limited capacity for academic work. As long as a student gets a high school diploma they will gain acceptance in a community college.
There are far more opportunities for growth and enrichment than existed when I went to high school. It is the face of the workforce that is changing with more jobs requiring a college degree. It is no longer acceptable to be an average Joe. Many students need extra tutoring and attention and they will thrive, but others are simply not wired for higher academics.
However, it becomes tougher each year to gain admittance into a state university. At our high school, only students in the top 20 of the senior class were accepted at UF and they all had amazing extracurriculars, high ACT or SAT scores. Their GPA for AP and honors courses were typically 4.0 plus weighted or 3.8 unweighted. It is not enough to be a product of a gifted program. Universities are looking for well rounded high achievers and they are protective of their freshman statistics. Students who don't make the score often go to community college BUT that doesn't mean that community colleges only serve less capable students. They provide a valuable and economical means for many to attain a higher education.
If rental property is such a burden, Why bother? Not smart to continue beating a dead horse, no money in the business venture, dump it!
pending calamity

Cape Canaveral, FL

#316 Feb 7, 2009
okboston wrote:
<quoted text>
Great Cindi, but you neglected to mention a big difference between the Clinton and bush programs. Clinton had them paying a 1% premium over the conventional rate until they proved they could make the payments and then dropped the premium.
The bush plan had them pay much lower rates so they could qualify for the loan, and then increased rates so they got foreclosed on. This explains why the subprime loan failures come out of the 2002 - 2006 group and not the 99 - 2000 group.
"Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped."
This all started in 1999 because of the repeal of the Glass Steagall act that was put into place in 1933.
This disallowed banks and brokerages to comingle deposit accounts and make risky investments and loans.
So the market deregulated and gave everyone a license to steal.
Guess that these companies have proven that they can't be trusted to regulate themselves??

Level 5

Since: Aug 07

South Central Virginia

#317 Feb 7, 2009
pending calamity wrote:
<quoted text>
This all started in 1999 because of the repeal of the Glass Steagall act that was put into place in 1933.
This disallowed banks and brokerages to comingle deposit accounts and make risky investments and loans.
So the market deregulated and gave everyone a license to steal.
Guess that these companies have proven that they can't be trusted to regulate themselves??
Well of course they can not regulate themselves. They are like kids locked in a candy store overnight.

But after studying the situation a little, I have come to the conclusion the real culprits were CDO's, MBS's and other bundled securities that were not regulated. Bundling mortgages (MBS's) and then selling them relieved the original unnderwriters of the mortgage of any responsibility. Therefore, they did not care who they wrote a loan to because they could sell it.

Overnight, firms like countrywide sprang up and started business with 90+% of their loans in the subprime and Alt-A areas.

While there is a lot of usefulness in allowing MBS's, there should be a regulation holding the writer and the rating agency responsible for up to 10 years for at least a portion of the loans. This would make them act in a more responsible manner.
pending calamity

Cape Canaveral, FL

#318 Feb 7, 2009
okboston wrote:
<quoted text>
Well of course they can not regulate themselves. They are like kids locked in a candy store overnight.
But after studying the situation a little, I have come to the conclusion the real culprits were CDO's, MBS's and other bundled securities that were not regulated. Bundling mortgages (MBS's) and then selling them relieved the original unnderwriters of the mortgage of any responsibility. Therefore, they did not care who they wrote a loan to because they could sell it.
Overnight, firms like countrywide sprang up and started business with 90+% of their loans in the subprime and Alt-A areas.
While there is a lot of usefulness in allowing MBS's, there should be a regulation holding the writer and the rating agency responsible for up to 10 years for at least a portion of the loans. This would make them act in a more responsible manner.
"But after studying the situation a little, I have come to the conclusion the real culprits were CDO's, MBS's and other bundled securities that were not regulated. Bundling mortgages (MBS's) and then selling them relieved the original unnderwriters of the mortgage of any responsibility".

Very astute and almost 100% accurate. Who dealt in the CDO's, MBS's and other bundled loan packages and derivitives? WALL STREET

The only portion that needs accuracy, is that every loan closed, still hung around the neck of the company and the U/W, and resulted in "buybacks"

I live in Orlando, and I am way over the pay grade for being able to get this type of job, but the "hottest" job down here right now, is the reviewing of every loan made and sold, and trying to determine who owns it and who buys it back.
okboston

Prince George, VA

#319 Feb 9, 2009
Brian Patrick Clarke wrote:
<quoted text>
Thanks for the more-informed perspective, OKB. BTW, really sorry to read that you are now facing the prospect of an eminent domain issue. I will keep my fingers crossed for you and your family.
Who would have thunk it? I retire from the Army and build a house 80 miles straight line distance from the ocean and the Navy of all things is looking at my property.
okboston

Prince George, VA

#320 Feb 9, 2009
Conservative Republican wrote:
<quoted text>
Education from grades 1 through 8 are mandatory. Parents have choices: public school, private school; home schooling. Not educating their child is against the law, therefofe, it is not an option.
For simplicity's sake, parents should pay a percentage of the current [K-12] per-student state average funding level. For argument's sake, let's say the state average is $6,000. If we set the parent's contribution rate at 5% of that average, their "fair share" would be $300 per child enrolled in a public school. This seems fair to me. How about you?
Well, what about the people who have their children on the free/subsidized lunch program, how are they going to pay?

And again, you did mention about what happens if a parent does not pay, are there children denied an education? Are they thrown in jail?
okboston

Prince George, VA

#321 Feb 9, 2009
Clayton Bigsby wrote:
<quoted text>
Actually people do lose money FL on rentals. Unless you house id totally paid for the taxes insurance and repairs will be far more than the rents collected. And RENTS ARE FALLING!
Well currently we are in a special situation because we relieved lenders of the responsibility of being held accountable for whom they lent money to.

But, the vast majority of the time renting works out or it would not have been around nearly as long as it has.
doug diggler

Merritt Island, FL

#322 Feb 9, 2009
pending calamity wrote:
<quoted text>Bundling mortgages (MBS's) and then selling them relieved the original unnderwriters of the mortgage of any responsibility".
If someone sold them, someone had to buy them.
pending calamity wrote:
<quoted text> Who dealt in the CDO's, MBS's and other bundled loan packages and derivitives? WALL STREET
And who bought them?...Main street, not doing their homework and trying to keep up with the returns the Jones's were getting.

So who's at fault here? Ignorant, greedy "investors" or the people that take advantage of them?
okboston

Prince George, VA

#323 Feb 9, 2009
Conservative Republican wrote:
<quoted text>
First, to address your concern about poor parents paying a user fee: It will be the law, just like having property taxes confiscated from our bank accounts. Parents will have to find a way to pay. Taking a second job or getting a lazy spouse to work comes to mind. In the end, it's their responsibility to pay their fair share of the cost burden. After all, they had the children; they are obligated to find a way to pay for them. Second, we taxpayers directly benefit from not having our taxes increased.
As you see, there's a simple solution to a simple problem. All it takes is societal will to make the legislative changes.
If you check, I think you will find they do not take property taxes out of your checking account. They take the property and sell it at auction to the highest bidder.

I think the enforcement costs alone would more than make up the difference so your taxes do not change.
okboston

Prince George, VA

#324 Feb 9, 2009
Clayton Bigsby wrote:
<quoted text>
Take it out of their income tax refund, stimulous payment, or garnish their bank account. IRS DOES IT ALL THE TIME. NO PROBLEM!
Allowing the IRS to have that power is bad enough. Do you really want the your checking/savings account held at the mercy of the local school board? Remember, the State of Florida can not even get a correct list of who is eligable or ineligable to vote, and you want them to be able to get into your bank accounts!
okboston

Prince George, VA

#325 Feb 9, 2009
pending calamity wrote:
<quoted text>
I have a rental in Deland that I rented to 2 Stetson girls. I figured since the tuition was $40K a year, I could trust the stream of income and their character.
My PITI is $2500 a month and the lease was for $1500 a month. They could not get along, and now I am only getting $750 a month for a 3/3 2300 sqft remodeled home with a screened pool.
I bought it in May of 2006 for $268K and it is worth $187K now.
Unfortunately, I am going to let this one go.
I am sorry to hear that PC. But I have to say,$81/sq ft sounds pretty close to right.
okboston

Prince George, VA

#326 Feb 9, 2009
Clayton Bigsby wrote:
<quoted text>
All the liberals on this board seem to think that anyone who has any rentals at all makes huge money and there is no downside.
Even a third grader could do the math on a rental and tell you with property values dropping and taxes increasing it doesnt make any sense anymore
Cant explain that to politicians or liberals though!
No, I agree with you. But these are unusual times with properties resetting to values of 5 - 7 years ago and with the number of vacancies/repos, localities have to increase taxes at the same time to make ends meet.

I hope all the idiots that think business is self-regulating will rethink what they think they know.
okboston

Prince George, VA

#327 Feb 9, 2009
pending calamity wrote:
<quoted text>
"But after studying the situation a little, I have come to the conclusion the real culprits were CDO's, MBS's and other bundled securities that were not regulated. Bundling mortgages (MBS's) and then selling them relieved the original unnderwriters of the mortgage of any responsibility".
Very astute and almost 100% accurate. Who dealt in the CDO's, MBS's and other bundled loan packages and derivitives? WALL STREET
The only portion that needs accuracy, is that every loan closed, still hung around the neck of the company and the U/W, and resulted in "buybacks"
I live in Orlando, and I am way over the pay grade for being able to get this type of job, but the "hottest" job down here right now, is the reviewing of every loan made and sold, and trying to determine who owns it and who buys it back.
A Buy Back clause? How does that work?
okboston

Prince George, VA

#328 Feb 9, 2009
doug diggler wrote:
<quoted text>
If someone sold them, someone had to buy them.
<quoted text>
And who bought them?...Main street, not doing their homework and trying to keep up with the returns the Jones's were getting.
So who's at fault here? Ignorant, greedy "investors" or the people that take advantage of them?
I have to fault the "greedy" lenders. The people who took out the mortgage had already proven they did not know jack about borrowing as evidenced by their low credit score which put them in the sub-prime category to begin with.
pending calamity

Cape Canaveral, FL

#329 Feb 9, 2009
okboston wrote:
<quoted text>
I am sorry to hear that PC. But I have to say,$81/sq ft sounds pretty close to right.
It is now.
Brian Patrick Clarke

United States

#330 Feb 9, 2009
okboston wrote:
<quoted text>
Well, what about the people who have their children on the free/subsidized lunch program, how are they going to pay?
And again, you did mention about what happens if a parent does not pay, are there children denied an education? Are they thrown in jail?
Ah, but your questions are much too logical, OKB. That's the "hook" in all of this "make THEM, not me pay" malarkey.
pending calamity

Cape Canaveral, FL

#331 Feb 9, 2009
okboston wrote:
<quoted text>
A Buy Back clause? How does that work?
I have worked in the wholesale mortgage market for 5 years. first for a company called First Magnus. We had "creidt wires" with Country Wide, Auora(Lehman Brothers), Wells Fargo and Chevy Chase.
This allowed us to offer programs from all those banks rather than just from one.
We U/W and closed the loan under our name, then sold it to that specific investor as soon as we could, so that would open us up to being able to make another loan.
We operated under each of the separate guidelines that the banks gave us.
Once the loan was sold to them, they reviewed it for errors, and if it was minor, we fixed it and got an additional document from the Mortgage Broker. If there was a major "error", it would be rebid on by the bank who had it, and they might only pay 90 cents on the dollar, which would give us a net of only $180K on a loan closed for $200K.
If there was previously undetected fraud or a complete shambles made in U/W the loan, or the borrower missed their first payment, we bought the entire loan back.
Just 2 years ago, there were 300 more wholesale lenders and banks than there are now. Go to http://ml-implode.com/
Hope this helps
elaygee

Winter Park, FL

#332 Feb 9, 2009
FYI - Under Stalin and all other Communist dictatorships, there were NO income taxes, zero, zip, nada. Since the government owned everything, they just took what they wanted and left a pittance for the workers.

Taxes are what makes a civilization. No taxes then no rule of law. No taxes then no hospitals, no roads, no defense, no nothing. And if any of you have ever traveled anywhere in the world, the NICEST places have immensely high taxes and the armpits of the world have no or low taxes. We fall somewhere in between.
okboston

Prince George, VA

#333 Feb 9, 2009
pending calamity wrote:
<quoted text>
I have worked in the wholesale mortgage market for 5 years. first for a company called First Magnus. We had "creidt wires" with Country Wide, Auora(Lehman Brothers), Wells Fargo and Chevy Chase.
This allowed us to offer programs from all those banks rather than just from one.
We U/W and closed the loan under our name, then sold it to that specific investor as soon as we could, so that would open us up to being able to make another loan.
We operated under each of the separate guidelines that the banks gave us.
Once the loan was sold to them, they reviewed it for errors, and if it was minor, we fixed it and got an additional document from the Mortgage Broker. If there was a major "error", it would be rebid on by the bank who had it, and they might only pay 90 cents on the dollar, which would give us a net of only $180K on a loan closed for $200K.
If there was previously undetected fraud or a complete shambles made in U/W the loan, or the borrower missed their first payment, we bought the entire loan back.
Just 2 years ago, there were 300 more wholesale lenders and banks than there are now. Go to http://ml-implode.com/
Hope this helps
It does, but I was looking for info that would hold the underwriters accountable 2 - 3 years after the loan closed and sold.

It sounds like errors discovered quickly trigger the process as would a missed first payment. But after 24 payments are made, whoever bought the loan is stuck.
okboston

Prince George, VA

#334 Feb 9, 2009
Brian Patrick Clarke wrote:
<quoted text>
Ah, but your questions are much too logical, OKB. That's the "hook" in all of this "make THEM, not me pay" malarkey.
What? You mean someone would rather someone else pay than do their duty now that they have taken advantage of the system? Isn't that in the Republican Party Platform someplace?

NOTE: I am not really against Republicans per se. I have voted Republican in the past. But in the past Republicans were conservative, moral and ethical. Sad to say, with all of their faults the Dems are still ahead (meaning they are more fiscally sound, more moral and more ethical than Reps) of the Republicans in those areas.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Orlando Discussions

Title Updated Last By Comments
News Barack Obama, our next President (Nov '08) 20 min Grey Ghost 1,483,226
Double Fun Word Game (Mar '11) 1 hr Tn Guy 13,171
subs weed roofiess Xanies bar,Blues,oc's,molly 8 hr sisi 1
keep a word----drop a word (Feb '11) 9 hr Princess Hey 19,333
News Once slow-moving threat, global warming speeds ... (Dec '08) 12 hr Patriot AKA Bozo 62,981
News Missing 5-year-old Florida girl likely was abdu... (Feb '09) 18 hr zazz 98,316
News Faces Drug Charges (Aug '08) 21 hr Mt Vernon Rd resi... 15

Orlando Jobs

More from around the web

Personal Finance

Orlando Mortgages