Rich And Famous Face Foreclosure Crisis

April 9, 2010

Nicolas Cage in Washington, D.C.
Image via Wikipedia

An article in the Wall Street Journal today says that homes with loans over $5 million will likely see a spike in foreclosure sales this year.

It is hard for most people to imagine paying $5 million for a home, but there are several examples of millionaires in foreclosure in the article.

Mentioned prominently is actor Nicholas Cage. A Bel-Air home he owns that is said to be worth $35 million was returned to the lender after receiving no bids at a foreclosure auction in California Wednesday. The star declined to comment on the situation, according to the paper.

I guess if you don’t want a $35 million home and you can’t sell it, you might as well turn it back to the bank that loaned you the money to buy it.

A former top Wall Street executive has used bankruptcy to stop foreclosure on his 14-acre Westchester New York estate. Richard Fuscone, who once was head of Merrill Lynch’s Latin American operations, filed personal bankruptcy to stop the sale of his home at auction Thursday, according to the Journal.

Fuscone is quoted from his bankruptcy declaration as having been “personally devastated by the financial crisis.” Many across the country can understand this devastation as they continue to lose their homes to foreclosure.

Justice Stevens To Retire

April 9, 2010

Justice John Paul Stevens, the oldest member of the U.S. Supreme Court, has made it official that he will step down at the end of the court’s term this summer. The announcement comes just 11 days before the justice will celebrate his 90th birthday and ends weeks of speculation that he was considering retirement.

Justice Stevens’ retirement will give President Barack Obama his second appointment to the high court.

Over One Million Households Lost In Recession between 2005-2008?

April 8, 2010

A study released by the Mortgage Bankers Association says that the U.S. lost 1.2 million households to the recession by the end of 2008. A staggering number considering that the number of job losses and foreclosures continued to climb and set records in 2009.

The study suggests that most people are doubling up by moving in with friends or family instead of renting post foreclosure.

Foreclosure rates have tapered off, but according to an economist at Fannie Mae there are some 5 million homeowners are 90 days or more past due. Some feel there is a back log of foreclosures that banks are working through the government programs available to keep homeowners in their homes.

One way to stop foreclosure on your home is to file bankruptcy, but if you can’t afford to continue to make the payments you are likely to lose the house even in bankruptcy.

Facing financial problems can be difficult. Take advantage of any help you can get to plan your way out of debt. Credit counseling services can help, but a bankruptcy attorney can work with you understand how you can legally clear you debts.

Dallas County’s DA Dust Up Draws Tarrant County District Judge From Office

April 1, 2010

The Star-Telegram is reporting that 342nd District District Judge Bob McGrath will resign to take a position as legal adviser to the Dallas County Commissioners Court. The court approved hiring McGrath to the $139,971-a-year job on a 4-1 vote.

The court has clashed with Dallas County District Attorney Craig Watkins over investigations in to the constable’s offices, voter fraud and other issues in the county. Dallas County Commissioners decided to hire an outside legal adviser in January after a resolution could not be reached with Watkins and his staff.

Judge McGrath was not up for reelection this year, but if he resigns  his post will be automatically placed on the November ballot. Executive committees of the Republican and Democratic parties will choose candidates to be added to the ballot for the race. Independent and third-party candidates will also have the option of running.

A replacement could be appointed by Governor Rick Perry to serve in the judge’s post until the election is held and winners are certified.

The disagreements between the Dallas County Commissioners Court and District Attorney’s office keep making news.

Watkins office has reportedly turned down two offers of assistance from the Texas Attorney General’s Office in connection with an investigation into alleged corruption in one of the county’s constables office.

Members of the court have recently been calling for Watkins to step down, claiming his lack of action on the constables office investigation is due to both he and the constable being Democrats.

Watkins has refused to comment on the matter, citing a pending investigation.

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