Michigan and what the Democrats have done..
A newspaper article reports that 400 homes have been foreclosed on in a small city that I was born and raised in. They also mention that 200 to 300 more houses will be next. I didn't think this city had that many homes in it, but I am too lazy to look it up in the census.
Speaking of the Census, that's right around the corner, with them advertising for help right now. Michigan will show that it has lost a huge amount of people, along with a huge tax base. The Census should skip the long form in this state. Speaking of the long form, has anyone ever seen that huge invasion of privacy? Ive gotten 3 of them, they seem to think if they keep sending them to me, Ill finally fill them out. Call your lawyer, they are very unconstitutional.
But what has happened to this small city is that property taxes are not being paid. People that cant pay the mortgage, cant pay the taxes. So the city is struggling while still trying to pay their employees and government what they think they are worth. And while all of this is going on, the wonderful city is going around putting red stickers on these empty homes so that it looks like a slum, with the big red arm of the law making its presence known.
You see, the city thinks that if you move, they have the right to inspect the home for safety. (Safety, my ass) And they pass the cost onto you or the tax rolls for the new buyer. Not only will you pay back property taxes, but you will pay an inspection tax also. Landlords that would normally see a deal have said forget it, because of the government intrusion, which they deemed that renters have more rights than we do. They inspect rental properties every year, at 180 bucks a pop.
The city tells the landlord what to fix, and don't even think of not doing it, or a red sticker will appear. The RED STICKER will not allow anyone to live there.Also, as a landlord in Michigan, you get the honor of paying 35% more in property taxes, courts that think landlords are slumlords, courts that think you are made of money, and usually rule for the tenant even if they destroy your property and refuse to pay the rent.
Even apartment buildings are subject to these crazy inspections every year, (the city has had to hire people to keep up, at first anyway) so you have the invasion of privacy on the renter, so the city can turn on lights and flush the toilet.What has resulted, is that landlords are running for the hills.
You might think that all these foreclosures are a result of sub-prime lenders. Think again. Landlords that took out a mortgage and now face all these costs and regulations have their own homes, and since they aren't making any profit, they are also letting these homes go. They lose the initial investment of 20% down, but many are saying its not worth it, let the bank have it.The prices that they are selling for is so low right now, that they cant sell them to recoup their investment.
Investors that want to try being a landlord are not interested, and normal buyers are not interested in catching up the taxes that are behind, along with any repairs that the city has cited.So, this grand experiment of the city to get more money from everyone, has resulted in a huge backfire of people saying screw it. They actually prefer the damage to their credit for 7-10 years than taking a huge loss that they cant afford.
The city is broke, the citizens are broke, and the red stickers are plenty. So, do you think the city would take a look at what they have done? Maybe change that and lay off people that make a whole lot of money telling others what to fix and what not to? Do you think the city would find a way to cut things to make it work? Offer incentives to sell these homes that are sitting empty rotting away?Oh, hell no. This middle class small city government says better days are ahead of them! No, better days were behind them.
Even apartment owners are selling the land, or making them into condos to get away from the city and its regulations. Renters are going to the outlying cities to rent because even they don't like the intrusion of government coming into their homes once a year.
As a retired Realtor, I would never buy one of these properties, even though I would love to get my one daughter into a home that she could possibly rent to own. But because I already own a home, a rental would cost me (and her) more taxes, yearly inspections of 180. bucks, plus any repairs that they deem for me to fix, and its just not worth it. So, this small city becomes a slum.
It shows what Democrats can do to a city, and a state, in a short amount of time.So, the Blue states lose residents, as the Red states prosper. It clearly irritated me enough to send off a letter to one of the councilman and ask "How's that working out for you?".
That was last week, and I have not gotten an answer.Because I am one that is in a position to buy one of those homes, instead, Ill save my money and watch it all go to hell.
That's the city where I was born. That's the city where my children were born. That's the city where my grandchildren were born. Now its where none of us live.