Why I Changed My 2008 Vote From Obama to Romney

A Northern California newspaper that owns the Oakland Tribune and the San Jose Mercury News, made a recommendation that Obama should be re-elected. The reasoning that they provided in support of its endorsement for the re-election of President Obama was flawed and follows the typical belief of the left leaning media. As someone who voted for Obama in 2008, I have seen the error of my ways.

1. The Economy - They said that Obama had inherited the worst recession since the Great Depression. The economy has experienced recessions as bad as the one inherited by Obama. In the Carter years there was double digit inflation and double digit interest rates, neither of which was faced by Obama.

They pointed to the Dow doubling since Obama took office, but they did not look to see why that happened. Although the TARP program was initiated by Bush, Obama administered much of it and provided billions of dollars to the financial sector with no strings attached. That was followed in February 2009 with the American Reinvestment Act which provided $800 billion to "stimulate the economy." Instead of working with the core of the problem which they had helped create, namely the collapse of the housing market, the banks invested in the stock market, which drove the prices higher. They then cashed in slowly, paid back the loans, and started paying outrageous bonuses to themselves again. I have talked to hundreds of individuals who have been destroyed by these policies, and know of four who committed suicide. They are not better off than four years ago.

They also claimed that Obama "saved" the auto industry, pointing to General Motors. In reality, I think it is important to note that General Motors did exactly what Romney had suggested, which was to go through bankruptcy. By doing so, they were able to void their contract with Toyota regarding Nummi, which cost the Bay Area tens of thousands of jobs. The money that the taxpayers provided to GM, which we will never get back, went to shore up the Auto Workers Union. California is a lock for Obama, so he needed to structure the GM bailout to take care of the Ohio and Michigan voters.

2. Foreign Affairs - Contrary to their opinion letter, Bin Laden was not an accomplishment for Obama. Rather, it was an accomplishment for the CIA and the interrogation techniques that Obama disapproved. When he called on the Navy Seals, they got Bin Laden. When the Seals called on Obama in Libya on September 11th this year, they got denied.

The doctor in Pakistan who provided us with the precise location of Bin Laden was arrested by the Pakistani government and is sitting in jail, without hardly a complaint from Obama. His entire Middle East policy is a failure because that region has no respect for the United States.

3. Domestic Issues - While I agree that our health care issues need to be addressed, Obamacare is not the answer. Of course those with pre-existing conditions will agree that Obamacare is great. Think about it, though. If I wrap my car around a tree and am uninsured, should I be able to call an insurance company, purchase a policy and ask them to fix my car? Health care issues must be addressed, but it must take into account tort reform, availability of health providers, business interests and how to handle the poor without penalizing someone who can afford an enhanced health insurance policy.

We cannot continue to spend more than we take in, nor can we depend on the federal government to provide the incentive to create jobs through bureaucratic control.

Finally, I agree that people who were brought into the country illegally should not be held responsible for what their parents did bringing them here. However, I cannot support Obama's rejection of the U.S. Constitution, which requires laws to be created in Congress and enforced by the President. He has unilaterally made his own law and decided what laws would be enforced.

Eventually, when the federal government gets big enough, the first amendment might be ignored, much like the 10th amendment is, and "Freedom of the Press" will give way to government ownership of business, not unlike GM and AIG.

Based upon the many failures of Obama over the past four years, and the lack of any substantive plan, I will be changing my vote to Mitt Romney.

A New Christmas Tradition

I cannot claim originality on this, but it meant enough to me to share.

As the holidays approach, the giant Asian factories are kicking into high gear to provide Americans with monstrous piles of cheaply produced goods -- merchandise that has been produced at the expense of American labor.

This year will be different. This year Americans will give the gift of genuine concern for other Americans. There is no longer an excuse that, at gift giving time, nothing can be found that is produced by American hands. Yes there is!

It's time to think outside the box, people. Who says a gift needs to fit in a shirt box, wrapped in Chinese produced wrapping paper? Here are some ideas:

Everyone -- yes EVERYONE gets their hair cut. How about gift certificates from your local American hair salon or barber?

Gym membership. It's appropriate for all ages who are thinking about some health improvement.

Who wouldn't appreciate getting their car detailed? Small, American owned detail shops and car washes would love to sell you a gift certificate or a book of gift certificates.

Are you one of those extravagant givers who think nothing of plunking down the dollars on a Chinese made flat-screen? Perhaps that grateful gift receiver would like his driveway sealed, or lawn mowed for the summer, or driveway plowed all winter, or games at the local golf course.

There are millions of owner-run restaurants -- all offering gift certificates. And, if your intended isn't the fancy eatery sort, what about a half dozen breakfasts at the local breakfast joint. Remember, folks this isn't about big National chains -- this is about supporting your home town Americans with their financial lives on the line to keep their doors open.

How many people couldn't use an oil change for their car, truck or motorcycle, done at a shop run by the American working guy?

Thinking about a heartfelt gift for mom? Mom would LOVE the services of a local cleaning lady for a day.

My computer could use a tune-up, and I KNOW I can find some young guy who is struggling to get his repair business up and running.

OK, you were looking for something more personal. Local crafts people spin their own wool and knit them into scarves. They make jewelry, and pottery and beautiful wooden boxes.

Plan your holiday outings at local, owner operated restaurants and leave your server a nice tip. How about going out to see a play or ballet at your hometown theatre.

Musicians need love too, so find a venue showcasing local bands.

Honestly, people, do you REALLY need to buy another ten thousand Chinese lights for the house? When you buy a five dollar string of light, about fifty cents stays in the community. If you have those kinds of bucks to burn, leave the mailman, trash guy or babysitter a nice BIG tip.

You see, Christmas is no longer about draining American pockets so that China can build another glittering city. Christmas is now about caring about US, encouraging American small businesses to keep plugging away to follow their dreams. And, when we care about other Americans, we care about our communities, and the benefits come back to us in ways we couldn't imagine.

How about just taking the time to make your own, personal Christmas card with your words from your heart to show how you appreciate your friends and loved ones.

THIS needs to be the new American Christmas tradition.

Feel free to share this with anyone you want.

New California Anti-Deficiency Law

Last week, on July 11, 2011, California governor Jerry Brown signed into law a new law to combat deficiency judgments by holders of non-purchase money junior mortgages (second or third mortgages) when the lender has accepted funds during a short sale transaction. This law protects homeowners who refinanced a loan after the original purchase loans. This was Senate Bill 458, and amends the language to the California Code of Civil Procedure §580e.

Previously, a junior mortgage holder of a refinanced loan had the right to collect on any balance unpaid after the sale of the transaction. In many cases, they specifically stated in their short sale approval documents that they retained the right to seek collection of any deficiency.

In January of 2011, a similar law went into effect that eliminated the right of a first lender of a refinanced loan to seek a deficiency judgment after a short sale. However, it did not affect secondary loans after the short sale transaction. As with all laws aimed at stemming the tide of foreclosures and distressed property sales, there is bound to be some confusion in the interpretation of these laws.
The new law only affects real estate of one to four units, and will have no impact on short sale transactions with bare land or commercial property, such as apartments, office buildings or retail locations.

In essence, the law states that if a junior lender accepts any money to release its lien against the property, it will be deemed to have executed a non-judicial foreclosure of the property. Since a California has what is known as a “One Action” rule, a non-judicial foreclosure bars any further attempts to collect on a deficiency. Therefore, if the lender accepts any money during the short sale transaction, it is the only “action” that they can take.

The law also prevents the lender from slipping in a piece of paper in the documents being executed by the sellers in which the sellers “waive their rights” under this law. Any such document will be void as against public policy.

What is going to be the result from this new law? I believe that there are three possible directions that lenders will take.

1. The first possibility will be that the junior lenders will take a stronger stand during the short sale transaction, and demand more money at the time of the sale. I have already seen situations where Chase, when in first position, will offer a second no more than $3,000-$5,000. However, when they are in second position, they are demanding $15,000.00! This could get even worse in the future.

2. The next possibility will be that they refuse to release their lien, and let the first go ahead with foreclosure. The first lender will be stuck with the property and no recourse for any deficiency, but the junior lender will only lose its security (which was probably already worthless) and still have the right to obtain a deficiency judgment.

3. The other possibility is that the junior lender will simply release its lien, without receiving anything of value to do so. As in the situation where they allow the first to foreclose, the junior lender will be free to pursue its deficiency remedies.

This is going to put real estate agents in a very dangerous position, and I will explain why. Whenever anyone approaches a lender requesting a short sale, what is the first thing that the lenders say? They say, “We need the last 2 years of tax returns and three months of bank statements.” I often wonder why they need these items, because in most cases they were not requested when the original loan was made. Te question is, do they really NEED this information, or do the just WANT this information?

When this information is provided to the lender or servicer, they are given all of the information that they need to decide if the seller has enough assets to warrant them pursuing the owner with a lawsuit. If a lender refuses the short sale, and instead sues the homeowner for a money judgment, would the real estate agent who gave the lender the information, or recommended to the seller that they do so be liable for a breach of fiduciary duty? It is a possibility that such could be the outcome.

In my opinion, and I have done this many times with lenders, the lender and servicer needs to know only a few things. They are, a) the Fair Market Value of the Property, b) the offer that has been obtained to purchase the property, and c) that the owner does not intend to make any more payments. The real estate industry has been caving in to the lenders demands for too long, and it is time to take control back.

Help your California clients know their rights and obligations under the law before you start on the short sale route. Check out the video at http://www.lawken.com/ss.htm . These are serious times, and everyone needs to know where they stand.