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It has been said by many experts in the real estate field that we will never see this gravy train again with property owners yielding unbelievable profits that they enjoyed during the boom. They bought houses not only to provide a roof over their heads but also to reap rewards beyond imagination. Some bought just to flip and sell quickly to make small fortunes. For about a four year period, others took advantage of the unrealistic values in property going north and became wealthy through refinancing.
"Over the four-year period 2003-2006, annual construction spending rose to a level $150 billion above and then fell back to its long-run trend. Thus by the start of 2007, the United States was overbuilt: about $300 billion had been spent constructing buildings in excess of the long-run trend." Source: Pig Philosophy. The bubble burst and a lot of people got caught holding the bag.
We in the grassroots who fought hard for Amendment 4 could not fight the developer and special interest money. Our State was overbuilt but they still wanted to build more--still do. We changed our State leadership and Rick Scott gutted the DCA and other oversight. Now it will be up to the local municipalities to control bad development. Here in Lake Worth, that means 3 people sitting on the dais.
Bubbles always burst and when the housing bubble finally did, everyone was sitting with property they could not sell without taking big losses and property they could no longer afford. Banks created a big mess.
The Realtors Association has endorsed Triolo and Amoroso. The Realtors Association has one agenda--vote in candidates that will be the best for their members to make sales thus commissions. It is all politics and who they feel will be the best for their special interests.
But what the financial institutions also created was a refinancing mechanism for people to use during the boom times--refinancing and drawing thousands and sometimes hundreds of thousands of dollars out of a property that was artificially inflated. This equity also was used for people that were going through difficult financial times. No question about it; because of refinancing, more people became part of the foreclosure crisis unable to make their payments when the bubble burst and property values took a death spiral. Others lucked out as they had already extracted the equity and walked away.
During the first candidate forum by Tropical Ridge Neighborhood Association held at Compass, we had to listen to Dustin Zacks berate and humiliate Rachel Waterman and her financial problems. He implied that she was the biggest deadbeat in the history of mortgage scams. She got into financial difficulties as so many millions of people did during those boom years. As an attorney specializing in foreclosures who has proved that the banks were the fault, he blamed it on the person, the candidate, Waterman. Zacks is still a mystery of this campaign.
All of the candidates sat silently by as Zacks took personal attacks at Waterman for a default on her mortgage and other loans. Ms. Triolo also told us that she was the only candidate who owned a house. She was lucky during the boom. As property values kept going up at an unheard of percentage, she took advantage of cash value by drawing the money out of her property at 2417 N. Federal Highway, Lake Worth through re-financing mechanisms, starting with a mortgage of $229,600 and ending up at $417,000. She admits to having her own personal financial and health issues during this time.
The difference in the two candidates is one was a victim of circumstances and used the system but lost everything, the other was able to capitalize from the same system by taking advantage of an opportunity and make money. Perhaps this is just smart business. Although certainly legal, it is curious why a candidate who also experienced difficult financial times and therefore understands it and what Waterman might have been going through at the time, would sit silently during the Zack attack on Waterman.
Housing is still in the doldrums especially in Florida as we here have a good part of the distressed housing inventory in our State. We will eventually recover but it will take us a lot longer than other parts of the country. Pam Triolo says, the only victim is the City of Lake Worth and she is, after all, meeting her financial obligations.
Lynn, are you saying that you are recommending Waterman because she was just a victim of circumstances in not meeting her financial obligations and not recommending Triolo because, although she also used the same system as Waterman and Triolo found a way through the "circumstances" to meet her financial obligations-----that Triolo is not worthy because she was endorsed by the Realtors?
ReplyDeleteIs that right or did I miss a major point?
No, I didn't say that I was endorsing anyone. I was only pointing out what I believe is an inequity during this campaign and was trying to give a different perspective and make it fair and balanced. Just like Fox. :)
ReplyDeleteIt is up to the voters to draw their own opinions on this matter. It just shows that we all can have financial issues, etc. and need to stick to Lake Worth issues first and foremost.
Silence is consent and I strongly disagree with what Zacks did and am dismayed that the candidates remained silent and allowed Waterman to take a sucker punch in the manner that it came down.
At what point in time is PERSONAL responsibility come into the equation. Yes it is unfortunate that some people lost their homes and large amounts of dollars, yet I doubt at the time they were signing loan applications it was done under duress. I would suggest that many of these pawns of the banks anticipated making inflated profits from their choices. Is it possible that these individuals bought into these properties and over extended themselves in doing so. The entitlements have transcended the normal problems we as a nation face. From mortgages to now the expectations that school loans should be absolved, where does it end. Should we make everyone’s 401k’s whole for what has been lost in the economy falling, at what point does this culture of blame end and individuals accept some realization that we have to be responsible for ourselves and our decisions, or is the Greek mentality so pervasive it’s hopeless. It’s time to come to grips the party is over, socialism hasn’t worked anywhere in the world and it sure isn’t doing much for this country.
ReplyDeleteI also thought this was a glowing endorsement. How else do you come to "three votes on the dias" for the amendment 4 comments?
ReplyDeleteSort od like Iam endorsing her but not endorsing anybody ... only being fair and balanced.
Why was it the responsibility of opposing candidates to answer Rachel's questions for her or defend her honor? That assertion was absurd. As condescending as she is on the dias, she should have been able to take care of herself and answer questions about her finances.
I can empathize with her plight. All she needed to say is what you said, Lynn, that plenty people got caught in the bank debacle. She didn't. She opted to sit out any debate that might call into question her financial responsibility as it might relate to her financial responsibility running the city.
You actually sound like Rachel when she said she supports the Fire assessments but will vote against them.
If that's not phony, I don't know what is.
Oh and what a great endorsement the Post gave Rachel. They listed 5 reasons they would normally pick the opponent and then basically said that those don't matter.
You actually sound like Rachel when she said she supports the Fire assessments but will vote against them.
ReplyDeleteIf that's not phony, I don't know what is.
Thanks for your assessment. I try not to be phony. Being phony I suppose is when you disagree.
Lynn: You wrote that Pam "was able to capitalize from the same system by taking advantage of an opportunity and make money. Perhaps this is just smart business."
ReplyDeleteReally? You think it's smart to take out loans totaling $492K (there's a second mortgage of $75K) on an asset valued at $190K? That's how to "make money?" Sounds to me like a good way to dig yourself into a hole.
Lynn has always been consistent in what Dusty did. She has talked against the fire assessment. Are you stupid?
ReplyDeleteGood gosh Steve are you still on the 2nd mortgage thing? Pretty sure you beat that issue dead without any success on Wes's blog. You can't compare someone that took out a 2nd mortgage but is paying it back to someone that walked away from ALL her financial responsibilities screwing her creditors then blaming "the system". What part of that exactly are you incapable of understanding?
ReplyDeletePerfect opportunity to now walk away just like Rachel did.
ReplyDeleteThis isn't about just a 2nd mortgage. It is about taking out mortgages totaling $492,000 on a house worth $190,000. Isn't it Pam who condemns the city for grabbing the cash?
ReplyDeleteIt's not Gray, It is Black and White. They both got caught in the same system, the only difference is one walked away like a spoiled child and one is taking responsibility.
ReplyDeletePam has the right to take out as much money out of her house as she wants, as long as she pays it back. Which she is doing.
ReplyDeleteI think the point you are missing Lynn, is that Rachel is not a victim of circumstance like many who are being foreclosed. She has 3 foreclosures within a 3 year period in two different counties. That's a little different than innocently pulling out equity and not being able to afford they payments a few years later. Rachel clearly acted with total disregard for her financial obligations. Falling on hard times is one thing that cannot be condemned. Completely turning your back on your financial obligations is quite different and not a great quality for someone running a city.
As far as we know, Pam is paying her mortgage. Why it's "grey" is because what they both did was legal--one walking away from a mortgage letting the bank have the property back and the other taking the equity out of the property by refinancing.
ReplyDeleteAs far as turning one's back on financial obligations, I would hope that Rachel has worked those matters out now. Pulling out equity is not "innocent" because it is done with intent. It's just a savvy business decision and in most cases, in a down market as we now have, people can easily walk away. Hundreds of thousands have.
Obviously she has not taken care of the credit card issue or it would not still be being brought up.
ReplyDeleteWhose credit card issue? Rachel or Pam's husband? Do husbands count?
ReplyDeleteIs he running for office too?
ReplyDeleteLet's all vote for Zacks.
ReplyDeleteOk, putting credit scores aside. Pam is simply a better candidate, has real experience, and to me seems totally honest and genuine. Rachel does not, so Pam has my vote.
ReplyDeleteLynn, whether you intended to do so or not, your post comes across as defending Waterman, yet again.
ReplyDeleteHow can you compare Pam's mortgage history with Waterman's?
Waterman signed up for 3 mortgages, and defaulted on all 3. She is an 'economic development specialist', right?
Just not when it comes to her own economics, I guess.
When you can't afford to buy, you rent, right?
When you can't afford to have a credit card bill, you don't use it, right?
Even people who aren't highly evolved with economics
know that.
With all her financial woes, she then decides it's a good idea to run for mayor of LW, which brings in a very small salary to support her family and pay her debts.
None of this makes her a bad person necessarily,...just not a very bright one -where's the common sense here?
I understand your points. Thanks.
ReplyDeleteTo compare Waterman and Pam as having similar financial problems is wrong. They are not even close. Waterman has legal judgments against her. Pam has kept her promises and paid her bills. When Waterman ran for the job as mayor she opened the door to her past financial history. The commissioners are all responsible for our city's financial resources. They make the decisions on how our money gets spent. Dustin had every right to bring up Watermans failure to pay her debts and the fact that she has multiple judgments against her. Do you want someone who made one wrong financial decision after another deciding on the important issues. This info needed to come out and I don't feel sorry for Waterman. She decided to run and needs to face the truth.
ReplyDeleteHow many times do you feel it needs to "come out?" Until it sticks and Waterman gets stoned to death? Would that be satisfactory? Would that make everyone happy?
ReplyDeleteHow about every time we have an election that she is running in. I think you would agree Lynn with all the old stuff you brought up about Tom R.
ReplyDeleteBut Tom only ran in ONE election. How many times do you want to beat the dead horse? Whatever.
ReplyDeleteThank you Lynn for another accurate back-story! Personally, I did not take this article as an endorsement for any candidate. The truth about the financial similarities of both ladies, as well as how each decided to utilize the existing system, were brought to the forefront. However, both have not been dealt with in the same way. Each candidate knew of the difficulties of the other, yet only one chose to have the matter made public. Consequently, only Mayor Waterman is subject to personal attacks and Mrs. Triolo can say ‘I own a house’… All the while leaving out the, ‘I’m paying for it (along with my other financial obligations) with the equity I pulled out’, part. Just because something is legal, it does not make it right – for both ladies. I agree with Lynn, someone – the moderator, anyone - at the egregious debate should have said something and stuck to Lake Worth issues. I am reminded of an anonymous quotation: “Truth is violated by falsehood, and it may be equally outraged by silence.” ArĂȘte
ReplyDeleteBy the by, Mr. Zacks ain't gonna win. Maybe he can get another paying acting gig.
ReplyDeleteLynn you are fucking unbelivable. Back peddle when is makes you feel good. Tom ran in more than one campaign there was a runoff and you took it upon your self to do everything in your power to make sure he did not win. Only because you do not like him.
ReplyDeleteThere is NO back peddling here. Tom ran in one election. Rachel won that.
ReplyDeleteNow, months later there is a NEW ELECTION. This is a GENERAL ELECTION. The other one was a SPECIAL ELECTION--2 separate elections!!!!Is there anything about that you do not understand?
I let your F word go this time but next time, come on over here and use your real ID. Then we will know what a jerk you are.
You must forget when Tom was Mayor
ReplyDeleteG.B.E. II
You know it is funny how you defend Waterman, while the Cabal is out in forces spreading lies, and planting misconceptions about Pam, and you do not address this.
ReplyDeleteI'm really sorry if I upset some people on this particular blog. This was about mortgages and gaming the system. I have no idea who is saying what out in the trenches. I am not a part of anyone's campaign nor am I endorsing anyone for office. I have not contributed one dime to anyone. In fact, I haven't seen one person out there knocking on doors. I believe that all candidates have good qualities, some better than others.
ReplyDeleteAnd some more truthful than others
ReplyDeleteSomeone in my family did the exact same thing, refinanced and took the money to pay bills. It's risky business.
ReplyDeleteWhen it comes right down to it, you have been more against the present commissioners than the opponents.
ReplyDeleteI don't understand where all this bashing about Pam is coming from. I'm sure her home or business was worth more during the "Boom" Times. She isn't crying about bad circumstances and about losing her job. She's paying her bills and taking responsibility. True, Rachael fell upon hard times, but three times walking away from a forclosure-isn't that a bit much? Many people have been in a predicament with forclosures, but how many have gotten away with three times? How many times does it take to learn that if you don't pay your mortgage that you are going to be forclosed on? Yes, you can blame the bank for giving her more loans, but how many foreclosures does it take to make her realize that she has to pay her bills? Is she going to continually run the City's finances into the ground until she and her followers learn a lesson. Running for a public office is going to bring out bad stuff from one's past (it is a public office), but how many people would be not be ashamed and embarrassed and think it's okay-but after all, she is not just people! Also, how can anyone compare Pam's refinancing (but keeping up her obligations) to a three time loser.
ReplyDeleteA great many employers today require a credit report for a job applicant (to see if they're honest, dependable, stable)-how many employers would hire Ms. Waterman based on her credit history? I guess only the City of Lake Worth (in her own words) Lovers would. Think it is a shame that anyone would put Pam in the same catagory as Rachael. Pam is a lady and has the class to represent our City!
How can anyone compare a person that renegs on not one, but three mortgages and various other bills to someone who takes out one loan, but pays it? One would think that after one forclosure that the party would learn that you have to make payments. Running for Mayor is Public office, therefore things come out, how many normal people would have the gall to be able to stand up in front of a group of people when most people are thinking you're a deadbeat (oh, right, she cancelled out on future appearances)! I had thought that Mrs. Waterman was intellegent, but how many times must your loans be forclosed on before she gets that one has to pay their payments. To compare her with Mrs. Trilio is a disgrace. Pam acts like a lady-do we really think we need someone who thinks she is above everyone and that is you don't vote for her you hate Lake Worth? I believer the name for her type of behavior is narcistic.
ReplyDeleteBash? That's what it always is in elections. What about just the truth? You look at it as bashing. I look at it as factual. If you want to understand the mortgage crisis and the fraud that was perpetuated, call Dustin Zacks. Perhaps he can be truthful on this issue. If you want to stay totally in the dark and pretend that these issues presented are not real, that's up to you. In fact, I said that neither candidate did anything illegal. The bank had Waterman's properties as collateral on loans as did Triolo's. Even though both had personal problems at the time, the difference was one was lucky enough to be able to take advantage of the bubble. That's life.
ReplyDeleteIMO luck had nothing to do with it.
ReplyDeleteIf it is "Factual" as you posted then why are upset about Waterman's problems coming out, She is running for public office? And to your post about how many times must we rehash this issue, new people are moving into Lake Worth and may not have been here for the SPECIAL election, and need to know what Waterman is all about. I guess you can say I am a HATER because I will not be voting for the FRAUD we have for a Mayor now, and I because I LOVE Lake Worth
ReplyDeleteWhat you say has some merit when it comes to new people who have moved into Lake Worth over the last 4 months--all 10 of them. Forgot all the renters living 20 to a room. Factor all of those people who do not vote, we still have 10. Thanks.
ReplyDeleteHard work, intergrity and character will trump luck every time Lynn.
ReplyDeleteAre you saying that if only Tom ran in this election we would not have heard one negative attack from you?
Thanks for caring, Tom. I would have told the truth, Tom. What you consider negative attacks were not done by me. It was you that ran with the bull chit, anarchists and all. Actually, I do like you Tom but I like the truth better.
ReplyDeleteThen start telling the truth about Waterman, and Cara. She has sat in meetings and recieved IM's from Cara as to what to say, and what to vote, Why do you think the CM approved Ipads so that they laid flat and the public would not be able to tell the IM's were coming in on a laptop. Start telling the truth about the money problems she has had. Start telling the truth about how she acts towards the public "I am not a regular person, I am the Mayor." Start with that, and the rest of the truth will come out.
ReplyDeleteAll you have is an allegation--a fantasy. You PROVE what you are saying and I will gladly print it. do a public info request and get all e-mails from C Jennings to R. Waterman. Make sure you get back to us now.
ReplyDeleteLynn, I thought you were a little smarter than that. An IM is not an e mail, and if one of the parties sending or recieving does not save, there is no record of them, unless you can get a hold of one of the Hard Drives, and we both know that will not happen. So I am sure you will say that it is just another Fairy Tale... That does not answer financial difficulties or her rude and petulant attitude toward the public, or her avoiding the debates, and acting like a spoiled child.
ReplyDeleteSince you are smarter than the average bear, how do you prove your charge of Jennings taking the time to instant message Rachel. Just let me understand why you are so sure.
ReplyDeleteEver hear the little dinging coming from Watermans laptop because she forgot to turn the volume off, and it always was right after Cara got done typing on hers? That ding was an IM and it is amazing that Cara was always there and typing..On more than one occasion that I can remember, and even heard it one the live feed.
ReplyDeleteLynn, the gray area should be clear now. Did you happen to hear the presentation given by Cara's Boyfriend tonight. If you missed it you can get the highlights on either Wes or Mary's Blog. This is what Waterman want's for the city. Hope this is not want for the City you profess to LOVE
ReplyDelete