Question by Robert: mortgage qualifying with contingent liabilities?
I purchased a business from my dad. He had 2 lines of credit that were liened against his home and I am continuing to make those payments from the business account. He is buying a home in Florida and his lender is telling him that he doesn’t qualify because it doesn’t matter if the business is paying the debts, they are his debts and he no longer owns the business. Is this correct

Best answer:

Answer by Heywood Jablome
They are judgments and they won’t go away until they are paid. He obviously personally signed for the loans or equipment or whatever it was so he is personally responsible. If he did not personally sign for it but signed for it with the business name than they wouldn’t be able to get the judgment.

Add your own answer in the comments!

Mississauga Santa Claus Parade , November 30, 2008 / Habitat For Humanity


Image by bill barber
I’m still officially down for a bit, but I posted these for my extended families and friends. I don’t really expect comments since I won’t be commenting on yours for a bit.

From my set entitled "Mississauga Santa Claus Parade 2008"
farm4.static.flickr.com/3245/3075199413_9773a5e13b_s.jpg
In my collection "Places"
www.flickr.com/photos/21861018@N00/collections/7215760074…
In my photostream
www.flickr.com/photos/21861018@N00/

Taken from Wikipedia
en.wikipedia.org/wiki/Habitat_for_Humanity
Habitat For Humanity International (HFHI) (generally referred to as Habitat for Humanity or simply Habitat) is an international, ecumenical Christian, non-governmental, non-profit organization devoted to building "simple, decent, and affordable" housing. Homes are built using volunteer labor and are sold at no profit. In locations outside the United States, Habitat for Humanity charges interest to protect against inflation. This policy has been in place since 1986.

The organization was founded in 1976 in Americus, Ga., by Millard and Linda Fuller, whose vision grew out of their experiences at Koinonia Farm. The international operational headquarters are located in Americus, with the administrative headquarters located in Atlanta, Ga. Staff members at all locations serve to support and promote the activities of local, independent Habitat for Humanity groups, which initiate and manage construction, mortgages and homeowner selection worldwide.

In 1996, U.S. President Bill Clinton awarded Fuller the Presidential Medal of Freedom, the nation’s highest civilian honor, calling Habitat for Humanity “…the most successful continuous community service project in the history of the United States.”[1] By 2004 Habitat had built 50,000 houses in the U.S. and over 175,100 around the world, with Habitat groups working in over 100 countries. Although headquartered in the United States, two thirds of Habitat construction takes place in other countries. In 2005 Habitat built its 200,000th house, bringing the number of people sheltered in Habitat houses worldwide to one million. On November 13-14, Habitat for Humanity will build its 3000,000th house in Collier County, FL.[2]

On 4 August 2005, Habitat announced the selection of a new Chief Executive Officer for the organization, former president of stores of Musicland and executive pastor of the Edina, Minnesota Christ Presbyterian Church, Jonathan Reckford.[3]

In the fall of 2007, alternative rock bands Switchfoot and Relient K went on the Appetite For Construction Tour, partnering with Habitat while raising awareness for the organization and donating a dollar per ticket sold. The tour was highly successful, raising over 0,000 for donation to the cause. [4]

According to the official website,

Homeowner families are chosen according to their need; their ability to repay the no-profit, affordable mortgage; and their willingness to work in partnership with Habitat. Habitat for Humanity does not discriminate according to race, religion or ethnic group.

Independent, local affiliates of Habitat for Humanity International are allowed to interpret these guidelines as is deemed most appropriate for the location of the affiliate.

Homeowners are usually expected to put approximately 500 hours of "sweat equity" into their own or other project homes, although this amount may vary by location, the number of wage-earning adults in each family, and the recipients health issues.

Mortgage payments from homeowners are deposited into a locally-administered "Fund for Humanity," the proceeds of which go toward future construction. In an effort to discourage predatory lenders from targeting Habitat homeowner families, mortgage agreements allow the Habitat for Humanity affiliate the right of first refusal. Should a homeowner family decide to sell their home during the period of their mortgage, the affiliate may buy it back at a price at least equal to the equity that the homeowner has paid into the mortgage.[5]

Habitat homeowners in the United States pay no interest on their no-profit mortgages. Habitat for Humanity organizations outside the United States adjust the no-profit loans to compensate for the inflation rate in their area, with the goal that "the repayments from one house should ideally build another house of the same design."[6]

Habitat builds simple houses with locally appropriate materials. This could mean concrete block homes in Third World nations or poured concrete-walled homes in hurricane-prone regions of the United States. Chapters of Habitat in more developed countries are strongly encouraged to donate ten percent of the money they raise for local housing to the national group for the purpose of building Third World homes. For instance, Habitat New Zealand’s tithe helps to support an equal number of housing outcomes abroad, predominantly in the Pacific region.

Habitat relies on volunteer labor in order to construct simple and affordable homes for its partner families, as well as to build community and civil society in the areas in which it works. Most volunteers are unskilled prior to first working with Habitat, although some professional or retired tradesmen or contractors may donate their services. Many churches and other houses of worship (synagogues, temples, mosques etc.) sponsor houses and provide a large amount of the volunteers from their congregations. Some corporations and businesses who value good corporate citizenship provide financial support to the projects and/or donate materials for use in construction. Many politicians and celebrities have volunteered with Habitat, reflecting its profile as a highly regarded non-profit.

Habitat for Humanity International develops special programs to support local Habitat organizations. These programs are designed to engage specific groups for annual projects or on an ongoing basis.

Habitat has initiated a special program to help restore housing to the areas affected by Hurricanes Katrina and Rita. The effort is focused on getting the local affiliates in these areas back on their feet and prepared to build for their communities. It has also become a catalyst for other organizations, corporations and the government to provide help and support in rebuilding these areas, and has received considerable national media attention.

The program pre-builds housing components in nearby less-affected locations such as Jackson, Mississippi, allowing much of the construction to be accomplished while basic infrastructure is being restored. Pre-constructed components can then be shipped to the affected areas and built at a faster rate. Within two months of the time of the disaster, construction had begun on houses in the Louisiana cities of Covington and Slidell, near New Orleans.

Operation Home Delivery is Habitat for Humanity International’s hurricane rebuilding program, Harry Connick Jr., and Branford Marsalis are honorary chairs, and one of the many projects along the Gulf Coast, is the Musicians’ Village at New Orleans Habitat for Humanity.[7]

Habitat for Humanity runs a year-round alternative break program known as Collegiate Challenge for student groups age 16 and up.[8] Although summer, fall, and winter break trips are available, most participants go during their spring break. Collegiate Challenge volunteers travel to affiliates throughout the United States and participate in week-long building activities at their host’s work sites. More than 14,500 volunteers took part in Collegiate Challenge in 2008, making it one of the world’s largest alternative break programs. Since its inception in 1989, more than 150,000 students have participated in Collegiate Challenge.

As suggested by the name, Habitat for Humanity International places a strong emphasis on building outside the United States. Its international character dates back even before its formal inception, as founder Millard Fuller received considerable inspiration while on a three-year trip to the Democratic Republic of Congo (then Zaire) during which he and his family sought to apply Koinonia principles outside the limits of the small Georgia farm.

Volunteers today can build with Habitat affiliates throughout the world on Global Village Trips.[9] After having gone through training, trip leaders organize travel plans with the support of the Americus-headquartered Global Village Department, first formally established in 1988. Participants from all over are then able to register for trips to their destination of choice. Teams generally number between eight and fifteen, with trips usually last between nine to fourteen days.

When people of different faiths and cultures come together to build a house, individuals learn from and find new respect for one another. Coming together for the common goal of building a house with a neighbor in need has proven to be a successful way for bringing healing to divided communities and creating a sense of cross cultural unity.

There are many projects that go hand in hand with the house building projects that allow these homes to supply their own electricity through the use of solar. US companies such as Pacific Gas and Electric (PG&E) have partnered with Habitat for Humanity to provide complete solar grids for a few homes.[10] There are also other solar projects, mostly in the US, like one in San Francisco,[11] as well as normal citizens that are trying to make a difference by raising funds to get more of these solar homes built.[12]

During Home Builders Blitz 2008, more than 1,000 building industry professionals in 110 Habitat for Humanity affiliates built 263 new homes across the United States. This was the second national Home Builders Blitz program, which was begun on the local level in 2002 in Raleigh, N.C. Since then, the professional homebuilders industry has supported Habitat by building more than 800 homes.

Former U.S. President Jimmy Carter became involved with Habitat for Humanity in 1984 and has since become its most high-profile proponent. He has been involved in fund-raising and publicity as well as actual homebuilding, taking part in the annual Jimmy Carter Work Project "blitz build".[13]

In 2008 Habitat for Humanity celebrated the 25th annual building project with the Carters and renamed it to include Mrs. Carter. The Jimmy and Rosalynn Carter Work Project focused on supporting the Gulf Coast community seeking to rebuild after hurricanes Katrina and Rita. Despite periodic downpours, volunteers got most of the work done during one week in June to finish building and fixing 60 houses and frame 48 more.[14]

Originating in 1991 with a Charlotte, North Carolina home built entirely by a crew of female volunteers, Habitat’s Women Build program encourages women to make a difference by building homes and communities. Women Build projects provide an environment in which women can feel comfortable learning construction skills they might not otherwise have the opportunity to learn. Globally, more than 1,200 homes have been completed by Women Build volunteers. [15]

Habitat ReStores are retail outlets that re-sell new and used building and household materials donated by large companies, job sites, and individuals. For some Habitat affiliates, like Habitat for Humanity Toronto, the ReStores generate sufficient revenue to cover all administrative costs. This means that every dollar donated to the organization goes directly to home building, and not to pay for overhead such as administrative costs.[16]

The video for rock band Bon Jovi’s song "Who Says You Can’t Go Home" features Habitat for Humanity volunteers as well as the band building homes as part of Habitat for Humanity in Philadelphia, close to Bon Jovi’s native New Jersey. It reflects Jon Bon Jovi’s dedication to the organization and highlights the importance of community unity, faith, and involvement.

The Habitat Bike Challenge began in 1995 as a product of Yale University’s Antony Brydon’s desire to spend a summer biking across the United States while raising money for Habitat. Along the way from coast to coast, riders raise money by explaining Habitat’s mission and even building along with Habitat affiliates in the towns they stop. Riders must raise a certain amount before the trip and spend nearly three months of their summer spreading the word about Habitat and getting communities involved. Bike and Build grew out of the Habitat Bike Challenge in 2002. Over five seasons, Bike & Build has contributed ,144,231 to housing groups to fund projects planned and executed by young adults; this includes 1,327 donated from the summer of 2007.[2]

Although Habitat for Humanity enjoys high name recognition and regard as a non-profit, it has also been the subject of criticism. An article in the Weekly Standard [17] magazine questioned the cost-effectiveness of Habitat building projects. It is difficult to estimate effectiveness, as total volunteer hours on-site and aggregated homeowner financial data are not available.

However, Habitat houses in the United States are more affordable for low-income families than commercially built houses because volunteers help build the homes, which are sold at no profit. [18] In many countries, purchasing a Habitat house costs even less per month than renting substandard housing.[19]

Families are required to show an ability to pay for their home in addition to the need for housing. With these requirements, homeless and low income families may fail to qualify for a Habitat home. Most American Habitat affiliates perform credit checks and criminal record checks on applicants before partnering with them for the construction of a home. Some critics therefore allege that Habitat misrepresents the nature of its work by partnering with families that might be considered nearly "middle-income."[20] To address this, many Habitat affiliates in the United States partner only with families that fall below the government-set "poverty line" for their area. The current poverty rate is measured according to the United States Department of Health and Human Services Poverty Guidelines.[21]

The credit and income requirements help assure that Habitat applicants are able to maintain their houses. Foreclosures on Habitat houses have been very low: 2%, according to official figures. The homeowners’ monthly mortgage payments are used to build more Habitat homes.[22]

Habitat’s founder, Millard Fuller, and his wife were dismissed by the Habitat board of directors on January 31, 2005, citing “a pattern of ongoing public comments and communications by the Fullers that have been divisive and disruptive to the organization’s work”[23] after Fuller was accused of "suggestive comments and inappropriate touching" toward a female employee during a ride to the Atlanta airport in 2003. Some Fuller supporters claim that the firing was due to a change in corporate culture.[24]

Before Fuller’s termination, attempts were made by former President Jimmy Carter to broker an agreement that would allow Fuller to retire with his ,000 salary intact; when Fuller was found to have violated the non-disclosure portion of this agreement, he was subsequently fired.

In response to his dismissal from the project he founded, Fuller has established The Fuller Center for Housing.

In January 2008 a dispute arose between the parent organization and an unspecified number of local Habitat for Humanity affiliate organizations over the terms of their cooperation agreement. These local affiliates contended that the agreement gave the international organization too much power over the assets and operations of the local chapters. One of the affiliates, Habitat for Humanity of San Antonio, reached an agreement with HFHI in July 2008 to “continue working together in their efforts to make affordable housing possible.”[25]

Like a well eaten arm unable to fly, our economy is in a constant state of flux …………… to be quite….. ……………….


Image by Jon Haynes Photography
www.youtube.com/watch?v=_dmPchuXIXQ&feature=channel_page

images.google.com/imgres?imgurl=http://www.hereticalideas…

Do you trust your government? There are many reasons for you to doubt your government.

this is how I believe the U.S. feels now… how I believe I feel now.

Bailout type Cost to taxpayers (Source: Reuters)
Financial bailout package approved this week up to or more than 0 billion
Bear Stearns financing billion
Fannie Mae and Freddie Mac nationalization 0 billion
AIG loan and nationalization billion
Federal Housing Administration housing rescue bill 0 billion
Mortgage community grants billion
JPMorgan Chase repayments billion
Loans to banks via Fed’s Term Auction Facility 0 billion+
Loans from Depression-era Exchange Stabilization Fund billion
Purchases of mortgage securities by Fannie Mae and Freddie Mac 4 billion
POSSIBLE TOTAL .8 trillion+
NUMBER OF HOUSEHOLDS PER U.S. CENSUS 105,480,101
POSSIBLE COST PER HOUSEHOLD ,064+

Last week, the Bush administration proposed a three-page bill to bail out Wall Street to the tune of 0 billion. It died in the U.S. House of Representatives earlier this week.

On Friday, though, the House approved a far bigger, broader, and beefier version of the bill–which has ballooned to a remarkable 442 pages. The vote was 263 to 171, with the bulk of the opposition coming from Republicans. Because the Senate already approved the measure, it immediately went to President Bush, who signed it into law.

On the theory that this would be a way to convince previously skeptical Democrats to approve the measure, one large chunk of the bailout bill is devoted to renewable energy, energy-efficient appliances, and so on (the "Energy Improvement and Extension Act of 2008"). The authors lured Republicans with protections from the alternative minimum tax (via the "Tax Extenders and Alternative Minimum Tax Relief Act of 2008").

That includes, as the New York Post pointed out, millions in tax breaks and related pork for kids’ wooden arrows, Puerto Rican rum producers, auto race tracks, and corporations operating in American Samoa. (The likely explanation for the latter: StarKist has a large tuna-canning operation in American Samoa. And StarKist’s parent company happens to be located in the district of House Speaker Nancy Pelosi.)

The bill has become, in other words, something almost unrelated to the business of bailing out Wall Street. The Beltway term for this is a "Christmas tree bill," meaning everyone gets to hang their favorite spending projects on it–though by the time Congress gets it through, it more closely resembles a slop bucket.

"We will not Christmas-tree this bill," Sen. Chuck Schumer, a New York Democrat promised a few days ago. "The times are too urgent. Everyone has their own desires and needs. It’s going to have to wait."

So much for that idea.

Here’s a look a some of the green-tech measures:

• One-year extension for wind and refined coal energy tax credits. A production credit for electricity produced from renewable marine energy sources (meaning through wave power and river power, or by exploiting the differences in ocean temperature). Energy credits for "small wind properties," geothermal heat pump systems, and energy-efficient residential properties.

• New renewable-energy bonds. Up to 0 billion in energy bonds may be offered to the public, with a third from "public power providers," a third from governments, and the remainder from "cooperative electric companies."

• Tax credits for "cellulosic biofuels" and for "carbon dioxide sequestration." An extension of an alternative fuel credit. Tax credits for "new qualified plug-in electric-drive motor vehicles." Bicycle commuters get a nod, as do regulations aimed at "residential top-loading clothes washers."

IRS undercover operations: Privacy invasion?
The bailout bill also gives the Internal Revenue Service new authority to conduct undercover operations. It would immunize the IRS from a passel of federal laws, including permitting IRS agents to run businesses for an extended sting operation, to open their own personal bank accounts with U.S. tax dollars, and so on. (Think IRS agents posing as accountants or tax preparers and saying, "I’m not sure if that deduction is entirely legal, but it’ll save you ,000. Want to take it?") That section had expired as of January 1, 2008, and would now be renewed.

Starting with the so-called Anti-Drug Abuse Act in 1988, the IRS has possessed this authority temporarily, with occasional multiple-year lapses. A 1999 internal report said the IRS had 126 "trained undercover agents" working in field offices at the time. This is the first time that such undercover authority would be made permanent.

Sens. Max Baucus (D) and Chuck Grassley (R) have been pushing to make it permanent for a while, claiming (PDF) in April that: "Undercover operations are an integral part of IRS efforts to detect and prove noncompliance. The temporary status of this provision creates uncertainty, as the IRS plans its undercover efforts from year to year."

There’s another section of the bailout bill worth noting. It lets the IRS give information from individual tax returns to any federal law enforcement agency investigating suspected "terrorist" activity, which can, in turn, share it with local and state police. Intelligence agencies such as the CIA and the National Security Agency can also receive that information.

The information that can be shared includes "a taxpayer’s identity, the nature, source, or amount of his income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments, or tax payments, whether the taxpayer’s return was, is being, or will be examined or subject to other investigation or processing, or any other data received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return."

That provision had already existed in federal law and automatically expired on January 1, 2008.

What’s a little odd is that there’s been little to no discussion of the IRS sections of the bailout bill, even though they raise privacy concerns. Treasury Secretary Henry Paulson said this week: "I will continue to work with congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy." He never mentioned the necessity of additional IRS undercover operations.

The bailout: Details, controversy, and loopholes
As my colleagues over at CBSNews.com reported on Friday, the law authorizes the Treasury Department to create a so-called Troubled Assets Relief Program, or TARP, as well as a separate insurance fund.

The TARP program permits the Treasury to purchase mortgage-backed bonds or any other "troubled assets" from financial institutions. The idea is that because banks have become so hesitant to lend to each other, this law will help unstick the gears of the modern financial economy.

Some loopholes exist. It’s possible for a bank to buy 0 billion of bad debt–perhaps in the form of subprime mortgages that are becoming quickly worthless– declare bankruptcy, and sell it to the Treasury Department for 0 billion, or 0 billion. In other words, although the Treasury Department is supposed to look out for the best interests of taxpayers, there’s no law forbidding such profits in the case of firms involved in bankruptcy, receivership, or mergers.

The Treasury Department is authorized to "guarantee" home mortgages, essentially becoming a kind of co-signer, to reduce the number of foreclosures. If the home owner stops paying his or her mortgage, taxpayers would be on the hook. The Treasury Department can also eliminate a "reasonable" amount of a home owner’s mortgage debt, under section 109 of the new law, which would likely delay the process of house prices falling.

In response to grassroots pressure from Americans upset about Wall Street executives cashing in, Section 111 is titled "Executive Compensation and Corporate Governance."

It does not include, however, any statutory dollar limit on how high executive salaries of TARP bailout recipients can be. Instead, it lets Treasury Secretary Henry Paulson, the former CEO of Goldman Sachs, come up with "appropriate standards." In addition, only the top five executives will have their golden parachutes limited; all the rest will remain untouched, even if their second-tier salaries and bonuses happen to be in the millions or tens of millions of dollars.

Bear Stearns CEO James Cayne made .3 million from selling his shares a day after the JP Morgan bailout. Daniel Mudd, CEO of Fannie Mae, was replaced last month; he made .6 million in 2007. Richard Syron was chairman and CEO of Freddie Mac from 2003 until last month. He made .8 million last year. Martin Sullivan was ousted as president and CEO of AIG this summer, and was paid a million severance package.

While salaries of failed executives will have no statutory limit, TARP-participating companies will lose a tax deduction if they pay their top executives more than 0,000 a year. The 0,000 limit only kicks in if the company offloads over 0 million in assets through TARP.

Section 115 of the law says that the administration can, after notifying Congress and waiting 15 days, purchase and hold 0 billion of assets "at any one time." (It can buy and hold 0 billion without waiting.)

This, too, is a potential loophole. It permits the Treasury Department to buy up, say, 0 billion in 2008, sell those assets off gradually over the next year at a (probable) loss, and repeat the same process in 2009. Losses to taxpayers, in other words, could exceed 0 billion. Although the Treasury Department is instructed to try to avoid losses, the text of the law does not forbid that scenario.

If the TARP ends up costing taxpayers money, the president may ask Congress to consider enacting a law to recoup "from the financial industry an amount equal to the shortfall," presumably through higher taxes. But Congress is under no obligation to do anything; a mechanism to cover the shortfall does not exist in this law.

Even though FDIC coverage will be boosted from 0,000 to 0,000 per account through December 2009, premiums to banks may not take "into account" the higher account coverage. In other words, premiums can’t increase for that reason.

Also:

• This may be just the beginning of bailouts. California Gov. Arnold Schwarzenegger said Thursday that the state may need a billion loan from the U.S. Treasury, according to a report in the Los Angeles Times. That’s because the state has spent more than it takes in through tax revenue, with an annual budget deficit of billion or more, even though its individual income tax rate is arguably the highest in the nation.

• CBS News’ John Bentley reports from Arizona that Republican presidential candidate John McCain is taking some credit for the bailout’s passage: "I’m glad I suspended my campaign and went back to Washington to bring, and help bring, House Republicans to the table," he said on Friday. Democratic presidential candidate Barack Obama described the law as "absolutely necessary to prevent an economic catastrophe."

• Rep. Ron Paul of Texas, who correctly predicted in 2003 that taxpayers would be "forced to bail out investors," said in a speech on the House floor that the legislation would "only further harm the economy" and was actually worse than the previous version. In a CNN interview, the former Republican presidential candidate said his colleagues are refusing to deal with the underlying problems and spending more tax dollars even though "this country’s bankrupt."

• The Dow Jones Industrial Average (-22 percent year-to-date) and the Nasdaq composite index (-27 percent) closed on Friday down 1.5 percent, despite the bailout. Gold ended at 4.80 an ounce, slightly up for the day and the year. Crude oil futures ended at .88 a barrel, slightly down for the day.

• U.S. jobs fell by 159,000, a decline of 760,000 this year. Technology firms have also contemplated hiring freezes and some, including Hewlett-Packard and Dell, have already laid off employees, as my colleague Ina Fried reports in a separate article.

Updated at 10:40 a.m. PDT to reflect the House of Representatives’ approval of the bill.

Updated at 3:30 p.m. PDT to add more details.

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