Where does the Insanity Stop?? I mean REALLY???!!! - another 17-20%

By
Home Stager with Innovative Artistry
http://actvra.in/srt

I am in shock…..my poor parents……I guess a HUGE number of “Retirees” on “fixed” incomes are feeling the same way, as "many" retirees come to Florida to enjoy the next phase of their life....

..........of course there are full time residents that have been here their 'whole' life, & retired to stay here in the Sunshine State.

 

What if you woke up one day & your mortgage payment went up 28%….or let’s just say $700+ per month…. & it wasn’t because of the mortgage which is “fixed” like your income for the next 15, 30-40 years? It was your  “escrow” items that do make up your monthly payment (in this case insurance) Yes, insurance went up approximately 27% with about 1% increase in property taxes.............(my parents do have Homestead for both)

 

What if your salary had not gone up 28% & in fact it was “fixed” for the rest of your life, because you were retired (twice)??  (because you couldn't afford to retire with the 1st income)

 

What if most of your state had a majority of people on “fixed” income, or even yet “unemployed” or corporate cutbacks??

 

What if the property values had not gone up 28%…………..

 

What if this was at a point where you had enough to worry about just trying to keep up with your health & enjoy your latter years after all that hard work??

 

There is another economic blog I am going to post later, but just staying with this one subject ~ “how do you think this will impact our Housing market??”

 

Well this happened today, to my parents. I thought they had tabled it, & thought the powers to be were wiser of it because of the definite impact…..but I guess they didn’t.

 

http://www.culbertsonagency.com/state-farm-received-approval-for-18-8-rate-increase-on-florida-home-insurance/

 

This may be what sends us right over the economic edge here, at least in my region. We have a major corporation trying to cut 20% wages & lay off 13,000 employees, which will have a ripple affect in the next 2-12 months….but this is just a small portion compared to the Retirees here in Florida on “Fixed Incomes”, which consists of about 17-20% of our population.

 

Governor Scott - Really?? I ask the decision makers “Where does the Insanity end??!! I mean REALLY??!!””

 

Do you think that people can continue to pull it out of their derrière’s?

 

This is the tip of the iceberg, at least for Florida. Great job!!! Next will come in the next few months.

 

We had/have over approximately 2.9 million Senior people (as of 2004) that live/lived in Florida we are second to California who has/had 3.8 million residents as of July 2004 per the source below (courtesy of Senior Living)

 

http://seniorliving.about.com/od/lawpolitics/a/senior_pop_life.htm

 

As of 2010 we had a population in Florida of 18,801,310 with a growth of approximately 15% in the past decade. South Florida makes up almost 31% of the total State’s population & Miami Dade County having half of that 31%. The total population of the state has grown over 1 million in the past year. Senior Living residents make up about 17-20% of our population.

  • I would say that in reality, 17-20% of our population would now be at risk with these changes of their escrow or monthly obligations???   28% is a HUGE increase, no matter what level.

 

I will be writing to as many as I can about this matter, as I do not feel that this political level has been very wise in looking out for our seniors?   If anyone that would wish to contact Governor Scott about this matter, I have listed some information below, but…..it may be best to go to your Congressman.

Our Governor - Rick Scott

www.flgov.com/contact-gov-scott/

(850) 717-9337

http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=95

http://quickfacts.census.gov/qfd/states/12000.html

 

My parents are the most responsible people I know. They honor all they commit. They volunteer on several Federal Committees & serve hours without pay for retiree organizations & their credit union. My Mom worked another career after being forced into a “reduced” retirement from a government position & was fortunate to make another 13 years with the school board. Their intentions were to always move to a lesser expensive area that they liked, but the housing market went bust before my Mom could retire between health issues with my Dad & later she would experience. My Mom was weak at the knees today when they came home to open the mail & find this 28% increase!!!?? They both have some severe medical issues & simply looked towards a bit of enjoyment with the later years of life after working so hard. They were caught with their home when the market took the downward turn.

 

I am in shock…..my poor parents……I guess a HUGE number of “Retirees” on “fixed” incomes.  I will, as my siblings, work hard to try to see what we can do....but why do others place them in that position??  Why do they inflict their dignity??  You work your whole life under the guidelines you are given & plan accordingly only to have it ripped out from underneath you??  All from "greed".

 

How do these people get into office??? Where do others of power think that this money is going to come from as they continue to “reward” themselves??? So, you side with the top & let the other 80-90% suffer, be homeless, have ill health because your board of directors needed to make enough profit, fund their children’s private tuition, the $35million investment property for executives in a foreign country. 

We had great service before, & we seemed to manage??   We don’t have that great of an increase in population to increase the burden of all these expenses??  What population we do have are contributing in multiple ways - sales tax, tourist tax, transient housing, tolls, tolls & more tolls, the Florida Lottery - not just property values.

 

I am in shock…..my poor parents……I guess a HUGE number of “Retirees” on “fixed” incomes are feeling the same way, as "many" retirees come to Florida to enjoy the next phase of their life....

..........of course there are full time residents that have been here their 'whole' life, & retired to stay here in the Sunshine State.

 

What if you woke up one day & your mortgage payment went up 28%….or let’s just say $700+ per month…. & it wasn’t because of the mortgage which is “fixed” like your income for the next 15, 30-40 years? It was your  “escrow” items that do make up your monthly payment (in this case insurance) Yes, insurance went up approximately 27% with about 1% increase in property taxes.............(my parents do have Homestead for both)

 

What if your salary had not gone up 28% & in fact it was “fixed” for the rest of your life, because you were retired (twice)??  (because you couldn't afford to retire with the 1st income)

 

What if most of your state had a majority of people on “fixed” income, or even yet “unemployed” or corporate cutbacks??

 

What if the property values had not gone up 28%…………..

 

What if this was at a point where you had enough to worry about just trying to keep up with your health & enjoy your latter years after all that hard work??

 

There is another economic blog I am going to post later, but just staying with this one subject ~ “how do you think this will impact our Housing market??”

 

Well this happened today, to my parents. I thought they had tabled it, & thought the powers to be were wiser of it because of the definite impact…..but I guess they didn’t.

 

http://www.culbertsonagency.com/state-farm-received-approval-for-18-8-rate-increase-on-florida-home-insurance/

 

This may be what sends us right over the economic edge here, at least in my region. We have a major corporation trying to cut 20% wages & lay off 13,000 employees, which will have a ripple affect in the next 2-12 months….but this is just a small portion compared to the Retirees here in Florida on “Fixed Incomes”, which consists of about 17-20% of our population.

 

Governor Scott - Really?? I ask the decision makers “Where does the Insanity end??!! I mean REALLY??!!””

 

Do you think that people can continue to pull it out of their derrière’s?

 

This is the tip of the iceberg, at least for Florida. Great job!!! Next will come in the next few months.

 

We had/have over approximately 2.9 million Senior people (as of 2004) that live/lived in Florida we are second to California who has/had 3.8 million residents as of July 2004 per the source below (courtesy of Senior Living)

 

http://seniorliving.about.com/od/lawpolitics/a/senior_pop_life.htm

 

As of 2010 we had a population in Florida of 18,801,310 with a growth of approximately 15% in the past decade. South Florida makes up almost 31% of the total State’s population & Miami Dade County having half of that 31%. The total population of the state has grown over 1 million in the past year. Senior Living residents make up about 17-20% of our population.

  • I would say that in reality, 17-20% of our population would now be at risk with these changes of their escrow or monthly obligations???   28% is a HUGE increase, no matter what level.

 

I will be writing to as many as I can about this matter, as I do not feel that this political level has been very wise in looking out for our seniors?   If anyone that would wish to contact Governor Scott about this matter, I have listed some information below, but…..it may be best to go to your Congressman.

 

 

 

Our Governor - Rick Scott

www.flgov.com/contact-gov-scott/

(850) 717-9337

http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=95

http://quickfacts.census.gov/qfd/states/12000.html

 

My parents are the most responsible people I know. They honor all they commit. They volunteer on several Federal Committees & serve hours without pay for retiree organizations & their credit union. My Mom worked another career after being forced into a “reduced” retirement from a government position & was fortunate to make another 13 years with the school board. Their intentions were to always move to a lesser expensive area that they liked, but the housing market went bust before my Mom could retire between health issues with my Dad & later she would experience. My Mom was weak at the knees today when they came home to open the mail & find this 28% increase!!!?? They both have some severe medical issues & simply looked towards a bit of enjoyment with the later years of life after working so hard. They were caught with their home when the market took the downward turn.

 

I am in shock…..my poor parents……I guess a HUGE number of “Retirees” on “fixed” incomes.  I will, as my siblings, work hard to try to see what we can do....but why do others place them in that position??  Why do they inflict their dignity??  You work your whole life under the guidelines you are given & plan accordingly only to have it ripped out from underneath you??  All from "greed".

 

How do these people get into office??? Where do others of power think that this money is going to come from as they continue to “reward” themselves??? So, you side with the top & let the other 80-90% suffer, be homeless, have ill health because your board of directors needed to make enough profit, fund their children’s private tuition, the $35million investment property for executives in a foreign country. 

We had great service before, & we seemed to manage??   We don’t have that great of an increase in population to increase the burden of all these expenses??  What population we do have are contributing in multiple ways - sales tax, tourist tax, transient housing, tolls, tolls & more tolls, the Florida Lottery - not just property values.

 

My Mom’s question today was, “Are all states with catastrophic exposure paying the same severe increase??!”

 

(Example - the Gulf states of Texas, Louisiana, Mississippi, and Alabama. The tornado states like Oklahoma, Arkansas, Nebraska (Midwest). The earthquake prone) “Or are we the only ones bearing the burden?” She doubted they were because she didn’t feel their government thought they could afford it, and she didn’t know why ours could possibly??

 

How can this lunacy be stopped??!!

This week I have had a bit to think about, with a few other matters that are pretty big, and have vacillated from little shocks or surprises, to ANGER, to NAUSEA, to NUMBNESS………well the straw came today in the mortgage statement of my parents. I just don’t get it……”where do they think it is going to keep coming from???”

    • What would you do if you woke up tomorrow & your mortgage (because of escrow went up 28%??
    • What can we do to bring much of this insanity & imbalance under control.

There will be another economic message that has & will have a great impact - so many are so quick to place the blame..........

I look forward to your help and any feedback you may think that would be helpful.  They are not alone & it will send (or has sent) another wave through the housing market. 

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Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

Dear Andrea & Steven - Well it was the "Escrow Items" that make up their total mortgage payment.  The state of Florida when Governor Scott took over approved a rate increase.  I am not sure if the other states that incur frequent catastrophic incidents also have such increases.........but they approved Florida to bear the burden of all their deficiencies because of claims.....  We also seem to still have taxes in question because the government became accustom to the higher budget that the higher values benefited their expenditures....now we don't have the values, but we haven't increased the population that much either...  Primarily it was the insurance, with a small increase in taxes as they have Homestead protection @ a cap....(thankfully).  I am not sure if the Governor & Insurance carrier(s) took into account the number of people on "fixed incomes" or if they realize that the people that are in their homes still trying to be responsible and hang on......well they are just going to push the rest out of the market.  Of course if you couple that with the 1% vs the 99%, then we will have a larger problem soon.  It made me so Angry, Shocked, Protective, Nauseous, & Bewildered all at the same time.  This in itself could cause another wave in the housing market, as most people are not receiving a 28% increases in pay......if they are even able to stay employed at their same salaries.

Thank you "both" so much for visiting!!

Feb 03, 2012 08:53 PM #3
Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

p.s.  I guess to put some figures to it....their mortgage "fixed rate" not a variable - (increased because of insurance - escrow items) the increase was over $700+ / per month.  Notice received today beginning April 1st....not much notice to figure it out.

Feb 03, 2012 09:00 PM #4
Rainmaker
470,417
Andrea Bedard
Thompson Company, REALTORS - Silver Spring, MD
M.A.; REALTOR Silver Spring, MD and beyond

Thank you Pam. That clarifies that! Ok. Never mind the loan docs and the lender! You need to write another blog: short, precise & to the point including specific numbers and a call to action! There's nothing wrong with your vent but in order to get this noticed and hopefully have some impact, another one is necessary. That stinks! I can only imagine what that will do to Florida's housing recovery!

Feb 03, 2012 09:43 PM #5
Rainmaker
698,101
Elite Home Sales Team
Keller Williams Realty - San Clemente, CA
A Tenacious and Skilled Real Estate Team

For seniors the ancillary costs (tax, insurance, HOA fees) eat them alive.  Remember if we keep this up none of us will have paid their fair share until government has all the money.

Feb 04, 2012 12:53 AM #6
Rainer
234,262
Doug Bullwinkel
Vitek Mortgage Group - Roseville, CA
NMLS #281609

Seniors have enough trouble just getting by with their health costs.  They don't need the additional stress that this increase will cause them.  Good luck with getting this noticed and hopefully changed for the better.

Feb 04, 2012 12:55 AM #7
Rainmaker
193,504
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
CRS- Your Friend/Helper for Lifetime! 808.9551577

All because of the loan debacle that has happened in the financial industry.  I guess a few natural disasters has added salt to the wound plus our society of politicians.  Sad Sad state of affairs.

Feb 04, 2012 12:57 AM #8
Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work
Thank you. I know I did....it has just been difficult with the timing of things & then let the "emotion" of it all sink in....... I am NOT in my best mindset with this shock. Too, too much this week for me....but somehow we will see it through. I truly do not know where it ends though.... They can't blame the higher ups on this one.... Thank you for guiding me. I hope it is better. I too tired & drained this past few weeks....not to mention just still stunned.
Feb 04, 2012 12:58 AM #9
Rainmaker
656,562
Evelyn Kennedy
Gallagher & Lindsey, Alameda, California - Alameda, CA
Alameda, Real Estate, Alameda, CA
Pam: I can understand the l increase in insurance rates because of the disasters you have experienced in l Florida. But seniors won fixed incomes should not be penalized so greatly.
Feb 04, 2012 12:59 AM #10
Ambassador
536,155
JO SOSS
HOMEFRONT Realty - Bremerton, WA
Kitsap County WA Real Estate - HOMEFRONT Realty

Wow. that is just horrible.  No wonder people have to walk away from homes - the government makes it so hard to stay in them anymore - I hope your parents will be ok!

Feb 04, 2012 01:04 AM #11
Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

Dear Mark - Yes, so, so, sad!!  I am truly beside myself with this one & to see their faces & their pride or dignity.  We of course will do what we can here for them...but you know you hope to do it yourself, especially as a parent.  I am so mad.

Dear Doug - Thank you for agreeing....Well I thought may be if it was written?  It seems the only way change happens is if the people speak "LOUDLY".

Dear Bruce - Yes, true it is sad....but what makes it sadder is that we aren't sure that it isn't just our state paying for the brunt of it?.......  Hard enough for them, but even harder if this state is the only one....& they are part time...they have been here since I was born - not that it makes a difference in that everyone is hurt, but this was their home most of their life.

Feb 04, 2012 01:04 AM #12
Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

Dear Evelyn - Yes, well some increase, but there have been plenty "other" parts of the world that have been hit & I am not sure that they have taken the same increases.......a little may be, but that is what would be a mortgage in itself for some.

Dear Jo - Thank you!!  Well I am not sure how many more will have to walk away now.  I know they are not the only ones.  Their insurance went through the Hartford group & AARP.........??

 

Thank you all for sharing....may be if you have time you could write to who you feel would bring the most impact.  I think our congressmen, but I am open to ideas??

Feb 04, 2012 01:09 AM #13
Rainmaker
943,611
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Pam...sad state of affairs that most of us are in....I hope that things improve  for your parents....

Feb 04, 2012 02:29 AM #14
Rainmaker
589,575
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
On the Move for You! - Eugene - Springfield Oregon Real Estate

If I understand what you are saying, the increase in rates is going to the insurance company(ies) to compensate for high claims in Florida.  I also assume the state insurance regulators are allowing the rate increase because they have received information that justifies an increase based on real paid losses.

But those are assumptions that invite a lot of close public scrutiny....lest the insurance companies merely rake in a windfall.

So I'd expect to see Floridians asking a lot of questions....especially with such increases coming at such a terrible economic (and housing) time.

 

But at the end of the day, is it fair for Floridians to pay rates that are commensurate with the high risk of living in Florida?  Probably.

Feb 04, 2012 03:25 AM #15
Rainmaker
1,474,987
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Makes it very difficult for seniors or anyone on a fixed income Pam.................I agree, insanity.

Feb 04, 2012 07:35 AM #16
Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

Dear Ron - Thank you & hope you and your family are okay?!!  It is sad...I just don't quite get how it can keep on actually??  Thanks for stopping by, good to see you!!

Dear Jim - Yes, it will require a LOT of questions!!  I am not wishing ill will on anyone, in any part of the nation, but Florida has "not" been the only state with catastrophic damages?!!  Raising these premiums during this point in the economy...well, frankly, I don't see how they can without making matters much worse....& for "Seniors" on a "fixed income"....for that matter many are on a "fixed income", without increases in a long, long time.....that is "if" they even have employment.  It just is crazy.  Those trying to hang on....well that is a HUGE hit.  Florida has gone almost 20 years before Andrew without a major hit...Andrew was huge, yes, but all those years of premiums for 2 decades?  Of course we then did have some storms, but so have MO, OK, IL, LA, TX, & snow & mud elsewhere......so I think it should be equal or it may just sink this state.   Is it worth the risk of living in Florida??  Well to me that is like pushing my parents, or me, for that matter, out of my home.......I was "born" here, my parents & my grandparents have roots here.  So that is our family's perspective.  :(  We weren't necessiarily looking to move to alter our history.  Thank you so much for visiting.

Dear Roger - It is like a huge blanket this week with things....some of which I will try to blog about later.  If I am sad it is one thing, I usually snap out of it, but seeing my parents, well that is another.  It is just crazy.  Thank you for visiting!!  Good to see you :)

Feb 04, 2012 09:12 AM #17
Rainmaker
367,072
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Hi Pam, WOW what a hit!  I remember the year of Katerina and the four hurricanes that hit Florida in one year and what it did to our homeowner insurance rates here in Indiana.  It went up about 70% the next year, BUT they insisted it had nothing to do with all those claims that paid out in the gulf!  We had State Farm Insurance at the time!  So I would tell your mother that we were hit hard with a rate hike, and we had none of the risk.  

Pam, you have brought up a great point here of the impact of insurance and property taxes rate increases and the severe impact it can have upon families on fixed incomes!!!  What was your governor thinking???

Feb 04, 2012 12:03 PM #18
Rainer
101,914
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

Dear Bruce - I am sorry that you were impacted so greatly for sure....I don't wish ill will on others.  It is just that we have gone years, in fact multiple decades without incident....so were there not reserves or is it we come up with reserves "after" because they spent all the reserves?? 

I hate to say that I know have seen the lifestyles of some of my friends in the auto insurance industry with a big firm & one in particular his wife is at the Casino dropping a thousand here or there pretty much every week as disposable income.  I know we can't get into the private lives of each....but may be we could analyze the executive positions a little bit, as to how they are impacting the average middle class.....

The last question - Well I obviously do not think he was thinking??....or may be because it did not "apply" to him because he is not yet of that age, it just never entered his mind??  I intend to write of course to him & "above" him asking just this question.   I just think that there are various groups that have completely lost touch with "reality"??    Thank you for visiting & thank you for letting me know that State Farm impacted everyone....I am sorry!!  It was helpful with part of my question for sure.  They just need to be audited...or regulated better....or something??

I envision before too long we will have to have 2, 3, or 4 families to a home because of a number of economic type of items...that have nothing to do with the actual the mortgage planning itself.

Feb 04, 2012 12:27 PM #19
Rainmaker
367,072
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Pam, I wish you well with your letter, and I hope those individuals on fixed income do likewise and voice their opinions!  Politicians are living for the NEXT election, and that will never happen if people stand up for what is right.

Pam, I just wonder how much of the increase is due to insurance companies not doing well with some of the hundreds of millions they have invested ELSEWHERE?

We had a case in Indiana many years back where the electric company monopoly wanted a HUGE rate hike increase to bail out their INVESTORS on a failed Nuclear Power plant on the Ohio River.  They lost over 1 billion dollars and they wanted their customers to pay for their poor business decision!!! 

WE the People, and our elected officials need to be ever vigilant when it comes to dealing with large companies that exhibit monopoly/oligopoly like power. 

 

Feb 04, 2012 05:41 PM #20
Ambassador
882,240
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

This is outrageous. Your state needs to rise up and protest this action. I hope it works out for your parents. Good luck.

PS...I'm glad I made you laugh today.

Feb 04, 2012 08:48 PM #21
Rainmaker
622,757
Sheila Newton Team -- Anderson & Greenville SC Real Estate
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
25 years experience -Residential Real Estate Sales

for seniors here, we have homestead exemption which makes taxes almost nothing.. as for insurance, not much you can do about that.. sorry to hear about such a hard time for your parents.

Feb 05, 2012 10:26 AM #22
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Pam Hills

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