After notorious time delays on everything from how to handle the North Korean crisis to new state laws, a new senate bill is being fast-tracked in an effort to get the fines rolling in for those who “refuse” health care.

The new bill, if passed, will fine Americans who refuse to buy medical insurance, much like state laws now fine automobile drivers with insufficient or no insurance.  This is incredibly dangerous on a number of fronts.  With the potential of $1000 fines annually for people who don’t have or can’t afford medical insurance, it’s unclear as to what the purpose will serve.  For the now 50 million-plus Americans with no health insurance, it’s certainly not because anyone is refusing it.  It’s simply not an option when there are groceries to buy and mortgages to cover.  Who determines what “affordable” is remains to be seen as well and hasn’t been addressed, at least in the media, to sufficiently answer this and other questions.

With the estimated $36 billion dollars in fines the government expects to collect over the next decade, where exactly will these dollars go?  Will they go into a pool to cover those who can’t afford what the government is calling affordable?  Will these funds be used to offset any of these additional burdens on the mother with two kids and barely enough to cover the bases before being forced to buy an “across the board” medical insurance policy?  For a tax system that’s been broken for years, it hardly seems realistic to expect these fines to be collected via the IRS, which will be responsible for collecting these fines.

With the clever name our equally clever political leaders have devised, “Shared Responsibility Payments”, the fines will be based on what the government defines as “affordable basic medical coverage”.  It’s the basic medical coverage now that’s responsible for 66% of all bankruptcies being filed in this country.  It’s insufficient even when folks aren’t being forced to buy it and certainly not enough to keep people from going bankrupt.

And the saving grace?  A government exemption for hardship cases. Again, who exactly will define hardship cases?  Whoever it is will have a tall order to fill with unemployment numbers that continue to climb, despite reassurances from these same government leaders that the recession is on the decline.  Will a family who’s lost not only their jobs, but their homes and every possession they’ve worked for be enough to justify a hardship case?  If so, look out - the line will definitely be long for those wishing to apply for the exemptions.  Take a look around - there are few, if any, who can’t identify someone they personally know who have lost everything.

Medical insurance, or the lack of it, is certainly a priority in this country.  But it stands to reason that a decline in unemployment will greatly reduce those who have no health insurance, homes,  groceries or automobiles to get to those jobs.  Americans refusing medical insurance?  That’s doubtful.  It’s more like Americans refusing to allow the government to shove insufficient medical insurance that will serve very little purpose down their throats, especially when there are clothes to buy for the school year, food to put on the table and utilities that require immediate attention.

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Poverty is best defined as those who experience a shortage of food, shelter, access to medical attention and even clothing.  Unfortunately, too many people in America live in poverty.  Even worse is the number of programs currently available that fall short, despite monumental efforts made by selfless people who volunteer their time on a daily basis to offset the increasing numbers of Americans who fall into the federal government’s guidelines of poverty.

Even in the current economic times, we are living in one of the wealthiest countries in the world.  Our resources are unlimited, our technological advances are mind-boggling and the numbers of us who contribute portions of our salaries in an attempt to do our part continue to rise; yet even with the countless numbers of shelters, food banks and clothing banks, still the numbers continue to rise.

It’s estimated nearly 37 million Americans are living in poverty this very minute.  The latest census statistics show a population of just over 306 million.  That’s over 10% of Americans who don’t have enough to ensure their children are eating nutritious meals, who can’t provide adequate homes for their families and who may be living with medical conditions that if go unchecked, could result in dire health consequences.

Job losses, foreclosures, lower wages and a multitude of other social problems are all contributing to this crisis.  The fact is, people are trying.  Once the vicious cycle sets up and a series of unthinkable events begin to happen, it’s almost as though a domino effect happens.  Now, there are more dominos that are falling.  Food and clothing banks as well as homeless shelters are all feeling the pain of the recession too.  This means precious few resources available to help those who are attempting to pick up the pieces of their lives.

Maybe the solutions lie within each of us, not so much as in a collective sense, but maybe what each of us can do in our own way and in our own day to day lives.  Some of the most successful stories we hear   are a result of those who make a phone call to their local electric company and ask to make a payment to a family that seems to find itself on the cut-off list each month.  There are stories of anonymous phone calls that have served as the gateway for a small business owner who needs a trustworthy carpenter and an out of work carpenter who has a family to support.  These two people might never have known of the other had a single phone call not been made.  We hear of food baskets being delivered to doorsteps with nothing more than a knock on the door to announce its arrival during the holidays; but when did it become acceptable for this to be a holiday-only tradition?  Hunger doesn’t make the distinction in holidays versus the remaining days of the year.  Stories of mortgage payments miraculously being made that keep a single mother and her children in their home aren’t uncommon either.  Is it really this simple?  Will small efforts such as these be what ultimately turn this country around? One thing’s for sure; we won’t know until we try.  Foreclosures don’t occur if payments are made, electricity isn’t disconnected if the arrears are brought current and poverty can’t exist if there’s enough food available where it’s needed.

For the fifth time in a year, Southern California is reeling from a mass suicide/murder of those feeling as though there’s no way out from job losses, foreclosures and other financial problems.  A couple, both who just lost their jobs as technicians at a hospital, felt there was no other way and chose to end their lives, as well as the lives of their five children.

In the five page suicide note, Ervin Lupoe justified the murders of his children by asking, “Why leave the children to a stranger?”  He said that this plan was made by both he and his wife.  He then faxed the note to a television station in Los Angeles.  The station called police immediately but Lupoe had already called 911 to report he’d just returned home and found the bodies of his entire family.  It was then he committed suicide with a revolver.  His children included two sets of twins, two boys who were two and two girls who were five, as well as an eight year old girl.  The couple had removed the children from school last week and told the school official the family was relocating to Kansas in search of employment.

When the police arrived this morning, they said the smell of gunpowder was still in the air.  They released a statement urging people who are facing tough economic times to consider other alternatives and reiterated money problems are always temporary and always have other solutions.

In a peculiar final sentence in the fax, Lupoe writes, “Oh Lord, my God, is there no hope for a widow’s son?”

This is yet another sad and tragic reminder of how money, or the lack of it, affects every aspect of our daily lives.  The stress of losing a job, or in this case, both sources of income, and having five little ones to feed, was so overwhelming as to resort to such a final act.

After falling over 37% in 2006, bankruptcy filings are on the rise again, despite the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  In 2008, filings rose, completely offsetting the decline in 2006.  A year-end total of 1,045,000 is the highest number of filings since 2005.  This is a clear indication of how many are finding other solutions.  Not only that, but businesses that are filing bankruptcies are on the rise as well.  There were over one million business bankruptcies in 2008 filed by Corporations and their lawyers.

Could a bankruptcy filing prevented the death of this entire family?  It’s difficult to understand the mindset of a family annihilator, or in this case, two family annihilators, but if job losses were the root of this couple’s desperation, one can’t help but wonder why other options weren’t considered.  Bankruptcy certainly isn’t the perfect solution, but neither was the solution they chose.

As the government continues to provide monies for corporations to bail themselves out of financial ruin, and AIG officials tackle their personal grooming habits with retreats to California at the country’s most expensive spa, spending nearly $900,000 on, among other things, manicures and pedicures, cities are reporting record numbers of homeless families who have lost their homes due to foreclosures.  As if 49 million uninsured Americans weren’t bad enough, families - with children - are finding themselves on the streets with no idea where to find the solutions.  Cities like Atlanta, New York and Seattle are seeing record-breaking numbers of homeless people.  It’s been said a combination of job losses, the high number of foreclosures and rising food and fuel costs have contributed to this crisis.  Up until this year, the numbers had been declining.  Some cities had reported as much as a 12% decrease of people living on the streets.  Now, though, the city of New York had less than 2,100 homeless families this time last year.  One year later, the number is at 2,750.  These numbers reflect the number of families - not individuals. 

I remember thinking after Katrina how much we take for granted.  No electricity for a week was tough, but this?  It’s a whole new ballgame.  At least in the days after the storm, we knew the power companies would be appearing any second to restore power - and air conditioning, specifically.  August in the South - you’ve never known a hot day until you’ve experienced 100% humidity with heat indexes above 100 degrees.  I have a feeling that a few hot days are nothing compared to what some of these people are facing with winter knocking at our doors. 

So while the American Big Businesses are clawing their way to the money tree, mothers are clawing their way to the nearest food banks and shelters in their efforts to ensure their little ones are warm and fed.  There’s something insanely wrong with this picture.   Even with the new federal law that’s providing nearly four billion dollars for cities and communities to buy foreclosed properties to house the homeless, it’s of little comfort to those who don’t even know it exists.  My guess is with no roof over their heads and no food in the pantry, they’re not likely to have access to CNN or Fox News or any other media that announced this new law. 

Are representatives from local Social Service agencies setting up tables at the food banks and shelters to notify people that help is out there?  Is the right information being funneled to the right people in the right departments?  We all know the evils of the red tape.   And if AIG officials have enough free time for a week long manicure, perhaps they could find a little time to volunteer at a food bank.  A little perspective is good for the soul.  Better still, perhaps a good use for their hands might be to pick up a hammer with Habitat for Humanity instead of picking their hands up and out of the cuticle conditioner.    It might serve as a reminder the very ones they need as customers for their insurance and other financial offerings are the ones who are most betrayed.

We’ve all seen the news the past few days of how the economy is in big trouble and for the first time in a long time, it’s not the oil companies in the crosshairs.

Lehman Brothers and AIG are the two players who seem to be responsible for the breaking news emails. It’s difficult, at best, to understand why our sympathies should be directed to those at the top of the food chain. I’ve no idea either. I happen to believe in karma and maybe it’s time for another round of tumbles from these high pedestals.

But since it appears homeowners, especially those with the misfortune of having an adjustable rate mortgage or have what’s referred to as a “subprime mortgage”, will feel the pain in short order - we all know the trickle down effect of how the American economy works, maybe it’s time for a reminder of the fact they’re not alone.

Those in this category appear to be most at risk for foreclosure or bankruptcy proceedings. What generally happens is a potential homeowner, who sees an ad promising 100% approval for applicants, will apply for a mortgage. His credit history is the single most important factor in this entire process. If his credit is less than stellar, as most histories are, he might be offered a higher rate on an ARM. He gets a crash course of what that means and realizes it boils down to higher monthly payments and for two or three years, a consistent monthly payment. After the twenty four months (or thirty six months) elapse, the bank has the option to adjust his monthly payments, with little or no warning, to reflect whatever state the economy is in. What’s not as well known as it should be is that at this point, provided the homeowner has taken advantage of the tax incentives and has managed to improve his credit scores, is the option to refinance into a fixed (read: consistent) rate. Many do, but many don’t. It’s those who don’t refinance and stay in this unpredictable cycle of not knowing what their mortgage payments will be who are most at risk for foreclosure or bankruptcy. Foreclosure is to a homeowner what Ike was to Galveston. These homeowners usually lose their homes, or for those who file bankruptcy, they do have the option to keep their homes. The stress involved with financial uncertainty, the fear of foreclosure and/or bankruptcy prevents an objective plan of action, including thorough research into options that may not have even been considered. As I’ve mentioned before, there are many programs available to assist struggling homeowners. Everything from providing low interest loans to bring mortgages current, to assisting homeowners in their efforts to work with their mortgage companies to renegotiate a payment plan for the arrears - these are all options and are available with few or no restrictions.

It’s important to realize the attorney you sat down with at the loan closing is a title attorney and his job was to ensure the title had no liens and was otherwise clean and transferrable. You might have noticed he most likely came in long enough to ensure your competency and ability to understand what you were signing, and then had everything signed, and at that point, he certified there were no liens on your new home. But he did that at the request of the mortgage company. A title attorney’s major contribution to this entire process was the title search that was conducted while the paperwork was being processed and routed.

If you’re facing bankruptcy, and are certain there’s no other way, it’s important to find a lawyer who is experienced in these proceedings, is sensitive to the emotions people experience once they realize this is their only option and who will be available to answer your questions during the entire process. It’s also important to realize that as traumatic as it feels now, the future can offer a better financial outlook and it’s up to you to build upon that future - and know that in the whole scheme of things, when you look back on your life, you’ll see it as unfortunate, but not the end of the world and moving forward is the common denominator in each of our lives.

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It’s no secret the foreclosures are on the rise for the second year.  Two years ago,  it was possible to secure financing for a new home with credit scores in the low to mid 500 range and it wasn’t unheard of to secure one hundred percent financing. Stated programs, where a loan officer states an applicant’s income and employment history, versus obtaining actual documentation via the employers and banks, were also common.  The lenders were taking risks like never before.  Those risks, along with poor budgeting and a lack of home owners’ basic understandings in terms of how interest rates and appraisal values work are being blamed for the high number of foreclosures in this country.  Add to this high oil prices and other sectors that are performing below expectations and it’s no wonder we’re hearing more and more about an eminent recession.  Some say we’re entering into a recession now. 

There are programs, compliments of Fannie Mae, that are being implemented to assist homeowners who have fallen behind on mortgage payments.  Some of these programs include low interest loans for consumers that will allow them to catch up on payments, there are also incentives in place for lenders who are willing to delay foreclosure proceedings in an effort to keep families in their homes.  The problem, however, is many have no idea these options are available.  There are even refinancing options that have lower approval qualifications for those who are in high rate ARM mortgages.  These new initiatives, as crucial as they are, can serve no purpose if they’re not being used. 

Lenders and banks are closing and merging at a rate of one a week.  There’s not much incentive for these banks to pursue collection of overdue payments if they know an announcement is coming that they’re closing their doors.

Indymac was once considered one of the heavy hitters in the mortgage industry.  When the announcement was made recently that it was reigning in its mortgage division, the very real possibility that it couldn’t exist without this division was enough to send other lenders scrambling for ways to keep from being next on the chopping block.  It’s the classic mistake of making decisions while panicked or based on fear.

Fearful consumers who are worried about how to make an extremely high mortgage payment because of their adjustable rate mortgages present other problems due to this stress, including divorce, drug and alcohol use, gambling and even job burnout in their efforts to catch up by working overtime.  Often, they don’t slow down long enough to take a step back and rethink their options.  That, of course, can only lend to the further decline of the American mortgage sector.  There are no easy answers, especially with this being an election year. 

There are resources that have solid solutions and advice for homeowners who are at risk of losing their homes.  Some are:

U.S. Dept of Housing and Urban Development (HUD)

FAQ Section for Struggling Homeowners

Federal Housing Administration (FHA)