736. CASH FOR HOUSE (9/12/2012)
In early 1990s, many unusual things happened. Mr. Wang’s moving company moved my neighborhood out from my community, his wife was seen living in my back street, the Small World Pre-school shut down due to the disappearance of children, the desert of the public park…. All these indicated that the Feds had moved the residents away from my area. I was puzzled – it took a lot of money.
At the same time I found the Feds were bandits. They murder people to loot their wealth, especially when they have cash. My health had been hurt by the Isotope money. It should be used to track drug money. I never touch drugs. Why they applied it on me? Obviously they hoped to find a treasure of cash pile. Earnie might have died because he had too much cash stored. See:”7. Alleged murder of Ernie”, “ 8. FBI's profit”.
Another way to steal money from victims was through the stealing of credit card. See: “34. The lost Credit Card “.
So if such a criminal group bought a lot of real estate property, would they just for law enforcement? Of course they’d make money on that.
In later 1990s, I totally abandoned the driving because there was too much harassment and danger from a manipulated car. I turned onto public transportation.
One day while I was waiting for the bus, I saw an advertising board. A small one -the size like an election campaign board with politician’s name. It said,
“Cash For House
Then I noticed this advertisement was everywhere. ** were numbers varied from different location. For example, ** in Oakland was different from San Jose. 9** might be the number for California area. In Florida it could be “1-800-***-FAST”. The firm behind this advertisement must be a big one. It started to collect property countrywide in later 1990s. It foresaw a booming real estate market.
This firm is a powerful one. It successfully blew up a housing bubble to harvest the profit until it popped off in 2006.
737. The abolishment of assumable loan (9/17/2012)
After I found the Feds was buying the house countrywide, I expected they would push up the real estate price. I looked at the housing advertisement to see if there was one I could afford to. I wouldn’t miss the chance of a coming bull market.
I found a four bed room town house at the price of 80,000 and called the estate agent. I asked the agent if the seller had a loan that was assumable. She told me the assumable loan had been abolished for a long time, so it was impossible to find any more of this kind of loan in the market. It ended my attempt to buy a house in mid-1990s. The Feds control the bank and it was impossible for me to borrow any loan from the bank.
When I was going to buy my house in 1985, I was pre-warned by the manager that the company would be shut down. Two months later when I moved into my house, the company really shut down and I was unemployed. At that time I thought it was just a coincidence.
Many years later, I started to realize the house I bought was the target of the Feds. They murdered the former landlord. When the widow of former landlord tried to sell the house, the buyers failed to purchase due to the loan problem because the bank is controlled by the Feds. The continuing failure in deal forced the widow to lower the price of the house. I was in waiting list. When it was my turn, they shut down the company I worked. Bank wouldn’t lend money to unemployed.
I was able to buy the house because there was assumable loan – a loan pre-owned by the seller which could be transferred to the buyer automatically in house trading, no bank approval needed. It was a very popular loan at that time. With assumable loan and the money borrowed from my relatives, I bought the house.
Assumable loan was a good tool in real estate business. It benefits both side of trading. It makes a deal easier and faster for seller and buyer. But that goes around the interference of the Feds. (through the bank approval) I think it was my case that prompted the abolishing of assumable loan. Housing industry lost a nice tool just because the Feds want to maintain their fascist control.
738. Taxpayer Relief Act of 1997 (9/26/2012)
Although I gave up the attempt to buy a house when I learned that they abolished the assumable loan, the Feds had a swift response to my housing inquiry. In following month I found the housing price went up. Low price house disappeared from the list. Furthermore, soon there came a new law:
Taxpayer Relief Act of 1997
In 1997 President Clinton signed into effect the Taxpayer Relief Act of 1997, which included the largest capital gains tax cut in U.S. history. Under the act, the profits on the sale of a personal residence ($500,000 for married couples, $250,000 for singles) were exempted if lived in for at least 2 years over the last 5.t
When I heard this Act, I realized it was a measure to suppress other buyers to make money in a coming housing babble blown up by the Feds. Investors won’t buy in a downwards market. They emerge in an upwards market. This Act blocks other people to compete with the Feds in real estate market once the Feds blowing up a babble. Common buyers have to wait for five years if they want to make good profit while the Feds had the houses in their hands for years already. The Feds started to empty my community and buy in the house in 1990 .
San Jose Real Estate Market: Trend, Analysis & Statistics
Annual Home Price Appreciation Rates
1990 -6.11% --(I knew Mrs. Chen in Galt Flea Market. Apparently she was the Feds’ target already. The Feds started to buy houses.)
1991 -0.99% -- (Mrs. Chen was arrested for Heroin smuggling.)
1994 -1.40% -- (I left for China due to the persecution of the Feds)
1995 2.43% -- (Return to US. Persecution continued)
1996 5.48% -- (Saw “Cash for house”. Attempting to buy a house)
1997 13.22% -- (Taxpayer Relief Act passed)
1998 13.08% -- (dot com babble)
2000 29.07% -- (dot com babble broke up)
You can see how the Feds drove down the real estate value dramatically in 1990 when they started to buy in. Around 1996, when I recognized there would be a booming estate market and attempted to buy a house, how the Feds checked the other buyers with that five years new rule - Taxpayer Relief Act of 1997 and pushed up the housing market in following years. The first housing babble popped off before the five year ending of new “Taxpayer Relief Act”. You can see it from the Chart.