Bufford Warren Homes

A Common Sense Approach to Repair Health Care

I hear about all of the elaborate bills that are being considered that would rewrite the health care industry in our country. Most of the politicians seem to think that we need to break the bank in order to fix the system. I believe there is a better solution.

First we absolutely must address Tort reform. Lawsuits cause doctors to practice medicine based on their fear of the legal system instead of the needs of their patients. This drives up cost because of the additional test prescribed. These tests are only done for a CYA situation and huge cost of Malpractice Insurance. According to a January 2006 report prepared by PricewaterhouseCoopers LLP for the insurers' group America's Health Insurance Plans; about 10 percent of the cost of medical services is linked to malpractice lawsuits and more intensive diagnostic testing due to defensive medicine.

For those that want medical insurance but are denied coverage due to preexisting conditions or affordability, I propose creating an assigned risk program similar to that presently run by auto insurance companies. Under this program, which should be ran by the insurance industry, a person would be insured by the system but would have to pay a premium based on his or her ability to pay. The government would then underwrite the balance of the premium for that individual. We are already providing the medical treatment for most of the people that would take part in this program through a combination of state and federal programs. The key here is that the participation would be voluntary and a person would have to qualify and prove that they could not get affordable coverage elsewhere.

At the same time we need to revamp the way that medical procedures and medications are brought to the market. It takes way too long which adds a lot of costs. We might also consider co-opting some of the research for new drugs with the pharmaceutical companies as a cost saving approach. This would help lower the cost of medications because the companies would have to venture less money on long term research that may never become viable.

We do have issues with our health care in this country and they need to be addressed. But please do not destroy the building while attempting to remodel a room. Do not even consider a single payer system because it destroys privacy and usurps individual control and responsibility.

 

 

Why Americans Are Questioning Washington

Everyone is talking about Health care these days and the majority of the people are against the massive overhaul of the system that is being proposed by congress. The bills that have been proposed are very difficult to understand and leave to much room for bureaucrats to impose their will. In listening to the news channels and their interviews with different congressional and senate representatives it seems that these representatives have their own agenda and are not considering the wishes of their constituents.

I am a person in a sales position that is in contact with the public daily. People are very concerned about the huge cost of all the entitlements that are being created. They have done their homework. They see how these programs, including health care, have affected the countries of Europe where every country has adopted a Value Added Tax in addition to their income tax. These VATs range from 15% in England to 25% in Denmark and Sweden. They are aware that every European country has been addressing the cost of health care for decades and have had no choice but to ration coverage due to the to the cost. They have seen the figures that show that the Carbon Emission taxes have exported jobs away from their countries by a margin of more than two to one and at the same time increased the cost of home heating by as much as 25%.

They also understand that health care legalization is the first step to a one care provider system. This has been proven by history. History has also proved that once a government controls health care it has complete control of its citizens. One of the conditions to obtain a government medical Identification card is full disclosure of all financial information. When this is occurs, your information is no longer private

Our medical system is not perfect but it is still the envy of the world. We need to address certain aspects of the system but by a point of need, not a complete overhaul.

 

 

 

 

Short Sale vs Foreclosure

I was recently involved in the short sale of a primary residence. The owner had lost his job and depleted all his savings in an attempt to stay in the home. Due to the loss of income and owing more than the home was worth he was unable to come to an agreement with his lender to re-write the loan. We discussed his situation and after consulting with an attorney, he elected to go with a short sale rather than a foreclosure. His decision was based on the expected benefits he would enjoy later when he might wish to purchase another home. According to a Mortgage Broker, after a short sale FHA will finance another house if a person shows equitable income and 12 months rental receipts that shows the payments were on time. If the house had been foreclosed on he could not have qualified for 2 years. When there is a short sale completed on a home, the mortgage lender involved will send a 1099 to the seller for the difference between the amount owed and the amount received. This is phantom income and may be taxable. In October of 2007 congress passed a law that exempted this income from a sale of a person's primary residence. To be exempt a person must prove financial hardship.

In some states the lender can ask for a deficiency judgment for the difference owed and the amount received when there is a short sale or a foreclosure. In Arizona and some other states Deficiency Judgments are not allowed on a primary residence. Check the statue in your state.

Will Your Taxes Go UP For Health Care?

In all the countries where the government owns and controls the Health Care System they have had to raise taxes in order to help pay the cost. This has usually done by adopting a Value Added Tax. This is a tax on all transactions. Example; you purchase an item for $10.00, then a V.A.T. of $2.50 is added making the final cost $12.50. The Obama administration has considered a V.A.T..

Comparison of Taxes on individuals in different countries.

Country Income Tax Rate Value Added Tax VAT in Province or State
Canada 15-29% 5% 10-20% Avg 14.26
Denmark 38-59% 25%
England 0-40% 15%
France 5.5-40% 19%
Germany 14-45% 19%
Sweden 0-57% 25%
USA 15-35%

In addition to the above taxes there are local taxes that are not listed. These rates are supplied by
WorldWide-Tax.com .

Energy Bills Impact on Home Owners

The question was recently ask about how the American Clean Energy and Security Act of 2009 (H.B.2454), passed by congress, would affect residential home sales. The bill gives The Secretary of Energy the authority to adopt and change building codes and to punish states that do not comply.

Title II, Subtitle A Allows the Secretary to establish Energy Efficient Building Codes for new construction that will have to be adopted by each state. It has a retrofit program to promote bringing up older buildings to code. Buildings will need to be brought into compliance with the Secretary's Green Standards before they can be sold. The Secretary has the authority to make any changes he/she wishes at any time. There is a time line at which time all buildings will have to be in compliance. This usurps the authority of local government.

This Bill also creates "Loan Friendly Zones" where better loans rates are provided for people who buy or build in that area. This is the reverse of Red-Lining and is another means of social engineering.

I suggest that anyone that is in real estate acquire a copy of this bill and read it. It is very costly to the housing industry and will raise the cost of every commodity that we use. The creation of green jobs will not happen, check Europe where Carbon Cap and Trade has exported their jobs and raised the cost of energy as by 25%. The end result is a huge tax burden on the American public. This is not about Global Warming, this is a power grab and a way for some select individuals to become very wealthy.

 

Respect, Ethics and Fiduciary Duty

On February 27 I called an agent who works out of a Prudential Real Estate Office to make arrangements to show a home he had listed in Anthem. I was told at that time that the tenant had not been informed that the home was for sale and they did not wish to tell them prior to receiving the monthly rental payment (Ethical ??).

On March 6, I again called the listing agent but only got a voice mail; I left a message asking that he make arrangements for me to show the home on March 9 between 11:00 AM and 1:00 Pm, I followed this up with an email asking the same. In my email I also ask if this was a short sale because that could possibly affect possession in the event of a sale. I never received a return call or an answer to my email.

Forward to March 24, I again called the listing agent and sent an email asking if the home could be shown because he buyers still had an interest. I got no response.

On March 25 I called and left a message with a Lady (she was in a meeting) that purportedly is one of the office managers and I sent her an email. On March 27 I left a detailed message with gentlemen (he was in a meeting) who I was told was also an office manager. I also called and left a detailed message with the Designated Broker (he was in a meeting)

In this detailed report I have shown why our industry has a problem with trust. There has clearly been a violation a fiduciary duty and a lack of ethics as well as common respect.

How Much Power Do We Give Washington Bereaucrats

The other morning I watched as Barney Franks and his congressional pane holding a hearing to give the Treasury Department and Federal Reserve more power to take over more of our financial system. Now they want the power to take over businesses that may not be in trouble and are not asking for help. This just another step on the road to Nationalizing our Banking industry and I think is a bad idea.

We are gravitating toward a welfare state. Do we really want a European style of government? France has had 15% unemployment for years and all the major industries in Sweden are now owned by outside sources because they were taxed so heavily that they could not grow. Since I don't know what Socialism is any more for many people, I'll just say that in Eastern Europe, with its problems, most people believe that our free market/government systems is the best.

Does the Treasury Really need more Power??

The other morning I watched as Barney Franks and his congressional pane holding a hearing to give the Treasury Department and Federal Reserve more power to take over more of our financial system. Now they want the power to take over businesses that may not be in trouble and are not asking for help. This just another step on the road to Nationalizing our Banking industry and I think is a bad idea.

We are gravitating toward a welfare state. Do we really want a European style of government? France has had 15% unemployment for years and all the major industries in Sweden are now owned by outside sources because they were taxed so heavily that they could not grow. Since I don't know what Socialism is any more for many people, I'll just say that in Eastern Europe, with its problems, most people believe that our free market/government systems is the best.

Our Congressional Representatives Have Failed Their Constituency

Congressional Representatives are standing in line to get their face in the news so they can feign anger over the AIG bonuses when all they are doing is trying to make a case for them-selves because they failed in their fiduciary duty to the American People by voting on a Bill without knowing what it said.
If congress would do a little research they would find that AIG is governed by Connecticut Law and punitive damages for the violation of their employee contracts could be substantial.

Please do not give our government the right to re-write contracts at the discretion of some judge.
The very fabric of our social system is based on contracts and to change this would corrupt our entire world. No one could ever trust anyone. I can remember a time when a person's word was a bond not to be broken. We now demand that everything be in writing and this is ok, it keeps things straight and gives attorneys something to argue about.

At this time in history the government of our great country is being re-shaped by the far left. Please do not let this country become a mirror image of a European government.

 

President Obama’s Home Foreclosure Rescue Package –Part 1

I waited with anticipation for President Obama's Home Foreclosure rescue package. I wanted to know what I was going to get for my 75 Billion dollars. I listened to his speech and it sounded more like a political speech than a workable plan to rescue home owners. Lots of wind and very little substance.

I did find out that in addition to the 75 Billion for this project, there would be another 200 Billion go into Fanny Mae and Freddie Mac so they could fund 100% of the homes that would be refinanced under the FHA guide lines. Up to this point Fanny and Freddie only guarantee 80% of those loans with the other 20% were owned by the lender of choice.

This package is getting a lot of hype but I am reserving my judgment until I see how many people it is really going to help. Much of this hinges on voluntary cooperation and rather large mortgage write downs by lenders. What I did not hear was a way to address the issue of how to address the huge number of homes already on the market. This must be addressed in order to stabilize values and stop the downward spiral.