Years ago, I remember the big push for homeowners to convert from oil or electric heat to natural gas. At that time, it was touted as cheap and clean. While I am no chemist, I have no reason to believe it is no longer clean. However, based on many discussions with clients over the past couple of years, I have no doubt it is no longer cheap, and for some, it's what's pushing them over the financial edge and ultimately in my office.

So I was a little taken aback to learn that the 900 employee strong Marcal Paper company filed for bankruptcy protection today. The Chairman and Chief Executive, as well as the founder's grandson, Nicholas R. Marcalus had this to say:

The price increases in energy have proven to be immensely difficult. Demands by our lenders created liquidity pressures which caused the company to file for the continued restructuring under Chapter 11.

We believe that the decision to file, although difficult, was in the best long-term interest of our company, employees, customers, vendors and other valued business partners. We plan to take advantage of the opportunities presented by this restructuring to address both our financial and operational issues in order to position the company for long-term success.

Posted by Bill McLeod at 11:51 PM | Permalink | Comments (0) | TrackBacks (0)

I would vote yes. According to The Warren Group, "Massachusetts home sales fell by double-digit percentages in October, and the median sale price of single-family homes dropped 6.9 percent compared to October 2005..." And there's more: "condominium sales dropped 19.5 percent in October, down to 2,226 units sold from 2,765 during the same month in the previous year. The median condominium sale price dropped 4.8 percent to $261,750 from $275,000."

This does not bode well for homeowners who have been hoping for continued growth in home values, which would in turn, allow them to tap into equity and refinance their way out of adjustable mortgages. It doesn't sound like that can happen any time soon.

In a press release, Timothy Warren, Jr. , the CEO of the Warren Group had this to say:

“While we expect the market to stabilize sometime in 2007, it appears as though the housing sector is undergoing a significant correction.”

I have no idea what why he expects the housing market will stabilize sometime in 2007. If anyone has a clue, I encourage you to comment.

Posted by Bill McLeod at 12:07 PM | Permalink | Comments (0) | TrackBacks (0)

According to a report in today's Boston Globe, there's a "marked increase in the number of troops stripped of their security clearances because they are so deeply in debt."

The number of soldiers who are losing their clearances because of financial problems has nearly doubled over last year.

Posted by Bill McLeod at 12:02 PM | Permalink | Comments (0) | TrackBacks (0)

Interest rates have pushed mortgage payments higher. The softening real estate market has made it difficult for homeowners to sell or refinance. And just in time for the holidays, Boston is increasing its residential tax rates…and for some, the increase is going to hurt even more. From Boston.com:

The annual tax bill for the average single-family house will increase from $2,755 this year to $3,093, starting in January. The estimated bill for the average two-family house will jump from $3,307 to $3,857, while the bill for the average three-family house is expected to increase from $3,725 to $4,309.

Meanwhile, in other news, some argue that the financial crisis facing homeowners is nothing like it was in the early 1990s. The Lowell Sun reports that might not be the case:

Massachusetts homeowners had 4,891 foreclosure actions filed against them during the third quarter of this year, 66 percent higher than the same period in 2005, according to ForeclosuresMass.com, a provider of such data. The most recent data indicates that foreclosure filings are on record pace, higher even than the dark days of 1991.

Posted by Bill McLeod at 12:19 PM | Permalink | Comments (0) | TrackBacks (0)

Readers know that I have been keeping an eye on Kensington Assistance Agency: an obscure outfit that promises government grants to unsuspecting consumers who are able to cough up at least $298 for the pleasure of getting nothing in return. Readers have posted many comments about their experiences with Kensington, as well as another agency: Easton Consulting.

Commenters have posted similar experiences with Easton, namely, after giving them personal financial information (such as a bank account routing number, or even a social security number), the money is taken from their bank account, and the consumer gets nothing in return.

Today I received a comment from someone who claims to be a former employee of Easton Consulting:
Hi everyone,

I worked for Easton Consulting and no one gets a grant. Your government does not hand out free grants and that is a fact. I know, I inquired.

It's funny though that I tried to get in touch with the FBI and they said that they would do nothing, I emailed Oprah, 20/20, etc... and have not gotten a reply.

I unwittingly worked for them for two weeks (I guess the money prevented me from having my epiphany any sooner...groan).

I hope you realize that NO ONE gets the grant and it is nothing more than a scam.

I am sorry. Just to let you know, the company dupes about 500 people a week out of $349,97, and is this price a coincidence or is it $.03 difference between a felony and a misdemeanor?

Based on this email, Easton Consulting gets a McLeod Law Offices RIP-OFF ALERT! If you have been ripped off by Easton Consulting, or any other group that promises government grants for a fee, contact your local consumer protection office, and contact your local bar association for a referral to a consumer protection attorney near you. If you're in Massachusetts, feel free to contact me.

Finally, if anyone from Easton Consulting wants to respond to this comment or my comments please do so. Your side will be presented here and we want to hear it. We never heard from Kensington - but perhaps you'll step up and tell us why so many people claim to have been ripped off.

Posted by Bill McLeod at 5:44 PM | Permalink | Comments (1) | TrackBacks (0)

Statistics have been floating around for months (even on this site) about the foreclosure rates throughout the country. However, an article in the Denver Business Journal raises an interesting question: what’s really behind those numbers?

"What's coming through here is that more people are giving up," [Lakewood, Colorado Realtor Lance] Chayet said.

What the numbers don't tell, he added, are whether the sellers who have taken their properties off the market are doing so temporarily until after the holidays or whether sellers are so desperate that they are allowing their homes to go into foreclosure.

Colorado currently leads the country in foreclosure rates. But the article certainly makes me wonder: with Massachusetts foreclosure rates continuing to rise, and the housing market still on a downward slope, could the same thing happen here?

Posted by Bill McLeod at 6:15 PM | Permalink | Comments (0) | TrackBacks (0)

The Boston Globe is reporting that J.A.Cambece Law Offices, PC has agreed to pay $75,000 and implement procedures to protect consumers following an investiation from the Massachusetts Attorney General's Office.

Thomas F. Reilly, the attorney general, alleged that representatives of the J.A. Cambece Law Office PC violated state and federal debt-collection laws by using profane language, placing calls to consumers at improper hours, making unauthorized communications with consumers at their places of employment, and failing to provide proof of the validity of debts.

The settlement "imposes restrictions on this firm to protect consumers from abusive practices," Reilly said in a prepared statement. "It also sends a message to the collection industry that abusive tactics will not be tolerated."

Posted by Bill McLeod at 1:59 PM | Permalink | Comments (3) | TrackBacks (0)