After last Monday’s meeting of the Bangor City Council’s Finance Committee, Councilor Charles Longo wrote on his Facebook wall that he “could not be prouder to serve the people of Bangor.”
This came after Longo pulled off a procedural ploy — a legal one — but a ploy nonetheless that reversed an earlier committee vote that would have begun the repossession process for the home of Peter and Jennifer Brown at 110 Pearl St.
It’s important that this family get a second chance, Longo told reporters.
“We should try every option even if that means waiting one more month,” he said to a local TV reporter.
“We are the people,” he told me when explaining his desire to give one more chance to the couple, who are seriously delinquent on loans and property taxes owed the city.
What’s one more month? he asked.
Are you kidding me?
Let’s recap, shall we?
It was September 2010 when Jennifer Brown sat before the committee to explain why she was not making payments on a $70,000 low-interest loan agreement she and the city had entered into five years earlier.
Part of the loan had been made in 2005 through the city’s Department of Economic and Community Development, was funded through a federal Department of Housing and Urban Development grant and administered through the city.
Such loans are commonly made to low- and moderate-income residents for the purpose of improving the safety of their homes, fixing code violations and improving energy efficiency.
The other part of the loan included the couple’s mortgage, which the city had paid off when the original mortgage holder, Penquis CAP, started foreclosure proceedings because the couple were not making payments.
The city opted to take over the mortgage in an attempt not to lose the thousands of dollars it had lent the Browns as part of the home improvement economic and development grants, money that surely would have been lost if Penquis CAP foreclosed on the property.
Payments were sporadic from 2005 and 2007. In September 2010, the committee was informed by city staff that the Browns had not made a payment for three years. They also had failed to pay their property taxes and had made no sewer payments.
At that time, the Browns were into the city for about $110,000.
The couple failed to return phone calls from city staff and did not respond to certified letters.
At that September 2010 finance committee meeting, City Finance Director Debbie Cyr recommended that the committee vote to either begin foreclosure procedures or take possession of the home.
A month later, a 12-month agreement was approved that called for monthly payments of $800 with $200 applied to taxes and $600 going to mortgage loans and property insurance.
Because of “some payment issues,” that agreement later was extended until October 2012.
Now back to last Monday’s meeting.
City staff informed the committee that since the extension the Browns had made one payment and were now $4,150 in arrears.
The outstanding balance is now up to $133,074, while the assessed value of the home and lot is just $125,000.
In 2005, the Browns were unable to pay their mortgage, the home improvement loans they received through the city, their property taxes or insurance.
Now it’s nearly seven years later and nothing has really changed except for the amount the couple owes to the city. That just keeps going up.
This is just a long shot, because I am most certainly not a financial or budget expert — but I’m beginning to wonder whether this family can afford this house.
Council Chairman Cary Weston is not on the finance committee, but he was in years past and is very familiar with the Browns’ case.
When regular committee member Patricia Blanchette could not attend Monday’s meeting, committee Chairman Nelson Durgin asked Weston to sit in as a voting member of the committee.
It’s a common procedure.
The committee voted 3-2 to prepare a council order to take possession of the house and property.
After the vote, Weston left the meeting to attend another meeting with area legislators to discuss proposed cuts to the city’s General Assistance program, which potentially could cost the city $1 million to $2 million.
“I didn’t leave the meeting because I didn’t care about the other agenda issues. I left because I couldn’t be in two places at one time and I felt that discussing the General Assistance cuts with legislators took priority. This is a huge issue for this city,” Weston said.
Longo had been sitting in at the committee meeting as a nonvoting participant. When Weston left, Longo took his place as a voting member to hear the other items on the committee’s agenda.
He then pulled a legal but unprecedented move: He asked if he could bring the Browns’ matter up for reconsideration.
City Solicitor Norm Heitmann said that while such a move was unusual, it was allowed.
The revote came out 3-2 against taking possession of the house with Longo, Councilor Geoffrey Gratwick and Councilor Joseph Baldacci voting in the majority.
Hence the Browns get to keep their house for another month or perhaps longer if history serves as any indicator. And Longo got to call them up after the meeting and inform them of the good news.
He was very proud. His Facebook page said so.
At the end of our conversation on Friday, Longo asked me what I thought about the whole matter.
“I think it’s a lot easier to be the good guy than the bad guy,” I said.
Heck, turn the keys over to me! $800 a month for a house like that is a steal!
You have only seen the outside.
a friend of mine knows them the house is nice not a mansion but nice if you dont use money to pay your mortgage you can really buy some nice stuff.
I am attempting to buy my first house in The Gardens now. I wonder if I will be able to get the same deal from the city or the bank if my ability to pay my city utility or mortgage bills changes.
Only if you have a relative who has had trouble seeing large yellow and black objects.
Why exactly is the City lending anyone money in the first place? If they couldn’t get a loan from a financial institution there is a reason for that: they were too high of a risk of defaulting.
This is precisely why municipalities should not lenders be.
Are you saying that low to moderate income individuals and families that aren’t able to get financing elsewhere don’t deserve to live in safe, dry, warm homes? As I said to Chumby, the default rate on these loans is very, very low. In the order of 1 or 2%.
Wow, that is quite the giant leap of logic I would say.
And no, being able to live in a house is not a right.
A. I didn’t say it was a right. B. Not a giant leap of logic as that is directly one of the missions of the CDBG program, where the funds for this loan came from.
No the CDBG program is not for welfare. It is for community development. This was not an appropriate use. It is designed for community improvements and this is a huge stretch of that idea. Someone should take the town to task on this misappropriation of federal funds.
Since two things happened, I am not sure which one you refer to as inappropriate. The original rehab loan is absolutely an appropriate use of the money. As far as the purchase of the mortgage I am not 100% sure. I do know a couple of things about it though. 1) It protected the original $70,000 rehab loan that would not have been recovered had Penquis proceeded with foreclosure. 2) The program is audited by HUD yearly. There have been 6 audits since the second loan was made and no issues with HUD.
This couple was in default on there first mortgage. The City should have never taken on that debt with taxpayer money.
When the loan was made for the rehab of the home, the mortgage with Penquis was not in default. If it were, the rehab loan would not have been made. After the rehab loan was made, the property went into default. That was when the City bought the mortgage to protect the investment of the rehab loan. If that had not happened, the $70,000 rehab loan would never have been recovered. As it stands now, the City stands to recover the investments. I am only defending the loans, not the recent decision to give them another chance. I feel chances have already been given, commitments not met and that it is time to take over the house and move on.
“The other part of the loan included the couple’s mortgage, which the city had paid off when the original mortgage holder, Penquis CAP, started foreclosure proceedings because the couple were not making payments.”
The mortgage with Penquis was in default as the quote above indicates.
The mortgage with Penquis was not in default when the original rehab loan was made. That default came after, thus the additional loan to purchase the mortgage.
“their” (I’ve lost track)!
Safe, warm and dry–yes. Large and more than they can afford–no.
It would be nice if we could give homes to everyone. We can’t. You cannot give the financing to one person without taking the necessary money from someone else.
The American Dream used to include home ownership. That was something people strove toward. Now, no one wants to strive, they want to just have someone else take up the costs.
Cities should not be lending money. They do not have the necessary background to make logical rather than emotional decisions.
The rehab loan program does not give homes to anyone. It fixes homes already owned by people. A review of the application for the program and ultimate approval involves proof of income, review of credit reports, an analysis of debt to income ratio, an analysis of loan to value ratio, and several formulas to ensure that enough equity exists in the property to cover the costs of all needed improvements and secure the loan. I guarantee you that all loan decisions made are logical and not emotional.
Homeownership is not a right in this country.
I understand that. After two comments stating that to me and reviewing my original statement, I can see where people would think that I thought it was a right. I was trying to defend the home rehab loan program and didn’t make myself overly clear. Just to confirm, I do understand completely that home ownership is a privilage. I also believe that people that income qualify, already own a home and meet all of the other qualification criteria should be able to take part in the loan program which provides them with safe, dry, warm housing. Since it is a LOAN program, it is not getting something for nothing. The participant’s either pay monthly, or, if further income qualified, can pay when the property is sold, transfered, refinanced, etc.
Not everyone can afford to own a home, that is why landlords who rent apartments are able to stay in business. The whole idea that everyone should have the opportunity to own a home, sank the housing market and led us to where we are now with our economy. People who do not make enough to own and maintain a house should not be lured into homeownership with creative financing and made to believe that they have the means to buy a house and only wind up in a position to just lose it back to the bank in the end.
I have responded to others that I agree with what you are saying wholeheartedly. My response was in regards to “the City should not be making loans” comment. The City should be making loans for home improvements. This particular case is a very unique situation, the only one of it’s type, where the mortgage was purchased only to protect the investment of the rehab of the home.
This is a unique set of circumstances for sure. I feel bad for the family as it seems that there were surely events that were beyond their control. I do believe that enough time has passed and not much has changed in the overall situation, that the city should foreclose as doing otherwise would set a precedent that will give others the impression that not paying will be tolerated.
One more example of society not holding people accountable. There is no excuse for this family not taking some initiative and working out some sort of a payment arrangement. We have hardworking, responsible individuals who cannot afford a home and understand that. Not everyone is entitled to home ownership. It is a privilege. There is no reason to believe that this family will ever change their pattern so why continue to hemorrhage money? Enough is enough. Stop the enabling or we will continue to see this same story every year about this family.
Because the City receives money yearly from the Community Development Block Grant. Part of which is to be used in the manner mentioned. The default rate for these loans is very, very low. How many other stories similiar to this one have you heard of? Not many at all.
Exactly! A tiger never changes thier stripes. And there is more to consider to making a loan than ones ability to pay, you must also look at ones willingness. Politicians are not bankers.
My reply to wishful1 explains the other criteria involved in loan approval. Willingness is explored. However, past history is not ALWAYS a predictor of future follow through. It is a decent indicator, for sure, but not a guarantee. An applicant could have a perfect credit report with zero lates or deficiencies and still default on a future loan. Trust me, there are many decisions made in the loan approval process and not everyone that applies for one is approved.
“their” Seems to be a problem spelling the freakin’ word!
Got an apostrophe?
good one
The back door move by Longo, is a disservice to the taxpayers of Bangor , who pay their bills on time and are responsible community members. The procedural move is a slippery slope, where does it end.
Citizens should know that whenever someone fails to pay their taxes, the mil rate has to be raised to cover the difference between the appropriation and the unpaid tax bills.
Yes, the overdue bills are charged interest, but the rest of the residents pay more until the old bills are paid in full. Then the city takes the overdue money and dumps it into the surplus funds, instead of reducing the mil rate again. Then they take the surplus and spend it on projects or programs, and up goes the mil rate again next year.
It’s a shell game, and a high rate of unpaid taxes should not be tolerated by responsible citizens and council members.
Do the people of Bangor expect anything less from the boy councilor who lives with his mommy, sleeps with his cat and wears XXXL Robin Hood peejays to bed?
Imagine our city’s fate if every member of the council had a child’s appetites for things they couldn’t pay for. It does explain his tantrums.
Careful, now. Bungorian will file a civil rights complaint for profaning his religious idol – the “Bangor Baby Buddha”.
The Longo, Gratwick, Baldacci team is costing taxpayers, and this little stunt just shows the lengths they will go to in order to screw over the law abiding taxpayers of this city.
Less than they Pay DR. Webb In a year.
Chuck Longo at it again. It’s all about you, isn’t it Charles? AWing at its finest.
besides aren’t evictions the natural result of the right wing agenda ?
but it’s before an election, right Chuck ?
you can fool some of people, but you can’t cut taxes and balance the budget, can you ?
3 people to not vote for next time they are up for election: Longo, Baldacci, and Gratwick. I can understand giving someone a second chance. A third and fourth chance would be frustrating for me to support, but I might depending on the circumstances. The list of actions and behaviors by the Browns clearly shows they have no interest or ability to pay the city back.
Property tax is blight on every homeowner. I hate it but I pay it. The best thing that could ever happen is to end property tax and let people who buy a home alone. The fact that people can loose there home because they “owe” the town money is simply unfair.
This seems to be about more than about taxes. Something is wrong here. If the payments are sporadic and late for years, why does anybody thing the same people will deliver different results after one more month?
I must be missing something, because although I am all for giving 2nd and 3rd chances, this appears to be abuse of the system.
Whoah a moment fellow NRA fellow.
Without property taxes, how would your children be educated? How would the streets be plowed? How would your trash be collected?
I agree that property taxes are far too high, especially in Bangor and especially compared to cities like Bar Harbor… but they just can’t “go away”.
“lose” “their”
Wow where does the line start so I can get in it. I don’t want to pay mortgage or property taxes either.
Most likely they will never be able to afford their house.. It has happened to millons in the past 3 years that people were evicted from their homes.. Obama Bailed out the banks to prevent issues like this and the Banks instead of helping the homeowners invested money in the market, all done with Obama’s Blessings
Perhaps all Bangor residents should stop paying their property taxes until such time as all Bangor residents are required to pay their property taxes.
What happened to equal protection under the law?
Actually, I stopped paying Bangor’s taxes some time ago… by moving to another, and less expensive, town.
Home ownership is not a right. it might be part of the so called American Dream but it certainly is not guaranteed anywhere in the constitution. If these people are destined to pay rent then so be it. it’s not my problem if they can’t afford their home, and it should not be the problem of the taxpaying property owners in Bangor.
What’s their story? Why did they stop paying their mortgage in the first place? The story doesn’t tell us.
This isn’t a story. It’s a rant.
Politics is a tough game….unless the guy did something illegal?, then the rest is, win some, lose some…? It appears as everyone agrees, no illegal activity here. The young dude scores a point and the righteous reporter has the advantage of a newspaper to vent her “loss” and/or “not fair” opinion ? And the scorned taxpayers can vote.
Its legal to not pay your mortgage for years or gas bills and taxes? No wonder there are so many problems in Maine.
I believe irishblackbear is referring to Councilor Longo’s maneuver at the committee meeting.
Interest rates are simply incredible on mortgages right now. It’s not uncommon to see 30 year rates down in low fours and 15 year rates in the threes. Week after week, the rates keep dropping If you are looking for rates in three then search online for “Official Refinance” and learn how to do refi.
The Browns are the type of people that these three clowns that call themsleves city councilors depend on for votes to get them into office. It will not be long before Bangor will look like Detroit et al.
lets see,they started out oweing 75000,and now its 133000 on a house worth 125000.they have made one payment in 7 years.yup one month should make all the difference in the world if they win the powerball..kick em out and give someone a chance that actualy pay their bills.
Nice comment, but would appropriate spelling, punctuation, and grammar be too much to ask?
I don’t disagree with the premise of your essay, but I’m surprised the editor would allow you to fire off such a snarky editorial without even taking the time to interview the homeowners that you are going after.
The Browns’ situation is not unique. Most cities and towns seem to have one or two residents who cannot seem to fulfill their responsibilities to society and their communities to pay taxes assessed and be good citizens. There was an article in this week’s BDN which named a 64 YO woman in Blue Hill who hasn’t paid her taxes in many years. The fact of the matter is that elected officials aren’t doing anyone any favors by doing nothing/forgiving past due taxes. Officials aren’t fulfilling their duties as public stewards, and in the Browns’ case they’re just postponing the inevitable(as evidenced by Browns’ failure to comply with several previous agreements to pay what’s owed) which doesn’t help the Browns a bit long term.
The City of Bangor gas been more than reasonable in dealing with this family….5 years of non-compliance in paying their debt to the City. I think the City of Bangor should take the proprerty and sell it the amount owed to them. I watched the proceeding on channel 7…..I think Mr Longo was under-handed in his motion to change the motion made by Mr Weston. He needs to realize that Bangor voters are watching and listening.
What joke! If I was in default on my home loan, I would be in foreclosure and out of a home! Enough is enough! They did not even attempt to make payments on apparently ANYTHING for three years, what in the Hell makes these goons on this Council think that they are going to receive 1 paymwnt let alone the balance of the loan. It may have been a legal move Longo made but NOT a right one and NOT a right one for the City of Bangor!!!! What a joke!
What are the dynamics of this family in play? Do they both work? I can understand being tolerant to a point, but it seems as though this family has dodged the bullets to speak. Not answering phone calls, not accepting certified letters. By keeping your head buried in the sand will only make matters worse. How can you help those who cannot even help themselves? What is their side of the story? I do not believe in throwing people out on the street, but you cannot take advantage of others. There are other people out there having it pretty rough too, but they try to make some effort to get by.
I agree with you and I am wondering too…does this family get help, food stamps, fuel assistance etc? If so do they get credit for the amount of their mortgage if they don’t pay it?Sure they can show a piece of paper that has their mortgage amount on it and it’s pretty clear that they don’t intend of paying any time soon. Just wondering if they get credit for it.
….I can see it coming, the city will start foreclosure and the Brown’s will file a lawsuit. How many more months of free boarding will that be….
WOW I am moving back to Maine so I can live in a nice house like this and not pay a penny for it! Did not know the State Of Maine was so great!!
It’s only worth $125,000 according to the assessor…so I think we can all assume it is not that nice of a house.
must be nice that a 125,000 house is not that nice to you alot of people would love to live there.
I am astonished but perhaps I shouldn’t be. Who are these people who have not paid their mortgage in years, nor their taxes, nor even their sewer bill? How much do you want to bet that their cable TV bill is not in arrears? This sounds like a couple who just wants a free ride. Otherwise they would have paid something, made an attempt to do the right thing. The city should evict them, preferably on a dark night when the wind chill is -20.
I can’t believe how some people don’t take responsibility for there bills! Some months it’s tough paying my bills, especially with gas and food prices going up and I have NO assistance. I chose to buy a home for my family so therefore it is my responsibility to go to work everyday and pay that mortgage… not the town’s or other taxpayers responsibility! There is no way this family will pay this loan at this time….so just send them to low income housing and get it over with….they will still have a free ride there!
“their” (again).
Wow: remedial spelling and grammar, anyone?
The Brown family won’t be able to afford a typical rental in Bangor (plus utilities, security deposit, and everything else which goes along with it).
Their mortgage was very indeed very reasonable for a single family dwelling.
I can’t fathom why the city of Bangor allowed the situation to drag on for as long as it has (akin to the Blue Hill situation).
I didn’t realize the comments are being “proofread” for grammar skills Mainefem….So yes, WOW!
It is now up to Councilor Charles Longo to help provide a solution to this problem. He apparently can get the Brown family to accept his phone calls. To solve a problem you need to have a dialog and as of now that isn’t working. So “hero” Longo step in and work out a viable solution to this problem. A viable solution would include some attempt by the family to do a better job to work out the problem. Councilor Longo needs to realize he has more constituents who meet there obligations (sometimes with great difficulty) than this family. (There may be a few others who feel for the family but…) Other wise step up and say you gave it your best shot, it just didn’t work out.
“their” obligations. “dialogue”
second article on forclosure. people should given chance to make good. the cost of food has gone up cost of heating oil and gas has gone up the cost of medical care has gone up.
The last time I checked, the City generally followed Roberts Rules of Order.
It’s my understanding that for a person to vote to reconsider a prior vote, under Robert’s Rules of Order, they needed to have voted with the majority. That’s why you see members of such bodies changing their vote at the last minute, when it’s obvious the other side will prevail, in order to protect their opportunity to Move to Reconsider.
Since Charlie wasn’t even a voting member during the first vote, HOW could he be allowed to Move to Consider a prior vote in the first place?
It’s my observation that Ol’ Charlie didn’t pull this one off with his usual “insights and strategery”.
Methinks he either lucked into it, or one of his “political advisor’s” hand a hand…
Furthermore, I didn’t think a mere Committee could vote to take this action, or inaction, without a confirming vote of the entire Council at their next meeting. It would appear, in fact, that Charlie’s continued fascination with his own gravitas didn’t really gain the family in question much of a respite.
Robert’s Rules of Order doesn’t allow for proxy voting. However, because City Council committees do allow for proxy votes, the City Council sets the rules for proxies.
Robert’s Rules of Order is merely a manual that gives guidance on how to run a meeting for a deliberative body. The deliberative body is free to amend the rules as it sees fit.
If Councilor Weston had not left the meeting, the only way the committee could have reconsidered the vote would have been if Weston or someone else who had voted on his side had moved to reconsider the question.
Suckers! They got to live 6 or 7 years in a nice house rent free because of somebody’s incompetence. Who’s the smart one here?
As for my vote…it’s Goodbye Longo in 2013!!
Put these people into an apartment & sell this house. How ridiculous. It is obvious they either are unable to pay the mortgage & taxes or they are unwilling. Either way, it seems they cannot afford to be homeowners.
I feel sorry for the landlord who ends up stuck with these folks. Do any of you actually think that they will pay their rent in an apartment? I seriously doubt that they will honor that responsibility and fulfill their obligations any differently than they have their current ones!
The city should get ot of this and stay out of business.
At this point it would probably just be cheaper for the City to discharge the mortgage, forgive the Browns’ tax and sewer arrearages, and just stop billing them for anything in exchange for the Brown’s promise not to take any more freebies from the City, because at the rate Longo and the other Councilors are going, they’ll decide to keep sinking money into the house and even give the Browns a monthly allowance to stay there.
As a responsible bangor taxpayer….I want my money back! As a voter who voted for Mr Longo….I want my vote back. We (the responsible taxpayers) have supported this family for YEARS!!! Not months, YEARS! I’m not cold or heartless but our city is not a charity. The family in question should turn to a church, a community charitible organization or family members etc. Or better yet…GET A JOB! Absolutely pathetic and irresposible behavior. One more thing: This extra month granted by Mr Longo will cost us taxpayers another $800 or so. We (the taxpayers) have already spent $130k on this mess. Does Longo even pay property taxes? I’m guessing he doesn’t own property, and if he does, it was probably not paid for by him. Just an assumption but working as a cashier part time simply cannot pay enough to make a mortgage payment, let alone pay property taxes in this over taxed state. Therefore, since this mess hasn’t cost him one red cent, I think he should pay this extra $800 using his council stipend, and get some skin in the game like the rest of us. Just don’t expect me to pay it, because after paying my own property taxes I’m simply tapped out. One more thing, the deadbeat family should hold a press conference and say a BIG THANK YOU to the citizens of this city for being so generous and charitable for the last 7 years. Then they need to pack their belongings and get out.
The only diffrence between young Mr. Longo’s grandstanding and Joe Kennedy(Citizen’s oil) of Mass. is that Bangor’s council member doesn’t thank THE GOOD PEOPLE OF VENEZUELA and Hugo Chavez on TV. He thanks himself!
Everyone does deserve a second chance. But I believe these folks here have had three and four chances to get it right all on the backs of the residence of Bangor. There comes a time when someone needs to but there foot down. I’m sure general assistance can hook them up with a nice low income place that they can afford.
It would probably cost the tax payer more money. Look at how much subsidized housing cost. Most cost more than $130k per unit. I take it they are paying own heat and lights. It is not a perfect world.
s/b “their”
Renee, you are still using the word THAT
I thought if we pulled the big D on election day we were all going to get FREE healthcare, housing, and food stamps. Did they lie to me???? :)
Not sure but i’m thinking once given legal standing, even for just a month, doesn’t that put them in position to extend and continue to be a nuisance even longer. Do what needs to be done please. Just like a bandaid.
I certainly don’t believe it’s more then single digits percentage wise, but these are the people pointed towards when making a case against homeowner assistance.
It is a well known fact that past behavior is a good predictor of future behavior! I rest my case!
Mr. Longo has misrepresented the constituents who are honest, taxpaying, law-abiding people. Why would he be proud of extending this disservice to Bangor’s taxpayers?
Kick their lying lazy asses out!!!!! why should the people of Bangor subsidize their life????
What is another month? I mean its gone on for years now right? I’d think that they would be embarrassed that this is to have this printed for all to see. They seem to be one of the lucky ones to be able to keep their house this long and not have paid a cent. Wish I could!
That’s sickening.
Furthermore, if the red sedan parked in the driveway belongs to the Browns (assuming they don’t have two–which is also highly doubtful), I strongly doubt that they own the title.
https://penobscotdeeds.com/
7 years, couple payments. These people have no shame
This type of action by the City gives the impression of inequality and also gives legal recourse for others (who owe the City money) to sue for the same deal the Brown’s are getting.
If the Brown’s house and lot is worth just $125,000, and they owe the city $133,074, the City’s responsible taxpayers will be forced to pick up the $8074 this couple obviously will never pay. How is that an accomplishment of which to be proud?