Bako Bits: Banks are walking away from thousands of vacant properties during foreclosure, and a reader sets the record straight on the Memorial Stadium track

 * ... BANKS: There was a disturbing story by the Appraisal Institute the other day, saying banks have begun "walking away from thousands of vacant properties after beginning foreclosure and then dropping the cases because they don’t want to be on the hook for maintaining abandoned properties." The story said that consumer advocates say this violated Federal Reserve rules that

"require banks to notify borrowers if they start a foreclosure and then abandon it. What can happen as a result is that borrowers think they have lost their homes and leave the property to the bank, which, having stopped foreclosure proceedings, don’t want to assume responsibility." Why would they do this? One JPMorgan chase executive said: “If it's going to cost us $30,000 to foreclose and the unpaid balance on the loan is $30,000 and current market value is not much higher, we might release the lien and give the home back to the borrower.”

 * ... BC TRACK: William McLean wrote to clear up some facts about Memorial Stadium when Jim Ryun broke the world record back in 1967. "The Memorial Stadium track in 1967 was, in fact, a mix of clay, dirt, and some crushed brick from the ruins of the 1952 Bakersfield earthquake. For the time it was fast and drew big time events thanks to BC Athletic Director and track coach Gil Bishop. The all weather tartan track was installed in 1971."

 * ... BAD FORM: Tom Bracken was at a four-way-stop at Mall View Road at East Hills shopping center the other day when a woman in an electric-blue SUV shot through the stop sign going about 35 mph. "Since she was going my way, I pulled up beside her as she was getting out, her two teenagers in tow. Thinking she might not have seen the sign, I asked 'did you realize there’s a stop sign on Mall View?' Her response was classic, 'I’m in a hurry, got things to do,' and with that, walked into Big 5 with the two kids. So apparently if you’ve got things to do that’s reason enough to blatantly break any traffic law, and endanger your kids and others. Kind of scary to think what kind of drivers her kids will be."


 * ... ACHIEVER: Jolie Roberson, a Frontier High graduate and now a senior at Cal State Northridge, received a scholarship from the Alliance for Women In Media of Southern California. Adoree Roberson, her grandmother, told me she was one of three women chosen for the Genii Award for her passion for growth, determination to succeed and dedication. She is majoring in cinema and television arts multimedia production.

 * ... GOOD SERVICE: Harry Starkey, general manager of the West Kern Water District, noted that The Taft Chamber of Commerce and Visitor’s Bureau recently awarded Ray Smith of Acme Jewelry Company 'Business Man of the Year." Said Starkey: "And here’s a cool story about Ray’s approach to customer service. A woman brought her watch into his business for repair. The job was going to require more than the customary short wait.  Wanting to make sure the woman wasn’t without a time piece while she went about her day, Ray loaned the woman a watch while he performed the repair."

Local radio host Jaz McKay issue below the belt comments about former colleague Ralph Bailey, and the sad rise and fall of former NBA player Robert Swift

* ... THE BUZZ: The decision by local radio talk show host Ralph Bailey to leave KNZR for cross-town rival KERN 1180 triggered a harsh response from Bailey's former colleague, Jaz McKay. McKay posted a lengthy, vitriolic message attacking Bailey on his Facebook page after Bailey made his announcement. The message immediately made the rounds on social networking, being forwarded and reposted until it was apparently deleted. Among the below-the-belt comments were, "Farewell to the man with the biggest ego known in history... Farewell to the man who couldn't keep his story straight on his political beliefs... Farewell to the man who although as much as he tried could not get past the fact that he is black." Ouch. Bailey's new show will run on KERN 1180 weekdays from 3 p.m. to 6 p.m. (stock photos of Jaz McKay and Ralph Bailey)

 * ... RUBIO: Another stunner last week was the sudden resignation of state Sen. Michael Rubio (D-Shafter) from the state Senate. Rubio took a job with Chevron Corp. to be its director of governmental affairs in Sacramento. That's a fancy title for lobbyist, and it doesn't hurt that Rubio was holding hearings on reforming the California Environmental Quality Act and is taking to Chevron a pocket full of contacts and inside knowledge. Rubio said he was leaving to spend more time with his wife, Dora, and his two daughters, the youngest of whom was born with Down syndrome. (family photo provided by Michael Rubio)

 * ... BAD FORM:  It's sad to watch the ongoing story of the rise and fall of Robert Swift, the onetime Garces High school basketball standout who went on to the Naitonal Basketball Association before injuries forced him out of the game. His $1 million home in Seattle is in foreclosure, and he is refusing to leave. According to a story on AOL: "The home's new owner has gone to court to have Swift removed from the property, and court records show that he is now past a grace period to leave. He has a final deadline to vacate the premises by the end of the month -- and after that, he could be forcibly removed, KOMO News reported. "He will have to respond to the sheriff, I'm sure," the new owner said. "This is a pretty sad case of an ex-NBA star who once held such promise but now has found himself in trouble."

* ... LIONS: Hats off to the Bakersfield Breakfast Lions Club and Tim Delcid who donated $12,700 to the local chapter of the Honor Flight, the group that takes aging veterans to Washington, D.C. to view the war memorials. Local organizer Lili Marsh said it costs $1,500 to send one veteran, so the Lions Club donation allows nine to go on the Spring flight. "The looks on the faces and the tears in the eyes of these humble vets, when they see that they have not been forgotten ... really brings home the significance of this of this simple gesture to the generation that saved the world! Breakfast Lions rock!"

 * ... RICHARDSON: Former New Mexico Gov. Bill Richardson will be the keynote speaker during the annual Kern County Economic Summit, set for Wednesday, March 20, at the DoubleTree Hotel. The cost is $100 per ticket and you can register online at www.kedc.com or www.bakersfieldchamber.org.

 * ... RECIPE: Steve Agerton asked for help in tracking down a garlic butter recipe made by the owners of the old Joe's National Market on East 18th Street. "We used to get gallons of this garlic butter for the Oil Man's barbecues every year. It has since closed down and out of business. I know this might be a crazy request but we wanted to try anyway." Can anyone help Steve?

More toxic loans about to hit the local real estate market and a reader sounds off on arrogant cyclists on the Woody road

 * ... HOUSING WOES: There's more evidence that we've got a long way to go before our real estate market recovers. Experts are now predicting that 3.5 million homes nationally will go into foreclosure this year (up from 2.8 million last year) as risky adjustable-rate mortgages set in 2005 reset and unemployment lingers. That's the word from RealtyTrac senior vice president Rick Sharga, who warned foreclosures will continue to rise until they plateau in late 2011. "The second wave of toxic loans is about to hit," Sharga said this week. High unemployment and rate resets will drive the foreclosures, as well as a move toward "strategic defaults" where folks decide it just doesn't make any sense anymore to keep paying on an underwater mortgage. Lastly, and this is scary, Sharga said the next wave of foreclosures will hit more middle and upper class people with prime mortgages. So if you thought the worst of the meltdown was over, think again.

 * ... EYESORES: And speaking of foreclosures, there's not a neighborhood in town that is immune from the tell-tale signs of imminent foreclosure: once proud lawns overtaken by knee-high weeds, no cars and no signs of behind the darkened windows. Next time you are driving around town, count the number you see. It's a sobering exercise.

 * ... HELLO LANCE: We were all disappointed when Tour de France winner Lance Armstrong crashed and didn't appear in Bakersfield at the end of Stage 5 of the Amgen Tour of California bicycle race. But it turns out he did make an appearance here, although under unforeseen circumstances. After crashing outside of Visalia, Armstrong was rushed to Bakersfield Memorial Hospital and was treated for his crash wounds. Hospital CEO Jon Van Boening said he was alerted to "get to the hospital now!" when word arrived that Armstrong was on his way. "He had his own orthopedic surgeon and his own entourage," Van Boening told me. "I told him we were happy to see him in Bakersfield, but it was too bad it was at the hospital and not the race!"

 * ... DEZEMBER SALUTE: Nice to see retired banker Ray Dezember honored  with a legacy award by the downtown Rotary Club. Ray and wife Joan, both Whittier College graduates, are known as perhaps the most philanthropic couple in town, giving hundreds of thousands of dollars to worthwhile causes over the years, most of it without fanfare or recognition. Rotary president Duane Keathley delivered the tribute for Ray, who was accompanied by Joan, son Brent and wife Anna and daughter Katie Werdel.

 * ... CYCLISTS: Yet more feedback on the debate on cyclists on the road to Woody. This from reader Mike Wenzel: "All slow traffic is required to move to the right side of the road and allow faster traffic around. The bicyclists on Woody road arrogantly refuse to do this. The excuse seems to be 'we pay taxes too.'  After having to follow these arrogant egocentric bicyclists a few times in the mountains, I took a great deal of joy in listening to their self righteous whining about pedestrians on the bike path. failing to move over for them. This 'I own a bike-I am the center of the universe' attitude is comical. Maybe if bicyclists extended a little courtesy to other they may receive a little themselves. By the way, I own a bicycle myself." 

 * ... MAYOR OF DOWNTOWN: It was nice to see Don Martin, owner of Metro Galleries on 19th Street, recognized with a Beautiful Bakersfield award for promoting the arts. Known by his friends as the "mayor of downtown," Martin has done more for the local arts scene than any other single individual, and he deserves the recognition. A born marketer, Martin was the creative genius behind the "First Friday" arts festivals downtown.

 * ... EAST BAKERSFIELDISM: You know you're an East Bakersfield old-timer if  "your mother dropped you off every Saturday morning for the all-day movies at the Granada Theater."

Those foreclosed eyesores, pesky homeowner associations and high achieving kids headed to college

 * ... FORECLOSURES: There is no more representative face of this recession than the abandoned house down the street. You know the one: weeds knee high, dirty, an eyesore in an otherwise wonderful neighborhood. One reader named Bob lives in Seven Oaks and wrote to complain about how many homeowner associations (HOA) turn a blind eye toward these foreclosures while nitpicking other residents about the silliest of things. Said Bob: "Many of these HOAs (in gated communities) are administered by firms that don't seem to care about anything other than collecting monthly fees and making sure the electronic entry gate functions properly. I am tempted to post a sign in front of these overgrown front yards 'get a goat' or 'pride of ownership.' To add insult, responsible neighbors get pimped (with a mailed notice, picture inset and threatening fines) for having weeds in our yards or inappropriately parking our cars!" (an example from Grand Islands at Seven Oaks shown below)

 * ... STAR IS BORN: If you have never heard of a young country singer named Lauren Ashley, you will soon. Her father, Chris Persel, sent me a note saying that Lauren will be playing this Friday from 5:30 p.m. to 7:30 p.m., at the Younger Gallery in the Bank of America building downtown. She's just 15 but plays all original country songs. And she will have an album out soon produced by Monty Byrum and Paul Serpa. Chris told me his daughter has written over 100 songs, sang the National Anthem for a Condors game and the Youth Leadership Conference and performed four nights at the Kern County Fair. To hear her music check out her website at www.laurenashleyofficial.com. Or even better, head over to the Younger Gallery to hear her perform in person. Her appearance will benefit the gallery and the Arts Council of Kern. This kid is going places.

 

 * ... HIGH ACHIEVER: Ready for some good news? Then consider the case of Joe Feghali , who was just 11 years old when his family moved here from Lebanon. At the time he spoke only French, no English. Like many immigrants (and Lebanese are known for their industrious nature) the Feghalis embraced their new hometown and emphasized education. Joe is now a senior at Stockdale High School, and during one of the most competitive years for getting into the school of your choice, has been accepted at arguably some of the world's most selective universities. Among them are Harvard, Princeton, UC Berkeley, Brown, Duke, Cornell, Dartmouth and UCLA. Impressed? We should be. Proud father Antoine Feghali told me that he himself had just earned his citizenship last year and his wife just earned her bachelor's degree in modern language from CSUB. Who says this isn't the land of opportunity?

 * ... STANFORD LEGACY: And speaking of high achievers I heard from Liz Blaine, a longtime Bakersfield patron of  the arts, adding some perspective about her Stanford-bound granddaughter Melissa Hamilton. I had mentioned that Melissa's parents, Dr. Chris and Susan Hamilton, also graduated from Stanford but Liz takes it a step further. "She (Melissa) follows two sets of grand parents, six aunts and uncles and a cousin" as current or potential Stanford alums. She added that Melissa had choices as well, being accepted at Northwestern, Notre Dame and the University of Michigan. As Liz said: "Guess that's enough grandparental crowing. Thanks for indulging me." Happy to share it, Liz.

  * ... BAKERSFIELDISMS:  You know you're from Bakersfield when you realize that "Rosedale is a world of its own."

Recession stories: local businesses hunker down and prepare for a long, hot, stark summer

Had the opportunity over the past week to spend some time catching up with local business leaders, first at a charity golf tournament and later at a couple of fund raisers. If there is one common theme it is this: nobody sees an end to this recession and everyone is preparing for a long, hot Bakersfield summer in a sick economy. Trust me, I'm trying to look for silver linings and signs of an uptick, but I just can't find them. Among some of the disturbing indicators:
* MORE FORECLOSURES: California and Florida led the country in home foreclosures in the first quarter. California had 13 cities among the top 25 with the highest foreclosure rates, including Bakersfield holding down the No. 7 position. (for the full story read it here). Others on the foreclosure hall of shame list include Merced, Stockton, Riverside-Ontario, Modesto and Vallejo-Fairfield.
* MORE JOBLESS: Our local unemployment rate is an astonishing 14-plus percent and it may get worse, according to RealtyTrac, a seller of default data.
* STUDENT LOANS: Defaults on student loans are also skyrocketing across the country. According to the Wall Street Journal, a combination of a weak job market for graduates, higher tuition costs and parents losing their jobs is leading to a sharp spike in defaults.
* BANKING MESS: It's clear that there will be no recovery until credit eases and the banking industry gets healthy. So it didn't help when the Bank of America reported a $4.25 billion profit but the stock slid because the bank reported a 46 percent increase in non-performing loans. Even a stalwart locally-owned bank like San Joaquin Bank is under the microscope to clean up questionable loans on its books.
* WHO'S BUYING CARS?: Our local car dealers continue to struggle, even with some new fuel efficient and reliable lines on their lots. One problem: even people with good credit are having trouble getting loans while others who have the money are hunkering down and hording cash.
* NON-PROFIT CRUNCH: I won't name them here, but non-profits and foundations across Bakersfield have been slammed by a downturn in donations and charitable giving. They too are cutting back on expenses and staffing.
Enough said. I'll share some good news when I get it!

Kern County, 34 other counties triggered massive mortgage crisis that spread across our nation

This may not be news for those of us who call Bakersfield home, but Kern was among 35 counties last year that were responsible for fully half of all foreclosures. At least that is what USA Today reports this weekend in a detailed analysis that shows the worst hit areas comprise only 1 percent of the total counties but account for a lion's share of the foreclosures. USA Today says Kern and the others were "the epicenter in a wave of foreclosures that left banks teetering amid the nation's economic problems." Check out the newspaper's terrific interactive county-by-county map here. Most of the hardest hit areas are in California, Florida, Las Vegas and Phoenix. The report says the counties leading the foreclosure boom account for 20 percent of U.S. households yet half of all foreclosures. Of course that's just one of the reasons why our unemployment rate has soared to 13.8 percent and why the average price of housing here continues to plummet.