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CNN Saturday Morning News
New Developments Surface in Chandra Levy Murder
Aired February 21, 2009 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TJ HOLMES, CNN ANCHOR, SATURDAY MORNING: And from the CNN center in Atlanta, Georgia, this is CNN SATURDAY MORNING for this February 21st. Hello to you all. I'm TJ Holmes.
BETTY NGUYEN, CNN ANCHOR, SATURDAY MORNING: Good morning everybody. I'm Betty Nguyen. It's 8:00 a.m. Eastern, 5:00 Pacific. Thanks for starting your day with us and we do want to start with this, some breaking news this morning. There indeed has been a break in the Chandra Levy murder case. That case gained national attention back in 2001 when the Washington intern disappeared. Her body was found a year later. But we are hearing that an arrest is imminent in the case. CNN affiliate KGO is reporting police in Washington, DC are pursuing an arrest warrant for Ingar Wondeke (ph). He's already in the Washington prison system. Now earlier affiliate KX-TV talked with Levy's parents.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: No, he didn't say exactly when. She said it would be really soon. So tonight or tomorrow.
UNIDENTIFIED FEMALE: She didn't mention who or what. There was no mention of names.
UNIDENTIFIED MALE: But we think we know who it is. I don't want to say until it's official, though.
UNIDENTIFIED FEMALE: There was a warrant out for an arrest. That's all I know.
(END VIDEO CLIP)
NGUYEN: We have one of the names, that being Ingar Wondeke. Joining us now on the phone with more, CNN law enforcement analyst Mike Brooks. He is a retired Washington police detective. Mike, as you're listening to this and we're learning news of this in fact by the minute this morning, what do you know about Ingar Wondeke?
VOICE OF MIKE BROOKS, SECURITY ANALYST: We know that he's an immigrant, a Salvadorian immigrant that was here illegally. He was, came from el Salvador and was actually -- used to hang around in the area of Rock Creek Park where the two attacks he's in jail for, he's actually in the U.S. penitentiary. He's in the Federal system, and he was arrested for attacks on two women, one that took place in the middle of May of 2001 and another one in July of 2001 in the same area as where Chandra Levy's remains were found in Rock Creek Park, which is a large park that runs right through the center of Washington, DC. The attacks are very similar, too, also, because what he would do was he would take these women and drag them down a hill and he'd, the two women he assaulted who actually survived their attacks were able to identify him and that's why he is now in jail. The investigators from the United States park police pursued him and actually found him sitting in the park in an area not too far from where Chandra Levy was attacked and that's why I think they were able to put everything together, plus a positive, plus maybe a statement from another inmate in prison that Wondeke told him that he had killed Chandra.
NGUYEN: All right. Let's get back to that because there is a time lapse here in the sense that this happened in 2001. In fact the FBI went to speak with Wondeke in jail back in 2001, yet there has been no arrest warrant for him since then, but now we are hearing that there is. So is there indeed a confession? I mean, what has led up to this with all the time that has occurred between when she was killed and the arrest warrant today?
BROOKS: I can tell you that the FBI agent who interviewed him, Brad Garrett (ph), a former colleague of mine, always thought that Wondeke had something to do with it. But at the time, he could never really say, OK, we have this -- this evidence on him. So that's what we're hearing right now, that there was -- that he did confide in another inmate and that inmate flipped on him, but we're still trying to confirm that for sure.
NGUYEN: All right, Mike Brooks joining us by phone this morning. Thank you for that information, Mike.
BROOKS: Thank you.
HOLMES: All right. The bill is signed. The new nationwide mortgage plan has been laid out. It's been a busy few weeks for the president, but there's still a whole lot more on the plate. CNN's Kate Bolduan live at the White House this morning. Kate, he's been getting a lot done, but not time for a vacation just yet.
KATE BOLDUAN, CNN CORRESPONDENT: Definitely, not time for anyone to take a vacation just yet TJ. As is probably no surprise, the economy is squarely the focus again today as it has been throughout this early presidency here at the White House. The president in his weekly address this morning saying that -- saying that Americans will start, could start seeing some of the benefits of the economic stimulus package as early as April 1st. Mr. Obama said in his address this morning that he's directed the Treasury Department to start telling employers across the country to reduce the taxes withheld from paychecks. What does that mean? Mr. Obama says that means families could see at least $65 additional for a typical family, to have that money in their wallet. That would be $65 per month. That could be a big help to a lot of people. While Mr. Obama continues to tout at the very same time, touting his economic stimulus plan, he still says as you and I are saying, TJ, the hard work is not done. Listen here.
(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: As important as it was that I was able to sign this plan into law, it is only a first step on the road to economic recovery and we can't fail to complete the journey. That will require stemming the spread of foreclosures and falling home values and doing all we can to help responsible homeowners stay in their homes.
(END VIDEO CLIP)
BOLDUAN: There, of course, President Obama is talking about the $75,000 housing plan that he unveiled this week, a very big week this week, but next week is going to be arguably just as big. Monday Mr. Obama will be hosting a fiscal responsibility summit, as it's been termed, a bipartisan group. But law makers coming together along with economists and leaders from the academic world as well as from the business and labor sectors coming together to address the mounting deficit that the country faces. On Tuesday Mr. Obama will be addressing a joint session of Congress. Economy, obviously, going to be the main topic there and then Thursday will be Mr. Obama's first budget. The 2010 budget is going to be unveiled and that will be closely watched, TJ. In the Republican response this morning, Congressman Dave Camp of Michigan criticized the Democrats for reckless spending and quickly spending and pushing through the stimulus package, but also said that if the president is really serious about getting spending under control, moving forward, the budget is going to have to reflect that. So we'll have to see.
HOLMES: All right and a fiscal responsibility summit. Some would argue maybe they should have had that before they passed a $787 billion package. But hopefully something good will come out of it.
BOLDUAN: They'll be talking. We'll see what happens.
HOLMES: They'll be talking and we've heard that before. Kate Bolduan for us at the White House, thank you so much.
NGUYEN: Well, Tuesday, the president is talking to the nation about the economy. And we in fact have built our entire primetime programming around that theme. The presidential address is scheduled for 9:00 Eastern. That's followed by Anderson Cooper and the best political team on television. Then at midnight, a special edition of "Larry King Live." It does seems like every day we're talking about another bunch of billions that the government is just handing out to try to get us out of this recession. So how much is all of this adding up to? Our Josh Levs is keeping his eye on the money and you've been following it. So what's this walking figure that we're all getting a bill for?
JOSH LEVS, CNN CORRESPONDENT: You've got to the see this. It's incredible. When you take a look at everything that the government has done, they're saying the recession goes back to December 2007. The fine folks at CNN money here have created this list. I'm must going to scroll through the bottom, because I want you to see the figure, when you put everything together. Check out how much has been allocated for the rescue so far, $10.8 trillion of which the United States has now spent $2.1 trillion, about one-fifth of it. That's how much is already spent, let me emphasize this, $10. 8 trillion is how much the government has already allocated for the rescue plan.
A lot of ways to contextualize that, but one of my favorites is to compare it to our debt as nation. If you look at treasurydirect.gov, they keep track of our official debt as a nation. It's right over here. Our official debt as a nation currently is $10.8 trillion. So we're talking about the amount that's been allocated to rescue us from this current economy is about the same as our current outstanding debt, $10.8 trillion. As Betty was just saying, we keep hearing about new plans every day. I have a graphic for you of just some that we've passed in the last week or so, obviously the biggie, the $787 billion stimulus bill.
But you can also keep your eye on CNN money for these others. For example, $75 billion now, the president's plan to help homeowners. That actually comes from the TARP, so it's not new spending. It's spending money already allocated and then $200 billion for Fannie and Freddie, which is part of the market's giant collapse, one of the many things concerning the government right now. What I love about this list here, cnnmoney.com, is that it keeps getting updated every time a new plan is announce and every time money is actually spent. So keep your eye on it guys there. We're already close to $11 trillion as you can see and at this rate, we could get $12, $13, who knows, $15 maybe by the time we're done with this.
NGUYEN: And a reminder. It is our money, your taxpayer dollars at work. All right, Josh Levs, thank you.
HOLMES: A media feedback for the president this morning, have some new poll numbers about what the country thinks about some, what he's been doing with the economy these days. Our deputy political director Paul Steinhauser joins us again live from Washington. So, how's he doing?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Well, we took this poll on Wednesday and Thursday, that's after President Obama signed the stimulus law. Take a look at our brand new numbers from CNN Opinion Research Corporation TJ. We asked Americans across the country, how do you think he's doing? Do you approve of the way he's handling his job? And look at that, two out of three, 67 percent say yes, they approve. Only three out of 10 disapprove. But take a look at this. We asked that same question about the approval of President Obama a couple weeks ago. At that time, before the stimulus package became a law, it was 76 percent, so he's gone down a little. It's mostly Republicans. But I got to say TJ overall, any public official would love to have 67 percent. That's a darn good number.
HOLMES: I wish 67 percent of the people I worked with liked me around this place. About the stimulus bill in particular, I want to hear about the numbers there, but I also want to hear what you have to think. We just heard from Kate Bolduan. When people hear the numbers about $800 billion and then they hear, well I'm going to get about $13 a week or I'm going to get $65 a month, as Kate Bolduan was just reporting there, will that affect how people view this stimulus bill? But go ahead and give me the numbers you have. Certainly I want you to hit on that point you made there. STEINHAUSER: Let's take a look at it, because really that is a great point. Overall we asked do you favor or oppose this stimulus package and 60 percent, six of 10, favor the plan. Four out of 10, you can see right there oppose it. But then we said, will the stimulus package work? Will it pump up the economy? You can see the number starts to come down here, down to 53 percent saying, yes it will improve the economy. Then we asked them specifically about you. Will the stimulus package help you improve your financial situation and only three out of 10 say yes. I think the reason here, they do like tax cuts TJ so overall, people like the plan. They like the idea of getting tax cuts, even if they're not a heck of a lot. It is a little bit of money in the bank but they don't think that the stimulus package will help them personally.
HOLMES: All right, Paul Steinhauser with the numbers for us this morning. Paul, we appreciate you, as always.
STEINHAUSER: Thank you.
NGUYEN: All right TJ, we want to swing back to mortgages and the housing market. This morning we've been asking for your take on the president's plan and whether it is the right path to get us out of this mess. So joining us again is housing and finance expert Clyde Anderson. Thanks for being with us. I know you have the computer fired up.
CLYDE ANDERSON, AUTHOR, FINANCIAL EXPERT: I'm ready.
NGUYEN: We're getting lots of good e-mail questions this morning. Let me start with this one. I'm getting it both at weekends@cnn.com, also on our facebook pages as well, Gina Renee from Ohio writes, I am so confused. The plan is to help the people who haven't lost their jobs or is it and mortgages above 31 percent of their gross income? However, I was taught that mortgage/rent should be no more than 25 percent of your net monthly income. So who is right?
ANDERSON: Well, let me first start off by saying, Gina, that is great. The 25 percent of your net income is great. But also a lot of times they do go by gross, 31 percent of the gross, 25 percent puts you in a better place, because gross is not real dollars. We're not dealing with real money when you look at gross. But that's what lenders are going to qualify you off of. So keeping that in mind, but the 31 percent is a third of that threshold. So it doesn't say that you have to be right there, but if you have 31 percent or above, that's really the criteria that they're looking at right now.
NGUYEN: So you indeed qualify for some of this money that's being handed out if you're at that point within your mortgage?
ANDERSON: Exactly, exactly.
NGUYEN: Gotcha. OK. But if you can't, you know, if you don't have to go to...
ANDERSON: If you don't have to, don't. Don't push it. You're in a good place. So what you've learned about the 25 percent net it's going to kind of keep you safe and safe is good right now.
NGUYEN: Now if you're at that 31 percent, will you automatically qualify? Are there other little rules and guidelines that you have to...
ANDERSON: There's still other criteria that they have to look at.
NGUYEN: So you're not a shoo-in.
ANDERSON: You're not a shoo-in, but you're in the right direction. So income is one of the things and the property itself are things that they're going to look at.
NGUYEN: Here's another important e-mail question, this from Brian Waymire, who says, I am a first-time home buyer who purchased in March of 2008 with $185,000. That's what he paid for this home. Her financed 100 percent at a fixed rate of 6 percent. His mortgage is current, but he's considering letting his home go into foreclosure because of comparable property values in his neighborhood. This is something people are facing Clyde, because he says a house identical to his located two blocks away recently sold for $86,000. So that is almost $100,000 less than what he paid for it, but he's on a fixed income and cannot afford to pay twice the value of his home. So what should he do? Should he let it go into foreclosure?
ANDERSON: Brian, don't let the home go into foreclosure. If you're in a situation where you don't have to move, don't move. Values are going to come back. For so many years people said the real estate market was so great, because we're seeing so much appreciation. We're not seeing that same appreciation. We're actually seeing houses depreciate. But the real estate market's going to bounce back, so hold on. If you don't have to move, don't move. The payment's not going to change even though the value of the property has gone down. If you can afford the payment, keep making the payment, and watch the house start to come back and slowly appreciate and then the value will be there and you can do whatever you need do at that point.
NGUYEN: So it's kind of like holding a stock that's decreased in value. Don't sell it.
ANDERSON: Don't panic. Don't sell.
NGUYEN: Wait until it goes back up.
ANDERSON: That's it. The market's going to bounce back.
NGUYEN: Like I said, we are getting lots of good e-mail questions. In fact, here at weekends@cnn.com, also on our facebook pages. And TJ joins us now with some of those questions.
HOLMES: Yeah, don't go anywhere just yet. We've been asking folks on our facebook pages, you're looking at one in particular here. Betty and I have them up, but this is just one of several of the responses we are getting, but just kind of scrolling through there. You answered one question I was going ask from somebody. So I'll ask another one from Vanessa that was in Cleveland, Ohio. She says she's wondering about the households that are not experiencing a crisis at this point in time. Essentially asking, is there something in there for folks who maybe are not in trouble right now? Maybe the folks who are not falling under some of that criteria? Are there things in there to help them maybe down the road if things continue to go downhill?
ANDERSON: Well what I would say to Vanessa is, congratulations to you for not being a part of this crisis right now. That's a great place to be in. I think this is going to help everybody. It may not help you directly, I mean directly right now, but it's an indirect effect you're going to have. One is that the prices in your neighborhood are going to begin to be stabilized by this. So hopefully when you're ready to sell, you can sell. It's also going help the economy overall. The (INAUDIBLE) is definitely working to keep interest rates stable. So I think that's going to be an effect, so when you're ready to purchase down the road, hopefully we're still at that place where the rates are stable. But now because of a plan like this, you'll be able to sell your property when we're ready to sell the property and not have to worry about being upside down with the property.
NGUYEN: Gotcha.
HOLMES: All right, Clyde. We got plenty more we're going to be bring to you this morning. Keep those coming. Again, facebook.com plus TH Holmes, CNN, facebook.com/ bettynguyen.cnn. You can find us.
NGUYEN: You can find us. Just type in our names. You'll find it on there and we also want to talk about that tax credit as well for those first-time home buyers. We'll get to that throughout the morning, lots of really good questions when it comes to this stimulus package.
HOLMES: So keep them coming. Clyde, we appreciate you, glad we got you here.
But moving on here, he was once the king of a financial empire, but now that empire is in shambles. What happened to that guy? Alan Stanford now and where's the money? And then a little later, the steps businesses are taking to make sure they don't go under during these tough, times, a lot going on this morning, including breaking news. Stay with us on CNN SATURDAY MORNING.
(COMMERCIAL BREAK)
HOLMES: Well, Alan Stanford has been found. The jet setting Texan, he's the one accused of multibillion dollar scamming. The FBI has found the disgraced billionaire and our Randi Kaye now reports where exactly he is and what some of his former employees are saying.
(BEGIN VIDEO TAPE)
RANDI KAYE, CNN CORRESPONDENT (voice-over): After two days of mystery, Alan Stanford is finally found in Fredericksburg, Virginia, in his girlfriend's car and served with papers alleging a $9 billion fraud. His personal fortune was estimated at more than $2 billion. So why did this Texas mogul allegedly swindle investors out of billions more? The Securities and Exchange Commission accuses him of a scheme that promised quote, improbable and unsubstantiated high interest rates. The commission says Stanford's bank also fabricated historical return data to prey on investors. Stanford boasted a unique investment strategy which supposedly allowed for double digit returns no matter the market. Outside Stanford's U.S. headquarters in Houston, investors shocked.
UNIDENTIFIED FEMALE: I'm so just upset right now I can't even talk about it.
KAYE: Federal investigators have frozen the company's assets and hauled away boxes of documents, investors around the world trying to rescue their money from Antigua to Venezuela to Mexico. As one SEC official put it, we are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world. These former Stanford employees left the company in 2007 because they didn't like what they say they saw going on. What was allegedly going on at Stanford that didn't seem right to you?
CHARLES RAWL, FMR. STANFORD EMPLOYEE: Our clients were not receiving the returns that the literature says they were receiving. That was disturbing.
KAYE: Are you surprised at all by the charges now against Stanford?
MARK TIDWELL, FMR. STANFORD EMPLOYEE: I'm shocked. I didn't realize the depth of the problems.
KAYE: Both were interviewed by Federal agents last year. So keeping them honest, who was in charge of keeping Stanford's books, this tiny one-man firm in London. Just above a fish and chips shop is where Stanford's multibillion portfolio was supposedly audited. The 58-year old cricket fanatic once landed a gold plated helicopter at London's famed Lords cricket ground and unveiled a case full of $20 million in cash as winnings for the Stanford cricket cup. Stanford also liked to mix with politicians. This video on his company website shows him at last year's Democratic convention. He gave more than $200,000 to the Democrat's congressional campaign committee last year. Barack Obama got nearly $32,000, John McCain, more than $28,000. Both have now given the money to charities. In fact, Stanford and his businesses made political donations of more than $2 million over the past decade. In September, Stanford told CNBC...
ALAN STANFORD: I have to say this about being a billionaire. It's hard work.
KAYE: So is defending yourself in a multibillion dollar fraud scheme. Randi Kaye, CNN, Houston.
(END VIDEO TAPE)
NGUYEN: And still ahead, homeowners are taking a stand saying they won't lose their homes and the congressmen, congresswoman, too, who's backing them up, saying, don't leave.
(COMMERCIAL BREAK)
NGUYEN: Severe weather is arriving, got some nasty snow moving across the great lakes. Reynolds Wolf has been watching it in the weather center.
(WEATHER REPORT)
HOLMES: Earth, Wind and Fire.
NGUYEN: And we're not talking about the weather.
HOLMES: No. They will be in the House tomorrow.
NGUYEN: The House.
HOLMES: Yeah, not this one. Sorry, folks. They're going to be in the White House tomorrow.
They'll be performing for the National Governors' Association dinner and we know how those governors like to get down. We'll be asking a couple of those governors how they plan on partying with Earth, Wind & Fire, the governors of Kentucky and Minnesota going to be here not to talk about these musicians. They'll be here to talk about money. Stay with us, the governor of Kentucky coming up.
(COMMERCIAL BREAK)
HOLMES: President Obama met with some of the nation's mayors this week. They discussed the stimulus bill and how it's going to help their cities. Now the governors are showing up, a meeting there this evening, actually going to be tomorrow evening with the nation's governors.
Joining us now, one of those governors from one those states, has been hard-hit just like the rest of them. Kentucky Governor Steve Beshear joins us now.
Governor, thank you for being here. Have you done all the calculations? Do you walk around with the calculator these days? And have you added up exactly how much money is coming to your state?
STEVE BESHEAR, GOVERNOR, KENTUCKY: Well, we're still working on that. But roughly, we're going to get about $3 billion overall for Kentucky over the next 27 months. The way it breaks down is that probably two out of every three dollars will go to programs that will hopefully help us maintain the efforts that we're doing right now in education, and health care, Medicaid program, unemployment insurance, food stamps. And then about a dollar out of every $3 will be available for stimulus. That actually is trying to create new jobs and infrastructure in other areas.
HOLMES: Now that doesn't sound like a lot of it, if you will. Are there going to be restrictions? And what I mean here, so much of it supposed to be a stimulative bill. But sounds like only $1 out of $3 there, and $2 is going, like you say, just to stay afloat. Will there be restrictions on how you can use the money? Or can you use it for those things to make ends meet in that budget, to do other things, just like you said, to stay afloat?
BESHEAR: Well, there's obviously a lot of restrictions on it and appropriately so. There's got to be accountability. But when I say, you know, that $2 out of $3 is just going to maintain us, that is preserving jobs as well as trying to create jobs. You know, with the unemployment rate going through the roof right now all over this country, part of stimulating his economy is keeping people at work. So I look at it overall as a stimulus package preserving jobs and hopefully creating new you ones.
HOLMES: Now something that a lot of people are wondering right now, how the whole process will work. So how soon will you get money in hand? I was joking with you in the break there about are you going to leave D.C. with a check this weekend? I assume that's not the case. But what's your understanding of how soon you will have this in your coffers there in your state?
BESHEAR: Well, I know the federal government is just putting the final rules in place, but they want to move quickly. We do, too. My legislature and I right now are working on a list of projects for transportation, for the infrastructure, the roads and bridges. And we'll probably be ready by the end of next week with a final list, ready to hit the ground running as soon as they'll turn the money loose.
We're also working on initiatives in the energy area. There are a lot of dollars there that you have some discretion over. And there's an area where we can really create some new jobs, some new green collar jobs in our state, in renewable energy, in energy efficiency. So we're ready to hit the ground running as soon as they'll turn the valve on.
HOLMES: All right, what -- I want to ask you about some of your fellow governors, who have come out and suggested -- nobody said, I guess officially yet -- but suggested they might not take these billions or hundreds of millions from the federal government, because of some of those restrictions you just named. You say it's important to have those restrictions, because there needs to be accountability. But some say they know how to use the money, and there are too many restrictions coming from the federal government.
Also, what if we create a program right now using this one-time money, and then we can't sustain it in the future? Just give me your thoughts on some of your fellow governors hinting that maybe this is not the type of money they need right now?
BESHEAR: Well, first of all, we all better be smart, and not use one-time money to create new programs that will then be unsustainable, because we won't have any money to sustain them over the long haul. So we're being very careful about that in Kentucky.
But you've certainly got all the discretion you need not to do that, but to use this money wisely, and to stimulate the economy. You know, I would say to my fellow governors who don't want this money, it's okay. Please send it to me, because I do need it and do know how to use it. This, no question, will help us tremendously as we go along. And I'm sure that in the end, states will step up and want to utilize this money.
You know, we've done something in Kentucky that President Obama's been trying to do with Congress. We've done it there, because we've come together and put aside our partisan bickering and partisan differences. And our Republican and Democratic leadership in the legislature and I, we just solved a $456 million shortfall. We did it in a bipartisan way. It's going to require even more bipartisan effort in the days and months to come, because this thing's probably going to get worse before it gets better.
HOLMES: All right, I also want to ask you, sir, we had you on a couple of weekends ago, actually had you on the phone. But your state was hit hard by ice storms there. Tell me how that has complicated things. I know there was some emergency declaration there. So some federal money was able to come in. But still, give us kind of an update about how your state is doing? I know there are at least 30 dead, killed in those ice storms as well. But if you can, just give us an update there.
BESHEAR: Well, about three weeks ago, we were hit with probably the worst natural disaster that Kentucky's seen in modern history. We've got 120 counties in the state. And 102 of them were in states of emergency, because of a severe ice storm that came through. We had about 800,000 people without power, and not much communication for about 24 hours. I tell you, I went to the White House quickly. The president responded quickly with an emergency declaration. FEMA came in. They worked with us. And we're digging our way out of that. And things have gone about as well as they could in Kentucky.
HOLMES: All right, sir, this is going to be my last question. I'm going have this come from one of your constituents. As you may have been watching this morning, we're soliciting a lot of questions from people on Facebook and other ways like that. But someone wrote into my Facebook page, a native Kentuckian, her name is Katie. And her question is, and she tells me, please ask him what sector he thinks is the most needy of this money? Education, budget shortfall, energy, infrastructure, health care, etcetera. And also she had some concerns that if it's extra dough will actually improve conditions and not be squandered in pork projects that we taxpayers will only discover years after the fact.
So I just wanted to bring you something from a native Kentuckian that we got. So please, answer her question.
BESHEAR: Well, T.J., when I became governor a year ago, we were just entering this financial crisis. And you could tell it was going to get worse before it got better. So I set two goals for Kentucky.
One was, simply to survive this and to bring our people through it as best we could. But the second goal was not just to survive, but to survive while making some really important investments in areas like education, health care for our most vulnerable, public safety, economic development that would position us to take off when this economy does improve, and take advantage of the opportunities that will be out there for us.
And that's the way we're trying to gear any stimulus money that we get. We're going to make sure that we maintain our education effort. After all, that's the future of our state. It's the future of our country is to have an educated work force that can hold down 21st century jobs. At the same time, we all must maintain that basic safety net for our most vulnerable in terms of health care. So we're going to spend this money wisely. Kentuckians can be assured of that.
HOLMES: All right, and had to let you know that Katie wrapped it up saying, Beshear promised sunshine, give it to us. I just wanted to pass that along as well. Governor Beshear, enjoy your time there in D.C. Good luck getting that check. And I know you're looking to earth, wind, and fire at the White House. So enjoy the party as well.
BESHEAR: Thank you, T.J.
HOLMES: All right, Betty?
BETTY NGUYEN, CNN ANCHOR: Sounds like a good time. You know, still ahead, we will be talking with Republican Governor Tim Pawlenty of Minnesota about his thoughts on the stimulus plan. That's coming up at 10:30 Eastern.
And speaking of Earth, Wind & Fire, some classic music from them. You know, that group that T.J. mentioned will be one of the headliners in Washington on Sunday at the White House, actually. The other headliner, of course, will be President Barack Obama. Earth, Wind & Fire playing in the east room for the president's dinner with the nation's governors. Nice to be president. Isn't it?
HOLMES: It has its moments, I assume, but Betty. That might be a highlight, but then he's got to get back to work and get some other stuff done.
Meanwhile, take you back out to California now. Neighborhoods out there in Oakland taking a stand against the rash of foreclosures. Some owners are simply refusing to give up their homes. Activists and politicians are rallying around the neighborhood to block banks from taking control of the properties. Ten homes on this particular street that we're showing you here, on one street, are, or have been, in foreclosure. Most can be traced to adjustable rate mortgages.
(BEGIN VIDEO CLIP)
ROSA GONZALEX, FACING FORECLOSURE: 11 point something on one rate and the other loan was 7.85?
DAVID KERR, OAKLAND ASSOCIATION OF REALTORS: What happened was they refinanced with loans that have adjustable rate mortgages. And those mortgages readjusted. And they could no longer afford the payments.
(END VIDEO CLIP) HOLMES: Well, this particular neighborhood, that zip code, has the highest numbers of foreclosures in all of Oakland.
Meantime, the California Governor Arnold Schwarzenegger has signed the state's budget, which lawmakers approved Thursday after a legislative battle that lasted about 106 days. The plan is aimed at wiping out California's $42 billion budget deficit. We're going to be taking a closer look at that plan coming up at 10:00. Betty?
NGUYEN: All morning long, we've been taking your questions about the housing market and whether the president's plan is really the answer to get all of us out of this mess. And joining us again is financial expert Clyde Anderson.
OK, we've gotten a lot of really good questions at weekends@CNN.com, also on our Facebook pages. Let me ask you this one from Mike and Heather in Ohio. They say, or at least Heather does, "My husband and I filed bankruptcy because I lost my job due to injury."
CLYDE ANDERSON: Right.
NGUYEN: "Our bankruptcy was discharged in October 2008. And I'm being told that we're not eligible to refinance for another two years. And we're falling slightly behind on the mortgage due to the increased payments. Is there any help for us out there?"
ANDERSON: It's a good question. And I'm assuming they have an adjustable rate mortgage, because they talked about the increase in payment. What we're going to have to do is wait until March 5th, when they're going to really outline and get some guidelines to this. That's what they're promising. On March 5th, we'll know more details about who exactly's going to qualify, all those intricate details about criteria. Those are things we'll know.
From looking at the situation right now, I would assume they are going to need to wait, though. I mean, coming out of a bankruptcy like that, you're generally going to need to wait. So it sounds like there's an issue there with the loss of jobs that we're going to have to really evaluate if the property, is it right for them to actually stay in the property?
NGUYEN: But it seems like a domino effect. I mean, you went into bankruptcy because you lost your job. And now you can't make your mortgage payment, but yet you have to wait for some kind of help?
ANDERSON: Right, right. And I think we have to look at, it comes back to a more practical stance that maybe this house is not the house that you need to be in right now. Maybe this is time to re- evaluate my situation, back up a little bit. Maybe I do need to rent for a little while and do something different.
NGUYEN: So do you just let it go?
ANDERSON: I say you try to sell. It depends. And that's one of those cases, is it down in value? Are you upside-down in the house? Is it holding value? Can you still sell it? Some markets are still moving. So you may be in a market actually where you are able to sell. Take a look at all those options, talk to your lender to find out what's best.
NGUYEN: And March 5th, we'll hear a lot more as well?
ANDERSON: March 5th, we'll have a lot more of the details.
NGUYEN: That's the date to keep in mind. In the meantime, though, Carlos writes this. "What are the specifics on credit scores to qualify? Most bought who bought subprime had low scores, below 580, today mortgage market requires above 700, will they qualify?"
ANDERSON: Well, what I was saying there, mortgage markets are not necessarily requiring above 700. And that's something I want people to know, because if you don't have to have perfect, perfect credit. You do have to have pretty good credit. That could mean somewhere down in the 640s, the 620 area. I'm still seeing people get loans at high 500s. So it doesn't mean that you can't get a house if you don't have a 700 number.
NGUYEN: So there's some misconception out there...
ANDERSON: Yeah.
NGYUEN: ...that the banks aren't lending?
ANDERSON: Definitely. Definitely, there are.
NGUYEN: OK.
ANDERSON: Things have tightened up. Again, I say you have to be credit worthy. You don't have to be credit perfect. You have to be in a situation where they can show - where they can see that you've made some sort of, you know, due diligence on your part to make sure you keep a certain level of credit.
NGUYEN: And I want to talk to you about this as well. Those tax credits from first time home buyers. How does that work?
ANDERSON: Well, really what they're saying is that if you're a first-time home buyer, this is another way that the plan will stimulate the economy, is that they'll give you $7,500 if you are a first-time homebuyer and you're buying a house. That's going to come back to you on your taxes.
NGUYEN: But doesn't it depend on your income?
ANDERSON: Yeah, it does depend on your income. You have to be I think, $75,000 up to a level of about $130,000, I think it is, depending on how many people are in the household. So it is going to depend on your income of exactly how much you'll get. But that's really what they're saying is that it's an incentive right now until the end of the year is what they're saying, to go ahead, buy a house. We'll give you $7,500 on your taxes next year. So that'll help you, you know, to really incentivize you to buy a house and have some more money coming back.
NGUYEN: Yeah, and then get that money flowing in the economy as well.
ANDERSON: Exactly.
NGUYEN: All right, we are going to be talking with you all morning long. We've gotten some really good questions. And we're going to continue asking you at home to send them in to us.
T.J., I know you got information on how they can do that.
HOLMES: Oh, just take them. Let's show the screen there. Exactly what we are doing this morning. And we have been giving these out. Betty and I both, again, after much resistance, we finally caved in and got Facebook pages here through CNN.
But they've proven to be quite useful. Certainly this morning, we've been asking the question of you, what your questions are. And Clyde's been answering them for you. We're getting several in. Continue to keep those coming in. We'll have those answered for you here throughout the morning.
NGUYEN: In the meantime, though, talk about courting controversy. Why politics and sports made for a volatile mix in Dubai.
HOLMES: Also, if you're getting foreclosed on, what one congressman is telling people, stay in the house. Don't go anywhere.
(COMMERCIAL BREAK)
HOLMES: Well, in the world of tennis, you know the grand slams out there. You got Wimbledon, you got the French, you got the Australian, you got the U.S. Open. Yet all the attention usually every year, even if you're not a tennis fan, you might pay attention to those, but a lot of people are paying attention to another smaller tournament in Dubai. It got a lot of attention, not because of the play on the court, but who wasn't allowed to take the court there.
Our Rick Horrow, sports business analyst and former consultant for the NFL, PGA, and NASCAR in West Palm Beach for us this morning.
Sir, always good to have you with us here.
RICK HORROW, CNN SPORTS BUSINESS ANALYST: Thank you, sir.
HOLMES: Explain this to us. Shahar Pier (ph) is her name, not allowed to go to Dubai to play in this tournament. What was the official reason? And then what was the perceived logic behind it?
HORROW: Well, clearly, my friend, this is not sports or tennis. This is politics. The official reason was the denial of entry because there was a fear that the fans would protest over the Palestinian/Israeli disputes and debates and wars for the last few years. There were some protests in New Zealand. That's the official reason.
The unofficial reason is because they didn't want her to compete. And there was a lot of backlash. The Williams' sisters, of course, says this is unconscionable. "The Wall Street Europe" pulled out. The Tennis Channel chose not to televise the tournament, but a lot of concern and creative noise. But of the 56 women players, none actually pulled out, which some say would be kind of troubling.
HOLMES: OK, so I remember hearing her say, of course, I wouldn't go somewhere if I thought my safety was at issue. So did they really have a case that - or they just didn't want maybe the negative attention?
HORROW: Well, clearly it's the negative attention. It's a political statement. We've seen that before. Joey Cheek, United States speed skater, was barred from entering China about 24 hours before the Olympic events, not to compete. But remember, there was a discussion about team Darfur and Chinese politics towards that African nation.
And the bottom line is we will never, ever, ever separate sports and politics. But in a tournament and sports more than that, the prize itself on the legacy of Arthur Ashe and Martina Navratilova, and Billy Jean King and Althea Gibson, this is indeed a bit concerning.
HOLMES: OK, a couple of things here next. There was another, Andy Ram, I believe is his name, almost didn't get to go, but he did get to go to the tournament, did get to go play. Why did we see, or why didn't we see, Rick, more athletes not take more of a stand? Yes, we heard some sound bites and a few interviews about it - about how horrible the decision this was, I guess, by the tournament there and by the country, but not too many pulled out. Nobody pulled out, like you said. Why didn't we see that?
HORROW: Well, we all have a cynical answer toward that. And athletes are business people. And they'll make a statement. But now we're talking about the pocketbook. And Dubai wants itself to be perceived as a showcase of sports. Tiger Woods a big appearance fee for golf tournaments there, horse racing, rugby. They want to get in Olympic games after a while. So the pressure has caused the men's tournament a week from now to reconsider Andy Ram, the second ranked doubles team player in the world. Israeli also granted entrance.
But listen, this is not going away, as we all understand. She says if she wants to get in a tournament next year, and there is a tournament in Qatar at the end of this year with some of these same issues. So we can't just put our heads in the sand and assume this will go way. It will not.
HOLMES: OK, Rick, what are you going to have for us next week? You know already that we're going to wait for the big story to develop?
HORROW: Well, we'll always wait for the big story to develop. But next week, Tiger is back. HOLMES: Back, yes.
HORROW: And we'll talk about your swing and how far you have to go to get to where Tiger is. It's a long way, ladies and gentlemen.
HOLMES: It is a long way. Rick, everybody has a long way to go to catch up with that guy. Curious to see how he's going to come out. Hasn't played in what, eight, nine months, I think it is.
HORROW: We will have seen him play three days, or it's a single elimination. So we'll see what happens when we're on on Saturday.
HOLMES: All right, Rick, always good to have you here. Thanks, buddy.
HORROW: Yes, sir.
NGUYEN: And coming up at 10:00 this morning, an incredible story from a woman who is just determined to survive these tough economic times.
HOLMES: Yes, we'll tell you what she's had to go through to try to make ends meet. Stay with us here on this CNN SATURDAY MORNING.
(COMMERCIAL BREAK)
NGUYEN: Well, millions of Americans stand to lose their homes in the current mortgage crisis. So if the bank forecloses on you, what would happen if you just refused to leave your house?
Well, Drew Griffin from CNN's special investigations unit take a look. (BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN CORRESPONDENT (voice-over): The notices came to her home in April. Andrea Guice's bank foreclosed on her. Behind in payments, out of work, a husband sick, she had nowhere to go. So she decided to follow the advice of her congresswoman and go nowhere. Guise is part of a new movement in the housing crisis, squatters.
For lack of a better term, you're kind of squatting in his house, aren't you?
ANDREA GUICE: Basically, yes.
GRIFFIN: Last resort?
GUICE: Last resort, yes.
GRIFFIN: More than 4,000 properties were foreclosed on in Toledo's Lucas County last year. This year, it could be worse. The county clerk who's full-time job is typing up and sending out foreclosure notices.
UNIDENTIFIED MALE: Tomorrow morning, this will be mailed out. GRIFFIN: Elected officials are saying Toledo is not in a recession. It is in Depression. It is this bleak backdrop that inspired Toledo Congresswoman Marcy Kaptur to take to the floor of the House last month and tell her constituents, stay put.
REP. MARCY KAPTUR (D), OHIO: So I say to the American people, you be squatters in your own homes. Don't you leave.
GRIFFIN: Kaptur says she has had it with government bailouts for Wall Street banks, but nothing for homeowners. She is advocating for a legal revolution, a demand that not one of her constituents leave their home without an attorney and a fight.
Even if they've been foreclosed on, don't leave?
KAPTUR: If they've had no legal representation of a high quality, I tell them stay in their homes.
GRIFFIN: Kaptur is behind a strategy called Produce the Note. Mortgages have been so dittied up on Wall Street, that banks are having a hard time finding that original paperwork, adding a delay to foreclosures. She is also pushing banks to rework loans, especially those banks getting bailouts and holding mortgages of folks getting tossed out.
KAPTUR: They're vultures. They prey on our property assets. And I guess the reason I'm so adamant on this is because I know property law and its power to protect the individual homeowner. And I believe that 99.9 percent of our people have not had good legal representation in this.
GRIFFIN: Without a lawyer, Andrea Guice bought a $147,000 home with nearly $40,000 down.
GUICE: I should have had an attorney. I really should have had the attorney. I did not know.
GRIFFIN: She admits she didn't read the paperwork, didn't learn until it was too late she had a subprime loan. Her payments of $883 a month jumped in a year to more than $1,500. When it did, she stopped paying.
So they foreclosed on you?
GUICE: They foreclosed on me, yep.
GRIFFIN: The law firm representing the bank in Guice's foreclosure declined comment to CNN. Another one to the bank, Guice believes holds her note, Wells Fargo, said it wouldn't comment on individual cases, but tries to work with homeowners. Backed by her congresswoman, Guice simply is not budging.
Drew Griffin, Toledo, Ohio.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
T.J. HOLMES, CNN, ANCHOR: All right. From the CNN Center, this is CNN SATURDAY MORNING for this February 21st. I'm T.J. Holmes.
BETTY NGUYEN, CNN, ANCHOR: Yes. Good morning, everybody. I'm Betty Nguyen.
Thanks so much for starting your day with us. And we have a breaking story this morning to bring you. Washington police are close to making an arrest in the murder of Chandra Levy. This is an infamous cold case out of Washington, D.C. Television reports out of D.C. are saying that police pursuing an arrest warrant for an inmate who has been identified as Ingmar Guandique. He's already in the D.C. prison system.
Now, about Levy, you remember the name and the face, because this story got a lot of attention back in 2001. She went missing but her body wasn't found until 2002 in Rock Creek Park in Washington, D.C. CNN's affiliate KGO out in San Francisco Bay area reports that police have notified Levy's parents that an arrest is imminent. This is a developing story. More breaking developments for you right here on CNN SATURDAY MORNING.
NGUYEN: President Obama says there is more to come as he tries to fix our ailing economy, and Kate Bolduan joins us now live from the White House. Kate, I understand you got more on the president's efforts to actually get America moving, working and just as important, spending again. So how's this all going to work?
KATE BOLDUAN, CNN CORRESPONDENT: The big question seems, it is multifaceted, as we're all beginning to learn, Betty. The economy clearly squarely is focused here at the White House today in the president's weekly address. The president touted and praised passage of the economic stimulus package and promoted as well as talking about some of the elements that are included in it. He says that it really means that help is on the way for Americans and it could come as early as April 1st for some. Listen here.
(BEGIN VIDEOTAPE)
PRES. BARACK OBAMA, UNITED STATES: I'm pleased to announce that this morning the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks. Meaning that by April 1st, a typical family will begin taking home at least $65 more every month. Never before in our history has a tax cut taken effect faster or gone to so many hard-working Americans.
(END VIDEO CLIP)
BOLDUAN: Now, very quickly, the president in the same address did say that this is only the first step. Hard work is still needed. Then promoting his $75 billion housing plan that he unveiled this week. A very busy week, but it also looks like the coming weeks will be just as busy. Monday the president will be meeting with bipartisan, with democrats and republican governors from across the country. Later in the day hosting a bipartisan, what they're calling a fiscal responsibility summit to take on the mounting deficit that the country faces.
Tuesday the president will be addressing a joint session of Congress, and Thursday we'll get a look at the first Obama budget. They will be unveiling the 2010 budget. And I can tell that will be closely watched not only because it affects every American but in the republican response this morning, congressman Dave Camp of Michigan, he criticized democrats for reckless spending so early in this administration and added that if the president is serious about getting federal spending under control, this budget will show it. Betty.
NGUYEN: Yes. People are going to be watching that and going through it with a fine-tooth comb once it is announced.
BOLDUAN: Another pile of papers though, it will be.
NGUYEN: Maybe not 1,100 pages. But who knows. All right. Kate, thank you.
BOLDUAN: Of course.
NGUYEN: It's been a fast-paced 33 days in office for President Obama, but is there anything he could have learned from his predecessor that would serve him today? Our D.L. Hughley spoke with the former white house press secretary, easy for me to say. Press secretary, about just that.
(BEGIN VIDEO CLIP)
D.L. HUGHLEY, CNN HOST: You see Obama coming in - right. He is very popular.
UNIDENTIFIED MALE: Yes.
HUGHLEY: Do you think that is there anything he can learn from the Bush administration?
Well, most importantly in public life is to stand by your principles and act on them. Now, this is what attracts people to you because you might be right, you might be wrong. Nobody is smart enough to really know but if people think you're sincere comes from your heart, people will back you up. That's why George Bush won in 2004. Iraq wasn't going so well -
HUGHLEY: You really think -
UNIDENTIFIED MALE: But a lot of people said that you'll beat John Kerry in an election. And one of the reasons was people said I may not agree with everything you stand for, but at least I know you take strong positions and mean it. Kerry is a lot of weight in politics. It's call sincerity.
(END VIDEO CLIP)
NGUYEN: This reminder, "D.L. HUGHLEY Breaks the news" tonight at 10:00 Eastern and again Sunday night at 11:00 Eastern. HOLMES: Well troubled times in state houses across the country. The nations' governors gathering in Washington this weekend, talking about their budget issues and how that federal stimulus may help them out. They'll be meeting with the president.
CNN deputy political director Paul Steinhauser joins us now live from Washington this morning. All right. Money is on everybody's minds, but besides that, what else they got going on in D.C. this weekend?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Well, the governors from across the country, their annual winter meetings and they're all going to be here starting this afternoon. I was watching you, listening to you, talk to Kentucky's governor last hour. I loved it when you asked him is he going to leave Washington with a check in his hands, T.J. because that truly is their topic. Their main topic here is the stimulus bill, the stimulus law now and how it will help them.
Remember states are mandated by law. They got to balance their budgets every year. The federal government doesn't have to. So the states are really under the gun to balance their budgets, they may have to lay off people. That was the whole idea for the stimulus to give them money so they wouldn't have to do that and also to help build up infrastructure to hopefully create new jobs.
So that is going to be their topic here, T.J. and there's a controversy going on because some of these governors, a couple of the republican governors are pretty much against the stimulus, including Bobby Jindal from Louisiana. He of course will be giving the Republican response on Tuesday night after the president gives the joint address to Congress. So some of these Republican governors taking the money, but not really crazy about the stimulus bill. That will be a big topic of discussion this afternoon.
HOLMES: OK. That's just, and I believe Governor Beshear said to me that's just political posturing. Some of these guys like you mentioned Louisiana, Bobby Jindal, also got another governor coming up this morning, we're going to be talking about, talking to, Tim Pawlenty of Minnesota. He was widely viewed as a top VP pick of John McCain's but a lot of people he has his eye on the White House as well. How much will that play into the meetings up there? 2012?
STEINHAUSER: Oh, we're going to be looking at, me and the rest of the gang, looking at him, T.J.. You know, tomorrow all the governors go to the White House. I think it's a black tie dinner. And some of them have their eyes on the White House. They may not admit it. But the guy you're speaking to next hour, Tim Pawlenty, he may want to be a contender in 2012, Bobby Jindal, maybe from Louisiana, the governor of South Carolina, another republican, and Charlie Crist of Florida as well.
They all may have their eyes on the big prize in 2012, and one person who is not here, one of the few governors who is not coming is, guess who? From Alaska. Sarah Palin.
HOLMES: Yes. And why not? Do we know why she's not going to be able to make it?
STEINHAUSER: Yes. Her office pout out put a statement last week saying she wasn't coming because the state legislature up there is in right now. They're meeting and she didn't want to get distracted by coming down here. She says she has to do the state's business and that's why she is not coming to D.C..
HOLMES: Well, all right then. She's going to miss earth, wind & fire at the White House tomorrow. Paul Steinhauser for us in D.C.. We always appreciate you, buddy. Thanks.
STEINHAUSER: Thanks, T.J.
HOLMES: All right. Betty.
NGUYEN: Well, all morning long we have been taking your questions about the housing market, and one of the president's plan is really the answer to get all of us out of this mess. Joining us once again is financial expert Clyde Anderson. Thanks so much for spending the morning with us.
CLYDE ANDERSON, FINANCIAL EXPERT: It's a pleasure, Betty.
NGUYEN: Of answering these really important questions. And we keep getting them in. We're soliciting them at weekends@cnn.com, also on our Facebook pages. This one I got on my Facebook page, this from CN Jackson. He says, "I've heard something about keeping house payments to 31 percent of your salary, but haven't really been able to catch any of the details of how that would work."
So explain this to us, how the lenders have to bring it down to an extent and then the government kicks in as well and brings that down to another extent.
ANDERSON: Exactly. I mean when you're looking at that 31 percent, so say you make $50,000. You got to take 31 percent of that, and you'd be somewhere around $15,000, say $500. That's going to give you a monthly payment somewhere around $1,200, is where you need to be in that area. So, yes the government is going to kick in and help the banks out to provide that additional incentive to get you down to that place.
NGUYEN: So if I had taken out a loan, and it's really 40 percent -
ANDERSON: Right.
NGUYEN: ... of what I bring in, the lenders need to bring that down to 38 percent, right?
ANDERSON: Right.
NGUYEN: And then the government kicks in? And brings in -
ANDERSON: The difference.
NGUYEN: But ultimately you shouldn't be that high to begin with, correct?
ANDERSON: Yes, in theory it shouldn't but a lot of the loans that were taken out several years ago, they were there and beyond. We saw some of the guidelines just really kind of extended from that, where people were going way over. 40 percent, 41 percent in some instances -
NGUYEN: Really?
ANDERSON: No ratios in instances. So it really are a lot of people out there that have exceed that 30.
NGUYEN: Got you. OK, here's another question. This one from Mary. And Mary writes, "I bought my house for $185,000 in 2007.
ANDERSON: OK.
NGUYEN: I put down 75 percent with the intention of having my home paid off in seven to eight years, but my business is slowing and now I owe about $50,000. I want to be able to refinance at a lower rate because I haven't been late on a payment" but she's not getting any help.
ANDERSON: Right.
NGUYEN: So how does that work? If these banks are supposed to be helping you out, and you got the cash or at least you've proven that you have the cash and made your payments, why aren't they?
ANDERSON: Well, I think I will tell her to hold on just a little bit longer. As I mentioned, March 5th is the time that this is supposed to roll out. This has to come down from the government, passed down to the banks, has to go through Fannie and Freddie. And so just give us some time to take effect. And then I think she sounds like she would be a perfect candidate for what's going on right now.
NGUYEN: OK. So March 5th is the magic date.
ANDERSON: That's the magic date.
NGUYEN: When we're going to get the outline on exactly how this is supposed to work?
ANDERSON: Exactly, all the guidelines. We got a kind of a high level overview right now of how it's supposed to work but on March 5th, we're supposed to be able to talk to your lenders. They're supposed to have more information. HUD should have information. Fannie and Freddie should also be able to give out information. So we'll see more details.
NGUYEN: OK. But here maybe the rub, between now and March 5th, while it doesn't seem that long of a time. People are struggling, and some may have to face foreclosure before then or bankruptcy.
ANDERSON: Right.
NGUYEN: What to do if you are at risk of losing your home today?
ANDERSON: Right. Today I think the first thing you need to do is talk to your lender. Whoever your lender is. Whoever has that loan, you need to talk to them, to find out exactly what your options are. Modification is one of the options, where they can modify your loan. You may be the perfect candidate to get your loan modified. They can reduce your rate and they can do that right now.
But otherwise, you're really going to have to, you know, tough it out for these next two weeks until we find out exactly what the details are. But don't wait. Talk to your lenders, have some dialogue right now about that now and figure what can you do.
NGUYEN: And you need to talk to them as soon as possible once March 5th rolls around.
ANDERSON: Yes.
NGUYEN: Because there's going to be a little lag time when they can get you the deal that they actually say is out there for you, right?
ANDERSON: Exactly. You know, I've talked to several in the industry. We're still waiting on a lot of this information come forward.
NGUYEN: Right. OK. Clyde, thanks so much for sticking around. And I know you're going to be here throughout the morning. We continue to ask you at home for your e-mail questions. Send them to weekends@cnn.com, also go to our Facebook pages, both T.J. and I have one. So just logon and send those questions to us. T.J.?
HOLMES: All right, Betty.
Well, she vowed not to spend a dime in the month of February. The frugalista we've been checking in with here for the past several weeks. We'll check in with her again. See how she's doing.
And also, foreclosed properties becoming too ugly for neighborhoods? One man got a little upset about it. We'll tell you what he did about it.
(COMMERCIAL BREAK)
NGUYEN: By going early in the morning or late at night, you might have to change your shopping habits as of March 1st. That's when many Westfield malls are cutting hours to save money, and now the hours aren't exact at this moment. We're hearing 30 minutes earlier, or later I should say, is when they open, or close 30 minutes earlier. You'll have to check with your local mall to figure that out. But the Westfield does run 55 malls in a dozen states.
You know, it is Saturday, the 21st. Just seven more days to go until the end of the month. Can you believe it? Well, it may not matter to you, but the frugalista, it is a big deal for February to come to an end and quickly. And here's why. Natalie McNeil is going the entire month of February without spending any extra cash. But she hasn't been stuck in the house during this frugal experiment. We've been following her to yoga classes, free movies, art exhibits, free wine tasting. All these things. And joining me live from Plantation, Florida, is the frugalista herself. All right. Natalie, just got one more week to go.
NATALIE MCNEAL, FRUGALISTA: I can't hear.
NGUYEN: You can't hear me? All right. We're having some audio problems with Natalie. We'll try to get her on the line, and check in with her. It's been quite a month so far, T.J..
HOLMES: Yes.
NGUYEN: Can you imagine? Not going out to eat. Not going to movies. Not - just those extra things that you do that don't cost a whole lot but they're part of daily life.
HOLMES: Of course, she - we've been talking to her every week for the past several weeks. It's been interesting hat she's still been able to do a lot of those thing, she's just not paying for them.
NGUYEN: She's had free facials. She has, you know, free concerts, these things. She joins us now actually we've been able to work out those audio problems. Can you hear me now, Natalie?
MCNEAL: Yes. Hey, Betty, how are you?
NGUYEN: I am doing great. The question is, how are you? Because I know that your willpower has been tested in this past week. Tell us how?
MCNEAL: I'm in the final stretch, but it's been a little bit tough. I'm finding new places to go like grocery shopping. This week I went to a farmer's market for a change of scenery from the fluorescent lights of a grocery store.
NGUYEN: Right. But you know, also, you are trying not to spend any of the extra groceries, or something that you have to buy, I mean, obviously you have to eat, but when it comes to these extras, how are you getting around paying those prices?
MCNEAL: Well, you know, I just look on the internet and find free and fabulous things to do. I'll find you know, free jazz clubs to go to, find places to get free facials, free wine tastings, free happy hours. I mean, I just make it a point to try to find things that are free, because I still want to have a social life.
NGUYEN: Right. You still got to keep on living. Any idea how much you've saved so far?
MCNEAL: I'm thinking I'm running at about $200 so far.
NGUYEN: Really?
MCNEAL: We'll see in the final stretch. NGUYEN: One more week to go. I bet you're excited about it. I noticed you picked the shortest month of the year for this experiment.
MCNEAL: That's right. I mean, I have willpower but I'm still human. Trust me.
NGUYEN: And you're looking awfully wonderful, in fact. I mean, you had your free facial, your hair, you know, has been done. You're not spending that money for the salons and whatnot, but you have a birthday coming up. How in the world do you plan on celebrating and not spending any cash?
MCNEAL: Well, it's called really, really good friends. We're going to do a small get-together and you know we're going to have a big feast but everybody's going to bring something and we're just going to enjoy each other at a friend's house.
NGUYEN: Well, I need friends like yours, then.
MCNEAL: All right. Come on!
NGUYEN: Take the bill for everything. You know in fact, I am going to be coming down there. Yes, I do have T.J. He does pay for a few bills when we go out to eat. But back to you, Natalie. I'm heading down there this week, in fact, and I'm going to join you during this home stretch and we're going to follow you, as you really try to make it through the month of February. So looking forward to seeing some of the things that you're able to scrounge up that are absolutely for free. I'll see you soon.
MCNEAL: OK. Have fun.
NGUYEN: All right.
HOLMES: What do you mean, you need friends like that?
NGUYEN: I know. Who needs anyone else when I've got you, right?
HOLMES: You got friends like that.
NGUYEN: Just call me the frugalista?
HOLMES: Not quite! The cheapalista.
All right.
NGUYEN: Hey, I think I bought a few meals for you.
HOLMES: I don't know, Betty. I need to see those receipts.
NGUYEN: Yes, I'll bring them in if I can find them.
HOLMES: All right. Maybe we'll have Reynolds Wolf settle this in a moment. He's going to be coming up. A lot going on in the country as always weather wise but a few winter storm warnings to tell you about. Stay with us. (COMMERCIAL BREAK)
NGUYEN: Well, quite a bit of snow is moving across the Great Lakes region. Reynolds Wolf has been watching it from the CNN severe weather center. You know, it's February. I guess it is expected.
REYNOLDS WOLF, CNN METEOROLOGIST: Call me crazy, but, yes. You don't happen to see a whole lot of snow in the Great Lakes in August.
NGUYEN: No.
WOLF: It doesn't seem to happen that much. But again, it's this time of year. With the magic of modern technology, we'll show you some of the snowfall as it happened just yesterday in parts of Minnesota. Let's go right to the video. And on the video you're going to see. Again, it looks like you'd normally expect snow. This situation coming in sideways, with a little bit of a wind kicking up with it in the twin cities. You see covering the trees.
This is actually beginning to ramp up, gain a little bit of intensity to say the least as it's going to leave parts of, say, Minnesota moving back into the Great Lakes, as it intensifies. It's actually going to have a bit more moisture to work with, coming off Lake Michigan and also Lake Superior.
Let's go right back to the weather computer and show you this whole system. It starts at over 1,000 miles long, and it manifests itself in different ways. Up towards the Great Lakes, a cold air at the surface, it's snow but closer to the Gulf Coast and into portions of the Ohio Valley, it's mainly a rain even, but let's really kind of hone in on what you have at the great lakes. Really, really kind of a thin layer, if you will. Shallow layer of cold air. The old running moisture falling through and a shallow layer in the atmosphere.
This was causing that snow to really begin to pile up. We could expect anywhere from say six to eight inches of snowfall for Detroit, Milwaukee and Chicago. However, when you have that wind beginning to pick up it's going to start piling in a few places. So don't be surprised if you happen to have say a foot of snow here or there due to all the wind. Although we are expecting it to be sustained anywhere from 15 to 25. It could get a gust or two, upwards of 30. So it's going to feel like single digits in many spots.
Right now, in terms of temperatures, 12 degrees in Alpena, 22 in Flint. 19 in Toronto, that is in Fahrenheit, not Celsius. 22 in Syracuse. Detroit with 23. Daytime highs today, Kansas City, 38 degrees. Dallas 56, Houston with 67 degrees, mainly 70s in both Tampa and Miami.
New York and Boston, New York, a great day for you early but then into the afternoon, you're going to see more clouds approach from the west, some scattered snow showers in the evening and into tomorrow also. Boston, same story. Your highs also in the 40s. Las Vegas 65. Scattered showers in San Francisco northward into Portland and Seattle highs mainly in the 60s and into the 50s, and it looks like a fairly nice day for you in Denver with a high of 50. That's a look at your forecast. Let's send it right back to you guys at the desk.
NGUYEN: All right. Thank you, Reynolds. Appreciate it.
OK. So foreclosed properties, becoming neighborhood eye sores. You know, you can imagine, people don't live there anymore, things go awry. Well one man got so mad about it, they took matters into his own hands.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN, watched by more Americans than other news channel. Now back to CNN SATURDAY MORNING.
NGUYEN: It's not just the people whose homes are foreclosed on who suffer. Empty homes can become eye sores and property values they will drop. It made one homeowner really mad and he did something about it. CNN's Ted Rowlands has his story.
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): The people living next door to Mark McKinzie moved out almost two years ago. Now weeds are actually growing out of the garage.
MARK MCKINZIE, LENDEROFFENDER.COM: I said, well what can I do? Well I can create something that might call attention to the problem and give frustrated residents a voice out here.
ROWLANDS: Last month McKinzie created lenderoffender.com, a website where anywhere in the country can post for free information about neglected foreclosed property. For each entry there's a photo, a few comments and the name of the lender or bank that owns the home. When a property is cleaned looked up, McKinzie takes it off the site.
He says this house down the street has been vacant for months.
MCKINZIE: Look at the lawn. That is a black dead lawn. So no one in this neighborhood deserves to live next to this property and homeowners in this area neighborhood deserve to know who owns this property.
ROWLANDS: Citibank owns this house. They told CNN it became vacant in late November and is now in escrow. As for the lawn, they said "we did not sod the lawn because it moved in the market very quickly."
One lender, Wells Fargo actually cleaned up their properties listed on the website. In a statement to CNN, they said in part, they are "very concerned with preserving the condition of homes and neighborhoods and added they'll keep watching the website."
Delores Conway, a professor at the University of Southern California specializing in real estate says and lenderoffender.com may push others to act. DELORES CONWAY, UNIVERSITY OF SOUTHERN CALIFORNIA: It may help to nudge the lender along a little bit in terms of coming out and putting in the proper maintenance to the property.
ROWLANDS: McKinzie is hoping she's right, especially when it comes to the house next door.
(END VIDEOTAPE)
NGUYEN: Mark McKinzie says he invites anyone living near poorly maintained foreclosed homes to take a few photos and add them to his site. Ultimately he hopes the problem will be cleaned up so the site won't be needed any more.
HOLMES: As we've been reporting this morning, governors are in D.C. this weekend to work out ways to distribute that stimulus package to their states. We'll be talking about them and they'll be meeting with the president tomorrow, having a big dinner over at the White House.
NGUYEN: Right at the White House.
HOLMES: Big party. Big band.
NGUYEN: Earth, Wind & Fire is going to be in there.
HOLMES: We just talked to Governor Beshear of Kentucky just a little bit ago. We'll be talking to the governor of Minnesota Tim Pawlenty who might have some presidential aspirations of his own. He'll check in with us live, next hour.
NGUYEN: All right.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hello. I'm Gerri Willis and this is "Your Bottomline." The show that saves you money. Every weekend we're here to help you save, protect and build your money. On tap today, President Obama's Homeowner Affordability and Stability Plan. It's just a name. We'll tell what you it means to "Your Bottomline."
