Solano Real Estate Scene: California EDD fraud hits big number

When I heard my favorite news anchor report that the California unemployment office gave away $20 billion over the past couple years to prison inmates, dead people and fictitious folks, I thought he misspoke. I had heard lots of news reporters talking about the prison scam where $5 million was somehow sent to unemployed inmates, but $20 billion is 4,000 times the amount California taxpayers deposited at the prison commissary for cigarettes and snacks. This is no way to run a business or a government agency. This is only an educated guess based on my 40 years of dealing with collection agencies and debt collectors, but this money will be hard to recover, and if the state is lucky and diligent, they may recover $5 billion. The $5 billion will probably come from currently employed folks who “accidentally” received checks in the mail and will now have to deal with the state coming after their tax refunds and maybe wage garnishments over the next few years. Last week, I wrote about the Olympics, American spirit and the American Dream and how I believe investing in U.S. real estate and stocks is a proven sure bet. Betting on California seems to be in question today with the population declining in 2020 for the first time since 1850 – by 182,000 people. It seems like two or three times per week, one of my friends, clients and colleagues are talking about moving out of state and too many of them are doing it, which is not good for my family business or our economy. I get it and understand that for some, moving to Las Vegas, Texas or Tennessee will result in a 10% pay raise and a lower cost of living, but before you pull the trigger on this, you may want to spend a couple nights at Pebble Beach, Silverado or Lake Tahoe and compare the sights, sounds and weather to anywhere in the country. We live in the most beautiful place on Earth and once a person moves out, it is financially hard to move back. Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.