There is no constitutional right to homeownership! If you borrowed above your means, you've got no right to stability of ownership! The fact that the value of a house dropped below your purchase price is not relevant unless you want to sell - and if you can't afford to sell, then stay put - that is stability!
If you want rules for dealing with this mess, and keep 4 million families from being thrown out on the street (who, by the way, are not all hopelessly helpless to start with), here is a suggestion to Mr. Geithner:
Make the banks take their houses back (let them foreclose) and make them rent to the occupants (for minimum of 1 year, or pick your time frame)!
Then the dumb bankers will have their "fair market equity" and the dumb buyers will have a roof over their heads at "fair market rates"
I do not want my children to pay for all these gifts!
<p>Want to see real change for your neighborhood and town? Become a liaison. It's easy.</p><p>I happen to live in a neighborhood that is separated demographically by affluence and geographically by a cliff from the rest of our town. There has been a history of corrupt leadership in the town and a general distrust has developed between the two areas. But in this economy, both sections of the town could benefit from interaction. Being a socially-conscious marketing professional, I felt I needed to step up to the plate.</p><p>First, I started a <a target="_blank" title="Career Book Club" href="http://www.squidoo.com/careerbookclub">Career Book Club</a> with an open door policy, and established connections with my local library system for book access. The following week, I attended a town hall meeting, and shared the club idea with the Mayor and Council, who arranged for free space in a central location for my club to meet. The council then invited me to join an event-planning committee.</p><p>Next, I attended my home owners association meeting, and provided news to the association about what I'd learned at town hall. A couple of the committee members had never been to a town hall meeting, and asked if they could come with me for an introduction to the council.</p><p>During this meeting, the property manager asked me for guidance in developing the neighborhood website. The council began to discuss the pros and cons of joint projects between the town and the neighborhood: such as adding features to a nearby park and the cross-promotion of services that the neighborhood desired (such as daycare, housekeeping and dry cleaning) or could provide (like tutoring, personal training, accounting, and legal advice.)</p><p>After the meeting, everyone commented on how novel the meeting was...talking about new issues and solutions.</p><p>Wheels are turning here...stay tuned. Next Steps: School Council and PTA</p> <p>Have a similar story? Please post a <a target="_blank" href="http://www.kristinreign.com/2009/02/09/become-a-liaison-between-local-associations/#respond">comment</a>!</p>
Since y'all are considering spending a bunch of money, want to see it come back to you, want to help society and promote green energy and green jobs, then this idea is for you!
First of all - if you haven't learned already - DO NOT respond to anyone who contacts you about loan modification. They are seedy poor-intentioned opportunists. If you are looking for some help, contact your mortgage company or lender directly, and ask for their "hardship" or loan modification department. Your lender will not charge you exhorbitant fees to modify your loan. The other guys will try to charge anywhere between $1200 and several thousands.
Now, if you are like many, your earnings have likely reduced since the time you acquired your loan, and in most cases, your adjustable rate mortgage (ARM) has ratcheted up to an unbearable, unspeakable amount. Know that your lender will likely not modify your loan terms unless you are currently employed. So, if you aren't, go get a job at McDs or WalMart and while you are hunting for the big job to replace your old one, submit your loan mod request.
The best bet, of course, is to refinance your home entirely. Selling it in this market is a terrible idea, for most, with the exception of a select few. However, if you were insightful enough, or divinely lucky enough to keep your job, or even better, increase your earnings throughout this economic meltdown, you will very likely be turned down for a loan modification.
Further, if you always paid your mortgage first, utilities second, and kept food in the fridge (as we were taught to prioritize our needs v wants), and either neglected to pay or made "slow pays" to credit card companies (unsecured debt) - your credit is shot. Furthermore, you will not qualify for a loan modification (because you paid your mortgage bill, and your income is the same, or higher than before).
When faced with the choice to sleep in a warm bed and eat a full meal or pay high interest to a greedy credit card company, well, the choice is obvious. However, the consequence for keeping your kids fed and stationary (in a home) instead of keeping up with credit card payments is that you will have to live in that very home, at twice the price, and will have to endure the bad credit you "earn."
So, essentially, the home you tried so hard to keep becomes a jail cell - and like being convicted, it feels like you have to pay your soul every day, for the rest of your life. The only way for you to get out of it is to increase your credit score. But to do that, you need the extra money that is now being diverted to increased loan interest from your ARM.
While plans are in the works to help out people who paid their credit cards, but NOT their mortgages, defaulted on their loans, were foreclosed, and now renting - I see no help for those of us who did the opposite. They get help getting into a new home, with their "foreclosure" being looked at less harshly, because the nation has laid blame on the industry, not the individual. (I, too, don't blame the individual - just want to point out that they are looked at more favorably)
The rest of us are being penalized for penny pinching and keeping our homes. Bad credit = can't refinance. Paying mortgage + finding/keeping work + maintaining/increasing income = can't qualify for loan modification. If you look at the numbers, although I made more money last year than ever before, my take-home is less than it ever has been, and close to zero, after you count my "adjusted" mortgage payment and add in only the sustaining expenses. I don't have enough to pay full amounts on credit cards - and am often running a negative balance sheet - then there's the late fees...... ughh. No matter what, though, I always pay the mortgage before it becomes 30-days late.
Where's the bailout for me? According to my lender, I don't " Qualify" for a loan modification because my gross income is measured directly against my monthly payment. No consideration for the fact that I have four dependants. No consideration that our medical costs are higher than the average family because one of my children is disabled. No appreciation or "good faith" is offered to me for the fact that I always, ALWAYS paid them.
I want to see someone "stimulate" my lender into rewarding me and everyone else like me who are being forced to live BELOW our means, unable to save for education, retirement, and other pursuits of happiness simply because THEY were allowed to sell me an unscrupulous product.
Till then, I'll be brown bagging it, telling my kids they have to wear an extra sweatshirt to bed at night to keep the energy bill down, cancelling all enriching family trips in lieu of "camp nights" in the backyard, living inside a home in need of costly repairs - Even though I am making more money than I ever have before.
Mr. President, would you please consider a solution that accounts for all of us, rewards those whoh paid their mortgages, and provides consequences to greedy lenders? Well, I suppose I should be thankful I have a home, right? Thank you, lenders.
Pundits side with Wall Street over Main StreetRobert Scheer - October 1, 2008
"..Those Republicans who dared to vote, this time, against the demands of the Wall Street power brokers were derided by New York Times conservative columnist David Brooks as the "Revolt of the Nihilists." While suddenly embracing President Franklin Roosevelt's New Deal as the positive alternative to nihilist behavior, Brooks ignored Roosevelt's main achievement, which was to put the public interest before that of the Wall Street titans.Wasn't it nihilistic when Congress, led by Republicans but supported by key Democrats, including then-President Bill Clinton, shredded the protections put into place by Roosevelt to control an ever-avaricious banking industry?....Obama should stick with the wisdom of a community organizer from the tough side of Chicago: fight the bankers who swindle unsuspecting homeowners, and restore the bailout provision that Democratic leaders had proposed but then abandoned - stop the home foreclosures by empowering bankruptcy court judges to force a renegotiation of terms. Any bailout worthy of support should put the endangered homeowner first, not the bankers who swindled them.
"..Those Republicans who dared to vote, this time, against the demands of the Wall Street power brokers were derided by New York Times conservative columnist David Brooks as the "Revolt of the Nihilists." While suddenly embracing President Franklin Roosevelt's New Deal as the positive alternative to nihilist behavior, Brooks ignored Roosevelt's main achievement, which was to put the public interest before that of the Wall Street titans.
Wasn't it nihilistic when Congress, led by Republicans but supported by key Democrats, including then-President Bill Clinton, shredded the protections put into place by Roosevelt to control an ever-avaricious banking industry?..
..Obama should stick with the wisdom of a community organizer from the tough side of Chicago: fight the bankers who swindle unsuspecting homeowners, and restore the bailout provision that Democratic leaders had proposed but then abandoned - stop the home foreclosures by empowering bankruptcy court judges to force a renegotiation of terms.
Any bailout worthy of support should put the endangered homeowner first, not the bankers who swindled them.
I am not an economist, but it seems like the Financial Bailout might be the wrong medicine for the problem.
The problem lies with the insolvency with millions of mortgages. Making the mortgages solvent will insure the value of the securities they are supposed to back. If we don't address the real problem, the securities will have no inherent value, and homeowners will still go into default and lose their homes.
The solution is very simple: Refinance as many of the failing mortgages as possible.
The problem of fraud with the appraisal process needs to be dealt with!
Refinancing needs to be at the current house value or on terms that forgive the excess debt brought on by appraisal fraud and over inflated values due to improper lending practices.
Only the Government can force banks to revalue properties. Terms of the bailout may mean the governement assists banks in dealing with the bad debt.
This needs to be no-fault however, since this was a systemic problem. It needs to be solution oriented, and not punitive.
The problem of fraud in the lending process needs to be dealt with as well. People need to be given terms they can afford to pay. The price of the mortgage needs to be adjusted to the actual housing value.
Banks need help and direction writing the terms of mortgages.
This assumes a couple of things.
Borrowers must either be US citizens or legal residents of the US.
This must be for a primary residence.
Borrowers need to be able to prove they can pay for the mortgage at more affordable terms. If the borrower has no income or ability to work, etc. then obviously they can't qualify.
Refinancing could refinance possible credit card debt up to 10% of the loan value, or $25,000 maximum. (a reasonable figure?)
I called this the Stakeholder Project as it would enable borrowers to start converting debt into equity. This is the soundest way to prop up the economy. As homeowners contribute far more value to the econmy than renters. When they become stakeholders, they take ownership, and responsiblity for their actions, their community and their world.
The goverment would need to back low interest fixed rate loans. In some cases the loans would need to be on extended terms.
This would only be given to all people facing foreclosure or bankruptcy. In other words, I wouldn't qualify. Since I have an affordable mortgage.
Once the hemorraging in the economy, the problem of excess housing inventory needs to be dealth with as well. Qualified potential homeowners could possibly be helped as well, in order to utilitze the overstock in the nations housing inventory.
Some areas don't need help, but some areas have a lot of vacancies. Those are the areas that need assistance finding buyers, assuming the economy in the area will support it.
There are a lot of questions I have, about how this would play out versus other proposed scenarios. My motivation and thought is simple. Prevent the most suffering possible and stablize the economy. Troubled mortgages are the heart of the problem and need to be addressed.
We cannot blame the homeowners, as they did nothing more than try to realize the dream of owning their own home. Unfortunately teaser rate loans, Adjustable Rate Mortgage's and other short term loan instruments were sold under false pretenses.
There are many details here of course that would be required to insure fairness, and prevent fraud, however, I think this could be done with the right leadership, imagination and vision, which Barack Obama is imminently qualified to provide.
Ever since the Mortgage Meltdown started somewhere around the 04's, there has been talk about bailing out the Homeowner. But just that "a lot of talk".
But NOTHING, not even talk about those of us who already lost our homes.
Now that WE MUST BAIL OUT WALL STREET, administration officials have agreed to include mortgage help for beleguered homeowners but, nothing, not even TALK for those of us who already lost our homes.
I have nothing against help for homeowners, I just worry that is not going to be enough and I think that Congress should examine this measures and pressure the administration if they are not going to help homeowners or the funds are at risk to get lost in a beaurocratic mess; as we experienced after Katrina, believe it or not there are still victims from Katrina who have not been helped or funds still unaccounted for.
It bothers me a lot 'how quick we forget"
Just as the Katrina's victims who will never see help, the homeowners who already lost our homes to the great American mortgage meltdown, will be left out in the cold.
Like the millions of taxpayers who were left out of the stimulus package, because they did not qualify due to the existing tax laws. It amazes me to think that the administration actually made the ordinary folk believe that help was on the way. When most disabled veterans and social security recipients found out that they would not receive any money that would help them at least for that month, pay the rent or buy some extra food or clothing; they were devastated and extremely dissappointed.
The idea was good, not that it would fix the economy, but a band aid (a wet one, that is). It was the idea that it would make ordinary people believe that after its failure they would believe that the goverment did try to help ordinary people with the stimulus package but, the situation has gotten worse and now it is required to bail out Wall Street or things will get a lot worse.
The truth is this: the administration told us that this were extraordinary times that require extraordinary measures, but did not apply extraordinary ecxeptions to the existing tax laws which led to excluding social security recipients, disabled veterans and other taxpayesr who earned the amount required to qualify for the stimulus package but were claimed as dependents on someone elses return. In addition to that, the package was designed to reward with more money those who earned more money, with the max of $1200 for married couples who earned $150,000 plus $300 per child under the age of 17.
I am tired of the injustice, I am tired of watching the least fortunate always getting the dirty end of the stick.
I am not a firm believer of "conspiracy theories" although in retrospect, I have a very good one about the Iraq war.
Today, is becoming obvious that the present administration knew way in advance about the economic crisis we would face. I believe that months ago they (Bush, Paulson, Cheney and other very close players) after realizing that the Republicans did not have a chance to win the White House and, since the economy was about to take a plunge; try to prepare the American people mentally (with the stimulus package) and even more with the initial bail out of Fanney Mae and Freddy Mac and subsequently AIG.
Now that we are all brain washed, we can believe that they really need all that money, just like we believed that Dick Chaney did not have personal interest in United States invading Iraq, when now his company Halliburton is making Billions of dollars in the rebuilding of Iraq. And, I would not be surprised for a second if Halliburton would profit from the Bail Out as well as some foreign institutions.
Only in America you can imagine that the President and his Wall Street cronies are about to rob the bank and distribute the money among themselves. They figure that, with Barak Obama as president, Wall Street is not going to have a free ride, they will be regulated. So might as well take the money now and let Obama deal with the ONE TRILLION debt we will inherit and of course, there will be no money to pay for Universal Health Care or any other social programs that Senator Obama is promissing now.
Since we seem to forget so quickly, during the Obama's administration, when no money is available for those programs mentioned above, republicans will hammer on the fact that the Obama administration did not deliver; then, they will have enough inmunition to take the White House back in 2012.
They tell us that they are borrowing the money and that Wall Street is going to pay us back with interest. If they were no were around when we were loosing our homes, why should we bail them out, oh, is because if we don't there will be no money to keep business open therefore no jobs for no one.
That is call: SCARE TACTICS, republicans are very good at it, they have had plenty of practice, their motto is: keep them uneducated, sick and running scared, I have seen that all my life. I am afraid that we will eventually bail some business out, but hope that will be companies that got caught in the middle and no companies that actually caused and contributed to the crisis, we should find those accountable. If companies responsible for the crisis are rewarded with OUR MONEY, it sends the wrong message to future generations.
I would have no problem bailing out the Banks and Mortgage Companies, as long as I can have my home back.
Well, we gave you (out of your own money) alsmost 1/2 Billion with the stimulus package, why can't you bail us out with 1 Trillion plus dollars. "Folks, we can always count on the generosity of the American people" . Are we generous or stupid? Am I asking for too much when I want my house back?
It does not have to be that way, I believe that some monetary measures should be taken to correct the destructive course the Bush administration has taken our economy thru, but no ONE TRILLION OF OUR HARD EARNED TAX DOLLARS.
Let's not get fulled by the fact that our economy is about 14 Trillion dollars and, 1 Trillion is just a drop in the bucket because, we are 9 Trillion Dollars in debt; thanks to the Bush administration.
When President Clinton left office, left us with a surplus, DO WE WANT 4 MORE YEARS OF REPUBLICAN DESASTROUS POLICIES?
I got totally of the track, WHAT ABOUT US WHO ALREADY LOST OUR HOMES? if you know of anything period, related to this forgotten group of Americans, please post a coment or contact me.
God bless you and get registered to vote,
Mario Lopez
I am a 29yr old, lower-middle-class homeowner, husband, and father of two boys. I have laboriously worked since I was 13yrs old, (not including the 15 different paper routes my three brothers and I had, and starting as early as 7yrs old for me), just to provide the basic necessities for my family and I, who grew up impoverished in Port Elizabeth, NJ. Despite my ambitions being clouded by basic survival instincts, I've managed to obtain every goal I've set for myself. My mother is a white American of Italian descent and my father is a dark skinned native of the Dominican Republic whose been in the country for over thirty years and still barely speaks the English (American) language, (but that doesn't stop him from trying). If asked my nationality I will shout American!!
I proudly waive an American flag for a country (and State) that pretends to care about me, (The Little Guy). I stand as a testament. A flawed, and suspicious Welfare program, where as a child, my family and I would go nights not eating or just eating bread with gravy; enduring cold showers and no electricity, in a 4rm apartment ran by a slum lord; while abusers of the system go un-penalized living high on the hog. A sub-par public education system designed to "just get us by" while other countries surpass us in technological advancements. I still stand proud hand over chest.
I sit back disgusted, yet sheepishly proud, as I await my little brother's return from his second tour in Iraq. Only to not understand any benefit to having gone into the region in the first place. While the military is stretch to its limits, economy plummets, the prices of goods skyrocket, and the homeland security is laughable with colors, smoke screens, and scandals. I still love my country!
At a time where we're being invaded, ( That's right invaded!), What else would you call an influx of persons not of this country, flying their own flag on our soil, while demanding we change our American way of life to accommodate them, without paying homage to the United States in any way shape or form. In the definition of invade you will see the word "infringe - to encroach upon in a way that violates law or the rights of another". In this case I am embarrassed yet PROUDLY stand as an American!
At a time where Christianity (the foundation of America) is ostracized as our nation meets head on a moral decay. Children run rabid as we defend their rights that they haven't earned or shown any regards for. Prisoners eat and live better than honest hard-working Americans. Homeowners are sued for defending everything they've worked hard for, and state government steal your American dream in the guise of Eminent Domain. While politicians legally, (used loosely), embezzle our tax dollars then tell you there's no money to support basic government functions, then stick their hands out to do it again and again. I will still stand as an American and unfortunately a New Jersey-ian.
So you ask why I stand for Obama! Because he represents me closer than any other candidate I have ever heard about, and I'm PRAYING he understands me...
The FactCheck.Org site posted an article that analyzes Hillary Clinton's lastest snail mail campaign, as well as the specific ways Mr. Obama's words are distorted in the mailer:
http://www.factcheck.org/elections-2008/youve_got_mailers.html
A sample of the article:
From: Kevin Lewis Sent: Tuesday, September 18, 2007 09:13To: press ... AT ,,, barackobama ,,, DOT ,,,, comSubject: Talking Points | Tax Fairness for the Middle Class
PLEASE FORWARD WIDELY
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Talking Points | Tax Fairness for the Middle Class
September 18, 2007
Barack Obama laid out a bold and innovative plan to reform America's tax code so that it works for the middle class. Obama's plan provides a substantial tax cut for all working Americans, homeowners, and middle class seniors.
"""Under an Obama Administration, work will be rewarded, and opportunity will be advanced for all Americans.""
Barack Obama knows that the core principle of the American economy is advancing opportunity for individual Americans. But he made it clear that America is not keeping faith with the middle class. As new wealth is being created in our new economy, wages aren't keeping pace and costs are rising.
Obama made the case that our current tax code reflects the wrong priorities.
1. It rewards wealth instead of work.
A. Special interests have achieved huge tax breaks and loopholes that shift the burden from the well-off to working people.
B. This isn't good for Main Street or Wall Street. Because as Obama said – when ordinary Americans are denied opportunity, that pain has a way of trickling up.
2. Obama would restore fairness to the tax code to strengthen the American economy.
A. First, Obama would cut taxes for all working Americans. This income tax cut would be worth up to $500 per person, and $1000 for each working family. All told, 150 million Americans will get a tax cut. Because this credit would be greater than their income tax bill, the Obama tax cut would eliminate income taxes for 10 million working Americans.
B. Second, Obama would ease the burden on the middle class by providing a universal homeowner's tax credit.
NOTE; This will immediately benefit 10 million homeowners, who will get a break of 10 percent of their mortgage interest rate. The vast majority of these will be folks who make under $50,000 per year.
C. Third, Obama will eliminate the income tax for any American retiree making less than $50,000 per year.
NOTE: This would undo a tax increase on social security benefits that went into effect in 1993, and will eliminate income taxes for about 7 million Americans. The savings generated will be roughly $1,400 each year.
D. Fourth, Obama will simplify tax filing for middle class Americans. He'll put in place a system where 40 million Americans with a job and a bank account who take the standard deduction can do their taxes in less than five minutes.
NOTE: To save people time, worry and expense, the government will simply send these Americans prefilled tax forms to verify.
Barack Obama's plan will provide $85 billion in tax cuts to Americas' workers, seniors, and homeowners. Unlike President Bush, whose fiscally irresponsible tax cuts created record deficits, Obama has a plan to pay for his tax reform plan. He will close corporate loopholes
