Mortgage Relief Plan: An Unfair Solution to the Mortgage Crisis

[Jean DeVries]

You've seen my a$$.

Does it look like I skip many onion ring opportunities?????

 

[Kelly8]

I'm really glad that some of you see the gray area in this and know that some people truly need the help! I've seen so many, especially in the area where I live, struggle BECAUSE OF THE ECONOMY. These are not lazy, uneducated people. These are highly-educated, put-themselves-through-college, work-hard kind of people. I am reading a lot of, "Well, I hit a bump in the road and I didn't need help." That's great-for you! Sometimes our troubles can't-and shouldn't be-compared with others. Just because you made it through doesn't mean that someone else is going to automatically find their way out JUST LIKE YOU DID. The circumstances could be completely different. I live smack dab in the middle of GM country. If GM goes under, we all go under! We aren't talking cyclical recession here. We're talking a huge devestation and the fact that Michigan will have to undergo major changes. We've been an automobile-producing state for the last almost 100 years, and ow that's an issue that might have to be changed. So help shouldn't be given to those who deserve it while this extremely difficult transition is made?

 

[cakepampered]

I think the compasion is very low in this group. It only takes one terrible illness, one or two out of work people, and just plain old bad luck to put people in an awful situation. Looking in the rear-view mirror of the past years isn't going to help us now. All I want is for people to understand that we can't afford to live in a "ME FIRST" society anymore. It must be WE. If you don't want to feel the suffering of others so be it. Like the movie Benjamin Button says: "YOU NEVER KNOW WHATS COMING FOR YOU" To blanketly reject the Mortgage Relief Plan because you think people are lazy or were greedy wanting more house than they can afford, is really narrow minded. We are all in this TOGETHER, if you have a BETTER plan let's hear it. Country First my.....

 

[pampchefrhondab]

Actually I'm smack dab in GM country (the plant is right down the road - many of my neighbors work there), and Harvester, RV, Chrysler, Pontoon Boats, you name it!! My husband has worked for the RV industry, Pontoon Boats and now works for a Chrysler/Mac Truck supplier.

I keep trying to tell everyone I understand the struggles - I just don't think the governement should bail me or anyone else out.

I guess with age things change. I would probably feel the same as many of you when I was younger. When I was in high school my father worked at International Harvester. Guess what, they closed the plant in Fort Wayne. He had to travel for the last 10 years working to Springfield, Ohio, every week and live in an apartment (after being laid off for 18 months) . He also had to retire years before he wanted to due to my Mother's health. My Father was one of the lucky ones to be able to even work. Most of the people in my old neighborhood worked for Harvester. Guess what happend when it closed - yep, a lot of homes went on the market. House values dropped. The neighborhood is not the same anymore, but the poor got some great houses at a great price. It's free market. The school system also lost a lot of money from Harvester leaving, but guess what, they survived.

 

[Shawnna]

I see these elderly people who won't open a bank account...well until the government forced them to in order to receive their SS direct deposit...because they are afraid of the banks and I used to think they were just silly. Why keep your money at home and hide some of it to avoid giving the government money...well, now I can see their point...lol. I am really tired of working my tail off and my husband working his tail off and our kids suffering because we can't spend a lot of time with them, driving 10 year old cars and living in a home that you freeze in in the winter and burn up in during the summer and none of the appliances working correctly, but I can't afford anything else because I have to pay so much in taxes and then the family with tons of children who receives my tax dollars in the form of food stamps, Sooner Care insurance, and a welfare check living in a better house than me, driving a new car, and gets to spend the school day watching soap operas while I work and then spends the evening with her children at all of their activities...while I work.

My husband lost his job 5 years ago. His income was 80% of our total income. We had bills to go with everything we earned. For 2 years I worked full time and he did odd jobs until he found a good job. When I had used all of our savings I went to apply for food stamps for 1 month hoping that we would be back on our feet by the end of that time. What did they tell me? "Sorry, you leased some land 2 years ago and so we still use that income until the lease is up...another year." Now, this was pasture land and the bank got every dime of the lease money because it was mortgaged...we didn't see one penny of it. The next thing they said was "come back next year and we will see what we can do." We managed to stay afloat by robbing from peter to pay paul...skipping this payment one month and that payment the next...its a vicious cycle and by turning off our central heat and using a wood stove...which meant sleeping on the floor or couch so everyone would be warm. I had a friend whose husband was injured and couldn't work. She didn't work but promptly went out and got a job...which wasn't enough to support them. She worked while the kids were in school and got her MIL to babysit the baby during school time because hubby couldn't take care of himself let alone a child. Then she went home and took care of the family as best she could. The lovely welfare system told her to sell her home...which had a payment cheaper than renting...and sell her car...which was payed for...and then they would help her. So, she was suppose to rent a home, not work at all because she wouldn't have a car to drive herself to work, etc. so that the government could use her tax dollars to help her out. The whole system stinks. And it is every government program out there...child welfare, sooner care, food stamps, etc. They all stink. But...what is the answer to fixing them?

I think if every able-bodied American citizen would go to work and actually work while they were there...I own a business and workers think they should be able to come and go when they please and work if they feel like it...and send all the illegal aliens back to their own country and quit giving them our tax dollars, tell women who are legitemately on our welfare programs to stop having kids...many have more kids so they can get more money...its a fact I have seen it and heard them myself...and stop hiring out our work to other countries because it is cheaper and stop buying things we don't need, we might see some improvements. We have to all get off our tails and go to work to improve our situations. My car has nearly 200,000 miles on it, the hatchback won't open, the headlights keeping blowing bulbs, etc, but it's down to the last 4 payments. I would love to have a new car but I can't afford another payment so I'm not buying one. My car is still usable. It still gets good gas mileage. I'm taking care of it for as long as the motor holds out and then we will see what happens.

 

[pampchefrhondab]

I hear ya Shawna! All of my cars have over 100,000 miles, one close to 200,000. But they are all paid for!

 

[Shawnna]

I just keep telling myself...1 less payment after June. I hope I can put that $400 into my mortgage payment and soon be debt free...well until my next child goes to college...lol

 

[Kelly8]

To blanketly reject the Mortgage Relief Plan because you think people are lazy or were greedy wanting more house than they can afford, is really narrow minded.

Well said!

 

[cakepampered]

This is for the person who started this thread. I just want you to read about a real American tragedy. Then I want you to really think about what you wrote. I have been beside myself since I logged on here and read your offering today. I hope that you will start getting your "talking points" from different news sources in the future!

Today's testimonial comes from a military family. Carol Ann Smith has a son serving in Iraq and a husband who served in Vietnam.

I have a daughter who is mentally ill and my husband and I are raising her two children. The cost of her treatment and the care of the children made it difficult to pay the bills. My husband taught Algebra and Geometry in the public schools and I am a second shift computer operator.

In desperate circumstances we refinanced our home with HSBC at a 12% rate, thinking that we could refinance in a year. Then, my husband had a stroke and had to take early retirement. We quit paying our mortgage and filed bankruptcy.

HSBC has offered an 8% rate, but they added $18,000 to our $180,000 mortgage, raising the loan amount to $208,000. The house would not appraise for more that $180,000.

We received this offer in a letter. The payment is still too high. I have tried to call HSBC and left at least 20 or 30 messages, but they do not return my calls (we have signed a waiver through our attorney allowing direct contact.) If they would work with us on the payment, we would be able to stay in our home. It is just frustrating that they won't return my calls.

No one placed a gun to our head and made us make this terrible loan, but we are willing to pay back every cent if they would only lower the rate to make the payment something we can afford. Otherwise, HSBC will own a home that needs quite a bit of work, in a neighborhood where several homes are already for sale.

My husband is a Vietnam veteran and my son is currently in Iraq. We are good citizens that have faced life changing events. I pray for everyone going through the anxiety and stress of losing a home. Ultimately, we are all in this together.

 

[pampchefrhondab]

Well obviously if you think I'm heartless you don't know me. My post of course cannot address every situation or every person's financial problems. If you read through all of my posts you will see I said there are those who have been in their homes for a long time and tried to do everything right who need help, but sadly they are the ones who will not qualify or get help. It's those who purchased a home they knew they could not afford. The government will help them out and then in a few years they'll be in trouble again.

My FIL was a Vietnam vet as well. He lost his job 3 times in the 25 years I knew him (he died 3 years ago). My in-laws had to sell their home and move into a smaller less-expensive one. They didn't get any assistance either. He died of cancer being treated at the VA hospital because they could not afford health care - he lost it when his company went bankcrupt. His cancer was caused to his exposure to agent orange in Vietnam. Not once did he or my MIL say the government should be bailing them out.

Sh** happens in every life. It's not the governments responsibility to save everyone from everything. It is their job to protect our personal liberties and freedoms.

 

[Crystal Patton]

I agree with Rhonda, the first amendment says we have the right to pursue happieness, we do not have the right to happieness. There is a difference.

 

[Kelly8]

I don't think anyone is saying that it's the government's responsibility to save everyone from everything. But obviously there's a larger problem when a huge amount of people are losing homes-and these are people who have previously never had financial problems. Look at it this way: If you send your straight A student into a classroom, and the whole class is failing, including your student who has never had problems before, wouldn't you question the teacher? It's the same principle. There's something more wrong here.

 

[Crystal Patton]

I don't think anyone is saying that it's the government's responsibility to save everyone from everything. But obviously there's a larger problem when a huge amount of people are losing homes-and these are people who have previously never had financial problems. Look at it this way: If you send your straight A student into a classroom, and the whole class is failing, including your student who has never had problems before, wouldn't you question the teacher? It's the same principle. There's something more wrong here.

That is a good analogy (like I can spell that LOL), and this is why I like to read these threads. To try to see things from another point of view.

 

[candiejayne]

looks right to me, but i am a horrible speller, so you could be wrong and i'd never know it.

 

[susanr613]

Crystal you spelled it right.

Here's my take on this thread. I think that the initial posts were made from reading the headline (bailing out homeowners, forestalling forclosure) and letting a sense of frustation overwhelm. When I first read the headlines I was upset too, then I read more and realized that this plan is designed for people who are responsible but got knocked sideways by health or the economy.

It seems to me from skimming the subsequent threads that many are in agreement that there are many people who take advantage of the system (welfare), that not everyone in default is irresponsible, and that the impact of doing nothing is a big ripple effect.

I'm not defending anyone who posted anything that offended anyone (well unless you're offended by what I've posted, then I will defend my posts ;-)) Just trying to get the big picture here.

 

[candiejayne]

I agree, Susan, the more I read about it, the more I like the plan. It might not be the exact answer to the problems right now, but I think that it just might be a good start to things.

 

[Crystal Patton]

Upon further reflection on the school analogy (BTW thanks to everyone for the spell check LOL) I have a thought, it's rare and there was smoke involved LOL. If your straight A student was failing a class that all the other students were failing, yes you would then look to the teacher. However, you wouldn't pass the whole class, you would find a new teacher.
I hope that is what the Mortgage Relief Plan is all about.

 

[Intrepid_Chef]

Deep breaths, deep breaths ....

I am single, bought my home 9 years ago when I had a higher income. My mortgage is modest and the payments are roughly equivalent to the rent on a 2-bedroom apartment.

I am now struggling and am one payment behind on everything, but am not on the brink of foreclosure. I do not expect this measure to help me. My interest rate is fixed and I did not get socked with any "balloon" payments.

I do, however, expect it to benefit people who got stuck with skyrocketing payments due to predatory lending or bank error. People like a friend of mine who lost their job and are only now getting back on their feet, and who just need a break. People who would be OK if they could just negotiate reasonable terms on their mortgage.

I do find it amazing that the people who applauded the stimulus and spending under the previous presidents are now lamenting this one.

 

[pampchefrhondab]

I don't have a problem with loans being re-negotiated to a lower interest rate - as long as the entire loan is paid back to the bank by the home owner. This should have happend with this banks way before the government asked (forced) them to do it.

I do have a problem with the government paying a difference of the mortgage payment monthly to the bank.

The example they gave on CBS yesterday was a man who had owned his home for several years, was working two jobs to pay the mortgage but couldn't keep up. His house was worth $150,000. The specialist they had on said he would get no help from the plan because his payment was already below the 31% of his montly income before taxes and was at a fixed rate. Then there was the single mother with the $560,000 house who would get help and only have to pay the 31% of her income toward the payment. Tell me what part of this is fair when this women knew she could not afford a $560,000 house before she even purchased it. This is an inflated house price and if it were just left to go into foreclosure the price would drop and someone would purchase it at a better price. Again - free market.

You're right something is wrong - too many people have gotten over their heads and lived on credit cards. Now they can't get any more credit. Or many of these people paid the "pick a payment' at the lowest rate - not even covering the interest - thinking they would move in a few years and then get equity out of the house. Guess what when you go gambling sometimes you lose. That is what happend to them.

Again, I'm for the banks working with the home owners, just not the governement picking up the tab - with my tax dollars. It is not the governments money. It is tax payers money, and I don't agree with my money being spent this way. Our tax dollars should not go to social programs. Social programs should be in the private sector like Habitat for Humanity, food banks, etc. Tax dollars should pay for roads, schools, defense, etc.

Again, I have been there as well. I was 2 months behind on my house payment when I lost my job as well as a month behind on many of my credit card bills. I had a notice put on my front door by the mortgage company of foreclosure warning and to make my payment (this was after I tried to call them and work out a payment arrangement) - I had paid my mortgage on time for 12 years at this point. I was hammered with late fees on my credit cards - $30-$35 for late fees, some went into overdraft fees. These late cc payments just fell off of my credit this year! But I signed on the dotted line and agreed to the terms. I wanted that money (actually needed it). I did nor do I expect the governement to give me money to bail me out. I worked hard to do it myself - part of the reason I started selling PC! My husband and I still do not make as much money as we did before I lost my job - we probably never will. We have had to give up a lot of things, but we have survived.

This is my opinion. I understand others don't see it the same way as I do, but there are many who do.

 

[candiejayne]

I do find it amazing that the people who applauded the stimulus and spending under the previous presidents are now lamenting this one.

I had that thought too. I didn't really agree with that stimulus, but I was more than happy to spend the money I got. I didn't spend it the way they intended it to be spent, but it helped me get caught up on bills one month.

 

[chefsteph07]

I had that thought too. I didn't really agree with that stimulus, but I was more than happy to spend the money I got. I didn't spend it the way they intended it to be spent, but it helped me get caught up on bills one month.

I think this is because the MAJORITY of taxpayers benefited from the stimulus, where this bailout stimulus will not. Only my take on it.

 

[candiejayne]

But not everybody did benefit.

 

[jwpamp]

Not sure on my thoughts on this yet, I am trying to list the pros and cons...it has so much more to do with than just helping out those who bought more house than they could afford, it has to do with stabilizing a faltering economy.

However, I did tell my son to remind his very negative minded econ teacher the difference between Democrats and Republicans begins in Kindergarten....

The Democratic Kindergartener will share his crayons with his classmate, and the Republican one would tell the classmate to go get a job and buy his own.

Awwwww, come on, it's just a joke -- no backlash, please. This leftie took a lot of flack during the election!!!

 

[candiejayne]

Thats cute lol! Not sure it will be much appreciated on the other side though, but thank you for giving me a laugh.

 

[jwpamp]

Oh, and it's not the "Fault" game, you can't blame just one person in this....there are homeowners whose eyes were bigger than their bank accounts, bankers who took advantage, and the government who didn't keep an eye on programs that they were insuring. Added to the bubble bursting and good, hard working people who COULD afford nicer things getting slammed by the economy. What a mess!

 

[chefsteph07]

But not everybody did benefit.

That's why I said the MAJORITY benefited...I know that's not everyone, but it's MOST people who filed taxes last year. "I" am not in trouble w/ my house, but I have to foot part of the bill for people who are? I'll gladly pay back money that my family received last year...I consider that more of a "cash advance" to me. There's a big difference.

 

[chefsteph07]

Not sure on my thoughts on this yet, I am trying to list the pros and cons...it has so much more to do with than just helping out those who bought more house than they could afford, it has to do with stabilizing a faltering economy.

However, I did tell my son to remind his very negative minded econ teacher the difference between Democrats and Republicans begins in Kindergarten....

The Democratic Kindergartener will share his crayons with his classmate, and the Republican one would tell the classmate to go get a job and buy his own.

Awwwww, come on, it's just a joke -- no backlash, please. This leftie took a lot of flack during the election!!!

The Democat kindergartner would MAKE the Republican kindergartner GIVE his crayons to the others and leave him w/ none. Leaving the Republic kindergartner crying and confused as to why he had to be made to give up something that was HIS in the first place and his parents probably worked very hard to get for him.

 

[esavvymom]

My father-in-law had a great idea. He researched and found that there were about 250 million people who filed taxes last year. Instead of wasting BILLIONS on special-interest "stimulus", the government should write a check to every tax payer for $1,000,000- tax free. That would equate to $250 million. We can then spend that money as WE see fit and stimulate the economy the old-fashioned way, by spending it! Maybe we should all write our representatives with this idea. It would save SOOOOO much money, and it would actually work! First thing I'd do, pay off my mortgage, and then you would be free to spend money on travel, 'stuff', and INVESTMENTS into the markets again.They could even give money to those who DIDN'T file taxes and still not come CLOSE to the $1 billion mark!They would never go for that idea, because they'd lose the opportunity to tell folks HOW to spend the money or to get their hands in areas they've been itching to for years (like making health care decisions on treatments).

 

[chefsteph07]

There is a story running on Yahoo right now about a 90 yr old man who lost 700K and has to go back to work making $10/hr ....now THAT is someone we should feel sorry for. I couldn't even watch the rest of the story, it was a video clip. And, I think HE OWNED HIS OWN BUSINESS.

 

[pampchefrhondab]

My father-in-law had a great idea. He researched and found that there were about 250 million people who filed taxes last year. Instead of wasting BILLIONS on special-interest "stimulus", the government should write a check to every tax payer for $1,000,000- tax free. That would equate to $250 million. We can then spend that money as WE see fit and stimulate the economy the old-fashioned way, by spending it!

Maybe we should all write our representatives with this idea. It would save SOOOOO much money, and it would actually work! First thing I'd do, pay off my mortgage, and then you would be free to spend money on travel, 'stuff', and INVESTMENTS into the markets again.

They could even give money to those who DIDN'T file taxes and still not come CLOSE to the $1 billion mark!

They would never go for that idea, because they'd lose the opportunity to tell folks HOW to spend the money or to get their hands in areas they've been itching to for years (like making health care decisions on treatments).

Nice idea, but 250 million times 1 million is more then 250 million!