I for years have lived in a relatively low cost, in needs of lots of work, town home. One that I could afford no matter if I lost my job or became disabled (which happened).
I have this place, because I knew that things happen and if I lived right up to the money I made, I could have it all fall apart with one catastrophe. Living under my means has giving me the ability to stay in my house even with the disability.
If congress decides that mortgage holders must reduce the amount people owe on their homes if their value has fallen, I think I will be even more let down then their overwhelming desire to make us into a 3rd world nation by letting every uneducated person world wide to come on to the USA.
As an example of the people that need help:
".The company allowed us to
refinance our home. The appraisal was very high, over $100,000. We were permitted
to borrow 100 % of the value. Now we are almost at the point of
forclosure because we cannot and have not been able to make their
payment and keep up with the rest of our bills on a monthly basis. Now
with property values down in our area, we cannot even hope to sell the
house for an amount to clear the
finance
amount. There are at least 20 houses in a 6 block radius to our address
that are comparable in size that are prices at least $30,000 less than
we need to sell our property to break even.
Kathi
Somerset, Pennsylvania
I BET KATHI WAS JUMPING FOR JOY WHEN HER MORTGAGE COMPANY WAS WILLING TO GIVE HER 100% OF THE VALUE OF THE HOUSE.
Another example was in an interview I saw on the subject. The woman interviewed had bought a house with a 5 year adjustable mortgage with a very low initial rate. She borrowed 100% of the value of the house. She understood that in 5 years, the rate and her monthly payment would increase ALOT. Her plan was to refinance before that time, and with the increase in the value she anticipated, she would be able to keep a low payment and take a bunch of cash out as a profit.
She ended up being layed off work and is now looking at foreclosure. She KNEW she could not handle the payment if the rate increased at the 5 year point, but she now wants bailed out by the taxpayer to let her keep her house, because her house has gone down in value and she can't afford the payments or to sell it.
HOW IS THAT MY FAULT?????? There are few to NO cases of anyone that should be bailed out of foreclosure. I am not mean - I been in some real real tight and scary times myself, but if you can't afford a home and you thought that everyone else was getting rich with their houses seemingly going up in value every 10 minutes and it doesn't happen for you - you made a rotten choice. Live with it. Get a cheap apartment, save money, live BELOW your means and someday buy a house the right way.
Like any bubble, the real money pro's made a ton of money off of housing. Most were also out of the market by the time the average Joe and Jane decided to play too. The regular guy gets left holding the bag. It happens over and over that way. It is NOT THE TAXPAYERS responsibility to bail you out now.
