All day I have seen the headlines that President Obama is going to send 75 billion dollars towards helping out in the mortgage crisis in an effort to help put a stop to foreclosures. I understand the economics behind it and the theory that by helping out on the mortgage front, will help the overall economy since it was the mortgage crisis that sort of said “fuck you” to our economy in the first place. Okay, so I get it.
However, I AM PISSED!!! Almost three years ago, I decided that I was tired of renting and wanted to have a place where I could paint the walls whatever color I wanted, a little patch of land to grow a garden, and something where I could build equity. Now, for those of you who are not familiar with the economics and the cost of living in Maryland, I’ll share this bit with you… one would be hard-pressed to find even a townhouse under $250,000, in decent shape, and not in a ghetto area. Oh, and with that townhouse, don’t expect a basement…. seriously. Single-family homes start in the mid-300′s… and those are the tiny ones. Granted, the price of homes does get cheaper the further away one drives from the metropolitan areas of this state, but you won’t find a house for under $100,000 in Maryland, unless you’re thinking going doublejj-wide style. Now, when I started looking at homes, I was thinking of prices that I was use to back in Kansas City… where, for what I spent on my home, I could get a huge house with at least a two (if not three) car garage. So, imagine my shock when I sat down with my realtor on the first meeting and discovered that all I could afford was something in the mid-200′s, and it would share at least one wall with a neighbor – a townhome.
Back when I was growing up, if a person lived in a town home, they didn’t have much money. Now, if a person lives in a town home, they’re middle class. Most starter homes are now condos (which start in the high-100′s). Crazy, I know. Now, I could have gone for an ARM and been able to get myself into a decent sized single family home. Yet, I didn’t like the idea of the interest first, principle later deal. So, instead I selected a 30-year fixed rate VA loan and settled for a town home. Granted, it’s not huge and I would go crazy if someone else lived here. However, it works. It’s also an end unit so I get a bigger patch of land. I also have enough room to grow vegetables in my backyard. Yet, it’s not too big that it takes me fifteen minutes to cut my lawn.
I had planned on staying in my house for three to five years max. Now, thanks to the crash of the housing market combined with the tanking of the economy, I know I am looking at living in my house for at least five years. Why? Because I was responsible when I went shopping for my house as well as selecting my loan type. However, those who decided to be greedy and narcissistic with their homes are going to get bailed out. Oh, and I know there’s the argument of the banks pushing people to take larger loans. However, like sex, it takes the participation of both parties to work.
Again, I understand the economics of the $75 billion deal, so please don’t bother explaining it to me. I’m just pissed off at the many Americans who are about to receive a bailout for not living within their means in the first fucking place!
Filed under: fucked up, political morsel Tagged: | Mortgage Bailout
As I am not a homeowner I have no place to say anything to anyone who bought their home responsibly and did everything the way they are supposed to.
You should be proud of your accomplishment being a homeowner, D, and I hate the thought that this will take anything away from that and delay you reaching your goals of being a single-fam home owner.
I do have a blogging friend who has been writing about some of the victims from the other side of the issue; those who fell into predatory loans, outrageous ARM contracts, and elderly people whose home equity was pilfered by greedy real estate agents and mortgage brokers.
She’s found some compelling stuff about non-Native English speakers, non-white groups, and the issues of class in this crisis. If you want a link, I’ll be glad to share.
If not, I totally understand.
You have every right to be pissed. I know I would be, too. (And I am for you, and for everyone like you caught without some reward/recognition for good behavior.)
Skye- Please do include the link. I think it would be good information.
Here’s the first link:
http://apocalyptictheocracy.blogspot.com/2009/02/subprime-mortgage-crisis-and-various.html
And here’s another:
http://apocalyptictheocracy.blogspot.com/2009/02/qa-why-do-i-keep-banging-my-head-on.html
I totally hear where you are coming from, D, but I believe each foreclosure lowers the value of the remaining homes in a neighborhood, so it is a positive thing for us to help them out.
I love this line:
However, like sex, it takes the participation of both parties to work.
Amen, sister!
Yes, predatory lending sucks, but people should take some personal responsibility. We decided not to buy a home – although we could have – until we had a 20% down payment, which we’re still working on.
We have lost $400,000 on our house, mostly because of the foreclosers forcing prices down in our neighborhood, so help for these people will eventually help the market out , as well as we ‘responsible’ homeowners. But I’m there with you…what about those of us who did it right? The good news is, if we wait, we will be okay, as opposed to those who were taken advantage of. My neighbor is losing everything…his house, his down payment, which was his equity from his last house, all of the improvements, landscaping, etc, which was out of his savings and remaining equity….his house payment ballooned up to almost $6000!!!!!!!!! Outrageous! Now they have to walk away from it…I asked it they were getting help, but the bank told them ‘no’!!!
I totally get why money’s being pumped into the mortgage crisis and I do think it’s completely fucked when people who don’t have advocates who can pay attention to the details of what they’re getting into with the predatory lenders, like the elderly, get screwed over and lose their homes. Totally get that.
However, I’m still pissed as hell that responsible folks like me who made sure to play it smart, not be greedy, and live within our means get punished and pay taxes to bail out the greedy mother fuckers who knew better!!!!
……..calming down……
That’s my big push-button problem with this case.
A great example are some of the greedy house flippers (some, not all, but some). Opportunists who bought dozens of properties and often sold them at *way* inflated prices due to the fact that a lot of times they were in bed with the agents and the brokers.
I’m with you, D!
I shopped and shopped and went toe to toe with my mortgage guy over getting the best rates and sticking with an amount that I could actually afford on the salary I currently make. On day one I told him I wouldn’t even consider an ARM, so don’t even try to sell me one. My mantra through the entire home-buying process was “do whatever is best for me.” It ticked a few people off, but I got a good deal. (Some other lenders were offering me up to $150K, but I knew I would never afford that. Those are the lenders who created this disaster.)
I wanted to sell when house were going fast, and move to a town house a few years back, but Hubba convinced me we should wait..now we will probably be here well into our twilight years.
We couldn’t get enough money for our house to afford what I want and I refuse to go into debt.
I have seen so many young people lose their jobs and then their homes, it is so scary..I hope this will plug the dam.
I agree with D. Some were victimized, but there is a huge amount of people who were going in over their heads and just banked on the real estate bubble continuing to go up so that they could either flip or refinance and get a better deal based on inflated property values.
I sold my house at the top of the bubble though and a certain real estate agent a mortgage lender were trying to peddle a jumbo loan that would encompass my gross take home by claiming that the “tax savings” would really make it affordable. BS! I have a friend though who is so financially unaware that she may have believed it. I can see it happening and if you don’t have a business background or other good guidance, people can get in trouble.
Oh, D, I think we (all of us who did it the ‘right way’) feel your pain and your anger. I put up up a post (in 2 parts) about this same issue sometime last year (summer?). About how pissed I was, about how stupid people are, about how the bankers should be b*tch slapped.
But there ARE people out there who did it correctly and who have fallen on hard times. Those are the ones I like to think of receiving this money. People lose their jobs, get sick and can’t pay and eventually lose their homes. My husband has been out of work since Sept, but, due to his military retirement, we are doing ok. Not putting a lot of money into savings, but not pulling any out either. If I lost my job though? We would have to use savings to make ends meet, and eventually that would be gone. Then what?
Again, I understand your anger. I would like a 4 BR house with a formal LR and DR and a den for all of my books, but I’m never going to be able to afford that. Why should others who don’t make any more money than I do?
On the other hand, why am I lucky enough to still have a job when so many others do not?
It’s a difficult time we are in. I try to be thankful, instead of resentful, but I’m not very good at it.