Posted on 09/26/2008 8:02:48 AM PDT by mouse1
Dan and Judy were the typical American couple. Ten years ago they purchased a 1000sq foot ranch home in a quiet suburban neighborhood. It was everything they ever dreamed of. Judy loved the huge yard surrounded by raspberry bushes and the family spent many nights laughing around the fire pit while roasting marshmellows. Dan built a rec area in the basement so the teenagers could have their friends over for vidio games or a game of pool. They worked hard and enjoyed life. Family are their fondest and most treasured moments. It didnt matter to them that they had a mortgage payment, car payment, credit card payment, loan payment. They were living in their means, never late on a payment, excellent credit history. Five years ago Dan was in a horrible accident. Two surgeries helped Dan to walk with the assistance of a cane, but did nothing to alleviate the constant pain. Doctors suggested Dan give up work, but at 39 years old and a stubborn streak, Dan continued to get up every morning and perform his job. He did the best he could and on a really good day, he would manage to get six hours in. He never was able to return to full time employment. Suddenly Dan and Judy found their income cut 25%. In addition, small repairs that were once a breeze for Dan, were now bothersome or impossible. Bills that were always paid weeks in advance were now a chore to pay on time. They had no choice but to take out a second mortgage. They knew at some point they would have to make lifestye changes. On Dan's Birthday, April 13 2007, they decided to put their house up for sale. Judy talked Dan into trying to sell it themselves. The equity wasnt that much after the second mortgage and any additional profit could be used for building their future. Judy spent many hours pouring over recent home sales, attending open houses, painting the interior/exterior, tiling floors. On August 23rd, 2007 Dan and Judy handed over the keys to the new owners. The house sold for $5000 less than the asking price. Dan and Judy walked away with their credit only slightly bruised. Of course, it was the right thing to do, but that didnt stop the river of tears flowing from Judy's eyes. So many memories, their first Christmas, good times around the fire pit, the time Dan and Judy were suppose to be gone for the weekend, but came home early just in time to break up the party that their boys were having at the house. Today Dan and Judy live in a quiet apartment with their 13 year old daughter. They love it. It was the hardest decision they ever made, but it was the right one.
So, what does this have to do with the current mortgage bailout? Everything. If you cant afford a house, you dont own a house. Owning a house is not a right, it's a responsibility. Our government wants us to bail out banks and buyers who made poor decisions. The bail out also includes funds for ACORN, the same group that promoted bad buying practices. Nothing positive ever resulted by rewarding bad behavior. Hell no to the bail out.
NOTE: The above story is true. It is my story.
if even one penny goes to ACORN, I give up. We’ve lost. Just open the doors and let the barbarians in. Just listened to the History Channel’s presentation on the Dark Ages (on my Ipod). The descriptions of the corrupt Roman senate so completely fit our senate that not one word need be changed to describe our complete bunch of uneducated loons (a degree in law does NOT constitute an education).
Thank you for sharing this perfect story for the times and the perfect attitude. God bless.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
I am sorry to hear about your troubles. You are the sort of people any community would be proud to have as neighbors. God Bless you and yours in the future.
Note: You were on your way to bankruptcy - glad it had a happy ending. Living within your means is the only long term solution for all of us.
Thanks, Dan for sharing your story. Sadly, the democrat party has been very successful in creating a subculture of people who walk around with their hands out thinking that the Federal Govt owes them something. I’m sorry that you and Judy lost your home, but you did do the right thing. We are never guarenteed success in this life and my husband and I have seen our share of heartache too. But the last thing we want is socialism bailing us out.
God speed to you and your family.
No it doesn't. The government does want to keep their problems from spreading to people who aren't in those two groups.
The bail out also includes funds for ACORN, the same group that promoted bad buying practices.
I don't recall the White House or Paulson asking for that.
Nothing positive ever resulted by rewarding bad behavior.
That's pretty obvious, but that isn't what this is about.
If you make a stupid decision and you wreck your new car, and now it's only worth only $500, how is somebody buying it from you for $500 rewarding your bad behavior?
Dan and Judy were the typical American couple. Ten years ago they purchased a 1000sq foot ranch home in a quiet suburban neighborhood. It was everything they ever dreamed of. Judy loved the huge yard surrounded by raspberry bushes and the family spent many nights laughing around the fire pit while roasting marshmallows.
Dan built a rec area in the basement so the teenagers could have their friends over for vidio games or a game of pool. They worked hard and enjoyed life. Family are their fondest and most treasured moments. It didnt matter to them that they had a mortgage payment, car payment, credit card payment, loan payment. They were living in their means, never late on a payment, excellent credit history.
Five years ago Dan was in a horrible accident. Two surgeries helped Dan to walk with the assistance of a cane, but did nothing to alleviate the constant pain. Doctors suggested Dan give up work, but at 39 years old and a stubborn streak, Dan continued to get up every morning and perform his job. He did the best he could and on a really good day, he would manage to get six hours in. He never was able to return to full time employment.
Suddenly Dan and Judy found their income cut 25%. In addition, small repairs that were once a breeze for Dan, were now bothersome or impossible. Bills that were always paid weeks in advance were now a chore to pay on time. They had no choice but to take out a second mortgage. They knew at some point they would have to make lifestye changes.
On Dan's Birthday, April 13 2007, they decided to put their house up for sale. Judy talked Dan into trying to sell it themselves. The equity wasnt that much after the second mortgage and any additional profit could be used for building their future. Judy spent many hours pouring over recent home sales, attending open houses, painting the interior/exterior, tiling floors.
On August 23rd, 2007 Dan and Judy handed over the keys to the new owners. The house sold for $5000 less than the asking price. Dan and Judy walked away with their credit only slightly bruised. Of course, it was the right thing to do, but that didnt stop the river of tears flowing from Judy's eyes. So many memories, their first Christmas, good times around the fire pit, the time Dan and Judy were suppose to be gone for the weekend, but came home early just in time to break up the party that their boys were having at the house.
Today Dan and Judy live in a quiet apartment with their 13 year old daughter. They love it. It was the hardest decision they ever made, but it was the right one. So, what does this have to do with the current mortgage bailout? Everything.
If you cant afford a house, you don't own a house. Owning a house is not a right, it's a responsibility.
Our government wants us to bail out banks and buyers who made poor decisions. The bail out also includes funds for ACORN, the same group that promoted bad buying practices. Nothing positive ever resulted by rewarding bad behavior.
Hell no to the bail out. NOTE: The above story is true. It is my story.
I’m so glad you’re happy! Good luck to you and yours!
God Bless!
I admire your independant spirit and tenacity! You are a model.
If you were a democrat:
You would have financed 150 per cent of the value of your home from some mortgage broker eager to loan out FNMA/FHLMC backed mortgage money at interest only payments for the first 3 years.
You would have enjoyed the nearly free use of this money until your real estate value dropped by some $100,000 and then the note ballooned.
Then when you were faced with a $5,000 monthly payment which you could not afford, and you owed some $300,000 to $400,000 on a property only worth $100,000, you would merrily walk away leaving all that debt for the gubmint to bail out.
And lived happily ever after.
I hope you’ll be able to buy another house that you can afford to keep, with prices dropping as they have been.
However, some sort of bail-out is needed to prevent a financial domino effect that will result in practically no one being able to afford even a modest house or rental apartment for the next few years, and lots of nice little homes being vandalized as they sit empty after foreclosure waiting for a buyer in a market where people can’t even get the cash they’ve saved out of their money market funds which have frozen redemptions. Financial chaos benefits almost no one, and is hardest on those with limited means, regardless of how responsible they’ve been about living within their means. It would cause huge job losses, wiped out retirement savings, and all sort of other long-term misery that is avoidable (including a further descent into full-blown socialism). Serious belt-tightening is unavoidable and essential, but collapse of the financial system is avoidable and must be avoided at all costs.
I also disagree with your implication that the problem is people owning homes who “shouldn’t be owning homes”. The problem is people owning homes that are much bigger and grander than they can afford, and owning homes that they purchased for wildly inflated prices in a bubble market and/or with short-term teaser-rate mortgages that they can’t refinance. In reality, it doesn’t cost any more on a month to month basis to own a home, than it costs to rent an apartment. You just have to choose a home that is small enough and frill-free enough to cost the same as your rental apartment alternative, with a fixed rate mortgage for the full repayment term.
That’s really the right route for everyone who’s past early adulthood and can reasonably expect to remain settled in one place for more than a couple of years. Because down the road, the people who bought a humble house instead of renting will have a place to live (or rent out for cash) that they own outright (and can pass on to their children), while the people who rented will have nothing to show for all that rent money and will still have to come up with a rent check every month. Renting should be a last-ditch emergency option (which it sounds like it was for you), and done for as short a time as possible.
True Americans facing reality and doing what must be done. Chasing unmanageable bills and hiding from creditors is no life. A simple life has it pleasures also.
Actually, there are several articles about funding ACORN to the tune of 20%. I suggest you search the FR articles and you will find many not only about ACORN but also about judges negotiating rates. Sounds like socialism to me.
My Fasther in law and his Dad built the best custom homes in our area. I can remember them talking the some of the people they built for out of things they couldn’t afford or didn’t need. They tried to keep folks from getting in over their head.
We need to go back to the days of 20% down.
Ahem. The same group that was funneling home loans to Mexican illegal aliens...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.