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Showing posts with label underwater. Show all posts
Showing posts with label underwater. Show all posts

Saturday, October 20, 2012

Good thing the foreclosure crisis has been resolved!

Sarcasm, folks. Of course it hasn't been resolved. But, listening to the presidential debates and the main talking points this election, you'd think it had been.

Why?

BECAUSE NO ONE IS TALKING ABOUT IT.

Not Romney.

Not Obama.

No one.

Or is it just me? I mean, I guess it could just be me. I have been busy lately. I suppose it is possible that I completely missed it. That some brilliant proposal to solve the housing crisis strode in on a white horse  unbeknownst to me.

No... No. Nopey. Nope.

I wouldn't miss that. If either candidate had a brilliant plan for housing, it wouldn't matter how distracted I've been by child rearing, I would know about it.

EVERYONE would know about it.

Right?

You bet.

So no one has a plan. Okay. It's a complicated issue. Indeed. It's gone on far longer than anyone hoped. And it's far from over.

But why isn't it at least being acknowledged?

Are they just hoping - presumably because they don't know how to fix it- that it will go away? That we'll forget about it? That if it's ignored, it will erase itself as an issue that actually plagues millions of Americans still today?

I don't get it. And I'm not the only one.

HOME IS WHERE THE VOTE IS

A few weeks ago, I did a segment for Huff Post Live about the foreclosure crisis along with Tracy Van Slyke of Home is Where the Vote Is.

Home is Where the Vote Is is a campaign launched by The New Bottom Line that "gives voice to the underwater homeowner."

They are asking that same question.

From their site:
More than 15 million Americans are living in homes that are underwater, many of them are in the key swing states of Ohio, Nevada and Colorado.  We give voice to the underwater voter.
Neither President Obama nor Governor Romney are really addressing the root cause of the housing crisis or proposing any bold solutions to fix the problem.
The facts are clear:
Nationally, there are more than 15 million underwater homes, that are $1.2 trillion underwater. Resetting those mortgages to fair market value would save the average underwater homeowner $543 per month, pumping $104 billion into the national economy every year. This would create 1.5 million jobs nationally.  The bold and necessary solutions are clear, and have been advocated for by economists on both ends of the political spectrum. 
-The predatory practices of big Wall Street banks caused the economic collapse and foreclosure crisis, destroying millions of jobs and devastating communities.
-Americans’ homes have lost $6 trillion in value because Wall Street banks artificially inflated the housing bubble and then crashed the market. The continued housing crisis is a major drag the overall economic recovery and significant source of financial pain for families everywhere.
-With $700 billion in negative home equity and millions of homeowners being held underwater, banks have chained the American economy to a crushing housing debt load.

HELLO! This needs to be part of the election dialogue. If not now, when?!

Home is Where the Vote Is encourages underwater homeowners to contact the candidates to let them know that this issue is important to them. But whether you're underwater or not, it's important. This impacts us all.

What can you do? You can go to their site to share your story and sign a petition that states:


PRESIDENT OBAMA & GOVERNOR ROMNEY:

It’s time you STAND WITH US.
We're UNDERWATER and WE VOTE.
Because for us, HOME IS WHERE THE VOTE IS
I also suggest following their blog for information and ways to help bring housing to the table.

HOME FOR GOOD

The Home For Good campaign recently sent more than 35,000 postcards to the Obama and Romney campaign headquarters demanding that they make foreclosure a top campaign issue.


From the press release:

During the first Presidential debate, both President Obama and Gov. Romney made no mention of how they would solve America’s continuing housing crisis with millions of homeowners still underwater. Instead, Gov. Romney promised to “repeal and replace” the consumer protections ushered in by the Dodd-Frank legislation.
And, while President Obama has created the Consumer Financial Protection Board, initiated the Making Home Affordable program, expanded housing counseling, and joined 49 state attorneys general in a national mortgage settlement with five major banks, these programs have yet to reach the millions of homeowners who could and should benefit from such assistance. 
“Abuse by banks and the financial industry, inadequate consumer protections, and massive long-term unemployment caused the mortgage and homeownership crisis, continue to plague a huge swath of the US public, and hold back our economy,” added Jenkins. “The candidates’ silence on these issues is as politically shortsighted as it is morally appalling.”
Three of the eight states with the highest foreclosure rates are presidential battlegrounds: Florida, Ohio, and Nevada. In Florida there were 27,000 new foreclosure filings in August alone—one out of every 328 homes in the state. According to market research firm CoreLogic, more than 3.7 million homes have been lost to foreclosure in the past four years.
Who knows if the postcards made an impact on President Obama, but last night on the Daily Show with John Stewart, he finally talked about the housing crisis:




It's a start. But, if I were fighting to save my house today I would want to hear a lot more.
Like an actual plan.

What do you think? Why have both campaigns been so quiet on the issue?

Is it because no one wants to say the 'F' word?

Further reading:

HOUSING CRISIS ABSENT FROM DEBATES - ABC News

Wednesday, February 9, 2011

How To Breathe When You're Underwater



This morning I woke up to an article from CNN Money that gives the stat that 30% of all mortgages are underwater.


The first two lines read:

"Sometime, somehow, the foreclosure crisis will ease. But probably not anytime soon."


Kind of a downer, right? Kind of? Ha. Definitely. And if you're underwater or facing foreclosure, that is how it feels. And the reality of this foreclosure crisis is that it is a long one. Not an uplifting revelation.

So what do you do if your mortgage is underwater? And how does that feel on a daily basis? And what do you do to make a difference in that situation?

Our mortgage wasn't underwater. We ended up in foreclosure as a result of not being able to make our payments due to job loss. However, I imagine a lot of the experience is similar.

So I present to you, an IMAGINED conversation with an underwater homeowner (UH):

ME: Did you ever expect to owe more than your house is worth?

UH: (Duh.) Not in a million years. We obviously would never have bought.

ME: Right. Of course. So how does it make you feel to make those payments every month?

UH: Duped. Like the bank is laughing all the way to the... well, to the bank.

ME: I imagine you feel angry too.

UH: Yeah. And like an idiot at times for having made such a terrible investment.

ME: Well, you couldn't have known--

UH: No. But if I had known... well, I wouldn't have this bleeding ulcer.

ME: You have a bleeding ulcer?!

UH: From the stress.

ME: I'm sorry to hear that. So what do you do?

UH: I make the payments.

ME: Why?

UH: Because I signed a contract. Because I can. Because I don't want to end up in foreclosure.

ME: Are you aware that many underwater homeowners are now walking away as a business decision?

UH: Yes. And we considered that. But...

ME: But?

UH: It just doesn't feel right.

ME: I get that. I think a lot of people feel that way.

UH: Are we almost done?

ME: Just one more question. With all of the stress of being underwater, how do you...

UH: How do I...

ME: How do you breathe?

UH: (sighs) One breath at a time.

I'm not sure this imagined conversation sheds light on anything.

And I'm still not sure I know the answer to the question How to Breathe When You're Underwater, but I do know some things that don't help...

5 Things that don't help you breathe when you're underwater:

1. Dwelling on the mistakes of the past
"We never should have bought this house!" Sound familiar? You can't change the past and this sort of thinking will only lead to more regret, depression, self-loathing, second-guessing, anger, resentment and bleeding ulcers.

2. Playing the blame game
Whether you blame your spouse for wanting the house in the first place, your intuition for telling you it was a good idea, President Bush for starting this crisis, President Obama for not yet solving it, or the banks for getting rich while your investment tanks... spending energy blaming is energy wasted. The sooner you come to peace with the way things are, the more room you'll have to breathe (and regroup!)

3. Taking it out on your house
We've all heard the stories of homeowners who destroy their homes just before the banks repossess them. They do this, I suppose, to release anger and to stick it to the banks. Well, whether you're in foreclosure or underwater, this is not advised. For your own sake! Think about it. Your environment is so important. Especially at this time. The best thing you can do right now is ENJOY YOUR HOME WHILE YOU HAVE IT.

Now is the perfect time to de-clutter. Organize those closets. Get rid of excess stuff. Go on. Sell it on eBay or Craigslist and make some extra cash. Then, once your house is in tip-top shape, throw a dinner party. Share it with your friends and family. Appreciate it more now than ever before. This makes sense because A. You still live there, so you may as well enjoy it and B. If you end up needing to sell, you'll be ready.

Just remember. It's not your house's fault. So be nice to your house.

4. Denial
The only thing denial gets you is inaction and that is very dangerous for someone who is underwater and/or facing foreclosure. It's not a fun place to be, I know. A little escapism can go a long way. I'm not talking about that. I'm talking about outright denial. Ignoring the situation and pretending that it's all peaches and cream. Now is the time to be reading up. Researching your options. Talking to the bank. Working on restructuring your loan. And facing reality with confidence and determination. You never know what you might be able to accomplish when you embrace reality.

5. Neglecting the rest of your life
While it is a good idea to face the reality of your situation, it's not a good idea to become singularly focused on your personal housing crisis and ignore all other areas of your life. This doesn't usually happen intentionally. It just happens. Yes, I know. It's hard to enjoy life when such a huge part is going so far off plan. But obsessing about it will only bleed into the other areas of your life. You know. Like an ulcer.

Instead, try this: LIVE IN THE MOMENT

As hard as it might sound, it's really not. It's just a switch. Notice the world around you. Be in the moment in every moment.

As John Lennon wrote, "Life is just what happens to you while you're busy making other plans."

Breathe each breath, as our imagined underwater homeowner said, "One breath at a time."

And if all else fails, try yoga.

I hope that helps!

What helps you breathe?


CNNMoney - 30% of Mortgages Are Underwater
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