My husband and I purchased our home in 2005. This was NOT intended to be our retirement home. However, with the entire neighborhood foreclosing or doing short sales, we’re still down over 50% in our home and we can never leave unless we want to buy ourselves out of it. 

 

We did the right things: 

We should have chosen the thickest granite, floors with gold trim and the works through the builder.

 

In school, we’re taught that “good kids get rewarded for good deeds”. We got gold stars for doing the right thing and good grades. What happened to that philosophy when we became adults?  

 

My husband and I elected to do a 5 yr ARM so that we could pay off a land investment within that 5 yrs by paying interest only on our primary. Since lenders gave loans to people that truly didn’t qualify and credit card companies keep passing out money like it’s water, our neighbors are dropping like flies. 

 

Our 5 yr ARM comes due in 2 ½ yrs. Trying to be proactive, we called our lender, Countrywide, and spoke to about 15 different people to find out what our options were. We can’t refinance because our mortgage is still more than the current value of our home. 

 

We asked how we qualify for a loan modification. Countrywide’s representatives consistently said the same comment, “You have money in the bank? You have no credit card debt? You have no car payments? You still have jobs?....” So sorry, but since you can overpay for your home, you will. Unless, of course, you want to do a short sale, we can do that for you. 

 

Do I understand this right or am I missing something? Countrywide would rather lose more money and give my house to a total stranger than work something out that’s a win-win situation and keep a good paying customer and let me stay in my home…..REWARD me for doing the right things.  

 

I’m sorry, did you say it’s MY fault, Countrywide? Weren’t you one of the companies that went out of business by giving out money to people that YOU shouldn’t have? Isn’t it YOUR fault that all my neighbors are leaving their houses through the infamous “buy and bail” or simply foreclosing because they can no longer afford the house and credit cards that YOU approved them for?

 

Did I hear that the government is bailing out some of these financial institutions? Wouldn’t I go to jail if I committed mortgage fraud? What incentive is there for the good paying homeowner who saved money to buy their house, doesn’t have credit card debts or auto loans, and wants to save for retirement? There isn’t any. So, what’s preventing me from buying another house at a blue light special price and walking away from this house?  There isn’t a lot of incentive for me not to, is there? 

 

This principle is broken. They came out with the Mortgage Debt Forgiveness Act of 2007. Why don’t they come out with the “Mortgage Debt Forgiveness Act of 2008” for homeowners that purchased a home in 2005 or 2006, is a primary residence and fully qualifies for their mortgage, and refinance it into a 30yr fixed at today’s market value? Why doesn’t some of that bailout money go there instead of paying for multi-million dollar severance packages and spa treatments for the crooks who committed mortgage fraud? 

 

If I have 20% down for another home, there is nothing to stop me from bailing. Bad credit? Who cares! And, I’m actually now contributing to the decline of the neighborhood by leaving another vacant home that will undoubtedly get vandalized and cleaned out. At least I’ll have my dignity knowing that the only person looking out for ME is ME, and I took action. We’ll be somewhat better off in saving for our long term future than sitting here in a box that’s declining in value daily.

 

And, now we’re hearing from the most likely Presidential candidate to win that our taxes might actually increase because we should feel so compelled to pay more as an “American” to help the “less fortunate” because we can. So, now the government’s going to pick my charity too. God help us all.