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Upside Down Housing Hits Military Families

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Upside Down Housing Hits Military Families
 

It's understood that many of today's homeowners reside in homes that have lost tens of thousands of dollars in equity and value during this economic downturn.

Inman News reported on a study of Upside-down borrowers locked into their homes. The study highlights that those who want to move, but can't, include those looking for:

-- Better School Systems

-- Job Opportunities

-- General Relocation Desires

Moving would entail a huge loss financially, as home-owners would have to make up the difference between current loan and what they could sell for. Thus many families nationwide are staying put.

What has gone under the radar are military homeowners, especially those military members who purchased homes between 2004-2007. These military members own homes that have loss huge amounts of value.

Regretfully, these individuals cannot "stay put", as many homeowners are doing, as shown by these recent studies. Rather, they must relocate their families due to orders to report to a new duty station...they have no choice, they must move.

Many military members are forced to rent their homes that are well-below the cost of the monthly mortgage, limiting their monthly cash-flow on living expenses in their new location. Or, they must sell the home, tapping into retirement funds to have available cash to "walk away" from the home, sell at a loss and maintain good credit.

These families cannot stay put, as the study concludes many homeowners are forced to do today. What we are seeing are military families put in a situation of immense financial burden as they cannot stay put...they have to move.

I'd be curious to see if government will begin programs to assist military families in these types of situations.
 
 

RE: Upside Down Housing Hits Military Families

Posted by: Kimberly Council
Date: Dec. 15, 2008

Dear Senator or Local Congressman,

I am a loyal military service member with over 19 years and I look forward to a career with at least 5 more years. I have served in Operation Desert Storm and Operation Enduring Freedom and I am standing by to answer the call when ever my country needs me. I am writing you knowing that this letter will not fall on deaf ears because you currently have a son serving our great nation and this issue could affect him one day as well. I would like to thank you in advance for taking the time out of your busy schedule to read this letter.

Military members throughout our various services are currently facing significant issues with our current financial / housing crisis. We risk our lives daily with unwavering commitment so that everyone can live the American Dream. It’s only right that we get a chance to experience that same dream. This is the feeling many of us felt as we purchased our peace of that dream only to see it become an American Nightmare. Let me explain:

· Most military members take advantage of the government insured VA Loan. These loans allow many of us to purchase homes with little out of pocket expenses. The down side is this is basically a no default loan.

· Due to the current housing collapse many military members are forced to become geographic bachelors leaving their families behind to complete follow on tours creating broken households and tension in many military families. We military understand the mission at hand, so we follow orders regardless of the price. However I feel that it’s unfair for us to possibly have to choose between career and family. Which would you choose?

· Current home owners relief approved by our government provide little to no relief for military members. To be eligible for this assistance you must be in foreclosure status or close to it .

· For at least seventy five percent of military members, a clearance is required for the mission assigned. With delinquent debt, foreclosure, or bankruptcies your clearance will more than likely be revoked leaving you jobless. For military officers, a clearance is not optional, it is mandatory.

So what are military families to do when neighbors are foreclosing, leaving their homes to banks, or missing payments intentionally in order to make themselves available for government assistance? When banks/government step in and sell homes at current market value, this drags the price of our already below market value homes down even more.


RE: Upside Down Housing Hits Military Families

Posted by: Kimberly Council
Date: Dec. 15, 2008

I simply can't help but think of how much money the military is saving due to this "housing crisis".....I mean if people can't sell a houses,that means people can't move, which means the miltary does'nt have to pay for it.....wow .....Let's not kid ourselves. No the military did not tell me to "buy a house". But, I along with my family simpy did what we have done for the past 15 years of our military career.  We did not intentionally take risk. We got a fixed rate loan based on what we could afford.  Now, four years later the home is no longer practical, rural location with terrible schools, In four years my neighborhood has went from middle class hard working to low income trash. Were is the pride in that? I would have never made this horrible decision to buy if,  I had a clue I would never be able to sell my home  for the price that was paid!  I go with out all of the so called privilages of the military because I am not accessible to them.  This was all a huge price to pay for someone serving this country. For the first time in my life, I am so ashamed of the hypocracy of America.


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