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Where's the Bail Out For Homeowners?

By
Real Estate Agent with Domain Realty.com, LLC

 

Where's the Bail Out for Homeowners

 

Now I am not an economist. But I cannot help but think there might be some validity to starting the Bail-Out with homeowners instead of the huge financial institutions, corporations and politicians who helped get us into this mess...all because of unadulterated greed. Now I am in my fifties and my husband is close to seventy. We have been responsible adults and citizens throughout our lives. We have worked since we were fifteen and possess a strong work ethic. Probably like most of America.



Did we live above our means? No. I am not what you would call a spend thrift. We used our money to raise and educate five children. We planned for our retirement years and lost about 25- 35% in the stock market. Probably like most of middle-class America.

I am in the real estate profession. When the bottom fell out my salary has decreased by more than two-thirds. Needless to say, my husband took a job with an airline to help increase his income which was a pension and social security, I returned to my former profession of health care, continue to work in real estate and took a third job as a customer service representative to help bring in extra income. I am working about 65 hours per week. And, no I do not mind.



However, I was appalled when the Big Three auto makers, who flew into Washington in their corporate jets (and I understand their wives have access to these jets as well) , to ask for money...our money! Their CEO"s have a salary in the millions, they failed to heed the environmental concerns and continued to manufacture Hummers and SUV's, have millions set aside for bonuses and dare to expect the US taxpayers to bail them out. Now I know that many people think that if we do not help them it will further collapse our economy and the unemployment rate will increase. And that definitely poses a problem.



However, there has been no bail out for the average American. Last week Freddie Mac and Fannie Mae put a stop on foreclosures for the holiday season, I believe until January 9th. What they need to do is give the banks an ultimatum! Start helping out the homeowners or return the money. After all, isn't it our taxpayers dollars paying for this bail-out. And what are we getting in return...Nothing.



In my way of thinking, if the banks would assist the homeowners in renegotiating their mortgages by reducing their interest rates and/or have the mortgages amortized over 40 or 50 years this could have a tremendous impact on the fiscal well-being of this country. Maybe I am naive, but if my mortgage was reduced a bit....I'd spend a bit more, the real estate distressed sales would begin to slow down and eventually stop, the real estate inventory would begin to fall, and this might help the home prices from bottoming even further. Most of the homeowners in this area are upside-down. Homes that sold for over 1 million dollars are now being offered at a foreclosure price of $535,000! So, most of us are losing their equity and are not even able to refinance when the bank appraiser brings us the foreclosed on comparable sales.

So in my opinion the first target for the bail out should be the homeowners! If there was some relief in that area, might not people begin to put more money into the economy. Who in their right mind would be purchasing a new car, buying a new TV, spending money on the holidays, going out to dinner, when they are worried about making a mortgage payment. Not many I believe. We need to make some noise...all of the middle class collectively. . Write our Congress men ans Senators and tell them enough is enough!