Letter of the morning
Reader S. e-mailed in response to my post last night on the Irresponsible Home Buyers’ Amendment and my observation, repeated throughout the year, that the government is telling borrowers who pay their mortgages on time that they are chumps:
Michelle,
I want to share this story with you, and you may share it with your readers if you wish. I ask only that my name be left out.
5 years ago while we were in the middle of putting an addition on our home – the final step in our remodeling – my wife was forced to leave her job on long term disability due to very serious back issues. She had been having back problems – including two surgeries prior to this so when she began her job at a nearby university we purchased disability insurance. Even with the insurance, we lost 40% of her income. We went from things being a little tight but comfortably manageable to mortgaged over our heads instantly. For five years we have managed to bootstrap our way from month to month by drawing down savings to cover whatever we were short on the mortgage and putting any extra that came our way back into the savings account.
After four more surgeries and little relief it is quite clear that my wife will not be returning to work, and the savings well is nearly dry.
We recently contacted our mortgage lender, WAMU/JP Morgan and outlined the situation for them. Explaining that while we had never been even a minute late, in about five to six months we would likely be unable to make a payment. We weren’t looking to get out of our debt, but to hopefully restructure it to take some of the pressure off, and hopefully keep our home. We thought we were doing the right thing by being proactive. We thought they would be happy to work with us before we defaulted.
We thought wrong.
They took all of our financial information to review, but the person we were working with explained that they really didn’t have anything in place to help people like us. He recommended that we stop paying the loan because once we were in default it would be easier for them to work with us. I have to admit that I thought about the benefit of saving a couple of months worth of our mortgage. I thought about it for about ten seconds. Then I sat down and took another look at what we squeeze out of our budget. Just tightening the belt further would buy us a month or two. So I started taking on extra work on the side.
I don’t know if we will be able to restructure our loan, but I [am] damn certain we will never miss a payment. You can count me proudly among the chumps.
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Instead of meddling with 80 million individual mortgages, it would have been simpler (and no less socialistic) if all mortgages were just reset to lower levels. It still would have sucked, but at least it would have rained on the just and the unjust alike.
Fixed it for ReaderS. This is a real American.
All my thoughts and prayers to you and your wife sir. This is just another example of the bass ackwardness that this country is becoming. This man is not looking to blame anyone, not looking for a bailout, just someone to meet him halfway. He is still willing to do the work to provide for himself and his family. He fights to keep his independence in now what is a sea of politicians wanting to turn people into handout addicts. This is real conservatism, an idealogoy that made the country great. I hope that everything works out for this couple.
I have a lot of respect for Reader S.
I hope they are able to continue to pay for their home their way.
I can empathize. A forgotten demographic in the housing crisis are military families forced to move on orders.
We’re making 2 mortgage payments because our house at the last base isn’t selling… or renting (we tried that, too).
Our choice here was accept base housing and lose our housing allowance (might as well make a mortgage payment); Rent, giving up any chance of building up any equity; or buy again.
Things are pretty tight, but we won’t be defaulting on anything either.
I disagree. It would have rained disproportionately on the financially prudent banks, their depositors, and their shareholders. The most prudent thing in the current mess is also the most difficult. LET bad behavior be punished.
Just a thing about the reader’s wife’s back surgery: My wife used to work in physical therapy at a hospital. In her experience — and a lot of other people in the health field will tell you the same thing — back surgery is always a bad deal.
I have never known anyone who underwent back surgery who reported any significant decrease in pain and, in most cases, the pain is worse after the surgery than before. So far as I can determine anecdotally, the main results of back surgery are (a) to give the surgeon a fee, and (b) to turn the patient into a painkiller addict.
I second that .
I remember when the government was giving out free cheese. My grandparents got so much free cheese they started giving it away. They didn’t need the cheese, didn’t want the cheese but it was free so they took it. I wish they had been like this proud American and said “Thanks, but no thanks!”
Were I independently wealthy, THIS is the kind of family I’d drop a check to.
It’s a joke that being responsible is more of a punishment than not paying your bills on time.
Is it possible to throw a little help to this person? Do they have a paypal account? It would be easy for any MM reader to throw him a few bucks, if they feel inclined.
Yeah. How many readers/contributers does MM get in a day? Each shoot them $5, and they MIGHT have enough to make it another few months.
Reader S, a great American, alas, an endangered species. Where are all the spotted owl snaildarter huggers now?
I would help people like this if i could. I’ll take a chump over a liberal anyday.
They wouldn’t accept it.
Nor would I or most other people here. We were raised to make it on our own. It’s a pride thing.
I am also a chump and proud of it. All of us hillbilly, redneck, honest, hard working souls, can at least look ourselves in the mirror and not be ashamed. Let the leaches of society suck our economy dry, they have only their pride to lose.
That’s what they should use for bailout money. Here you go GM, Chrysler, here’s your block of free cheese. Don’t spend it all in one place.
Wow that’s classic. An employee of the lender–telling you to default on your loan. Go USA.
Which, of course, is the purpose of the free market that our government so foolishly and corruptly prevented from working.
It’s really so simple you’d think even a congressman could understand it. Rewarding good behavior encourages good behavior. Rewarding bad behavior encourages bad behavior. And make no mistake, removing the consequences from bad behavior is a reward.
But, how would the politicians get reelected without promising something for nothing, without saying he’ll stick it to the rich?
Make no mistake, if more than half our electorate will vote for free stuff from the other (not quite) half, and they breed more, we cannot come back from this.
It will take a huge tragedy to change the trajectory of the country’s future.
The deadbeats can do that too, which of course is the root of the problem. Two generations of decoupling self-esteem from acutal achievment has led us to a society where people are proud of themselves no matter how badly they F things up.
Dex,
I know. But I thought I’d put it out there. I like helping “fighters”. Almost all of us need a little help at some point.
I had a business failure in the 1990’s. Experts told me to go bankrupt, but I couldn’t do it. I worked hard and paid off every dime. An old business mentor of mine, bought most of my equipment and sold it back to me via a monthly loan. I was able to
build the business back up.
He was one of the ones that told me to go bankrupt. I had no idea it was a test at the time. When I refused to go bankrupt, he decided I was worth the loan.
I respect this person in the letter very much.
That’s probable because of the terms used in the TARP. Liberals in Congress supposedly are pushing to directly address people like Reader S (as well as the less prudent) to compel banks to restructure. Sad that the losers and cheaters are first to get the deferential treatment, but remember they are the classic Democrat constituent that must be cared for. You know, like mushrooms. Keep us all in the dark and occasionally throw crap on us.
This is the American spirit in a nut shell. Do for yourself and your family, if a neighbor needs a new barn, grab your hammer and a casserole and help build one, and when your neighbors show up to help build your barn, graciously say “Thanks, not necessary but we appreciate it”.
At least that’s the way I grew up in Salt Lake. No need to ask for help, it’s just offered unsolicited by your observant neighbors.
I remember the neighbors showing up to help Dad on occasion and I remember going with Dad to work on someone else’s farm, house or whatever.
I’m guessing if we can find a way to help these people, we can, and they will gratiously say “Thanks, you really didn’t need to do that”. That’s what made America what it is, individual spirit in a community of individual spirits.
JT and Walter, I agree. If they were in my area I’d be more than happy to grab a hammer or paint roller and help these people finish off that addition to their house.
Helping your neighbors, or accepting help from your neighbors, in a physical, sweat-of-the-brow way is fine. That’s the way it should be. We watch each other’s back.
Money is a different story. Accepting monetary help seems to me to be an admission of defeat. It goes against the grain.
James Felix had it right. We have somehow failed to instill a sense of shame into the next generation.
I’m a chump too, and also proud of it.
Ali-Bubba I had neck surgury 11 years ago. Had 2 discs removed and had the area fused. Before I was in a lot of pain. Afterwards it was gone. So in some cases it does help.
I thought those ads from lenders promising to work with you to keep you in your home were too good to be true!
Especially now that Uncle Sam is standing by with bailout cash in hand. I mean why would a lending institution waste time working with its borrows, just to help said borrower stay responsibly solvent, when the government is at the ready to settle all accounts with tax payer dollars?
Where’s the incentive for lenders to continue to work in good faith with their clients, when all that is needed to tap the vast reserve of government cash is for the institution to force the borrower into foreclosure?
This situation shows that when government inserts itself into the economy, private sector incentive is lessened and the misery quotient is increased for everyone.
My best wishes for health and prosperity to the writer and his family.
Under the “me too” heading.
I’ve emailed Michelle about this but this just is so angering here you go.
I have been on short term disability for 4 months due to tearing both rotator cuffs in my shoulders and have just now returned to work. With the slow down, etc., I am back to work but only part time.
My mortgage is with GMAC. I asked them to consider lowering my interest rate and to reduce my monthly payment by 188 dollars. Yes, a measly 188 dollar reduction. What do you think GMAC said?
They said “NO”. They will not lower my interest rate nor reduce my monthly payment by 188 dollars.
I have contacted my senators, McCain and Kyl, and have emailed Michelle. I am thinking I am not the only one GMAC refuses to work with. So THEY can put their hands in my pockets for bail out money but in turn they do not extend and grace to us, their customers!? We need to collect a list of folks just like me to bring to the media’s attention. The bailout money is suppose to trickle down yes? Well its not.
I was stupid and took an ARM mortgage from CountryWide two years ago. I found out that ARM stands for “Anal Rape Mortgage” when its a CountryWide ARM. After getting 40k in raises and putting 30k into fixing up my house including finishing the basement to get it to be worth what we paid for it two years ago we finally got refinanced into a 30yr fixed mortgage. Every time we talked to the cretins at CountryWide we were told to pound sand. As a result I have learned a very valuable lesson. I will always read and understand what I am getting into from now on. I also realize that getting into debt for anything including buying a house puts you at the mercy of the banks and mortgage companies. My family prayed continuously and we believe that we have had an answer to our prayers. My heart goes out to this couple and they will be in our family prayers.
I know that God does not see them as chumps but people with good hearts and good intentions.
I can so relate to this.I too recently asked if we could restructure our mortgage as we have 3 kids with Epilepsy and medical bills up to our eyeballs,but the same thing happened to us.”Your not late on your payments.”It’s disgusting that you only get rewarded for being irresponsible.
And by the way I have received a nasty letter in which GMAC is talking about foreclosure. Again we’re talking about lowering an interest rate and dropping a monthly payment by 188 dollars. Not being in default. I have been sending my monthly payment less 188 dollars to GMAC regularly for 3 months. Found out yesterday that once they said “NO”, they also then did not count those payments cause they were not in full. They only count FULL payments. So I have a credit at GMAC of those unapplied payements. A credit that is just sitting there AND a letter threatening foreclosure. Can you imagine!?
I wish I could grill the GMAC CEO’s in Congress and Sec. Paulson. I have a few choice questions for them boys…..
It feels to me like GMAC is run like GM builds cars…..
I suppose next, People applying for Scholorships and Pel grants will be told.. Quit your job, go on welfare and then come back and see us.
Couple points:
A. I have a GMAC mortgage and love it. Their statements are so clear plus I get an evaluation each year on what my options are and how much it would cost (refi, home eq loan, etc). We used to have Cendant and they were HORRIBLE.
B. As for the free cheese (and peanut butter) from the govt, my grandmother used to go pick it out of the garbage. The people who got the free food threw it out because they had no use for it/didn’t know what to do with it. If the govt is going to get involved, they need to teach people what to do – I vote for bringing back home ecomonics to schools or free cooking classes somewhere instead of taxing fast food because it’s not healthy.
Another ‘Chump’ story – we were cash strapped due to some damages from Ike that the home owners insurance wouldn’t cover. We contacted Contrywide (our mortgage holder, but not by choice because we had told our mortgage broker that from past experience we would not go with Countrywide, however, they bought the mortgage – anyway, I digress. We were basically told the same thing, they couldn’t help us unless we defaulted (and ruined our credit score). Since this was an interim house until I retired, we could not risk lowering our credit score. We are scrimping by and handling the damage and get livid whenever anyone mentions ‘bailout’. Thanks for letting me vent.
Good for Reader S. Most of us have had hard times; hard times create hard people capable of hard work and making hard choices. And that my Liberal Trolls is what CREATES wealth.
God bless the writer of that letter and his wife. I am in that situation as well…. selling my stock to keep bills paid and taking on small temporary jobs while seeking employment again after my leg reconstruction. Oh, I’m paying capital gains taxes on the sold stock, too. I wish them soooo much good fortune( the writer and his wife I mean)
” Omnia relinquit servare republicam”
I applaud the letter writer for going the extra mile to pay the bills. This behavior should be rewarded. Saddly, today’s hero is a deadbeat waiting for a gov handout. BHO said that the gov and only the gov can fix our current problems. Heaven help us all for this kind of flawed thinking.
Not to beat the dead horse, but one must have a sense of what shame is before one can feel ashamed. I agree that many who will take the “Easy” way out are the sort who have never been held accountable for failure and always got a trophy when playing Little League, soccer, or received all A’s in school while just meeting the minimums required. This was all done so everybody had an equal outcome.
Someone on another thread posted we need to bring back the stocks as well as tar and feathers — using the current Congressional leaders (loosely used term here) as an example. Let’s let people know those of us who will work for success and pick ourselves up after failure, looking only for a hand-up, never a hand-out, are tired of paying for the failure of other people to be responsible adults.
Many people also feel like chumps for NOT taking the free cheese…My father-in-law became that way in the early 1980’s. It’s easy to get beaten down by a system that doesn’t care about YOUR self-esteem.
WOW
I really admire this man and his wife. The strength they show… and the spirit to drive on. They remind me of those heroes on the battlefield who run through a field being hit with mortar fire to save a fallen comrade.
Keep on the fight! Good luck to you. Your story motivated us to fight on as well.
This is certainly something that should be provided before any other bailout is given, particularly to those who were speculating in the market and lost, such as whats-her-face Congressnitwit from CA.
Speaking of bailouts and handing out money willy-nilly, I really wonder at times like these how our wounded and disabled veterans are doing.
Are they getting their care? Prosthesis? Medications? Disability?
Are they able to feed their families while waiting for the VA bureaucracy to shuffle paper?
I only ask because it’s funny how the federal government can quickly spend billions to bailout entities such as banks, deadbeat loaners, or the UAW, yet veterans seem to have to hobble another month waiting for funding approval.
I would certainly contribute, and more than 5 bucks! I would do it solely because I see them as very responsible people who would accept their gift by applying it to their mortgage rather than buying a big screen TV….which is what far too many would do.
This has always been a conservative principle, to help those in need, and I would like nothing more than to help out.
I would appreciate the ability to do so MM.