I keep reading about bailouts and helping those caught in the mortgage crisis. Nothing ever helps my family. I have reached the conclusion that unless you were reckless with your money you cannot be helped. My wife purchased a home valued at 90k in 2002 for 65k. We married in 2003 and refinanced it in both of our names in 2004, at the time the appraisal was for 95k, and we were refinancing the home for 65k. We did not buy a magnificent estate; we did not select a payment that was beyond our means; we purchased a 1092 Sq. foot home on a concrete slab.
In 2007, due to a corrupt mayor in my hometown of Flint, Michigan I lost my position with the city of Flint. Our house was now appraised at 30k and we owed 59k; we were 21 months ahead in payments. After looking for employment for a year in the area, and working contract jobs all over the state I took a position in Cincinnati, Ohio.
Now, we are paying rent in the northern Kentucky area, and a mortgage in Flint, Mi. The house in Michigan currently has an appraised value of 20k, and will actually sell for no more than 10-15k. We owe 54k. and Bank of America refuses to deal with anyone who is not behind in their mortgage (and will not work with anyone else) and not a single federal or state plan has any help for us. Bank of America was bailed out, in part, by my tax dollars, and I pay PMI costs each month to insure my mortgage.
The State of Michigan is one of seven states that make a strategic default automatically assign a judgment against you. As far as I can tell, this leaves us with the option of being sued for 54k minus the 1-2k that a foreclosure sale will bring, or being broke for the next 20 years while standing a cusp where either of us losing our jobs means that we will lose everything. Bankruptcy is not an option because we CAN pay our bills, it is just financially crushing to do so and leaves us hungry and with no money for 401k’s or savings while the SSA will not be able to provide us with benefits by the time we hit retirement age. Where do we go from here Mr. President?
Flint, MI has the highest murder rate in the country, and is laying off more officers each quarter. It was so bad in 2010 that they could not even manage to report the number of murders to the FBI.
Where do we go from here?