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Rant

Living the American Nightmare

Posted 9 months ago|9 comments|259 views
Written by
Charlie 19K
Victorville, CA
Being a homeowner was once referred to as the American dream—one that I believed in and sought so hard to attain. In early 2007, before that collapse of the housing market, I was excitedly fulfilling that dream purchasing my first home. The home was far from perfect, but it was affordable and met my family's needs. For the next two years, everything was fine except for the declining market and significant drop in property values. However I had bought the home with the intention of living there for a while so initially this was not a problem.

By mid 2009 however things were seriously different. The neighborhood, which was one of the main reasons I bought the house that I did, had really changed. A number of homes had been foreclosed on, many homes had been turned into rentals, and an unsettling gang culture began to dominate the area. Graffiti suddenly became commonplace—it seems as if I was painting my front retaining wall every other day. Gangbangers with their shaved heads would stare intently as I drove down the street going home as they stood in large groups with the radio thumping away outside one of the rentals that had gone section 8. Suddenly the place that I once felt the most comfortable in was the place I was starting to dread.

The final straw came when my son who is twelve and looks nothing like a gang member was stopped and harassed by these thugs. I decided to put the welfare of my family above all else—we moved! However that left me with the problem of the house. By 2009 the house was worth $100,000 less than when I had bought it, so I could not sell it. The rental values in the area were low, so I could only rent the house at a loss which is difficult when you live check to check. When the first set of tenants abandoned the house, I was unable to pay the mortgage on the house and from there things just got worse. I tried things like loan modifications, however was denied three times because my income was insufficient. I tried short selling the property but the amount the bank would accept was greater than the appraised amount which no purchaser was willing to meet.

So now, two years into the mess, I sit and wait for the inevitable foreclosure to take its course and finish destroying my credit. I know there are those who would argue that the mess is my fault, and yes I know I do have personal responsibility in the manner; however who could have ever foreseen this mess? Who could have foreseen that in only two years 60% of the value of the home would just disappear? Now like many Americans for trying to dream, I am living the American nightmare!
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COMMENTS
9 months ago: All the while our president (little P) is out making speeches in a 2.2 million dollar bus because it looks more grassroots. Next week the entire Obama family will be spending a vacation stay at a low cost for housing of 50,000 per week. That's just the cabin rental cost.

I wonder what the cost really is when you factor staff, security and food.

These people are French toast.
9 months ago: I suggest a nightmare would still be living in that house.

Your kids are okay? right?

Count your blessings.

Your dream ain't over yet.

This will turn into a bump in the road. Like the next one.

(btw. welcome home soldier. thank you for my children's freedom and safety. more than you can imagine.)
Charlie 19K
Charlie 19K
Victorville, CA
9 months ago: First, thank you for the kind words. Thankfully, yes my kids are all ok and continuing to do well. For me, my family will always be my first priority. Choosing to leave my home was not an easy choice. I knew that the prospects of renting the house were going to be difficult. However when compared to the safety of my kids—a foreclosure is no competition. I do have faith however that in the long run things will work out.
Out Of The Box
Out Of The Box
 Moderator
9 months ago: Charlie K
The American dream is changing fast. Now it means to be alive, healthy, and not hungry. This may be a blessing in disguise, as owning a home pretty much shackles a person to one place, and the time may (probably) come for the need to be unfettered. I think perhaps the ones who won't make it out are the ones who can't leave their homes behind. Sounds glum, but I'm feeling pretty glum about our prospects here lately.
Altruist
Altruist
Eugene, OR
9 months ago: Welcome to RR Charlie. I am sorry about your bad situation.

I think that during the economic collapse the failedd banks should have been nationalized and forced to lend money to refinance loans and start small business, but when Bush's TARP program threw money at the banks with no requirements, he didn't even restate Glass Spiegal so the banks decided it was more profitable to gamble that free money and make huge profits, and they actually made it harder to refinance or lend money.

So it would be nice to have a discussion. What do you think should have been done to help you? What do you think Congress should do now to help you? What do you think the President should/should have done?

The main thing I suppose is your being able to get a decent job. Obama just proposed a tax credit to businesses if they hire vets to encourage more hiring. http://www.reuters.com/article/2011/08/0...

In some places houses are still cheap. In Detroit they have hundreds of homes they are giving away and if you have a degree they will give you $20,000 to move to the city. http://www.bvonmoney.com/2011/02/16/detr...
9 months ago: Al...Charlie has been here for a while.
Charlie 19K
Charlie 19K
Victorville, CA
9 months ago: Al, in my opinion the biggest failure in this whole mess was that the government did not recognize the severity or potential consequences of the housing "bubble" early enough. If they had, they could have implemented measures to try and minimize the selloffs and foreclosures, not through mandates but through incentives so that the market correction (that was imminent) could have been slower and more manageable. Instead virtually nothing was done until after the bubble had burst and it was too late—and what was done under both Bush and Obama did little if anything to actually help. Obama's Hope program for example, which has the stated goal of helping keep homeowners in their homes, has very strict guidelines that preclude most people from qualifying. In fact I do not know anyone that actually has qualified—however it sounds nice "look what I did I passed this great program to help voters."

What I would ask for right now; I would like to see more tax incentives to try and stimulate buyers, not only for first time homebuyers but for investors as well. I would also like to see greater incentives for banks to keep people in their homes. The goal needs to be to reduce the overstocked market to stabilize prices, not through greater regulation but through incentives.

I am not a big fan of government takeovers of anything. Unfortunately from my perspective it appears as if every time the government tries to "fix" something all they do is compound the problem, usually through the latent effects of their very solutions.
Out Of The Box
Out Of The Box
 Moderator
9 months ago: Holy Smokes!!! Detroit??? They would have to include an armed entourage to get me there for a visit, and a walled compound to convince me to live there.

Good on Obama for the tax credit. 'Bout time.
9 months ago: Maybe Obama should drive through in the armored bus like Max Waters suggests.
Let's see if the bus really has earned the right to be called the "Obama Express".

Might need some bodywork and a paint job (not to mention more armor along with retractable gun turrets) before the next tour through those Detroit districts.

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