From the U-T:
Would you share with online strangers a photo of yourself with how underwater you are on your mortgage?
Three advocacy groups hope you will in order to prove a point to the Edward DeMarco, the regulator of Fannie Mae and Freddie Mac.
DeMarco has frustrated state and federal leaders on his stance against writing down the principal balances of Fannie and Freddie borrowers who owe more than their homes are worth. Among those leaders is California Attorney Kamala Harris.
The grassroots groups, who have called for the firing of DeMarco, have created a Tumblr called “America Underwater.” The blog, which officially launched Tuesday, features photos of homeowners who self-report that they have negative equity.
The entries show a photo of the borrower holding a placard with a negative figure, indicating how underwater they are. There’s also a spot under the image where you can disclose as much or as little as you want.
The latest entry, posted Tuesday, shows a woman holding a sign that says -$53,000 and the message:
“I am still $53K underwater AFTER a loan modification. My loan servicer won’t even consider writing down/wiping out my 2nd mortgage balance of $17K, which is just common sense!!”
The Tumblr states the idea is from community groups the New Bottom Line, Rebuild the Dream and National People’s Action.
Here’s a description of the project:
11 million homeowners are underwater. This Tumblr blog is for homeowners throughout the country to share how their dreams are drowning, to show that none of us is alone in our struggles, and to show how even one underwater mortgage is more than America can afford.
What do you think? Will you post your story on “American Underwater”?
I am thinking about sending in the following:
“I am an average taxpayer who did not overleverage. Based on the creation of new government debt to fund the off balance sheet growing liabilites of Fannie Mae and Freddie Mac, I, as an average taxpayer, am now approximately $109,000 underwater in future tax obligations.”
“Underwaters” don’t need therapy.
They need to acquire some basic math skills. Which should include – simple bookkeeping, basic accounting, and budgeting. These are all concepts they should have acquired during their compulsory educational faze.
If they had had this knowledge, and/or applied it, many would not now be drowning in a self made sea debt.
How come there are no seminars or a plethora of classes and workshops being offered at local schools, churches and community colleges across the country offering to educate or re-educate (as the case may be) the general population with the tools they need to save, set basic life goals, priorities, budget, read and comprehend basic contracts.
And (while I’m at it), since when were the basic laws of cause and affect, and life consequences suspended? Cry me a river; if I bail you out today, chances are you’ll be right back out in that leaky boat without your paddle in no time.
Schools do not teach math and budgeting they teach ethnic group transgender gay and lesbian studies.
COMMON SENSE Who is this guy kidding, it is common sense for him to pay back the money he contractually agreed to. if he chooses not to pay back that money all he needs to do is hand back the house. Somehow common sense has turned into give me everything.
If you get modded so that, say, $50K underwater becomes $0K, then who profits later when the value of the property goes up again?
Must be nice transferring losses to someone else but pocketing the profits.
Can I get a principal reduction on my car loan? I am underwater on that loan as well.
Face it the system is corrupt and broken. Anarchy is somewhere in the future.
Should I make up a sign saying how much money I lost in the Stock Market.
Would anyone give a damn?
Used to make me mad. Now, I realize you can’t fight the gov. & Goldman Sachs, et al.
We’re screwed.
Jim
I am looking at your redfin chart on Carmel Valley. It looks like price per sq foot has been falling consistently for a year. How does this square with limited inventory, back to bubble pricing, and hot demand?
It is the squeeze to better quality.
Buyers are gravitating to the highest-quality offerings, or punishing the inferiors.
‘Highest-quality offerings’ include the top-rung properties, and the also-rans that are priced aggressively.
The sellers of ho-hum properties that insist on adding 5% to 15% extra to their list price, only to stagnate for weeks and months, are then beaten into submission later – or cancel.
Statistically, the buyers are winning, but convincing anyone of that who is trying to buy a great house for a decent price will be tough.
Um, no, but I do like Kingside’s idea. Hmm.
I read all of the submissions and I especially liked two of them:
1. The guy with a fairly new 11% 40 year mortgage (umm, pretty sure he shouldn’t have been given one to start with).
2. The lady who states she was instantly $243K underwater as soon as she signed the original mortgage (umm, how ’bout walking away from the deal?).
This tumblr smells like the same thing OWS drummed up on student loan debt which was finally derailed by people like Kingside pointing out their ability to pay their loans with good STEM degrees and a certain amount of blogosphere derision in poking holes in their decisions.
Absolutely no f’n way should they write down people’s debt. I can’t believe this is being suggested. It is simply crazy. That being said, there is one way you can get me to support the idea.
If you are underwater and you get debt written off, then you have to pay income taxes on every dollar written down. Whatever rate you are in as a result of “making” that extra money applies to every dollar you earn this year.
And then after all the underwater loans that want the benefit do so, we calculate the average amount written off. Then I get to write the average amount of debt written off off my loan; if I so choose (and every other homeowner can do it too). And of course the income tax implications apply to me as well.
That way the whole program can be couched as a reward to those homeowners who didn’t over-leverage. Well, ok, we can couch it as a punishment to banks. Or maybe a huge f off to capitalism, and credit and risk. I’m thinking its a huge gain for the IRS too (allocate all the extra tax revenue to the national debt [going for irony here]).
Yes, of course I know my idea is ridiculous! But not any more ridiculous than giving such therapy to underwater mortgage holders. Sigh.
It seems people have forgotten that there is a guaranteed debt-removal program already in place. Works 100% of the time.
It’s called foreclosure and bankruptcy.