Wednesday, October 15, 2014

Post-Foreclosure Hell

"In 2008, bank teller Danell Huthsing broke up with her boyfriend and moved out of the concrete bungalow they shared in Jacksonville, Florida. Her name was on the mortgage even after she moved out, and when her boyfriend defaulted on the loan, her name was on the foreclosure papers, too.

She moved to St. Louis, Missouri, where she managed to amass $20,000 of savings and restore her previously stellar credit score in her job as a service worker at an Amtrak station. But on July 5, a process server showed up on her doorstep with a lawsuit demanding $91,000 for the portion of her mortgage that was still unpaid after the home was foreclosed and sold. If she loses, the debt collector that filed the suit can freeze her bank account, garnish up to 25 percent of her wages, and seize her paid-off 2005 Honda Accord."

I know what many of you will say, why shouldn't she have to pay for what she committed herself to?

That may be, but back on October 3, 2008 is when Congress authorized the spending of $700b to bail out the banks (TARP) by buying up their mortgage backed securities. Thus removing the debts from the too big to fail banks books under George Bush. In addition the treasury bought up another $155b of their preferred stocks.

Apparently loan institutions are "too big to fail" but not folks like Danell. Now that the banks are back on track look what they've turned around and started doing to show their appreciation.

Another Situational Story
A woman my wife worked with was trying to divorce her good for nothing nonworking husband. She worked in retail and made less then $25k a year. She had two kids still living at home. The husband would not consent to a no fault divorce. Even though he walked out both their names were still on the mortgage to the house. After she spent several thousands of dollars on a divorce lawyer fighting him she could no longer afford to pursue it. Being broke from this, raising the kids and health issues she was forced to remain in the home having no place to go and still stuck married to him.

Over the next several years he continuously racked up loans and credit cards to the max. He even filed and claimed the kids on his IRS taxes each January before she was able to get her W2's from her employer. This not only ruined her credit, but resulted in the collectors threatening her pay, the house and donning her over the unpaid bills.. Eventually she could no longer afford the mortgage and tried to work with the banks to refinance the mortgage through the "HOPE NOW" program under TARP. She received no sympathy or help from either government nor the bank. A few years ago she found herself in the same position as Danell is today and out of her home.

People Need A Incentive To Work
It's expensive to go to work. There are the out of pocket costs for training and education. Some need daycare. Most need a car and be able to afford the insurance, repairs and fuel for it. Work clothes and/or tools. Then there are those circumstances like above.

In today's world with the ever increasing medical costs and eroding wages there is this "never give a sucker an even break" attitude. When people keep getting smacked in the head, no matter how hard they try, there will come a day either workers will give up or revolt. When I see stuff like this happening, that day may not be too far away. Keep screwing around!

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