Wah......Obama isn't helping me.....Classic IDIOT!

[JupiterSunsation]

Homeowner: 'I don't see any hope'

By MARK HAYWARD
New Hampshire Union Leader
17 hours, 17 minutes ago

LAST YEAR, Jessica Dery found time between her job and caring for her three children to pass out brochures and put up lawn signs for presidential candidate Barack Obama.

If she's putting up any lawn signs this year, however, it will be a for-sale sign in front of the Manchester house she has owned for four years. Behind 2 1/2 months on her mortgage and short $1,500 in her escrow account, Dery has received a notice of default from St. Mary's Bank. She figures she will have to sell or face foreclosure.

"I don't see any hope. I've lost all hope," said Dery, who does not qualify for the mortgage relief programs established this year by President Obama and Congress. "His passion and desire, it seemed to be a help to real people who were legitimately trying. I don't see any of that. All I see is cutbacks."

As it turns out, federal programs designed to help financially troubled homeowners are not reaching people such as Dery

Affordable program, which writes down mortgage interest rates to 2 percent for qualified participants -- is designed to rescue troubled home buyers who used the sub-prime market, said Dean J. Christon, executive director of the New Hampshire Housing Finance Authority.

There is little solid help for moderate-income people such as Dery, who avoided no-doc loans and so-called "liar loans" and opted for home-ownership classes and conventional mortgages.

"There are a lot of people hurt by this economy who did everything right," Christon said.

'It's not working'

Robert Tourigny, executive director of NeighborWorks Greater Manchester, said the biggest problem he sees is homeowners whose mortgages aren't owned by Fannie Mae or Freddie Mac, the mortgage companies the government took over last year.

Only mortgages owned by Fannie Mae or Freddie Mac are eligible for modifications that could lower mortgage rates to as little as 2 percent. Earlier this month, the Treasury Department reported that only 9 percent of eligible borrowers had seen their mortgages modified and payments reduced.

"It's not working," said Tourigny, whose agency holds the second mortgage on Dery's property.

He said organizations such as his and New Hampshire Housing Finance Authority didn't write risky loans, as did Fannie Mae and Freddie Mac. But risky loans collapsed the market, which hurt everyone.

$1,500 monthly payment
Dery, who is 32, is the mother of three children, 13, 11 and 8. Her long-term partner lives with her, but is on disability. Although she has a master's degree in social work, she earns only $36,000 a year.

In 2005, she bought the house at 733 Mammoth Road for $190,000. Both Dery and her mother signed the mortgage.

They used an 80-20 loan, which allowed them to avoid paying mortgage insurance. St. Mary's Bank holds the primary mortgage, NeighborWorks Greater Manchester holds the second mortgage.


Jessica Dery spends some time in her Manchester backyard as her children play basketball. (BRUCE PRESTON)
For two years, they made their payments, she said. But her mother moved out in 2007, and Dery had to change jobs and take a pay cut. Car and medical bills ate into her budget. And her tax bill rose $2,200 when she lost some of the disability exemption for her property.

Dery said St. Mary's modified her loan once: pushing two missed payments to the end of the 30-year term. Her mother moved back two months ago, but only contributes $300 a month. Her partner's disability amounts to $600 a month, and he spends that on a car payment, cell phone and credit card bills.

With the new tax bill, her monthly payment is about $1,500, she said; Dery said she can't afford it.

Last year, Dery said, she was told to wait until Obama was in office, and she would be a prime candidate for help. But now hotline operators tell her she's at the mercy of her lender because her mortgage is not with Fannie Mae or Freddie Mac.

"These programs aren't helping families. These programs aren't helping children from being homeless," she said.

No Band-Aids
St. Mary's Bank officials said they cannot speak about a member's situation. But the credit union did answer questions about loan modifications in general.

It has modified six loans whose borrowers are eligible for the Making Home Affordable program, reducing payments by $100 to $300 a month for borrowers. The bank is also modifying other mortgages that fall outside the program by reducing interest rates, extending terms and capitalizing interest payments, the credit union said in response to submitted questions.

The modifications have been "very successful" in general, the bank said.

But at times, a modification won't work, the bank said. A member's income may have dropped, utilities or taxes may have increased, substantial repairs may be needed or a tenant may have moved out.

Some people just need to come to the realization that they can't afford their home, said Barbara Cunningham, vice president and mortgage origination manager for St. Mary's Bank.

"Like anything else, it has to be a modification that works for the long term," she said. "It can't be a Band-Aid where surgery is needed."

Who's getting help?
It's uncertain how many New Hampshire homeowners are benefiting from the Making Home Affordable program.

Christon said he's heard anecdotally that some New Hampshire mortgages are being modified with the 2 percent interest rate. But he said a bank can decline a qualifying homeowner if the bank believes a modification would cost more than a foreclosure.

He said the modification would be more helpful in states such as California and Florida, which have seen significant drops in home values, than in New Hampshire.

New Hampshire Housing Finance Authority does not participate in the program because it would harm the organization's ability to make payments it owes to lenders, Christon said.

This month, the Treasury Department said of the 2.7 million mortgages deemed eligible for modification, only 9 percent have signed up for it. A spokesman for the Making Home Affordable program said state-by-state breakdowns were not available

[JupiterSunsation]

I love that she had her kids out promoting Obama with her thinking the gift train was going to make a stop in her front yard..............

[clayinaustin]

"I don't see any hope. I've lost all hope," said Dery, who does not qualify for the mortgage relief programs established this year by President Obama and Congress. "His passion and desire, it seemed to be a help to real people who were legitimately trying. I don't see any of that. All I see is cutbacks."

Only now (when it's too late) do they learn the truth of their actions! :mad:

Just one more liberal coming to grips with the "real world". :rolleyes:

[Ratickle]

I love that she had her kids out promoting Obama with her thinking the gift train was going to make a stop in her front yard..............

He created an entire new group of people who actually believe the government will supply them everything they need and they won't have to worry.

Makes you wonder what we teach in our schools anymore about communism and socialism. Probably that everyone in East Germany was happier before the fall of the iron curtain.:ack2:

[Ratickle]

Plus, instead of sending everyone who made less than $150,000 a check for $1000, he gave the money to his buddies in the big banks and institutions that got him elected.

[clayinaustin]

He created an entire new group of people who actually believe the government will supply them everything they need and they won't have to worry.

A government big enough to give you everything you want is a government big enough to take from you everything you have. :eek:

Gerald Ford

[Ratickle]

A government big enough to give you everything you want is a government big enough to take from you everything you have. :eek:

Gerald Ford

Finally somebody who got the quoter correct. I'm impressed.

[clayinaustin]

Finally somebody who got the quoter correct. I'm impressed.

Ha Ha! I Googled it. :p

[Ratickle]

Ha Ha! I Googled it. :p

I see Adams, Franklin, etc. Nobody ever gets it right. I've even seen it given to Jefferson in the newspaper.....

[Wrinkleface]

He created an entire new group of people who actually believe the government will supply them everything they need and they won't have to worry.

:ack2:

I remember that 1 video of some chick after a speech or something all pumped up say'n how she was gunna get everything paid 4!!:(

[Ratickle]

I remember that 1 video of some chick after a speech or something all pumped up say'n how she was gunna get everything paid 4!!:(

She probably did. It's the middle class who's hurting more, not the ones already on government subsistence..

[Trim'd Up]

She probably did. It's the middle class who's hurting more, not the ones already on government subsistence..
I guess I am part of the middle class then.:ack2:

[Big Time]

I really do feel bad for this lady but it is a classic case of what went on during this election. People bought into all the hype, all the bringing change crap without really looking onto the facts before placing that check on the ballot. If the middle class this Obama is their savior they have another thing coming.

[Expensive Date]

How did she ever think she could afford that house in the first place.

[sledge]

Gotta love the live-in sperm donor is on $600/month disability, but he blows that on a car, cell phone, and credit card bills?
TPT at its finest...and then they bought a house...

[glassdave]

I remember that 1 video of some chick after a speech or something all pumped up say'n how she was gunna get everything paid 4!!:(

i remember that to, i think she said something like now i dont have to worry about my mortgage blah blah blah. I remember thinking "an this person is allowed to vote?". Hell this might actually have been her, what a joke. ya know ordinarily i'd feel pretty smug about throwing this back in the face of the people that put him there but we have three more years of this guy:(

[Ratickle]

i remember that to, i think she said something like now i dont have to worry about my mortgage blah blah blah. I remember thinking "an this person is allowed to vote?". Hell this might actually have been her, what a joke. ya know ordinarily i'd feel pretty smug about throwing this back in the face of the people that put him there but we have three more years of this guy:(

Damn scary. :ack2:

[Wrinkleface]

i remember that to, i think she said something like now i dont have to worry about my mortgage blah blah blah. I remember thinking "an this person is allowed to vote?". Hell this might actually have been her, what a joke. ya know ordinarily i'd feel pretty smug about throwing this back in the face of the people that put him there but we have three more years of this guy:(

Yeah, something as U say about get'n her mortgage, car etc paid 4!! Sick!!:boxing_smiley:

[JupiterSunsation]

Gotta love the live-in sperm donor is on $600/month disability, but he blows that on a car, cell phone, and credit card bills?
TPT at its finest...and then they bought a house...

Not to defend the guy but $600 is only $20 a day which tells me he isn't that disabled! In addition to the car, phone, cc bills you probably need to add in the booze, cigarettes and lottery tickets!

[Wobble]

The fact of the matter is that she never could afford the house, her and her mother fraudulently obtained a loan. Now they're crying.

[JupiterSunsation]

My first house was a 3/2 w/pool in Boca Raton, FL (a very overpriced area) about a mile west of the beach. I paid 94K in 1996. My fiancee and I had a combined income of about 75K. We went FHA with 3% down, 30 yr fixed (8%). House needed everything and we dumped in 25K in the first three months of ownership hence the low down payment. Payment including taxes/insurance was $908 a month. We enjoyed that house for 5 years and sold it for almost 2 1/2 times what we paid for it (3+ years before the boom took off). Never refi'd, no 2nd mtg and walked from the closing with a healthy check which was our 25% down on the next house.......

FHA program was a help on the first house and was the better option for us even though we had a downpayment available the house needed work. I couldn't rent that house for $900 a month at the time so it was a good opportunity. Anyone buying with 100% financing through two different mortgages and mom co-signing shouldn't be buying a house. This woman also has a low salary and 3 kids to raise. At what point did this make sense to her? She was looking at everyone making money flipping houses and she jumped on the bandwagon.....only to lose in the end. She will be more comfortable renting for less with less headaches!

[Trim'd Up]

I dealt with a bunch of people just like her when I was in residential construction. Hell, we were selling $300,000 houses to people with mid 500 credit scores and no money down. I went in quite a few houses at the one year warranty walk and they still wouldn't have curtains or furniture. These people deserve what they get living that far beyond their means. And the banks deserve to lose their ass for loaning them the money.

[phragle]

making 36k and you buy a 200k house????????

[Ratickle]

I dealt with a bunch of people just like her when I was in residential construction. Hell, we were selling $300,000 houses to people with mid 500 credit scores and no money down. I went in quite a few houses at the one year warranty walk and they still wouldn't have curtains or furniture. These people deserve what they get living that far beyond their means. And the banks deserve to lose their ass for loaning them the money.

Don't know that I agree with the people part of it.

The banks should have been allowed to fail and the investors in the Banks covered.

[JupiterSunsation]

I dealt with a bunch of people just like her when I was in residential construction. Hell, we were selling $300,000 houses to people with mid 500 credit scores and no money down. I went in quite a few houses at the one year warranty walk and they still wouldn't have curtains or furniture. These people deserve what they get living that far beyond their means. And the banks deserve to lose their ass for loaning them the money.

I had similar experiences with Haitians buying 600K houses, no money down and 10 people living there. Their cars leaked oil all over the brand new paver driveways and you could watch the pool turn from blue, to green to black in 3 months if the overgrown lawn didn't cover the view from the neighbor's house. The builder's didn't care since it was another unit sold, the lender's got paid all their fees and the neighbors got sucker punched into buying their dream home next to Francois the Haitian sensation!

[Ratickle]

I had similar experiences with Haitians buying 600K houses, no money down and 10 people living there. Their cars leaked oil all over the brand new paver driveways and you could watch the pool turn from blue, to green to black in 3 months if the overgrown lawn didn't cover the view from the neighbor's house. The builder's didn't care since it was another unit sold, the lender's got paid all their fees and the neighbors got sucker punched into buying their dream home next to Francois the Haitian sensation!

But, the Haitains fault, or the lenders fault?

[cigdaze]

Welcome to the real world, sweetheart. Should have thought a little harder about your life before making unfulfillable commitments. Maybe those 3 kids weren't such a good idea after all. Maybe that 190K house wasn't too smoth of a choice either. WTF do these people think is going to happen? Good for her, hope she loses the house and someone qualified moves in; someone who'll pay their mortgage and pay their taxes. We don't need another deadbeat living off of our monies.

[Tony]

These people deserve what they get living that far beyond their means. And the banks deserve to lose their ass for loaning them the money.

I agree. The downside of this is that since many of the banks took a huge hit it is now tougher for the person who does live within their means and does pay their bills to secure a loan.

[Trim'd Up]

My comment about the people deserving what they get is directed at people that are living way beyond their means just because they were able to get a loan. It is as much the homeowners responsibility as the banks to realize they can't afford the house.

I have all of the sympathy in the world for people who are losing their houses, cars etc. because of job loss in this economy. That can happen to anyone.

[phragle]

I agree. The downside of this is that since many of the banks took a huge hit it is now tougher for the person who does live within their means and does pay their bills to secure a loan.


that will change evetually. they make money by lending money that gets repaid, if they arent lending money, they arent making money. sooner or later they will want to make money again.

[Ratickle]

I understand what you're saying. I'm saying it's our governments fault and our banking/loan industey's fault.

I have very good friends in real estate in both Florida and California. The lending practices the BANKS and S&L's were using were crazy. My friends in both states were predicting this collapse for a couple years before it happened. We moved 1/3 of our assets to cash because of what they had said. I wish we would have moved it all :(.....


Example, they would qualify a person looking to buy a house for X amount of money, they'd show them houses in their range and of course some above that range. Then they'd go to a loan officer for approval.

Time after time the loan facility, bank or S&L, would say "We can get you this much more so you can qualify to buy this big of house.....

You know how??????

They would loan 120% of the value, knowing full well the person could not make the payments EXCEPT BY USING THE EXTRA LOAN MONEY. Convince them that was okay, because WHEN THEY RAN OUT OF MONEY, they could come back, get a new loan for 120% of the new value (some areas were being appraised as high as 5% per month increases by the loaners appraisers:ack2: ), and make the payments with the new loan money. And on and on.

Those loan officers should be in jail.

The companies who made the loans should be closed or put under the ownership of banks who did not do those practices.

The companies who rated these packages mortgages as Triple A should be removed from the lists of approved companies to do such, and their approvers should be prosecuted for fraud.

Those responsible for the government oversight of these businesses should also be fired and prosecuted for fraud.

Etc., etc.

But we haven't done a damn thing except give money to the businesses, and people, who got rich off these scams. And that's because they are the ones who got this group of people elected.:cuss: :boxing_smiley: :cuss:

[VtSteve]

The banks have been in control since the late 90's, then were given free reign to go bigger. From 2001 until 2004, it accelerated and the banks got more. After that, it just got downright piggish. The last eight years were virtually a writeoff for the middle class. But without the bubble, it would have been in flatline for years.

The person's story above is exactly the point. They said she didn't get a sub-prime loan. Well she did get the mortgage anyway. There are many so-called prime loans in default. The ratings agencies haven't gotten theirs yet, and neither will the regulators in charge at the time.

Interestingly, the same banks and companies that needed bailing out, are the same ones that took full advantage of their lack of oversight by the previous administration(s). We've not had anything resembling character or responsibility in these institutions in well over 20 years. Goldman was fully entrenched in, what is now, three administrations.

[cigdaze]

I'm saying it's our governments fault and our banking/loan industey's fault.
I beg to differ. I place blame on individuals that can't do the simple math on their finances. $IN shall be >= $OUT

[Sea-Dated]

My comment about the people deserving what they get is directed at people that are living way beyond their means just because they were able to get a loan. It is as much the homeowners responsibility as the banks to realize they can't afford the house.

I have all of the sympathy in the world for people who are losing their houses, cars etc. because of job loss in this economy. That can happen to anyone.

I have to agree here. When we bought our house 5 years ago we were approved for a $280K loan but I knew that the only way we could afford that would be to cut back everywhere else. We bought a house for $150K and have not had an issue making the payments even with my wife getting laid off and taking a 40% pay cut to get another job.

Being responsible is just as much the home buyers job as it it the banks.

[THEJOKER]

Her mom pays 300 bucks a month rent. There's the problem.

[clayinaustin]

Most Americans want to blaim big goverment and big banks for their own financial problems. However, I see the problem as simple greed. Greedy banks wanting money, greedy renters wanting to be homeowners, and greedy politicians wanting to be re-elected.

Yes, the corrupt government and questionable lending practices are a major contributor to our current financial meltdown, but I place the blame squarely on the one segment that could have actually done something right before the problem happened. The American consumer! :mad:

If the American consumer was smarter and a better manager of their own money, then none of this would have happened. The housing bubble would not have existed and the economy would have grown at a more reasonable rate.

It's these idiots that make the government want to protect us from ourselves. :(

[Ratickle]

Most Americans want to blaim big goverment and big banks for their own financial problems. However, I see the problem as simple greed. Greedy banks wanting money, greedy renters wanting to be homeowners, and greedy politicians wanting to be re-elected.

Yes, the corrupt government and questionable lending practices are a major contributor to our current financial meltdown, but I place the blame squarely on the one segment that could have actually done something right before the problem happened. The American consumer! :mad:

If the American consumer was smarter and a better manager of their own money, then none of this would have happened. The housing bubble would not have existed and the economy would have grown at a more reasonable rate.

It's these idiots that make the government want to protect us from ourselves. :(

Gotta disagree with you some there.

No matter what, crooks and those who want something for nothing to better themselves will always be there. If the #1 priority of government is not to protect the honest, law-abiding citizen from these types (whether home grown money thieves, or foreign warlords), then what is their #1 purpose?

And, if I told you today I could sell you a brand new 50 Cig for $500 a month, would you buy it? Someone would, even though you would suspect there may be a catch, I'm a bank or S&L and tell you otherwise......

[clayinaustin]

Gotta disagree with you some there.

No matter what, crooks and those who want something for nothing to better themselves will always be there. If the #1 priority of government is not to protect the honest, law-abiding citizen from these types (whether home grown money thieves, or foreign warlords), then what is their #1 purpose?

And, if I told you today I could sell you a brand new 50 Cig for $500 a month, would you buy it? Someone would, even though you would suspect there may be a catch, I'm a bank or S&L and tell you otherwise......

Yes, I would suspect that there was a "catch". It might be $500 a month for the first year, but then the payments would jump to $2000 a month! :eek:

However, if this fact was known before the deal was signed, then who is at fault? Are you tell me that these homeowners did not know that their payments would go up after the "teaser rate" was over? The banks may have knowingly used its customers to line its own pockets, but come on! These new homeowners are idiots! :rolleyes:

I just wish that the Federal Government would have allowed the "evil" banks to fail. Instead the "evil" banks were given billions of taxpayer dollars, and the taxpayers are footing the bill! :mad:

[JupiterSunsation]

The issue is really just simple math........ A at B% X C term = Monthly Payment. Your income - your debts = discretionary income.

I tell my employees it isn't the first or second payment that will squeeze you it is the rest of them! Just had a guy who makes 32K a year go look at a car. Payment was going to be $450 a month for 66 months. I told him it was too much and he wouldn't want the car after a couple years anyway. Luckily his parents intervened and convinced him a Scion with a $250 payment would be a better fit and he bought it.

Housing is the same, if the payment is tight in the beginning and you have the added bonus of an ARM then you are going to get killed after the first year or two........

[Geronimo36]

Being responsible is just as much the home buyers job as it it the banks.


The issue is really just simple math........ A at B% X C term = Monthly Payment. Your income - your debts = discretionary income.

Thank You!!!!

I remember living in my condo, life was easy and everything was cheap! Heck our monthly expenses were about $1K, soup to nuts!!!

When my wife and I started looking at houses... I went over our numbers over and over and over again.. I had multiple spreadsheets and ran assumptions etc... I based everything on my take-home salary, not including my comission.. My goal was to have our mortgage/taxes be less than 20 something % of combined income.. Then let it all sit for a day and went over the same numbers again and again....

The bank said yes but I didn't take their word for it and I wanted to be sure I could live instead of working to live! :)

[Cain8768]

I wanted to be sure I could live instead of working to live! :)

Hit it right on the head...so many people try and keep up with the jones' that they cant even afford to have any fun and are miserable. But hey! they have a bada$$ house...so it makes worrying about whether you can pay the mortgage next month worth it right?:banghead:

[Trim'd Up]

Hit it right on the head...so many people try and keep up with the jones' that they cant even afford to have any fun and are miserable. But hey! they have a bada$$ house...so it makes worrying about whether you can pay the mortgage next month worth it right?:banghead:

I have a buddy like that. They bought a real nice house down the road from me that they can't afford. He is so house poor that he hasn't had his boat out in 2 years because he needed a carb. Just a stock motor at that.:ack2:

[Jigsaw89]

Good Luck finding a nice rental for <$1,500 that's big enough for the family. :dupe:

"With the new tax bill, her monthly payment is about $1,500, she said; Dery said she can't afford it."

[MarylandMark]

Best Presidential race video ever:

http://www.youtube.com/watch?v=P36x8rTb3jI

What sucks is for us is she was telling the truth!

[fund razor]

She has a masters in social work. That explained everything to me.

[JupiterSunsation]

Good Luck finding a nice rental for <$1,500 that's big enough for the family. :dupe:

"With the new tax bill, her monthly payment is about $1,500, she said; Dery said she can't afford it."

Uhhh it is New Hampshire, not NYC, LA or South Beach.....Plenty of places for less and if not then it is trailer time!

[OldSchool]

Best Presidential race video ever:

http://www.youtube.com/watch?v=P36x8rTb3jI

What sucks is for us is she was telling the truth!

Every voter should have been required to watch that!!!! Wait, they must have watched it!!!:ack2::sifone::26::sifone::26:

[Buoy]

Good Luck finding a nice rental for <$1,500 that's big enough for the family. :dupe:

"With the new tax bill, her monthly payment is about $1,500, she said; Dery said she can't afford it."


Uhhh it is New Hampshire, not NYC, LA or South Beach.....Plenty of places for less and if not then it is trailer time!

I'm renting a 3 bed 2 bath with 2 car garage in Phoenix area for a little over $1000/mos. It's a nice place.
Just waiting until my old house sells before buying anything.
Then again, paying the rent, and not having to do any of the maintenance is also pretty appealing right now.