Last Words From the Vanishing Middle Class
I began trying to refinance my home in Half Moon Bay on the day Obama announced the supposed homeowner retention program. At first I wanted to do it because I was having trouble making payments during the fall and winter financial crisis. I'm still trying to do it because I'm about $150,000 under water, which wipes out my second lender completely and makes it impossible to refinance the house when the ARM adjusts. I have no equity, but I like living in the house. Eventually, the ARM will adjust and I will be kicked out or the payments will get higher.
Because I own my own business, Aurora Loan Services asked me for three years of tax returns, three months of bank statements, a year-to-date P&L, a hardship letter, and a personal financial statement. I sent them all, at a cost of about $100 by the time I printed everything at Kinko's and FedExed it to them. And then I had to turn around and do the same thing for Citibank which holds my home equity line, because the "mortgage" I was given is actually a melange of a mortgage and a HELOC (common in California avoid the very high rates for jumbo loans).
After about 60 days Aurora told me 1) I was not eligible for Obama's program because I didn't have an FHA loan, and 2) they couldn't do anything for me.
After I heard the government had put more pressure on the lenders to restructure mortgages, I reapplied. Once again, I had to send all those documents, and once again I was told they couldn't help me. Their "investors" had said no.
In April, I learned that if I could break even on paper I could refinance, so I sent everything again. This time Aurora asked for my 2008 return, and I sent it. They told me they were now very busy trying to restructure loans, and to wait 90 days.
I heard nothing, so I called: they said they were missing my tax returns, proof of the contracts responsible for my income for the rest of the year, and three months of current bank statements. I sent those in July. I called in August, and they asked me whether I remembered that I had to wait 90 days.
Last week I emailed them. And guess what? They told me they needed copies of my 2008 tax return, a year-to-date P&L, those contracts again, and proof of which bank deposits came from those contracts. You have no idea how hard it is to keep generating and updating these documents, even for me a person whose information is mostly in the cloud as mine is (not the contracts, which are sent to me by municipalities for signing as hard copies that I have to mail back).
It has been 9 months since I began trying for relief. So it's only fitting that this afternoon I went to see Michael Moore's Capitalism: A Love Story.
I urge you to see this film.
I am the first to agree that Michael Moore exaggerates. But in this movie, not so much. It is 100% true that Congress is owned by the financial institutions lock, stock and barrel. I don't care which party you belong to -- I'm an independent -- you should be outraged by this movie if you are young, or have children, or work, or build businesses. Because America has been, and continues to be, ruined for the rest of us by about a hundred people on "Wall Street" who have all the money and therefore run the government and your life. It's everything from credit card fees to subprime mortgages, to Ponzi schemes, to health insurance reform.
In Phoenix, the real estate market has bottomed and the "investors" are coming in and beating first-time home buyers to foreclosed houses with all cash deals. The banks don't care who they sell to; the people who want to take advantage of the tax credit can't get in on the deals.
Because Moore shows a lot of archival footage in the movie, I got to think about how much American life has deteriorated for the middle class during the past 25 years. When I started my business in 1980, I made a great deal more money doing essentially the same thing, and I had a pretty good life. Twenty-five years later, my standard of living has totally deteriorated. I personify the vanishing middle class, and so do most of you. I wouldn't ignore it if I were you. As my friend Fred says to me every Saturday night, "It's a good thing we're not going to be here to see what's coming."
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_b.png?x-id=69817e9b-aaff-45a7-bb6b-68be7e56c844)
Follow Francine Hardaway on Twitter: www.twitter.com/hardaway
Loading comments…
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
People are so stupid. Everyone voted for Obama out of spite against Bush and Paulson, who used to work for Goldman Sachs - and ended up with Geither, who used to work for Goldman Sachs.
If people just looked online to see where the candidates were getting their money, we could avoid all of this.
Maybe it's time for a national tax strike. If you don't own a home and have no assets why should you file. Let them collect taxes from Geithner and his millionaire pals, the only people that seem to matter.
1) Wall Street should be renamed after that new A&E show called Hoarders!
2) Congress needs to step in as banks are refusing to sell to veterans I'm told unless they can come up with cash in many cases.
3) I've got a pitchfork but everyone is either to busy to grab a torch or can't find a light for their torch?
As I read these posts I can't help thinking "we reap what we sow" myself included. We have been a very complacent people. As long as we were okay it had to be the fault of the other guy if he was struggling to make ends meet or so we believed. Now sometimes that IS the situation, but more often than not over the past 30 years it has been the fault of a government in collusion with the rich and with the tacit approval of the middle class. We let them send jobs overseas, we let them de-regulate everything from the airlines to securities. We allowed them to get rid of usury laws so credit cards rates are now as high as money from the loan shark. We allowed them to subsidize oil. We allowed them to keep a health care for profit system in place. We gave them our permission every time we re-elected a representative, senator or president who did nothing for us. We gave them our approval every time we decided not to bother voting in the mid-term elections or even worse passed up a presidential election. Every time we don't contact our congressmen/women when we don't like their vote we give our approval. Don't let a day go by that you haven't e -mailed or called your representatives and senators. If enough of us stand up and shout, we will be heard. They can't hear us from here at HP.
I'm in agreement with ST James on this... except for the part about contacting your representative to demand they vote for our concerns..
I hate to sound trite... but a Million Person March would be a good idea about now... but let's make it 50 million shall we? It'll take that many to overwhelm the National Guard who will fire on us at it did at Kent State years ago when another angry people tried to take America back ...
They say across the country more and more small vigilante groups are forming, heavily armed and training for battle... one has to wonder what they know that we don't...
Well...a 50 million person march is a major project...
The vigilante groups grow during every time of crisis, be it war, recession or depression. I was living in VA when the riots were taking place in northern cities...t
I've done all that and have decided they don't care what I have to say. So the next plan is to vote them out of office and replace them.
Surely, this year of all years, should be the year of the Independents or at the very least the Progressive Democrats. We need to get the Blue Dogs, New Dems, ConservaDems and as many GOPers as possible OUT OF OFFICE! They've been there too long. We need new people who are dedicated to helping people, not making a fortune. Seek them out, support them, vote for them and let's clean out this corrupt government starting in 2010 and keep it going until they are ALL gone!
Think progressive democrats. Independents won't have enough clout with anyone to get anything done. I've been donating to campaigns like Grayson's even though I'm not in his district I can't afford to give a ton of money...bu
There's an election for Governor in my home state of New Jersey. Neither Corzine (Democrat) or Christie (Republican) seems to have a solution to halt the economic erosion sweeping across the state and bleeding it to death, except the same policies that helped create the problem to begin with. There are enough voters from rational to typical tea-bagging wing-nut who have had enough with runaway property taxes, joblessness, etc. The one thing they all surprisingly seem to "agree" on, is that Daggett (Independent) is a party "spoiler" that will cement either a Corzine or Christie victory--never mind that he has the best plan and isn't in the pocket of party bosses. Or that Daggett has no chance of winning (that's what everyone thought about Obama).
Daggett will win if people who are truly fed up with politics as usual and the way both Democrats and Republicans have run the state of New Jersey into a hole, vote for him. I know I am. The victory of an Independent candidate can send a clear message to elected Dems and Repubs who have forgotten who have voted them into office, and why.
Hi there! I lived in Westfield, NJ for 9 years...lo
The problem with electing an Independent as governor will be that he won't have enough support from the legislature to get anything passed. Both the Dems & Repubs will oppose him, just as the Repubs oppose Obama, for their own political purposes.
Part of the problem we have in D.C. right now is that Obama is in very much the same position Jimmy Carter was in when he was elected president. Obama hadn't been a senator long enough to earn any real political capital...
If Daggett wins the people of NJ will be very disappointed because without like minded people in the legislature all of his good ideas will be ignored. As to taxes...th
Beginning teachers are paid below poverty level. Why even go to school if this is how its going to be. Our country is nothing like the country I was taught it was and lived in in my youth. It's sad that the wealthy have no more gratitude for the people that made this country a great place to live with little shops and pretty houses and events etc. Now we are just a bunch of poor people working all day and scraping by. Im no longer a Democrat any more either. I hope we have lots of Independents running because we can't allow the Republicans in office again. But it is just that logic that has forced us to chose between two parties representing the elite. I will not vote for either party if the candidate hasn't voted for real health care reform and financial reform. Im seriously seeking to immigrate.
Where are you going to emigrate to? Corporate America has a foot in every continent and every single island - no matter how small - has a Corporate Sign on it's beach saying "Keep Out".
I know this is the problem. The only places I know of that still see people as intelligent human beings and not some animal to juice until it dies is somewhere is Scandinavia. Even Canada has health care for its people, which is at least something. You don't have to qualify with poverty to be eligible to get it. This poverty requirement is a check and balance keeping people from owning anything.
The Elite are working for a society where average people own nothing.
I agree with you 100%. And Yes, it's a very smart idea to immigrate to another country and get a second residency. At least you would be paying taxes to a country that gives you free healthcare and higher minimum wage salaries; Overall, more benefits for its' people. The U.S. is a joke. The corporate elite run this country and the majority of working people believe they have a chance at a middle class lifestyle.
The richer they are the more they feel "entitled"
I agree with you about lack of faith in both parties. The Democrats and the Republicans nowadays are like two cheeks on the same butt.
The only alternative to tossing capitalism is to add controls and regulations. We used to just trust people to behave in an ethical and moral manner when they had money. Obviously, we misplaced our trust.
My house is paid for. But I realized how the system has us by the balls, so to speak, when I still have to come up with school and property taxes or I will lose my home. I live on Social Security and have physical limitations; holding a regular job is out of the question. My income is about $15,000 a year and I pay more than $2000 in taxes, and $5000 for heat and electricity (despite living in only half the house). My car loan is $3000; I live in a rural area and I can't walk very much, so I can't get rid of the car. No wonder I am reduced to eating less and less. I never leave the house unless I have to. One medical emergency and I am toast. I haven't seen a middle class life in a decade, and yet I'm lucky because I still have a place to live. What I don't understand is why more people who have lost everything aren't fighting back. Instead of whining pathetically, go out and burn down an investment bank; at least you'll feel better.
The Wall Streeters have plundered America, including the US Treasury.
More bonuses than ever, and the middle class is ruined. Blame BOTH political parties.
Hoard food, firearms, ammunition and precious metals.
First off can I say that it is taking everything I have to fight back tears right now as I too am in finacial ruin. Thankfully I rent & don't own a home still I am in no less trouble than a person with a mortgage & no better off financially than an unemployed person. I am so tired of talking & I would like to know what exactly are we going to do?? I would love if every last one of us just blew off work (for those of us "fortunate" enough to still be employed which by the way I'm so sick of hearing) & showed up at the White House or Wall street or both & refused to leave until those greedy b@stard crook scoundrel dogs give us what we worked for that they stole!!!
Well...you
Yo Ho
What's sad is for those who have children. What' kind of country will be left for them? I am going through the same thing with WAMU now Chase, who by the way holds just about all my credit card debt now too. I have only a few thousand dollars in CC debt but all my other cards are paid off or close to being paid off. I've been re-submitting stuff over and over again, three, four, five, six times. I had to use credit cards during times of high medical bills while on one of those crappy medical plans. I would go into a medical office and they said to me you have good insurance but low and behold I'd get zapped with outrageous medical bills. I learned the hard way about these practices. Now. I know better than to just say NO. I have a small mortgage payment but my earnings have fallen dramatically as I sell high end consuner goods. I will make 1/3 of what I made last year and I was out of work for 5 months last year. I should be the proto-type of someone needing the Modification but I feel that they are waiting for me to default on my mortgage. I am trying my best to survive this but I think they have other motives in not making this happen. I am another casualty
It is a sad commentary, but so true. My mother never worked and we had a good life growing up in the '50s. In the '80s it became apparent that mothers were going to have to work for extra income. Today, it is not even a question that both parents work. No wonder kids are having all the problems today. No one is home to watch them.
I have seen this country through some strange economies, but none like this. We have a dollar, which was prized around the World a short while ago, now shunned in favor of many other currencies. We have a president printing money as if we won't ever run out of ink. Tough times here; tough times ahead. bobby vassallo
We can't just continue to give up all our industry to cheap imports, break the labor unions and concentrate all the wealth in the hands of the upper 10% and still expect to have a middle class. This is the legacy of the Second Gilded Age of the last 30 years--the Age of Reagan--and it has ended in a complete crash and depression. Historians like me always knew that would happen, it it will be very difficult to come back from it.
things are not supposed to look worse fifty years later, but they do, we have really blown it. . . a third world prison nation, health care only if you can pay, but its your own fault, like Sen.Grassl
Yes, and like Grassley , sell yourself to Insurance lobbyists for hundreds of thousands of DOLLARS !
Take their money an sell out your fellow Americans.
Better yet, vote Grassley out of office and take HIS job!
Friends of mine got the same run around and then called the HUD office and got good advice and just got their mortgage re-do: payments down from $1000 to $600 per month. Feels great. And these folks didn't live an expensive lifestyle. Their business is in their house and they needed to paint it and fix it up to reassure their customers because it had begun to look pretty shabby.
So call HUD.
We need to ban lobbyists from working with and for legislators. We need to stop corporate dollars from flowing to cooperative legislators. We need publicly funded elections and eliminate the 2 party roadblock system. We need to take back our governance from the ultrawealthy, break up too big to fail financial institutions and eliminate corporate personhood.
You must be logged in to comment. Log in or connect with
