McCain's Housing Plan Leaves Many Military Homeowners Out in the Cold

In the second presidential debate, McCain laid out his bailout plan to help average Americans in this economic crisis.

You know that home values of retirees continue to decline and people are no longer able to afford their mortgage payments. As president of the United States, Alan, I would order the Secretary of the Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes -- at the diminished value of those homes and let people be able to make those -- be able to make those payments and stay in their homes.

What McCain failed to tell America is the critical detail of his plan, which differs from Obama's plan.

McCain's American Homeownership Resurgence Plan requires that struggling homeowners "prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment)." Although downplayed in parentheses, homeowners would qualify for his plan ONLY if they had provided a down payment at the time of purchase.

This requirement fails to address exactly how the subprime lending bubble went from over-inflated to burst because the homeowners receiving those mortgages DID NOT have down payments. McCain's plan would do little to help these people, including many military members, who are at the heart of this crisis.

Military members were specific targets for the predatory lending practices engaged in by subprime lenders during the housing boom. The lenders knew that military members receive a guaranteed housing allowance and used those numbers to push for higher mortgage amounts. Even though military members and veterans have access to low-cost VA loans, the number of VA loans dropped drastically at the height of the subprime lending boom in 2006 to less than one-third of the level of VA loans two years earlier, no doubt in direct relationship to the subprime predatory lending practices.

Most shockingly, the foreclosure rate in military towns is 4 TIMES HIGHER than the national average.

Foreclosure filings in 10 towns and cities within 10 miles of military facilities, including Norfolk, Virginia, home of the Navy's largest base, rose by an average 217 percent from January through April from a year earlier. Nationally, the rate was 59 percent in the same period, according to RealtyTrac, which tallies bank seizures, auctions and default notices.

The biggest surge was in Columbia, South Carolina, home to Fort Jackson, where the Army trains recruits for combat in Afghanistan and Iraq. Properties in some stage of foreclosure rose 492 percent from a year earlier, RealtyTrac said. The second-biggest increase was 414 percent in Woodbridge, Virginia, next to the Marine Corps Base Quantico.

Currently, veterans comprise 11% of our population, but they make up 25% of our homeless. McCain's plan would leave military families without government assistance in this housing crisis and may even result in military families and more veterans being homeless.

McCain proves once again that he is NO FRIEND to veterans and military families.

Comments

[evagorman]

"... to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes -- at the diminished value of those homes and let people be able to make those -- be able to make those payments and stay in their homes."

-- I need someone to explain this to me. What about homeowners who struggle and DO manage to pay their mortgage? Won't it feel unfair to them that their neighbor was able to get their home value diminished and hence a lower house payment? Maybe every single homeowner who's home value has diminished would like a new, smaller loan. THAT'S A LOT OF PEOPLE.

[stayinsouth1981]

Supports our military however, sees nothing wrong with FOOD STAMPS ACCEPTED signs posted in the commissaries.

[egal]

They have to be. Well over 2/3s of the millitary families are on foodstamps, and most of the rest need to be. But, of course, all the civilian who think McCain supports troops seem to have missed how he voted against pay increases to keep pace with inflation, medical hospital funding, the increased downtime psychologically and in every other way including militarily needed, and everything else the troops actually NEEDED. But he did vote to keep them over there in Iraq longer, what a swell guy.

[Michelle Gross - Huffpost Blogger]

Thanks to everyone for reading my article! I strongly suggest that you look at Brandon Friedman's Master List of ways that John McCain has failed our veterans and military.

http://www.huffingtonpost.com/brandon-friedman/mccains-non-support-for-t_b_131046.html

I also encourage you to visit Blue Star Families for Obama at www.bsf4o.comm) to get more information on how Obama is supporting our military families.

[drummer4]

Michelle- Most of McCains' Ideas are only half thought out. This idea is just something he pulled out of his brain to possibly give him an advantage in his failing campaign. I'm sure saving soldiers' homes will be addressed in Obamas' administration. We need to take care of our solders. Like McCain voting against increasing GI benefits and sayng this bill would is too generous. He has no real feelings except for his wealthy chronnies. McCain mainly plans to cut programs for people in need. See if you can find an Obama site and put your question to them.

[roald]

Michelle- I don't know what you are talking about. According to Bill O'Reilly, The Democrats are the only ones who don't support the troops and there are no involuntarily homeless vets.

[wmafoune]

Wow, you listening to oreilly? Why don't you do your own research instead...­.

[mrswest]

You are joking right????

[TrevorAlan]

Maybe McCain could have offered some of HIS houses.

Seriously, because I have not been in the military I am very concerned that people who HAVE served get the proper health care, especially for injuries while in the service, and support while in uniform. We can't just crow platitudes about a strong army and people happy to sacrifice, WE HAVE TO HELP THEM! Even when it costs money that would have to come from taxing rich people like the McCains and Bush family.

Why aren't conservatives and veterans like McCain the FIRST to jump up to fix this scandal?

[BluebirdofUnhappiness]

That's just a rhetorical question, right?

[chrisblask]

Michelle, again I thank you and your family for your service. The fact that having your husband serve in the military isn't enough and that you continue to provide social commentary such as all your wonderful articles is a lesson to all of us.

This one by you ( "Open Letter to Cindy McCain on her "Cold Chill"" - http://motleymoose.com/showDiary.do?diaryId=361 ) is particularly apt, and only someone in your position can say it right.

[kmdippenger]

Thankfully the video showed the protesters at the rally at the endof the clip. After watching the ignorance and hatred of those who came out to support McCain and Palin I was feeling a bit anxious for the fate of our country, the Obama/Biden supporters restored my hope.

[chrisblask]

Most people are reasonable, but there are still quite a few who could use an education.­..

[wideout179]

Wow. Very enlightening, Michelle. Thanks.