CEO Bailouts? How About the Homeowners?

If you're a Wall Street executive who drove your firm into the ground and nearly capsized the U.S. economy, it seems like all you have to do these days to get a multibillion dollar bailout from Congress is put your hand out.

But if you're like Guillermo San Pedro, a hardworking truck driver in Los Angeles who fell victim to a predatory loan and is at risk of losing his home, you're on your own.

Eight million people are at risk of losing their homes because Wall Street abandoned responsible lending practices to gain short-term profits. The housing crisis is not just a problem for families facing foreclosure - it's a problem for every homeowner in America. As long as foreclosures persist, home values will keep going down, and everyone loses. No Wall Street bailout will fix that problem.

We're collecting stories from people all over the country who have been hit by the housing crisis so we can show what's really happening on Main Street: while Wall Street takes hundreds of billions of dollars in taxpayer money to pay for lavish executive bonuses and luxurious office furniture, homeowners at risk of foreclosure still aren't getting any relief.

We need your help. Have you been affected by the housing meltdown? Foreclosed on? Underwater? Trapped in a predatory loan? Do you know anyone else whose life has been turned upside down by the collapse of the real estate market? Record your story, or the story of a friend, family member, co-worker, or neighbor, and send it to us. If you have a video camera or webcam, then please send us your video. You can also add your written story along with a photo we can post on our interactive map.

We have gathered almost two dozen videos recorded and sent in by people telling their foreclosure story or a friend's. Here are two of them and check the site for more.

Penny from Texas:

Holly from Florida:

Help us tell the stories of families impacted by the housing crisis so we can give them a megaphone louder than Wall Street's. The banks have gotten their handouts; now it's time for working Americans to be put first.

Comments

[leevntheus]

Freshman Senator Merkeley (D, OR) wanted $100B for foreclosure bailout with the idea to determine new accurate value , principal, and payment schedule. But the banking lobby wants the mortgages valued at their original loan amount (even though the homes are now worth 20-30% less) and the government to guarantee them as the people walk away from the obviously idiotic investment choice. That way, the bank gets the original loan amount in their coffers, they get to mark up the value of their bank to incude old inflated property valuations, AND they get to seize the property and resell it on the market...DOUBLE DIPPING EXTRAVAGANZA. I am simply amazed that this sort of boondoggle is happening in America. An I agree....OBAMA (much as I supported him) is NOT doing anything to help us out on this, and , for me, it is THE reason he got my vote. The economy would be INSTANTLY set back in motion if the government bought the loans, reset the real estate floor and moved on. But the banks would fail or lose out AND WE JUST CANT HAVE THAT NOW, CAN WE?

[californiadreamer]

It may not be fair and I hope I can eat my words, but I feel betrayed by Obama. Perhaps it's too soon to make a judgement, but I can't help but feel that Obama's promise of change has developed into a policy of more of the same. Same man in charge of the wars, same man in charge of the Treasury. What's the point? How can change happen. We see from yesterday that Geithner is trying to use the same bailout for the banks that the Bush administration put in place, but with more money. I hope that Obama's advisors don't think they can get away with it. What is truly sad is that the millions of people who are waiting to learn about their fates are told that it will be several weeks before a plan to help the homeowners is in place. It's seems to me that perhaps the problem of toxic debt is so great that there is no really solution and it will be hard to admit it. Meanwhile more money to the banks and bankers who are the major cause of the crisis but are being bailed out. The American people are watching very closely how this works out. There will be an outcry if their hopes are dashed.

[Nofuzzydreams]

The best way to help homeowners is for house prices to increase or stabilize. Republicans in the senate has put in a $15000 tax credit for home purchase. This could help bring out more buyers. But liberals in the house consider this bad because it will come from lower welfare payments to State governments so they do not have to trim inefficiencies. So there goes your bail-out for homeowners.

[Peter007]

Washington can easily increase home values. They are a new administration and they are still looking for the right buttons to push. Being new in town, they don't want to make any mistakes. But by the time they find the right buttons, the crisis will be over.
The FHA should be able to refinance existing homeowners at a lower rate.
FHA loans used to be assumable and anyone with a heart beat could assume one.
Raising home values is easy. Finding the phone number for the FHA may be the most difficult part.

[eleutheros]

What about the young couple, mid twenties, on child? Combined income $150,000 with two leased vehicles. One top of the line, larger SUV -- One BMW 3 series. They live in sprawlburb, USA in their first home. Their "starter" is a 6 bedroom, 4.5 bathroom house (6,250 sq. foot house) Mortgage is interest only balloon type. They also found themselves being able to by a Flipper condo in Florida to invest in. Again, interest only mortgage. However, they intended to hold on to the property for a couple of months and then sell and make a tidy little profit. Oh, and by the way ... the little condo has yet to be finished. In fact, it is still an air only condo as the project is still in development.

[feyangel]

"Poverty is a weapon of mass destruction. Homelessness is a weapon of mass destruction. Unemployment is a weapon of mass destruction. "
-- Dennis Kucinich

[Peter007]

Somewhat poetic but meaningless.

[dnpvd51]

Many people win from falling home prices. Homebuyers want to see low prices, and people that rent want low housing prices.

In general, it is best for society to have less costly housing.

High housing costs hurt people.

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