HAVE TROUBLED HOMEOWNERS BEEN SET UP TO FAIL?

I am beginning to wonder if the powers that be really want us to save our homes that are in foreclosure or if they are just setting us up to fail. I keep hearing things like, "The banks don't want your homes, because it creates problems in neighborhoods, like vandalism, crime, receipt of less property taxes that results in higher property taxes for the neighbors and it is an eyesore. The banks really want families to stay in their homes."  Well, here in Arizona, I am sincerely wondering if that is true. In Tucson alone, the number of families losing their homes daily is staggering.

Okay, let's look at some of the evidence:

• First, there are all these bailout funds that banks have received that don't seem to be "trickling down" to homeowners. Instead, I continue to read how bank employees are getting raises and bonuses with the money that is supposedly going to offset their lowering our interest rates and modifying our loans. In other states, I hear that some banks are really doing this, but it doesn't appear that Arizona got that particular memo. And, private lenders, ones who don't belong to banks, seem to think they have no need to modify anyone's loans because they didn't get the bailout money the banks received.

• Second, have you noticed how slowly things are moving? It seems some of the banks are starting to show results, but Arizona still lags behind most of the Nation in the number of home loan modifications. Now, part of the problem is that many people lost jobs in Arizona and all over the Nation. The stimulus package has not been out that long to stimulate the economy very much, so there are still few good jobs. Oh, sure, those of us threatened with the loss of our homes are willing to do what it takes to keep our homes; so, if that means a menial job paying $8.50 per hour, we'll do it. But, guess what? How many lenders are willing to lower payments enough so that the homeowner can still make payments even with their low-paying job? My guess is, not many.

• Third, all along the suggestion of President Obama has been largely ignored: President Obama suggested a foreclosure moratorium until the economy is more stable and jobs are more available. In a few months, there will even be some "green jobs" that will come available. But, by then, we will all have lost our homes!!! Do our legislators not realize how much of an impact it would make if they would grant us even a 3-month moratorium from foreclosures, let alone a 6-month one? We would all have a chance to save our homes, then. But, in many states, as here in Arizona, no foreclosure moratorium is in sight. And, without it, most of us will fail to save our homes!!! First, we were blind-sided by irresponsible, manipulative or down-right fraudulent behavior on the part of our brokers or lenders; and, now, we are not really being given a chance to save our homes. The deck appears to be stacked against us.

The thing that makes this truly infuriating to me is that once we lose the homes we've lived in for 5, 10, or 15 years (in my case, its been 17 years), for failure to keep up with payments that were too high to begin with, the homes will be sold to the highest bidder. The kicker is that "the highest bidder" is likely to get the house for one-half the price. The question I have is WHY CAN'T THE BANKS AND OTHER LENDERS SELL IT TO US FOR HALF PRICE??? Is it out of spite? Are they thinking, "You didn't pay the original amount, so I'm not offering this deal to you; I'll give it to someone else." That sounds a bit like junior high school to me! I don't know that that is the case, but I keep hearing of foreclosed homes being sold for really low prices, and it's a shame. A family loses their home so that some other person can have a new rental property or guest house or summer cottage. To me, that is very wrong!

On some streets in Tucson, the foreclosed homes are being purchased by drug dealers who need more kitchens to make meth. Now, THAT will definitely harm our neighborhoods. A friend of mine says that the people who bought the house across the street from her seem to have a lot of company really late at night. She also says it would appear that no one at the address has a job because their vehicles are always in the driveway. Is that REALLY what we want in our neighborhoods with our children? Is that REALLY necessary? Do we have to have the worst possible scenario occur in this town, in this State, before someone is brave enough to call for a moratorium on foreclosures??? Since the banks are working with folks, supposedly, they shouldn't mind it if people get a brief respite from their stress and fear. The banks can tack the 3 months to the end of the loan.

I must confess that I become infuriated when I think of all this, because many who "have" could care less about those who "have not." I keep hoping that our legislators look beyond the partisan politics and look at the big picture: their constituents are suffering! And, why are they suffering? So that one party can show the other one that they are still mad about the election? MORE JUNIOR HIGH SCHOOL!!!

Legislators: don't set us up to fail. We don't want to fail and lose everything. We want to keep our homes! Most of us want to work and contribute to our communities. Time is short, and the legislators are caught up with the 2010 budget. How likely is it that they will even remember those of us who may be moving into shelters this summer rather than going on European vacations?

Call your legislators and let them know how important this foreclosure moratorium still is. This will, indeed, be a great opportunity to see who is responsive to their constituents and who is not. Be sure to keep track and remind them of this when voting time comes around. We do still have power and I, for one, plan to exercise that power on election day!