October Web Platform
Foreclosure rates are high across the nation. The Washington-based U.S. Conference of Mayors (USCM) estimates that nearly 2 million families will be affected by increases in adjustable rate mortgages by 2008, and, as a result, may lose their homes.
American City & County asked the readers of its weekly e-mail newsletter what their city or county government was doing to help residents who are facing the possibility of losing their homes to foreclosures. Following are some of the responses:
“Hello? Where is the personal responsibility with the people who wanted the big overpriced home? I bought my home in 1998 for $90,000 and, of course, I wanted the house for $150,000 but I knew it would be a struggle so I did what any conservative, common-sense person would do. I bought what I could afford! I sacrificed frills for simple comfort. I knew what it meant to live within my means.
I am certain that the latest batch of borrowers are familiar with the term ‘live within your means,’ yet they chose to ignore [it], they chose to go for the gold all in one shot. They greedily thought their homes would just keep increasing in value, fooling themselves and hearing only what they wanted to hear.
They ignored common sense. They gambled and lost. Let this be a lesson to them. Hopefully they can cut their losses and get back on their feet. They can always move back in with mom and dad for a few years. Do not get me wrong. I feel terrible for any family that loses their home for any reason, but we cannot expect the government to bail out people who made bad choices of their own free will. After all, the government is [us], and it would be a shame if we had to pay for someone else’s lofty mortgage while still paying down our own no frill mortgages. No frill in my case anyway.”
— Mike Gaudreau, sales account manager, Sunbelt Rentals, Warwick, R.I.
“As county treasurer, on behalf of the county, I have been meeting with a group of non-profits and [officials in] Lansing, [Mich.,] since late 2006 to coordinate our counseling services. In 2006, Ingham County provided partial funding for the services of an Americorp/LISC worker at [to provide some financial counseling at an area non-profit agency that assists low- and moderate-income residents.] This year, [we funded] a full time [mortgage] counselor [at the agency.] Essentially, we are working in a joint fashion to build capacity within the existing non-profit community.
Lansing, [Mich.,] has entered into a contract with a public relations firm to raise citizen awareness that the services are available [through] new 211 service. A big problem we have run into is knowing who is in trouble with their mortgage lender and connecting them with the counselors.”
— Eric Schertzing, Ingham County, Mich.
“Our county is not getting involved with the foreclosure ‘problem.’ [The] inquiry begs the question of why is it government’s function to protect people from their own foolishness or greed for possessions? Federal, state and local government have no business bailing out borrowers or cushioning their fall if they have exceeded their capacity for paying their mortgage.
Too many people today have chosen to live above their means and are now paying for their error in judgment. There are already so many regulations on home buying that no one apparently takes time to read the reams of paper that an individual has to sign to apply for and obtain a mortgage. Lenders are not at fault, since they would not be making these loans if there were not a desire for the service. Much of the problem comes from younger buyers wanting more home than they can afford. Many of these borrowers failed to lock in a fixed mortgage, instead hoping interest rates would never change and opting for cheaper variable rate loans.
Government is not the solution to every problem. More regulation will only further complicate home buying. It is time people were held responsible for their own actions and not expect government to be mom and dad to them.”
— Mark Nahra, county engineer, Delaware County, Iowa