It's common right now to hear a neighbor say they will be moving from the area I live in.  They aren't moving up as was the case years ago when I bought, instead they are walking away from their homes.  They pack what they can, have a huge sale sometimes - I saw someone selling a babies crib while she was holding her baby telling someone she'll just have the infant sleep with them for awhile until they can afford another crib. 

What's happening?

When I bought my house I got a "sub-prime" loan myself.  It was my first home purchase and I was a single mother.  I got 100% financing on a $320,000 USD house.  My payments were about $2,100 - definately do-able.  However, it was to go to an adjustable loan in just a few years.  That freaked me out.  I remember asking for a 30 year fixed loan, 'cause that sounded more stable to me.  The folks doing the loan said that wasn't a good idea because I couldn't take advantage of the 100% financing (which I needed) and the interest rate would be a point higher.  So, purchase it I did - with a loan that could go funky in a few years. 

I got out of that loan - took out $$$ and paid off all debts.  My home had about doubled in appraised value in a year or so.  Nice.  Still seemed weird to me.  To easy I thought.

Now, I wasn't the only one that suddenly had tons of equity and was refinancing... others did as well, and some got into horrific loans.  But - you were urged to take certain types of loans.  Well, I did another refinance after I got married and got into a more secure loan - my husband and I own two properties together. 

For me, there isn't an issue of a house payment that would put me under... but for many, many MANY of my neighbors and folks all over the USA - this isn't the case.

Our neighbors have walked out on houses because the home value was so low it wouldn't pay back the bank.  Their payments went up to a few times the amount they could afford.  So what else ya gonna do?

On our court there is a fella that doesn't have electricity.  In fact, they've come to take off his meter - OFF THE HOUSE!  How's that for turning off your electricity and gas huh?  I've heard he's in foreclosure... a neighbor has an extension cord going to the man's house to give him some electricity to survive on.  I just found out he's giving him food too. 

I feel very badly for these folks.  Very badly for them.  I hear others whisper "well if so-n-so didn't get a house that he/she couldn't afford they wouldn't be in this mess".  Yes, true.  But where did the "Holier than thou" attitude show up in all of this?

I see a line being drawn between those that have and those that have not.  Why?  Couldn't compassion come into play here?  Why would folks be so mean.  Kids are getting uprooted... I see folks around the area depressed - really depressed... that can't be good.  :(

I read in a Foreclosure activity report that in California alone there were 64,711 notices of default/foreclosure notices sent out in March - one month!!   This is hurting all of us and it's sad.  My home probobly is worth less right now than the loan, who knows... I don't care though, we are here for a long while... so, it doesn't matter.  There was a housing "bubble" if you will and it seems to have corrected itself.

I find myself feeling thankful... but very mindful that neighbors should be there for one another, not "I have mine and you don't".

Love and Light (and off the soap box),

Monica