NEWS FLASH – Key Obama administration official comes out against in-bankruptcy loan modifications. See the details here.
Are you an invisible renter (the government doesn’t see you, society ignores you) and upset that your money is going to pay for other people’s homes EVEN THOUGH they can make the payments? Are you a homeowner who is also upset that your money is being used to fund other people’s mistakes?
Well now you can write to key people in the Obama Administration including the Secretary of the Treasury, Timothy Geithner as well as Dr. Lawrence Summers, head of President Obama’s National Economic Council. Here is their current contact information.
Timothy Geithner (timothy.geithner@do.treas.gov)
- Email his assistant Bryan Jung bryan_jung@who.eop.gov
- Direct phone #: 202-456-1337
I encourage you to write them at the email addresses above and feel free to use either of the emails I have crafted below if you want to make a point about financial responsibility and better treatement of renters. If you don’t want to use either of these then please write your own.
Also check out www.invisiblerenters.com to tell your story and have your voice heard.
Happy writing and let’s stand up for the financially responsible renter.
But how is your plan hurting 100,000,000 renters? It is hurting them in three major ways:
- By putting a floor (and debatable how stable or realistic that floor is) under housing prices above what they were before the bubble began you are continuing to price renters out of the market.
- By raising the deficit you are going to be putting some of the tax burden on renters (yes some will go to homeowners as well).
- Because many former owner-occupied properties have turned into rentals rental prices are actually falling. By keeping people in houses they can’t afford you will, in effect, raise rents again.
The net result is that you are charging renters, through the eventual taxes needed to pay for this, for the privilege of NOT being able to afford a house while also raising their current rents. This reminds me of the former Soviet practice of making soon-to-be-victims of execution pay for their own bullets and then charging their families for their burials.
Point #1: This plan is further eliminating renters ability to buy a home by reducing their income (through higher taxes and raising rents) and through maintaining artificially high prices (through so-called “stabilization”).
To make matter worse renters comprise those who either can’t or have decided not to overextend themselves to have the “American Dream” (which was originally “life, liberty and the pursuit of happiness” until it got co-opted by marketing experts in the real-estate industry in the last century). Renters are STILL disproportionately Hispanic and African-American and lower income. Homeowners are disproportionately white and have higher incomes.
Home Ownership by Race - (US Census Bureau)
Point #2: Helping homeowners at the expense of renters is yet another transfer of wealth from the lower class to the upper class. How Bush-league.
Oh and why would the the vast majority of homeowners (who do, truthfully, outnumber renters) care to help us ? Very simply because the survival of any market (or pyramid scheme which the housing market has proven to be) depends on a continous stream of first-time buyers to fuel growth from the bottom. By attacking renters you are attacking the first-time buyer base and, while you may temporarily save the market, you are draining the pool in the medium to long term.
Point #3: Homeowners need to watch out for renters if they want to truly protect their home values.
How can you help? Well if you can’t bring yourself to let the market work out the right price then at least provide renters with some rental income tax deductions so they don’t wind up paying (two to three times) for the mistakes of homeowners. Additionally this will help incent those on the edge of home-ownership not to over-stretch to buy a house so they can get the equivalent mortgage income tax deduction. Its the least you can do.
Finally, of those 9 million you are helping, at the expense of 100,000,000, how many got themselves into their situations by cashing out their equity cushion for home-improvements, new cars or family vacations? I guess its comforting to know that the money we saved by renting will go to buy some nice stuff…even if it isn’t ours.
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Pre-bubble loan qualification standards (e.g. stringent payment/income ratios, down payment minimums, loan documentation)
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Offer loans based on current house appraisal prices and at standard market (NON-subsidized) mortgage interest rates.
Please also remember that according to RealtyTrac in 2006 (peak of the bubble) 80% of refinancings involved taking extra cash-out for consumer expenditures. Isn’t preventing many of the foreclosures just going to protect those that spent away their equity cushion and should we reward that behavior?
Please do the right thing, even though its the hard thing. Allow the market to fix this problem and allow the market to shift to fiscally sound ownership and not continue to prop up the fiscally irresponsible or profligate.
Sincerely,
29 responses so far ↓
Finacially Responsible? Protect Your Money and Email the Treasury Department « Watching the Marcitz // October 29, 2008 at 10:01 pm |
[...] Email the Treasury Department [...]
Tim Jower // October 31, 2008 at 7:02 am |
Dude, give it up. The country is outright run on bribery now. All we can hope is the Liberterians or another third party takes over in 2012. The USA is bankrupt but our leaders and administrators are paying off Billionaires and dishonest and lazy people. They are trying to destroy everything America represents.
Tim Jowers
marcitz // October 31, 2008 at 7:44 am |
So even if we assume that that is correct (and there probably is at least some truth in it) that is where individuals can help. The general belief is that the government is in the pocket of big business because they have the money and NOT lazy people because they DON’T have the money.
Big business doesn’t want this either so by showing the government that the “little guy” also agrees with them allows you to take advantage of that bribery you allude to and it doesn’t cost you a cent. So tell others about this and for once take advantage of that corruption.
Politics makes strange bedfellows.
Holm // October 31, 2008 at 8:42 am |
I takes a massive paradigm shift before anything will happen. It is started… in 4 moths it has become “cool” to be frugal. When the PTB notice the shift they will get on board, but till then, BEND OVER AMERIKA!
Carola Von Hoffmannstahl-Solomonoff // October 31, 2008 at 9:20 am |
Terrific column. People should definitely contact the Treasury crew. And yeah, the comment by Tom Jower is true. Cross-class bribery is the name of the game. Billionaires and no-money-down bubble buyers are lining up cheek by jowl.
Brad83 // October 31, 2008 at 10:20 am |
Thanks so much for doing this! I have been looking for a website that was making such an effort. Contrary to one Comment I read, I think FLOODING your named people, as well as Sheila Bair of FDIC, Barney Frank and Sen. Schumer (who anyone can e-mail through THEIR COMMITTEE’S website), President Bush, and each person’s elected representatives, CAN INFLUENCE THE RESULT! HERE’S WHY I THINK IT CAN!President Bush and Secretary Paulson are not, in their hearts, in favor of bailout anyone who does not deserve it. Even Barney Frank would agree to this if it could be done. This fairness issue was supported in recent articles both in the NY Times and USA Today. One way that way work to exclude the greedy, irresponsible wealthy types is just to limit the size of the eligible refinanced mortgage to, e.g., $400,00 (although, incredibly, FHA’s HELP NOW goes up to $540,000). Also, we should advocate for whatever will help allow housing prices to drop to their rational, non-bubble values, e.g., four times median income. THEY ARE WRONG THAT IT HURTS SOCIETY FOR HOUSING PRICES TO DROP. YOUNG PEOPLE SHOULD BE ABLE TO AFFORD HOMES, AND LOOK FORWARD WITH HOPE FOR THEIR AMERICAN DREAM! LET’S FLOOD THEM WITH E-MAILS. ALL REGULATORS COUNT AND PAY ATTENTION TO PUBLIC COMMUNICATIONS!
DON’T GIVE UP!
Osama // October 31, 2008 at 1:25 pm |
All praise be to Allah! Thanks to the inside help of Wall St, American bankers & mortgage companies my dream of seeing the USSA completely destroyed is now only minutes away!.
Oh the uncontainable joooooooooooooooyyyyyyy!!!!!!!!!!!!!!!!!!
Brad83 // October 31, 2008 at 1:54 pm |
Brad 83 Addedum,
Marcitz /Patrick.net,
Are you able to put up this e-mail campaign on the other websites such as Stop the Housing Bailout, Stop the Mortgage Bailout, etc. (As you recall,the first site was one of the sites (it was the one I happened to find.) that led a public e-mail (and call) campaign.)
You great public servants, such as Marcitz and Patrick.net know which sites get the most hits, but it would be great if the same call to e-mail, with the e-mail addresses could be spread around so we might get more sent over the weekend. Thanks so much!
Frank Anderson // November 1, 2008 at 10:03 am |
Emailing is a great idea, but organzing on election day 3 days from now to vote in anti-bailout Congressmen is necessary!
To that end I recommend watching “A Cordial Invitation to the Bailout Tea Party” before the election in 3 days. You can see it at:
http://www.ourcaucus.com/teaparty.html
Tim // November 1, 2008 at 11:29 am |
Nice idea, but it wont help. I wrote everyone of my congressional leaders over the bailout and they all gave me the same line of crap of how it has to happen or the entire economy will collapse. These people are all bought and paid for and until the Sheeple in this country wake up and vote these idiots out of office, stop the illegal lobbyist, and place term limits on both houses, it will never change. The Sheeple of this country have been sold a bill of goods that OUR government WILL and SHOULD protect us? What happen to accountability? I feel sorry for my kids, because we have seen the best days of America pass us forever. Even though I would lose a lot in a complete financial collapse, I almost think it would be a good thing in the long run to wake up the Sheeple in this country that REAL CHANGE, not Obama style is necessary if this country hopes to have something better than a third rate ecomomy in the future. Its a sad day for America!
Martin Turow // November 1, 2008 at 2:40 pm |
I couldn’t agree more with you. Sad to say, but I have lost complete confidence in America. If it weren’t so difficult to start my own country, that’s what I would do. What is it going to take for people to wake up in this country? Should we just turn off the power grid or water supplies? I was particularly disgusted by the House Republicans, who at first stood up to the bailout proposal on priniple, but then, once the bill was sufficiently stuffed with pork, it passed. So much for principles! So much for America. At certain point, I guess we deserve what we get. But at least, you are standing up and saying something.
Tony Ugando // November 2, 2008 at 1:17 pm |
Most of the people who are going into foreclosure overextended themselves, by means of fraudulent loans. Also, why didn’t government prevent home prices from increasing so much during the housing boom? Now government wants to prevent prices from falling? I am outraged by their actions.
Brad83 // November 3, 2008 at 8:37 am |
TIM, DO NOT GIVE UP. Please take a look at my comment under Marcitz’ home page sample e-mail to Treasury. Paulson and Bush are on OUR SIDE TO SOME DEGREE. Reports are that Paulson and Bush are,right now, arguing with Bair and Barney Frank as to how inclusive a homeowner bailout should be. We probably can not stop it, but we can limit it. Maybe to lower-income borrowers only.
I hope you and others read and consider this point of view which is a bit more optimistic.
Alberto // November 14, 2008 at 12:29 pm |
– Brad83
“We probably can not stop it, but we can limit it. Maybe to lower-income borrowers only.”
A lot of Realtors, Mortgage Brokers, and Real estate investors fall into this pool now, since they have been making much less since 2006. And many of them do not deserve being saved, neither do the assholes who took out loans larger than what they could afford.
We need to let the markets work, and not try to prop up property prices. The prices of homes reached during the housing boom where fictitious! They were elevated by fraudulent deals and loans. The FCIC and Treasury Dept. can’t fucking see this, and it is pissing us all off!
Brad83 // December 6, 2008 at 11:27 am |
Alberto (November 14, 2008 reply to my original post),
I AGREE that even low-income/minorities deserve no bailout whatsoever. But, it is HAPPENING! In Boston, the usual leftist housing advocates are blocking doors with mobs to prevent foreclosures; the leftist pro bono housing attorneys are starting to use the court tactics available to delay, etc.
I HAVE BEEN AWAY, BUT NO SITE, INCLUDING THIS ONE, HAS ANY EFFORT AT ALL TO TRY TO INFLUENCE OR STOP SHEILA BAIR’S FDIC PLAN OR OTHER MASSIVE BAILOUTS OF MILLIONS – RICH AND POOR.
I AM MORE PISSED THAN EVER!
I have heard story after story of lower-income people getting loans that were 400% of their incomes!!!! Not the usual 34%; 400%!! And, they put nothing down. NOW THAT THEY ARE DUE TO SUFFER FORECLOSURE AS THEY SHOULD, THE EXISTING FHA / HUD PROGRAMS ARE ALLOWING A NEW FHA MORTGAGE TO BE ISSUED AT WHATEVER REDUCTION OF PRINCIPAL OR INTEREST RATE WILL LIMIT THEIR PAYMENTS TO 31% (!!!) OF THEIR CURRENT INCOME.
Some of these are happening due to the b.s. “predatory lending” settlements the state attorneys general forced B of A and Countrywide, and others, into, BUT, THIS IS ALSO BECOMING MORE AND MORE THE APPROACH SHEILA BAIR AND BARNEY FRANK WANT TO USE BECAUSE THEY FEEL EACH CASE CAN’T BE ANALYZED INDIVIDUALLY. OBVIOUSLY, MASSIVE PAY-OFFS TO INVESTORS HOLDING MBS’ BY TAXPAYERS IN EACH CASE — AND AN ARTIFICIAL PROP UP OF THE CRUEL HIGH HOUSING BUBBLE PRICES!
So, do you, or does anyone, want to help Mr. Marcitz get his e-mail campaign updated and with more contacts provided and to get the many other sites, such as patrick.net to not just list Watching Marcitz, which I am afraid they do not even do now, BUT TO RE-PUBLISH AND PUSH THE SAME GUIDANCE.
I DO NOT BELIEVE IT IS HOPELESS. REMEMBER, OBAMA IS DESPERATE TO BE SEEN AS GOVERNING FROM THE CENTER, AND HE WILL NOT WANT FIGHTS EARLY ON WITH THE SENATE REPUBLICANS. GIVEN THIS, AND HIS BELIEF IN INCREASED SELF-RESPONSIBILITY, ESPECIALLY FOR MINORITIES, THE BAILOUT COULD END UP BEING LIMITED IN VARIOUS WAYS!!!
I ALSO WANT SOME ECONOMIST-TYPE READING THIS TO TELL ME WHAT TYPE OF PROGRAM, ASSUMING THERE WILL BE SOME TYPE, AS OPPOSED TO JUST FREE MARKET, WILL AVOID PROPPING UP AMERICAN-DREAM DESTROYING “FAKE PAPER” REAL ESTATE “WEALTH” BY ALLOWING PRICES TO CONTINUE TO NATURALLY FALL!!!
THANKS. PLEASE RESPOND!!!!
BRAD 83
Contacting Economic Influencers in the Obama Administration « Watching the Marcitz // January 12, 2009 at 12:24 am |
[...] UPDATED – Email the Treasury Department [...]
stephen trentalange // January 13, 2009 at 8:32 am |
Why don’t you add barney frank to this list?
Chris Tyler // January 13, 2009 at 1:01 pm |
I don’t think anyone in Washington cares at all at this point. Countless emails to Senators and Congressman. We all need lobbyists to truly get our points heard. If Washington cared, they would bother to listen to ordinary folks like me who would tell them that the TARP funding is simply masking and prolonging the balance sheet problems of many of these banks. Many regional banks, in particular, cannot sell bad real estate because they would trip their capital ratios so they instead do nothing and hope they can fake it while the FDIC focuses mainly on foreclosures. The TARP funds should be used to support asset sales. Until we get bad assets in the hands of the private sector, the market will never recover because the supply overhang is too large. By recapitalizing banks ahead of any asset sale, the Government is exacerbating the problem by prolonging the day of reckoning.
Alberto // February 18, 2009 at 12:48 pm |
I am sick of our fucking government. Obama and his foreclosure bailout plan make me want to puke. Using taxpayer money to save the fucking assholes who speculated, thinking that their piece of shit homes were going to appreciate forever. Now this bastard, Obama, wants us taxpayers to cover the losses. Fuck him, and fuck the assholes who are going into foreclosure. Fuck them all!
Renters of the World UNITE! « ReallyFuckedHomeowner.com // March 1, 2009 at 8:26 pm |
[...] but NO names or specific addresses (those will not be approved). Oh and don’t forget to let the government know how you you feel. Possibly related posts: (automatically generated)RentersWhat is rent to own and [...]
Just How Invisible are Renters? « ReallyFuckedHomeowner.com // March 3, 2009 at 10:08 pm |
[...] Email Treasury Secretary Timothy Geithner to help him see through our rental cloaking devices and consider our perspective as well. After all homeowners are currently the problem and renters, who might eventually be able to afford those homes if given a chance, are the solution. [...]
RENTER ALERT - Stop the New York Times from Hurting You « ReallyFuckedHomeowner.com // March 6, 2009 at 2:19 pm |
[...] can also email Treasury Secretary Timothy Geithner and Lawrence Summers so President Obama knows as [...]
Pat Lipsky // March 15, 2009 at 5:48 am |
It is outrageous that the United States Government is giving A.I.G. money which is is using to pay millions of dollars in bonuses to those who made the mess. What kind of policy decision is that — rewarding the culprit? Pathetic.
Al Wilson // March 18, 2009 at 6:18 pm |
Come on Timmy, come clean and face the music, you screwed up and should tuck your head in shame and leave this position. What a joke you are and how you are cheating and lying day after day.
CathyK // April 24, 2009 at 8:51 am |
I am not sure why all of the renters are up in arms. You were renting before and you are renting now; the homeowners that overextended themselves are being offered an opportunity to refinance their loans only if they meet really stiff credit critera. As I understand it, the banks will be taking the hit as they will have to revalue the properties at market (hence mark to market) No one’s taxes will be going up – actually, they will be going down.
Your input on where your tax money goes is determined by whom you vote into office – your Senators and Representatives.
If the government buys (backs) mortgages at a reduced amount, they will actually be making money for the investors (the US government and hence the tax payer will be the recipient of the interest rate charged on these mortgages) Mortgage banking is a money making proposition and as participants, the taxpayers will see annual interest payments on these loans, plus the balance will be paid in full when the house is sold or refinanced to an outside lender.
A savy mortgage lender may correct me if I am wrong.
marcitz // April 24, 2009 at 1:24 pm |
To the initial point as to why renters are up-in-arms. Its because many renters actually do want to become homeowners when prices return to rational levels. The government actions are preventing this from happening.
The comment also said taxes wouldn’t be raised. you forget that in the Obama plan they are contributing money to get mortgages down to 31% of income (they are providing matching funds with the bank). The banks do have to figure out how to first get it down to 38%. To pay for these matching funds the government is increasing deficit (and hence the national debt) to pay for all of this. EVENTUALLY someone is going to have to pay off that “mortgage” (or our creditors could just foreclose on the entire country. How well do you speak Mandarin?)
Oh and the argument was that the government is purchasing mortgage backed securites and therefore will actually make mone for the taxpayers/investors. Well if they could be making money then why wouldnt’ the original holders keep them. Remember the government is only offering to buy the “toxic assets” which are loans that are at high risk of default so in fact these are more likely to lose value as opposed to gain value. We’d be lucky to break even especially since housing prices are continuing to fall. If the government can’t buy at the absolute bottom then they will lose money the minute they close the deal irrespective of future defaults.
CathyK // April 24, 2009 at 3:48 pm |
Hi Marcitz,
I am confused. I have two emails from you re: my comments on mortgages; one is a duplicate email, plus the other indicates that my comment was deleted from the site (?) but it wasn’t.
Anyway, I don’t think I need to repost, however, I will go in to clarify a couple of items. Thanks for your response. Life is so much fun these days with all of these new policies and the world of finance opened up for all of us to be stupified by, don’t you think? Are you the webmaster or something?
Anyway, on to mortgages. I looked around and found a website sponsored by a Michael Cook, a mortgage banker with Wachovia, that explained that the restructuring situation is as I thought: 1) the banks will have to eat the difference between the old mortgage and the new one, not the gov’t, although, in the spirit of truth-in- lending, he says there is a large cost to the tax payer in all of this due to the man hours it takes to do the restructuring. 2) the judges will make the determinations as to valuation and changes in interest rates and the banks will have to absorb the difference. If you could email me the actual gov’t site that lays all of this out, I would be fascinated to read from the “horse’s mouth”.
So, that brings us back to the renters. Nothing is going to impede the renters from buying whatever they are qualified to buy, with the tax cuts, they may even be able to buy up a little. The real estate market is a garden of eden at this time. With all of the foreclosures, the lower and the lower interest rates, the market is in fact self-adjusting and presents a vertible feast of properties for those with a regular pay check. In addition, the goverment has a program for first-time homebuyers which will help them with a downpayment and closing costs up to 6% of the purchase. Vets can get a 100% VA loan, FHA only requires 3% down. As long as these renters qualify, this is definately the time to buy, plus it would begin to stimulate the market.
Finally, you said in your email “someone has to pay these mortgages off.” Mortgages are paid off when a new buyer comes along and purchases the home and gets a loan. The new loan pays off the old loan. No one in China has to cover anything – at least not in this particular program.
Thanks
marcitz // April 24, 2009 at 4:39 pm |
Cathy,
When you talked about the judges you are talking about the proposal that bankruptcy judges should be allowed to adjust the terms of the mortgages for homeowners who enter bankruptcy. Yes in that case the bank will absorb the difference (I think that is also a bad idea but that is a discussion for another day). The bulk of Obama’s program is designed to help those who have NOT entered bankruptcy structure their mortgage such that the payments do not exceed 31% of their income. In that case the bank has to eat the difference between the current mortgage and getting it to 38% (through modifcation of loan terms, interest rate or principal reduction). Then the government will go halvsies with the bank to get the mortgage down to 31% of income.
Here is a quote from a CNN.com article that explains it
So that 75 billion is coming out of taxpayer’s pockets eventually to reduce the mortgages.
Regarding renters (of which I am one) I want to pay a fair price for a house and the government is trying to artificially prop up the price beyond what they should truly correct to. You say the real estate market is the Garden of Eden and I agree but need to carry that analogy a little further. Specifically it is the Garden of Eden but the current real estate offerings are the “apple being presented to us by the snake (nice picture for a real estate agent)”. Those that consume these delicious looking apples will find themselves naked, awashed in shame and kicked out of paradise.
In the end the government can’t possibly stop the correction and are only deciding on how much taxpayer money to waste to stop a process that will overwhelm any effort they can make to stop it.
Oh and what I said was “someone is going to have to pay off that ‘mortgage’”. I put “mortgage” in quotes because I was saying that the US National Debt (that these programs will greatly increase) is like a mortgage that the government has taken out on the entire United States. The largest creditor is China. I was being metaphorical but maybe too cute for my own good. I wasn’t actually referring to a traditional mortgage.
harve weltman // September 1, 2009 at 7:23 am |
i am a senior citizen who is current on my mortgage which i pay sun trust but my mortgage is held by fannie mae…for 7 monthes i have communicated with sun trust loss mitigation and have given them every document requested..last month i was forced into bankruptcy because of not receiving any help..my townhouse is upside down and yesterday i talked with hope now who after receiving my info said i should have qualified for help..during this period i have talked to at least a dozen different people at sun trust but cannot get the person who can help..my loan #XXXXXX ..i realize you receive many emails but hope you can help me..i do not wish to go into foreclosure thank you harve weltman