John Mayer's Real Estate Blog: Middle Class Screwed Once Again

Middle Class Screwed Once Again

Over a year ago, my close friend “S.M.” was laid off from his union carpenter job in Florida and had to go to South Carolina to find employment. He couldn’t find work anywhere on the Space Coast, was living on credit cards and had no way to pay the bills. His home was listed with me as a “short sale” meaning he owed more than it was worth. After all this time, the bank had finally come to terms with current market values and would accept the latest offer if he signed a $17,500 promissory note payable over 19 years for part of the shortfall. His lawyer advised him not to sign it and said he had a hundred more in his trash can. This is after the bank initially said they would write it off. He has recently been laid off from his job in SC and found out he does not qualify for unemployment insurance for a month or two. We tried to negotiate with the bank but all we got was voice mail. He wanted to do the right thing but it’s hard when someone keeps kicking you when you’re down. His wife is on permanent disability with fibromyalgia, rheumatoid arthritis and has just undergone major surgery. It makes you wonder where the bail out money is for the people who really need it. The hard working middle class of this country have paid their dues and taxes and will end up on the short end once again. Subsequently, the US Bank foreclosed and a lot of Realtor's and buyer's time was wasted. Get ready for more of the same in 2009!

Comment balloon 3 commentsJohn Mayer • January 18 2009 10:44AM

Comments

The only way the middle class is going to get great paying jobs, is if there are great paying jobs out there. That means banks need to lend to companies who need to have low taxes so they can hire new people. The whole point of the bail out is to help do this....who knows if it will work, and when..but it's something. I think it would have been faster to lower everyone's taxes.

Posted by Karen Fiddler, Broker/Owner, Orange County & Lake Arrowhead, CA (949)510-2395 (Karen Parsons-Fiddler, Broker 949-510-2395) almost 11 years ago

It's amazing - those who try and do the right thing get #$#$@#$%^%^%^&!

 

Lets hope Obama will pull off something great for all of us. I didn't vote for him but I wish him well and pray he can change things!

Posted by Richard Shuman, Real Estate Broker - Orlando Area - Love Referrals (The Only B.S. I Have is from the University of Massachusetts) almost 11 years ago

I agree with Karen, the bank bailout was a big sham it will continue.  Banks are getting even more difficult to deal with ever since the bailout.  It's sad that the homeowner would have to sign a promissory note when they are already down in the mud and there is no where to go.

Posted by Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty, Sun City Grand in Surprise Arizona (Leolinda Realty) almost 11 years ago

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