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View Diary: Set Up Emergency Housing on the National Mall and the White House Lawn (43 comments)

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  •  The pain of downward mobility is relative (1+ / 0-)
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    foufou

    It seems to depend on where you're falling from and to and if you have a job.

    I know 2 households who lost their homes in foreclosures. Both built their homes in 2000 for around $200k over the next few years accumulated HELOCs for up to $900k - still below the notorious  market prices in '05 and '06. Their businesses tanked in '08 and by  2009 they'd both lost their homes. Both resold for low $700k's.

    Both families say today that they feel freed, are renting smaller homes they can afford with their new jobs, in the same school districts, and are in very good shape emotionally and better shape financially.

    There are many more people with less distance to slip before they hit real poverty. Or do not find jobs. These are the people who need to be helped given the government has apparently decided not to intervene in the overarching banking scams.  

    The US is mired in downward mobility but we are resilient individuals - a pro and a con.  Unemployment and Poverty are what need much more attention.

    As airplane pilots say, any crash  you walk away from is a successful landing.

    •  Two anecdotes (1+ / 0-)
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      gooderservice

      of people who didn't lose their homes but sold before foreclosure and walked away with a huge profit -- are you saying that this is the norm?

      •  Oh no, they both lost their homes.... (0+ / 0-)

        ...and all of the money they had put into them plus  they both received some kind of IRS filing from the bank that they essentially got dinged for the balance between the money they owed the banks and the price the banks got for the properties so they now owe taxes on that "gift". These families started over penniless.

        The collapse of the economy caused their unemployment which led to them exhausting their savings until they were foreclosed. They probably should have walked away much earlier but who's to know what one would do, clinging to hopes and heralds of recovery "right around the corner."  

        Is this the norm? I'm no expert but I think not,  although the "norm" is a regional thing.

        What I am saying is that there may not be a norm wrt foreclosures. I don't expect foreclosures to drive people to emergency housing. It's being left in poverty with no job and no prospects for a job that is the nightmare that drives people to emergency housing.  

        Downward mobility is a very bad dream, but not necessarily a nightmare.  It won't drive people to the streets.

        There is a very definite norm with poverty and  unemployment.  

        •  Misunderstood the stories (0+ / 0-)

          I thought you were saying that they had to sell their homes due to foreclosure.

          Well, I'm glad these families were able to purchase another home, something that is not an easy proposition for most people who've been foreclosed.  Usually it prohibits you from getting another mortgage, and wrecks your credit, and many apartments require a credit search.  

          It sounds like they were able to find new jobs too, another difficult proposition for most, and something that also often requires a credit search.

          I'm just not seeing the bright sides of downward mobility the same way that you are, and in fact, it sounds like a euphemism.

          •  I could have explained that much better (1+ / 0-)
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            foufou

            My point is that the poor, especially those with children, need more help, ongoing, and their numbers are growing.

            Foreclosures are one way the poor population is growing but the real culprit is unemployment.

            The government needs to defend the country and make the people whole from the robbery and exploitation of the global banks.  Losing savings and being forced out of a home is a terrible thing, but it's the lack of jobs that makes families destitute, not renting.

            Poverty and the need for real, ongoing assistance predates foreclosures and IMO poverty is a different and bigger social issue, a worsening national threat.

            It will be unemployment from which tent cities spring up in DC just like already exist in Ca and Florida.

            Btw, the city in which the two families live, the ones who lost their homes, is Issa's Ca-49th where 10% of the school children are homeless.  10%.

    •  No, the US isn't mired... (1+ / 0-)
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      joanneleon

      just the poor working schlubs who pay taxes to bailout the rich.

      The US is mired in downward mobility but we are resilient individuals

      Weren't they free before when they could afford the mores expensive homes, you know, owning them?

      Both families say today that they feel freed, are renting smaller homes they can afford with their new jobs

      To every millionaire who decries they don't want their grandchildren paying for the deficit, I say: PAY MORE TAXES NOW and your grandkids won't have a deficit burden.

      by gooderservice on Tue Feb 22, 2011 at 12:47:16 PM PST

      [ Parent ]

      •  I don't understand your question. (0+ / 0-)

        These people were middle class workers - a construction framer and a HS school teacher - with $200k homes that exploded in vaporous value in the Ca real estate market. They paid their taxes, supported the bailouts like we all did. They lost their jobs, finally lost their homes in foreclosure, sold most of their possessions.

        They moved into rentals, got jobs after many months of unemployment, and now claim to be thankful to be free of collections agencies and the threat of the locks being changed on their doors.  

        •  They were free before until things (1+ / 0-)
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          kck

          changed, and they say they're free now, but things could change again.

          They moved into rentals, got jobs after many months of unemployment, and now claim to be thankful to be free of collections agencies and the threat of the locks being changed on their doors.

          The threat of getting kicked out of their home now is solely dependent on whether they keep their jobs.  They're not free.

          To every millionaire who decries they don't want their grandchildren paying for the deficit, I say: PAY MORE TAXES NOW and your grandkids won't have a deficit burden.

          by gooderservice on Tue Feb 22, 2011 at 01:45:00 PM PST

          [ Parent ]

          •  People need to be able to work and pay the rent (1+ / 0-)
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            gooderservice

            Jobs and a living wage - that's the goal IMO.

            A living wage is freedom IMO, not holding on to homes and indebtedness to banks and predator collections agencies.

            Maybe we're in agreement.

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