And a Samantha Rant!
Tracy Orr attended an auction of foreclosed homes, hers was one on the block for bid. She had bought her home in 2008 and just a month after purchasing it for $80,000 she lost her job. Orr fell behind on her payments and then went into foreclosure.A teary eyed Orr struck up a conversation with a stranger about her heartbreak, that stranger happened to be a God Send.
Marylin Mock was attending the auction to help her 27 year old son to purchase a house. After hearing Orr's dilemma she decided to buy the foreclosed home on a whim. She purchased the house for $30,000 then told Orr she could stay at her home and pay her instead of the bank.
What Marylin Mock did is a dream to many people in foreclosure who are facing homelessness and uncertainty. Just think about this. The house was worth $80,000, but was sold at a $50,000 loss for only $30,000. Why did this house have to go to auction and the bank lose money? Why didn't they work with Tracy who was struggling? What is so damn hard about giving an economic deferral to not only be a help to a client, but ensure a home loan?At $80,000 with about a 6.9% interest rate, Tracy's house payment is about $800 a month including escrow and possibly PMI (Private Mortgage Insurance). Keep in mind I am not a mortgage genious calculator or anything. So that means the bank will most likely be getting about $500 of that a month on a 30 year loan. That is $180,000 at the end of the loan. $100,000 profit! And not to mention the bank is paid first before much goes into the principle balance. So the bank gave up $100,000 profit to sell it at action for $30,000?! That is a $150,000 loss. That is just horrible business practice, let alone immoral to be kicking someone out of their home when you are willing to take it at such a loss. I bet Tracy could have easily afforded the payments of a $30,000 loan after she found a new job.
Folks this happening in the market is not a moral capitalism. This is an immoral action that in the end has effectively screwed over the entire nation. If people pulled their heads out of their behinds and actually looked at the numbers they would make wiser decisions. Because of this meltdown people are gun shy when it comes to capitalism. Look at the poll numbers, people are voting in a socialist. Now if that is what people want, whatever. I happened to disagree and feel there is more opportunity for success in a true capitalism. But even capitalism is out dated, we need economism, where people use their brains. What better way to ensure profit than to make sure people can afford your product? That means people need jobs, homes, and fair prices. In this way everyone who is willing will succeed.
Courtesy of Daughter of America
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