Posted by Homeowner, a resident of the Ironwood neighborhood, on Jul 31, 2008 at 7:33 am
Unfortunately, McNerney suppported the recently signed Housing Bill. I am very disappointed in his vote to support bad policy to try and capture votes.
I think this open letter to the editor in a paper back east says it all - Thanks Jerry!
Open letter to Joe, Okay, so you were right! I thought you'd lost your mind when you sold your modest house next door in 2005 and bought a $1.2M mcmansion,with no money down. I thought you were crazy when you used the proceeds from the sale of your house to go to Europe, buy two expensive vehicles, new furniture and put in a swimming pool in your new house. In the meantime, my wife and I pinched our pennies, socking money away in our 401Ks, saving for a vacation and continued to drive our ancient cars. I felt vindicated when the real estate market collapsed and your mcmansion fell in "value" to $800K and the interest rate on your ARM went up to 10%, while my fixed rate stayed at 6%.
My, how the tide has turned! Thanks to our elected officials, I will be helping you keep your mcmansion with the granite countertops and all the other trappings of wealth. You'll get a reduction on the principle of your mortgage and a lowered interest rate. The only way my mortgage principle will go lower is if I pay it down; and, of course, interest rates have gone up so I can't refinance for a lower fixed rate. By the way, your old house went into foreclosure last month. I don't think the folks who bought it at that inflated price ever meant to live in it and when they couldn't find a renter to cover the cost of the mortgage, they decided to let it go back to the bank. Of course, that meant the value of my house dropped quite a bit more. Don't worry though -- Since we've been diligently paying down the principle on our house, we still have some equity left.
I sure do wish I could get the principle on my house magically reduced and (prayer) a lower interest rate too! That would give me some financial relief-- paying for my daughter's college tuition and health insurance would certainly be easier. (She turned 22 this past May, so I've had to pick up the tab for her health care.) Since I didn't overspend, can afford my mortgage and saved my money, I won't qualify for those "breaks" my tax dollars will be funding.
Speaking of those tax dollars, I've been writing letters to our elected representatives to fund new roads and rebuild our crumbling infrastructure. Have you seen the cost of college tuition lately? How about health care, the cost of food and I don't want to even think about gas prices! Too bad our tax dollars will be paying for your mcmansion. If projects to help the rest of us are to be funded, our elected officials will have to raise our taxes, and frankly, I'm just not "feeling" a tax increase. Our elected officials have mismanaged too much of my hard earned money, already.
In addition to giving you breaks on your mcmansion, I did hear that the new Foreclosure Prevention Bill will "put a floor on the price of housing". I guess my son, who just recently graduated from college, won't be able to buy a house after all. He's staying at home with us and saving his money. We'd hoped that house prices would continue to deflate, reaching a level commiserate with incomes in this area. He's making a nice salary, but still can't afford the prices. Yes, I do understand that first time homebuyers will get up to $7500 in breaks, but read the fine print, besides that small amount won't even cover closing costs.
Well, Joe, I just wanted to let you know you were right! I was dumb for playing by the rules, saving my money and max'ing out on my 401K. I should have taken your lead, purchased a mcmansion and spent every penny I earned. Think of all the fun I could have had! Nice cars, granite countertops, furniture,clothes, vacations...wow...and, the "government" picking up the tab.
I can't wait for the next bubble. YOU ARE THE MAN!