Losing a Job Now Could Mean Losing a Home

Once-stable Homeowners No Longer Able to Pay Mortgage Because They Aren't Getting a Paycheck

(CBS)  A house is all Amanda Auge wanted for her daughter Jasmine. But now she's lost her job and her southern California home has lost half its value - dropping from $395,000 to $180,000. Foreclosure seems like a foregone conclusion.

"It's very depressing," Amanda Auge told CBS News correspondent Ben Tracy. "I want help; you know we are trying the best we can. I'm doing everything I can to get help."

Amanda's original mortgage payment was nearly $3,000 dollars. This month she paid $600.

"I'm making the payments because that is what I can afford," she said. "We want to show good faith and pay down our loan."

Amanda is not alone. The current wave of foreclosures is hitting once-stable homeowners who are no longer able to pay their mortgage because they aren't getting a paycheck.

"People are losing their jobs and unable to make mortgage payments on what had been considered very safe, standard 30-year fixed prime rate loans," said Rick Sharga, senior VP of RealtyTrac.

U.S. Foreclosures Up 15% Since January

In fact, in the first half of this year, one in every 16 homes in Nevada received a foreclosure notice - a 61 percent jump from last year. In Arizona, it was one in every 30 homes (up 54%); in Florida, one in every 33 (up 42%); and in California, one in every 34 (up 15%).

So some banks are holding loan modification fairs, lowering interest rates and principal to make mortgages more affordable.

"We are definitely seeing better quality and more loan modifications," said Guy Cecala of Inside Mortgage Finance. "That's the good news. But the bad news is that they are not keeping pace with foreclosures."

President Obama's highly touted program launched in February has helped 325,000 borrowers, but more than 3 million households are expected to be in foreclosure this year. The loan modification process is often a mess; banks say they are overwhelmed and paperwork is often lost.

Amanda Auge has been waiting eight months for an answer on her modification. With a baby on the way, she's worried.

"If they foreclose on us and I'm 9 months pregnant, what do I do?" she said.

Unfortunately, many experts say the only way the foreclosure problem will truly be solved is when most of the borrowers actually facing foreclosure lose their homes. A tough reality check.

[nottellin1]

I'll admit that Bush wasn't a very successful prez and also that the Dem majority made accomplishing anything in the last 2 1/2 years impossible. How anyone can still be happy about an Obama presidency is beyond me. We watch as American ideas fall one by one to Obamas socialist ideas. His ego is astounding as he demonizes the elite and upper income, such a hypocrite since he has made a lifelong climb to attain upper status and has. When he used the phrase ordinary Americans" while campaigning, I thought he was relating, but he was actually letting most everyone who voted for him know that he is above them. News in So Cal reported a protest at the Bel Air gates where the Govenator lives. Interviews had quotes like "he has everything and we don't", "its not fair, we should have a jacuzzi too", in heavily accented English. Later reported that most were ?home health care workers?, paid by the state and riddled with fraud, with a large number of illegal alien invaders employed. This group is one of Cal?s biggest taxpayers drains and a big part of the current fiscal crisis, but no one talks about that. Oh yeah, lets no forget to make sure they have health care. All are politicians suck. I may never again vote for an incumbent.

[Stormy500]

Uh, why was this woman paying nearly $3,000 a month on her "original mortgage"? Did it ever occur to her back then that that was too much? And why bring up the pregnancy? There's only been, like, THIRTY YEARS of open and acceptable discussion of birth control. Clue: if you are paying $3,000 month in mortgage payments, don't get pregnant. And don't get abortions; use BIRTH CONTROL. But I guess it is easier to blame President Obama, men, eh?

[AOCGUY]

What a moronic headline! It has always been pretty much a given if you can't pay your mortgage you lose your home. No change there.

[zonkzilla]

"Are you stupid? Did you not say that there was ABSOLUTELY NOTHING that was made in the U.S.? Well obviously there is!"

Corporate greed is made in the USA and exported around the world.

[zonkzilla]

Now let's all look at this from a positive point.
The wealthy knew this was coming got huge bonuses, sold their stocks while telling everyone else to buy, and hid their cash.
Now the same wealthy people are buying up everything cheap so they can sell it later for huge profits just like they did during the last depression.
There is silver lining to every dark cloud.
Now aren't you doomsday people ashamed?
Why just this week I heard several Republicans say the way to help the economy is to eliminate capital gains tax for everyone and reduce income taxes for the wealthiest Americans by 10% (which would put them near 0%). That would be great, after the rich have bought up everything they pay no taxes when they sell those same properties and businesses for huge profits.
We might as well do it, because the wealthy are the ones keeping the economy down until we give in to their demands for yet another free ride with regard to paying taxes like everyone else they will hold back and keep us down.

[sahbuhnim6]

For all of you who voted for the Republicans this is where their outsourcing our Industrial Base to the Third world and China has led this country. Then to reward the American Blue Collar worker for their dedication to the company and building companies like J.P. Morgan, John D. Rockefeller, the Bushes and paying their taxes faithfully were given sub wage jobs at Mc Donald's Taco Bell and Wal Mart. Good Middle Income Jobs = Economy.

[sean58z]

Ed Rendell refuses to sign a state budget for Pennsylvania. He insists on a significant increase in the personal income tax for an expanded funding plan. How will Citizens of the Commonwealth afford to live? Ed believes money should go to contracts for his Buddies in Philly. Rendell understands price inflation and high unemployment. He should be arrested for impersonating a Chief Financial Officer.

[Newster1]

by incog-nito July 16, 2009 8:52 PM EDT
It means losing a home (unless it's paid off, you don't own it), "

EVen if you pay it off you STILL don't own it, try not paying your annual property tax and watch how fast you DON'T own it when they have the sheriff kick you out and sell the house at a sheriff's auction for back taxes.

[Newster1]

and her southern California home has lost half its value - dropping from $395,000 to $180,000."

WHat a moron, buys a $395,000 house and now can't pay for it, missy shoulda bought a $100,000 house, PAID IT OFF and then think about selling and moving up.

" by vietnamwar July 16,
Obama promised 3-4 MILLION jobs.
??????????????????????"

Yes? and he's been in office what? only 5 months? you sure expect miracles eh? you cant create 3 million jobs out of thin air at the snap of your fingers, it takes TIME and MONEY just like the job creations during the great depression building roads, bridges, dams etc, will take TIME but they will come.

[robinadair1]

This nation is done. Obama is finishing it off. Sadly,
United States of America 1776-2008 RIP

[brianbwb-2009]

Nah, Bush finished it off, it started dying under Nixon. The current president is simply assessing the result and trying CPR, but it is not worjing, because he is not pumping the heart, but the pocket.

[pepperwood2]

Bullish Obama Suggests Nation Should Buy! Buy! March 03, 2009 1:29 PM
President Obama told Americans to take a look at investing in the stock market this afternoon, a remarkable utterance for an American president, especially as the Dow Jones Industrial Average proceeds on its course Southward.

[brianbwb-2009]

you show the headline and the date, but what publication? Looks like you made it up.

[formrusmcsgt]

I've seen 5 homes go into forclosure in my neighborhood here in Vegas.

They were the types who changed cars every year or so - usually the husband and wife both.

Those of us who they looked down their noses at for driving a vehicle long enough to actually pay for it still have our homes.....

Our two vehicles are still parked in the garage every night while the "snob-sleds" are probably in apartment complex parking lots picking up a half-dozen dings a month.

Breaks my heart....

[pepperwood2]

Losing a Job Now Could Mean Losing a Home! Once-stable Homeowners No Longer Able to Pay Mortgage Because They Aren't Getting a Paycheck.

OK before this economic downturn came about I had a job, house, car, payments etc. President Obama took office (January) & said they had to bail out the Banks, Credit & Mortgage Cos. Auto Manufacturers, Wall Street was in a bind, etc.

He said that He, Mr. Geitner & Congress were working overtime to stabilize the situation. He called on the American People to go out and buy a new car, buy stock, refinance your home, buy energy efficient appliances, Use our credit cards to charge & do it often. Our credit card interest would be protected and that the Banks would not foreclose on us.

Have had to work part time now. I only wish I had the sense to pass up on all these PR Schemes that I fell for. They sounded too good to be true. Sometimes the best buys & deals are the ones we don't make. So Sad! I only hope that I don't get suckered into doing this again.

[brianbwb-2009]

I never heard him say to go out and buy cars and stock, what I heard was that he wanted to free up the frozen capital on wall street so banks would start loaning again. I never heard him say that banks would never foreclose, and I never heard him say to go out and increase your credit card debt. If you would furnish a reference to such, I would be interested in reading it.

As for energy efficient appliances, common sense would tell you that he didn't mean buy what you don't need, but to consider more efficient replacements when the time comes. If you went and bought a refrigerator on your credit card that you didn't need, because the one you had still worked, then the president is not the one with suspect intellect.

[dougrdoug]

There will be a lot more foreclosures. There still are more factories and dealerships to close after the GM, Chrysler deal. It is time for America to settle in for a long recession lasting a decade or more. America is going into a period of lower GDP and a weak dollar. Unemployment will continue to rise and the dominos have not stopped falling yet. A depression would not be out of the question.

[vietnamwar]

He said that He, Mr. Geitner & Congress were working overtime to stabilize the situation. He called on the American People to go out and buy a new car, buy stock, refinance your home, buy energy efficient appliances, Use our credit cards to charge & do it often.

Huh ??

[brianbwb-2009]

Out of the question? try inevitably, as any real actions to avoid it are unfortunately out of the question.

It may not last ten years, because America may not last ten years. Unlike the depression of the 30s, there are far more angry people out there with matches, and there is a lot of dry tinder out there. With enough hungry people out there with guns, all it will take is an act of police brutality to become public, or a food riot, or a gang turf battle, and the wildfire will start, the news media will unintentionally help it to spread, and it will be all over.

For all you anti-Obama idiots out there, this problem started with Eisenhower's secret S.E. Asian debacle, and reached critical mass with Nixon. Subsequent presidents either watched the fire burn,(Democrats) hoping it would burn itself out, or actively poured gasoline on it (Republicans) hoping to speed up the destruction, so they could pick over the remains.

Mr. Obama is still reluctant to make the hard moves necessary to prevent further collapse, instead choosing to adhere to the trickle down economic agenda championed by Reagan, in a futile attempt to keep the neos from calling him the n-word (fat chance). His heart and intent may be in the right place, but his solutions are woefully inadequate, if he wants to really fix the problem, he must do a Nelson Rockefeller, and show the neos the middle digit, and do what is right by the country, even if it means becoming a one-term president, because at least there will still be a nation for him to retire in.

[erasmus111]

by vietnamwar July 16, 2009 11:11 PM EDT
You want to buy something "made in the U.S", come to Canada.

Huh ? What part of Made in the USA that u don't understand ???


Are you stupid? Did you not say that there was ABSOLUTELY NOTHING that was made in the U.S.? Well obviously there is!

[erasmus111]

Now if you had said that you couldn't find anything in the U.S. that was "made in the U.S", then I would have agreed with you. The only things you have are "made in China".

[vietnamwar]

Mr Smart, name one thing that are 100% made in the US

[vietnamwar]

Mr Smart, name one thing that are 100% made in the US

[vietnamwar]

Do you thin GM and Ford parts are made it here in the US or China ??or Mexico

[babooph]

Her old middle class mentality will have to go-the rich have a problem -China & India are doing so well ,transplant organs are no longer available-her & her family can sell their organs to some rich drunk who still has high dollar health care.Welcome to the "New world order".

[vietnamwar]

The Obama plan to help home owners stay in there homes has not worked. You know the one that was supposed to stop foreclosures and help millions. There is no accountability to the banks and they are refusing to work with anyone. They are taking interest free money and hording it.

[brianbwb-2009]

To vietnamwar

That is why he is now starting to say "no" to the banks.

They said they would behave if they could only get bailed out, and so Bush promised the money, and later Obama gave them the benefit of the doubt.

Now that they have proven themselves to be liars, the president is now starting to do the right thing.

A bit late indeed, but very logical.

[erasmus111]

by wtcmedic911 July 16, 2009 10:23 PM EDT
erasmus111
As always your intellect is amazing.


You're a moron. You don't have a freaking clue about nothing.

You want to buy something "made in the U.S", come to Canada.

[vietnamwar]

You want to buy something "made in the U.S", come to Canada.

Huh ? What part of Made in the USA that u don't understand ???

[debinok1]

Coffee may be Hot.

Ice may be Cold.

Knives may be sharp.

Guns may kill.

These are not headlines, they are warning labels. Maybe every mortgage should come with black box warnings that state: "In the event of job lose, you may face foreclosure." I mean come on how stupid does the media think the general public is that this is NEWS.

[vietnamwar]

I just found a job for everyone vote for Change!!! They call it welfare, everyone who has lost their job please get on welfare, the more of us on welfare the sooner it will disappear, lets all get on it. I bet that is all bushes fault still?

[South-of-Heaven]

thanks SHRUB, you did a fine mess on the 8 years of misery we suffered.