Foreclosure Alley

I was deeply moved by the piece. It's sad to see 'The American Dream' fading away for the vanishing middle class by the greed and inaction from our financial sector. The man from Lake Elsinore had it right, the crisis is only to get worse as people with 5-year adjustable mortgages start getting their bills that they can no longer afford. 'Brown Grass & Green Pools with larvae' will be the going thing in the I.E. & California for sometime. Good report, KCET.

This was a shocker to my senses. I also live in this area where it was filmed. I'd been wondering how-where was all this money coming from with the new people in the area, new homes, women shopping like there was no tomorrow, new vehicles, it was shocking and bewildering how all these young couples-people were earning there living and spending these past years. Now I know.

Lisa Ling did a fabulouse job on this piece as usual, top notch job-it has shocked my senses all evening after watching it.

I hope you show "Foreclosure Alley" more through out the season-year! Great Job Everyone who worked on "Foreclosure Alley". Shocked My Senses to The Core and Beyond, Molly

He paid $399K and a house down the street is going for $180K.

He says he made a stupid decision. Yes, he did. But he is compounding it my an even more stupid decision--STAYING IN THE HOUSE. WALK AWAY, IDIOT!!!!

It is difficult to feel sorry for all these people that is caught up with the foreclosure. I wouldn't even feel sorry for myself if I were in their shoe. My wife and I has been moving from rentals to rentals before we save up enough money to put a down payment for a house and we can put in at least 50% of the value. We did not go in immediately but waited for a bubble like this to do it. That happens in the 90's and we have a great house for a great price.
Our house increase in value after 2001, we did not refinance or take any equity from it because we did not need it. We see the prices going up ridiculously and told ourselves to braise for another bubble. Well this is it and we have save up enough to get another house.
This bubble is not going to go away for another six years and we are looking seriously into where the bottom is before we decide to get one.
My point is we have so much resources here to learn and be wise with our investment. We have so called the best education system here yet we look so stupid going into ridiculous loans with terms we know that is going to hurt us when the time comes. We have plenty from where I originated yet we get drunk with greed. We think we are someone but ending up longing to be somebody else and worship those rich and famous like God. We did think that money grows on trees before this bubble and we acted like there is no tomorrow buying all our WANTS and not thinking that much in the future.
We are going down today. History does repeats itself. The Romans had it good just like us but throw it all away being complacent.
We thought we have the freedom.. but look carefully and be wise to see what the government has done. Yes we think we have the freedom. Yes we think that all is fair in this country. The government today is not for the people, is not by the people or even of the people. Is the government afraid of it's people today? The French government is. Look at ours here. Think people who is in-charge of the country. You think you do? Where is our choices for president comes from.. the two big parties and people who are rich. Where are the rest?
It is sad to see that the country have to reach this desperate state to learn. It is sad to see generally the population taken for a ride by its own government. It is sad to see the so call best education system fail to greed. It is sad to see the world most powerful nation could even protect it own citizens from dying due to unavailable health care. What else could I say to create a revolution.

The broadcast was truly moving. Human beings are destined to repeat history time and time again. It is not fair to point the finger at just one party for the blame. The problem was a long time coming. Our government officials wanted increased revenue and cut red tape and turned a blind eye to warning signs. Loan officers encouraged applicants to get all they could get, not afford. Banks eased requirements. Reality companies directed potential clients to appraisers who “could deliver the numbers” and finally potential homeowners ignored common sense and overreached. In my case I was bombarded constantly to refinance my properties. I knew taking out huge loans was irresponsible. I took the conservative approach. I balance my assets between stock, bonds and property and lived within my means. I did not take out “the equality” my property had amassed. However, I am still getting hit pretty hard. I have lost 50% of my stock value in the last 12 months. This was to be the future for my children. It was to provide education and services for their disability and potentially a home for them to live in should they not be able to become gainfully employed.

We all knew that the market could not sustain the rapid growth. It was artificially created by loose lending practices of which our elected officials grossly failed to perform their sworn duty to safeguard the interests of the constituents. Both the Democratic and Republican politicians in Washington and Locally are to blame equally. When will special interests stop hurting America? Can’t our politicians do the right thing and put the people first not their political careers.

Are we going to experience the 1930’s again? I hope not. It is wrong for a family to leave behind its memories, dreams and hope. Your broadcast painted a stark picture of what might be for a great many more Americans if our politicians don’t start work together for the common good.

What is next? What about the bonds and special assessments to pay for the infrastructure i.e. the roads, water and sewage? The trigger to this meltdown was our dependence on foreign oil but it was our greed that made it possible.

We need to take responsibility for our future and earn an honest dollar. A fair wage, a flat tax both federally and locally in the State and we need to live within our means.

God Bless America!

Hey I need...no make that want a big screen TV. How can I contact these guys and pick up a big screen for pennies on the dollar. I can also use a new/semi-new computer for the kids.

Seriously that is a lot of good stuff going to waste. I guess that sums up the entire housing crisis people WASTING money on oversized houses, oversized vehicles, expenisive $1000 oversize purses and undersized overpriced dogs to put in said overpriced purse.

to anyone watching this, i urge you to try and buy a foreclosed home. or go to an auction. it's almost impossible, made worse by the bank bailouts which are not forcing these homes into zero-reserve auctions.

Exactly right, I did the same thing. I'm a Generation Y'er who saved every penny and rented during the bubble years (because, duhh, I didn't want an oppressive mortgage). Now I'm supposed to feel bad for foolish people who knowingly lived outside their means?

1st.. Does anybody here not think the first part of this video was not set up to gain sympathy? PLeaseee.. do not insult us. Nobody is going to throw away computers and t.v's in reality. This was a preplanned little show to gain sympathy. DON;T FALL for IT!! Are all those workers making so much money that they are not willing to resell the stuff on ebay.

GIVE ME A BREAK.. STOP the lies..

Teach people how to walk away from the bad decision they made.

I am single, female and take care of my handicap mother under the same 1000 sq ft house. Yes.. It is a bit small but my mortgage is only $250 a month.

DO NOT ASK ME TO BAIL OUT THE FOOLS!!!!

No sympathy here ..

Instead of begging for another loan modification to live in a house 5 times the size of mine just walk away.

For the love of God... Find a 1000 sq ft. house and rent!!!! JUST LIKE YOUR FELLOW PRUDENT citizens.. DO not come begging to me for a bail out..

This is what the government is asking of us now.. To bail out our neighbors living in mcmansions.

TOTAL Insanity..

I am shocked that anyone is shocked by this video. I've been hearing about this stuff for at least 6 months now. And why should we pity the former owners for not taking their personal possesions along? Did they really need to pay a moving company to pack up that handful of family photos? Maybe they could have just used their own two hands to do some work themselves. Prudent people don't just abandon stuff like that.

A comment from the CalculatedRisk blog needs to be forwarded to the company that is doing these trash-outs -

Please call and ask them to try placing ads on CraigsList (http://inlandempire.craigslist.org/ or simply http://www.craigslist.org/) to help avoid some of this stuff going into landfill. This is such a waist!

If they posted the address the morning of, they'd probably get a line of people out there in short order to collect much if not most of the stuff from these homes!

Cn

Stop voting Republican. They represent ONLY the rich. The reason so many of you are in such a bad situation is due to Republican control of the government.

The only reason the middle class exists (which has only been about eighty years) is due to the Democrats.

But go ahead and vote on stupid emotional issues. Go ahead.

Since "the rich" are by definition a minority, how could any party succeed by representing them in a two-party system? I fear that you are oversimplifying just a tad. Anyway, this is false dichotomy, as there is a third choice: the Libertarian Party. The other parties steal from A to give to B, and then from B to give to A.

Libertarians don't steal.

Poor Linda. Bought a half-million-dollar pad and now the meanies want their money. She's a real-estate professional (stamps foot) for goodness' sake! This kind of treatment just isn't right!

The excessively high price of the homes put people at an unnecessarily high risk of foreclosure and the economy could not support the high cost of real estate. The high prices of these homes (compared to the median salaries for that area) almost forced people to get an ARM loan just to afford these houses. Most people don't want to lose their PRIMARY residences, often enough an ARM loan was easier to get than a rental.

Now how did the prices get so high?

**Price manipulation by industry insiders**. Seriously. When the interest rates drop or the access to loans gets easier, the intent is to increase speculation. So that's how the lenders and the banks made their contribution. Then realtors (the "ethical" real estate "professionals") and others in the biz used these ARM loans to speculate, keeping demand and prices high. The lenders and real estate agents/realtors all benefitted from a higher valued property in higher fees, commissions, interest and penalties. Actually brokers got higher payouts for selling riskier loans. They faked this demand. They were acting like investment advisors. Boomers seeking their nest eggs and others thought the unregulated real estate market as an investment was "safe" so speculation added more icing to the cake. There's no guarenteed liquidity in real estate but foreclosure. The stupid lenders created a huge inventory of debt obligations intended for speculation purposes, which is still on their books (collapsing the Lending institutions and banks) and now they want the taxpayers to collect them.

Most people are not earning a dot com salary. Jobs are being lost, inflation is getting higher and gas prices are going WAY up. The correction was going to happen.

Sure some people took out equity loans on their appreciated property and foreclosed due to irresponsibility.

But the numbers are way too high. The borrowers were getting killed here with the economy and the gouging. Unless the bailout contains measures to correct these things, it's going to be an EPIC FAIL.

Hey Mike,

The Democrats cater to the rich also. Why do you think the rich Hollywood elite loves them. Also, while I am sure there are plenty of Democrats who vote thinking they are helping people they are really creating a dependent class of people (the Poor and Union workers) who will vote for Democrats purely based on the handouts they receive. This is destroying the middle class and America. People need to become self sufficient instead of dependent on others for their care. Sure there will always be those who need our help, but many Democrats could care less about the needy and only care about getting their votes. It is not a black and white issue.

What? They don't have any Goodwill donation spots in California? They'd rather toss perfectly-working items like a big screen TV into the dump rather than allow someone else to buy it (and the proceeds may help OTHER struggling families)?

It looks like the former homeowners aren't the only ones who are making horribly wrong decisions.

Good riddance to bad rubbish. If these people can't or won't make the mortgage payments that they agreed to in the contract that they signed, then it's time to step aside and let steadier hands take the wheel.

Excuse me....

but this woman seems waaaay to happy and upbeat reporting this....

they should've qued her to seem more "compassionate"

Pardon me if I have no sympathy: Get out of the damn cities and start populating the rest of the country. You have a water shortage, an energy shortage, and crazy property costs - move to the midwest where you can put down $100,000 for a three bedroom house and two acres of land.

U-Hauls are cheap. Get out of the population centers.

Notice how that talking head has a huge smile on her face the whole time? Nice of her to care, huh?

"Notice how that talking head has a huge smile on her face the whole time? Nice of her to care, huh? "

Can you say Botox? Her whole face was artificially frozen. Welcome to SoCal.

Sorry but people need to quit blaming others and look into the mirror. Sub-prime loans are for people who have already proven that they are not trustworthy. This country is based on credit and entitlement. Only people I feel sorry for are those who are giving up their luxury items like cable tv, cell phones, and eating out in order to make good on their mortgage. This govt bailout is just another way to let American's know that they no longer need to be held accountable for anything!!!

Hint for financial success: do not buy a damned $300k+ house when you make "$3100 a month"

I saw a Kim Chee Jar and Shin Raman noodles that lead me to believe that they are korean so they probably returned to Korea.

Just a reminder to not buy things you can't afford....

Its very clear you purchased a house well beyond your financial means. People like you expecting a bailout like the 'adjustment' by your mortgage company make me sick.

I love all the finger pointing....

First to the almost-retired woman with the $566,000 mortgage. You're stupid. Don't look for sympathy. It was fun while it lasted, but the party's over and you have a huge hangover. I am in about the same life-stage as you. We're a single income household who raised/supported two kids through college - launching them into life without student loans and a $20,000 nest egg to begin their lives - and minimal support for their first 5 years after graduation. Everything we own is paid off (including the 05 BMW and the 09 MDX) and we just broke 7 figures in cash/cash equivalents - even after the market collapse. Our average annual income over the past 20 years was about $70,000/year (much higher now, but we also now put away $100K a year). How did we do it? Simple. Spend only what you have - never raid your home equity or savings. Pay yourself first (savings). Don't revolve credit (pay it off monthly). Live within (or below) your means. It's so simple, it's frightening. My wife doesn't have a closet full of Malono Blahnik shoes and Louis Vuitton bags, but that doesn't make her life any less fulfilling. She prefers running shoes anyway.

For those of you blaming the sitting President / Administration: It's not really entirely the fault of the current sitting administration. If you look to the root cause of the problem, it's Congress that started the fire in 1977. There's this little gem called "Community Reinvestment Act" - signed by Jimmy Carter with an amendment approved by Clinton, and defended by the Democrats, yet many other representatives saw it for what it was. On the surface, it looked good: affordable housing for low income people. The bad part was that poor people are usually poor for a reason - and it's not always income - it's judgment. So the Feds demanded that the banks finance these people who couldn't afford to pay attention, absorbed the loans via Fannie and Freddie, which required issuing liar loans so the banks could reach their quotas of "affordable mortgages" as dictated by Congress - all without adequate reserves to protect the banks from default. Any idiot (well, apparently almost any idiot) could predict what happened next. The other deadly nail in the coffin was the "mortgage brokers" who were paid, not on the performance of the loan, but for closings. They placed garbage, got their money and ran. Once mortgages were granted by banks that had loan committees that looked at the people - even held face to face interviews (as recently as the early 80's) - and made decisions on their creditworthiness. Now? Online loan applications and no income verification loans. The stupidity of it all... why not leave money in bags on the front porch instead?

The time proven ratio of 3x's annual income for housing and housing related expenses still stands true. If you're taking out home equity loans to make your house payment, it's a sign that you have a problem.

Flippers: I live in SoCal - Orange County. I watched my neighbors buying new cars on HELOC's, putting in pools, buying homes in the desert.... all on the artificial increase in their home value. Somewhere along the line, someone forgot what a home is. It's not an "investment" because it's not liquid. It's a place to live. People were buying $600,000 houses, spending $50,000 in upgrades, and flipping them for $800,000 in 30 days. Do you know what? There were lines forming to buy them. It was a fever where greed overcame common sense. I, for one, have no sympathy for a payment buyer. It's the total borrowed, not the payment, that is important. Interest rates cycle - if the 1% difference between a fixed mortgage and a ARM was the difference in affordability for you, it's clear you can't afford the house - let alone the Mercedes, Land Rover, and Porsche on the driveway. If you pay $100K less for the house, but with a higher interest rate, you can always refinance if you maintain your equity when rates adjust. Then you have a cheaper purchase price, lower loan, and ultimately a lower payment at some point in the future. If you don't have 20% down, you shouldn't buy a home anyway. It shows you don't have the self control to save. And before you start whining about "it's because you're rich", I did without luxury items until I could afford them. We're smart about what we do (we do have 5 cells, but share unlimited minutes and texting for $130 a month - all my family has one that I pay for - the same single service is $70 per phone per month from the same carrier for a savings of $250 a month) and we do without stupid things (like $50 a month pay per view sports packages on cable or HBO/Cinemax). I mow my own lawn, wash my own car, paint my own house, clean my own house, do my own home repairs..... not because I can't afford to pay for it, but because it's foolish to pay $40 a week to mow a 3,000 square foot lawn, $40 a month for fertilizer (I do it for about $20 a year). It takes 20 minutes a week.

The trashers: There isn't a market to absorb all the crap that they're cleaning out of these houses. Keep in mind that, if people are losing their homes, who's got the money in those communities to buy this crap? Having cash, I scour Craigslist for cool stuff. I just bought $4,500 (new purchase value without tax) of artisan chairs (if you don't know what that is, it's a hand made piece of furniture, signed by the cabinetmaker, and is of heirloom quality) for $1,000 from someone who lives in Malibu. She was clearing out the house as it appeared she lost it. I bought a table last night for $350 that some young woman bought for $850 in July. She needed the money to make the payments on her M3. This stuff is in brand new condition. However, I wouldn't buy the Packard-Bell computer shown in the clip - it probably couldn't run Windows 95 let alone XP - nor the projection big screen TV that is a power waster. To those who are worried about the environment: the dumps separate the crap in the dumpsters. They are required to by law (not that it means much). This is California aka granola land... land of the fruits and nuts... what's left are flakes.

To the moron who told the guy with the house he's paying $3,100 a month for "to walk away". Yes, legally in CA, you can walk away from a first mortgage used to purchase the house - but not the HELOC's, seconds, or refinances. YOU and YOUR TYPE is what's wrong with this country as you refuse to pay the consequences for your own stupidity and poor decisions. Do the rest of us responsible people a favor - go into the desert and die. I'm sick of paying for your stupidity. You, sir, are a weasel with no character whatsoever. Your mama must be proud.

Anyone with a brain knew that the Inland Empire would collapse. There is little employment out there (it is growing, but it's not self-sustainable as yet), unless you count the endless malls as the land of opportunity. The residents of that area are required to come through Weir Canyon to access LA's job market. It's a horrid commute (unless you pay $6 each way for peak tolls), it's hotter than hell out there (hence the pools and $500 a month electric bills)... anyone with a brain would not consider that a viable option unless your place of employment was local (and stable). The CA transportation system sucks. Each new community added more gridlock. I had the sense to buy close in - not in the fanciest of addresses, but I knew that as the population continued to increase, due to the unbridled illegal immigration we can thank our "leaders" for, that the further out you were from the employment base, the faster your property values would crater when the market inevitably adjusted. The knucklehead in this video has lost in excess of 50% of his purchase price. Me? I'm still ahead of the game. (I moved here in 2002 during the bidding wars). Why? No HELOC. No second. Location, location, location. Will I get out unscathed? Maybe. But I have a far better chance than some fool that bought his "dream home" 60 miles east of LA in a desert far away from any meaningful employment while filling up his SUV's tank with $5 a gallon gasoline for a 120 mile daily commute.

Finally: The $700B bailout of foreign governments that was approved by the House of Representatives: You just got screwed and didn't even get kissed. In case you haven't figured it out on your own, you just bailed out China and the Saudi's. Main Street got nothing more than the bill and some cheesy meaningless tax breaks you would have gotten anyway. What an elimination of the excise tax on toy wooden arrows has to do with this financial morass is beyond me... You should demand your representatives prosecute every person (CEO, senior executives, on down) that obscenely profited from this scheme at your expense. Let them know you're unhappy with the government intervention in the free markets - or you will vote them out of office. If you're too stupid to understand what just happened to you, I pity you. Capitalism is not at fault. In true capitalism, those who took the risks and were rewarded would now be pummeled with losses - painful (like the failure of Lehman), but justifiable. But the "feel good" crowd can't let that happen. They cite the "credit crunch" for slowing down what is truly false economic growth (demand fueled, not by wealth, but debt). Guess what? Just for fun, I applied for a $100,000 unsecured loan from a major bank (I'm not going to take it - it was a bet where I won $100 from some jerk that says no one can get money). I got approved because my FICO is over 800. What does that tell you? Those who are creditworthy can get all the money they want. Those who aren't creditworthy, cannot - and they shouldn't. Nobel laureate economists were against this misguided bailout (and don't get confused by the spin - it's a bailout of investment bankers and foreign governments. The market collapsing after it was signed shows you that the traders know it was a stupid move), yet your "representatives" made it happen. They handed the guy (Hank Paulson), who engineered some of the products that created this financial mess, $700B of your money. You may not realize it, but there is some $3T (that's trillion) of investment capital currently parked because it won't go into a rigged market. $3T of non-government money that would swoop in and buy damaged securities once a value could be determined - without dime one of taxpayer money. To show you how weird it is, investors are buying treasuries with a yield of less than .5%.... just so they don't get caught up in the impending financial implosion that will happen anyway.

Feel better now?

I'm sorry for the families that have to lose their homes, but I agree that greed and materialism plays a big part in this process. I am more SHOCKED by the 'trash out' of these homes, where all that good stuff is going into the landfill. This seems to be the same kind of greed and materialism that caused this problem. NO awareness of what it means to buy or to 'throw away'. What a blight on humanity this entire mess is. From start to finish. SHAME ON YOU ALL!

These people LOST nothing except their delusions. If you put no money down, have no equity...what did you lose! Nothing! The people that have really suffered serious financial losses are those that are NOT forclosed on because they put 20% down! These people are the ones who really suffer.

If you put no money down, have no equity, and barely cover the interest...then you are a RENTER...you were just too dumb to realize it.

Excuse me - Ashley! Two families got kicked out of their home? Where have you been??? You only get 'kicked out' if you don't pay your mortgage. I'm soooooooooooo tired of the folks on here who are feeling sorry for these families. Like many here, we have been fiscally responsible for our 20+ years as consumers. We have worked 2 or 3 jobs in the early years just to save the down payment for a home, then worked hard to pay off our home, debts, send kids to college, blah, blah, blah.

No one 'tricked' these people into believing they could 'afford' their homes. Let's face it - they were greedy for a life that was beyond their means. And don't tell me they didn't know it. You can't make 30k a year and believe that you can qualify for a 600k house. Come on!

Now the govt. is bailing out the very people (mortgage companies, credit card companies and all the rest of the Powers That Be) who created this mess. Sorry, I'm not giving them any sympathy.

As to getting rid of all that 'stuff' in their homes to charities; Salvation Army only takes clean, specific things, Goodwill has strong guidelines on what they will accept, and the condition. The owner of the 'trash company' said he does about 15 homes a day - there's no way any charity could pick up all that stuff. Now, I do like the idea of posting these 'trash outs' on the internet somewhere so people who really need the stuff can pick it up. The only downside is you would probably have people lined up and fighting over all this 'free' stuff.

Some people will never learn. Greed, stupidity and total disregard for their future put them where they are today. We were approved for a 350K loan. Just because we could didn't mean we should. We purchased a nice home in a quiet neighborhood for 120K. Nothing fancy but good enough for us.

I told my husband I wanted to have a home where both of us didn't have to work just to make the mortgage payment every month. My brother, who lives out in California, bought into the ARM bullcrap and just lost his house this year. He's the type that likes to impress others. I couldn't give a rats@ss what others think of me. :)

I'm sorry but they are all getting what they deserve. Playtime is over, now they need to wake up and live within their means.

The Russians are coming, they are going to steal your home and companies. Be very afraid for the knock on the door, it are the russians coming to take away your american dream.

Oh no, the terrorists are coming, they are coming to steal away your american dream, yes those nasty terrorists.

And the knock on the door came, it wasn`t the russians and
it wasn`t the terorists, it was the american dream knocking on your door, " Hello, I am your biggest nightmare."

Yep, we worshipped hermes/mercury, the god of trade, with his caduceus. And now that God demands sacrifices, and the humans sacrifics keep pooring in.

)O+-> (the devil was in the tail, the dream was nice, but you wake up way too late.)

anchhor.

(ankhor, ankhorion, ankhorus)

Everyone is so eager to point the finger, and there certainly is no shortage of places to point. I tend to agree we need point the finger no further than these individual home buyers. They were living beyond their means. Unfortunately, Americans in general have been living beyond their means for a very long time. America has become a nation of consumers. When you consume more than you produce, sooner or later something is going bust.

In 2002 when the mortgage lender came back with approval on a loan 3 times more than I realistically knew I could pay, I looked at the broker like he had two heads. I didn't take the loan. I could have, and I could have been a star in this film today.

I see folks asking how people could walk off and leave all those valuables behind. The answer is _because they didn't pay for them_. I bet most of the items being thrown in the dumpster were "purchased" on credit. To heck with calling charities. Call the credit card companies and tell them to come get their stuff! Remember what your mother taught you as a kid? "If you have to work for it, it will mean something to you." Maybe mom was right.

Other than the guys loading the dumpster, what you don't see anywhere in this video is American sweat equity. Most of the materials used to build the houses were manufactured overseas. The majority of the textiles to furnish the houses were imported. Illegal aliens undoubtedly provided the labor to build the houses, as well as keep the yards and clean the pools. Think about that for a minute. Easy come, easy go. Not an ounce of American sweat equity involved anywhere.

I think in a lot of ways Americans have given a whole new meaning to the "keep up with the Joneses" syndrome. It's more like "life-style of the rich and famous" they've been trying to keep up with. Americans have a serious problem with instant gratification. "I want the bestest, the mostest, and I WANT IT NOW!". So, yeah, I think we can blame ourselves for this in some ways.

But not entirely. Somebody is responsible for marketing this keep-up-with-the-rich-and-famous syndrome that has afflicted so many people. In 2002 there was somebody trying to __sell__ me a mortgage I could not afford. The lenders are at fault too, for baiting people into things they could not afford. And this irresponsible marketing is certainly not limited to mortgages! We are incessantly bombarded day and night with marketing ploys for everything from a-to-z, trying to separate us from our dollars.

I also think this was a long term failure of government. Government exists to act as a buffer between unscruplous commercial interests and the innocent consumer. People forget the American Revolution was as much a revolt against abusive corporate interests as it was a revolt against a crown. I think government has gotten way too cozy with the merchant class over the past few decades, and we need to break that little party up.

You want more examples of how the government is failing to protect the American public to serve unscrupulous commercical interests? How about the FDA and all the toxic waste that has hit the American dinner table over the past few years? The DEA is charged with keeping drugs off American streets, but US Marines are guarding 97% of the world heroin supply from poppy fields in Afghanistan. The US Border Patrol guards US borders - huh? borders? what borders? Oh, the list could go on forever. Our government acts more as a functionary of commercial interests to facilitate the fleecing of our wealth more than anything else it seems.

The bad part is that it circles right back around to us, the individuals. We keep electing the same kinds of people who represent only commercial interests over and over again, and keep expecting different results. "A democracy cannot exist as a permanent form of government. It can only exist until a majority of voters discover that they can vote themselves largess out of the public treasury." And we just keep right on spending beyond our means.

And the bailout? Throwing money at this problem is not going to solve it. We Americans need to grow up and get over our need for instant gratification; just because the nice man is selling candy doesn't mean we have to buy it. We need to invest a little sweat equity. We need to elect public interest representatives, not commercial interest representatives. The collaboration between government and business to pick our collective pockets has got to stop.

The waste in the beginning of this video is DISGUSTING!!!

I agree with you. Many people risk so much to have NOTHING!!!! But all the fat cats took the money and split.

This crisis was caused by the Federal Reserve banking system, the subsequent boom/bust cycles that occurred because of the artificial manipulation of the money supply, and government intervention by politicians. This has been an ongoing problem with the Fed (and indeed all central banks throughout history) since it was established in 1913.

In short, Austrian economics predicted a financial collapse would happen while Keynesian economics claimed that it would never be a significant problem.

Educate yourselves about the real causes of the problem, before it's too late.
http://mises.org/story/3045

http://mises.org/story/3138

What a bummer! Have people started a community in the dump yet?

two words......Thank you
okay can't resist......right on, correcto mundo, way to go, say it again.

Why do people purchase items they can't afford? That house was full of frivolous extras that are not needed. I don't deny that the baking system may have taken advantage of home buyers, but there are many others out there who have followed the rules, lived within their means and are doing fine in this economy. This video just shows how wasteful and greedy Americans have become. It's very sad.

compassion? Yes. fell sorry for them? Yes. But the fact remains that too many people are financially ignorant. Too many people want to live beyond their means. I want it all and I want it now generation. To many Americans do not save money. They do not invest for retirement. They go without health insuranse. Why? because they spend every dime they make on homes and toys. What we are witnessing today is the consequences of irresponsible behavior. I am not responsible for their lack of judgment, and I resent my government taking on billions of dollars of debt because of them. From a welfare state mentality comes the belief that we are not responsible for our actions and the government is responsible for preventing us from suffering the consequences of our actions and or decisions. I find it depressing that so many people in my country are so irresponsible and ignorant. And it scares me to think that these same people have the right to vote. Am I to believe that their judgment in selecting political representatives is better than their personal decisions? I think not. We are doomed.

Please don't let out the secret about the midwest. Here's a primer on what I did. At 25 bought a 2 family, lived there and fixed it up. Then bought another 2 family, moved into that and fixed it up. Then bought another 2 family and did the same. All 15 yr. fixed loans. Twelve years ago bought a beautiful single family home for $114,000 (20% down, 15 yr. fixed) I just sold that (1750 sq. ft. character home) in 6 weeks for $155,000 and am buying a 2600 sq. ft. home for $225,000. All 3 rentalS are now paid. I'll put $140,000 down on that with a 10 or 15yr fixed. At 44 am getting my dream home. I'll bet most of these people in this mess are twenty-somethings with no clue about finances. Please don't move here and screw up our neighborhoods.

On October 5, 2008, the CW Network premiered a new drama from the creators of The Sopranos. The new show, called Easy Money, is said to be about a family who owns and operates a “high-interest loan” business called Prestige Payday Loans. It’s always great to see shows being produced in an effort to bring underrepresented cultures or things into the limelight; as long as it constitutes a fair and balanced portrayal of the subject matter at hand. However, by taking one look at the trailers for the new drama, as well as a few of the episode a synopsis, my biggest fear is that the premise for the show is based solely on vicious media stereotypes. With this in mind, think of the last time that you viewed a news story either online or on television news talking about the payday loan industry. Chances are the story you saw or read wove tales of “real” persons’ woes fueled by their getting bogged down in an “endless cycle of debt.” Worst of all, according to such “articles,” it all started when they needed to borrow money to fix their car or pick up the tab on another unexpected bill. Such stories are further proof that, for the sake of winning the ratings wars, news networks will latch on to and report only the juiciest, most scandalous aspects of any big story and completely ignore everything else. It seems as if the CW network is following suit in an effort to recover viewers lost during the Writer’s Strike. One, for instance, opens with the tag line, “for this family of loan sharks, money is easy.” Surely, it’ll be interesting to see whether or not the CW or the show’s creators learned what the industry is really about. Chances are, probably not.

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I should have probably said presenter rather than reporter.

It would do my heart good to know that some of the "trash" that is being taken out of the foreclosed homes was at least going to a charity to help other people and not just the landfill.  Is this happening?

Thanks

Denise Meugniot

Dear Sir/Madame,

Nobody tells stories from people like me! I could never afford to buy any home in Los Angeles, not even one bedroom apartment. And I am an upper middle class man! I am a scientist, have Ph.D. for almost 20 years, working for the USC for 12 years. For last 10 years, I was dreaming to buy an apartment, but every time I would check the prices – they were always so out of my reach that I could not even dream. I was making more money every year, but the prices were shooting up much faster. I would talk to my friends, and we always were questioning – who are these lucky people that can buy home, what do they do, how it come that we cannot even dream to buy one bedroom apartment? We were depressed. And it was until now, when we suddenly discovered that people who were buying were not rich but just irresponsible.

Suddenly, things began to make a sense, and I began to dream to buy a home again. I am happy to see that things begin to make a sense again – things when professor at university will finally be able to afford at least a little apartment! Unless, our nice government will screw the things and will send the prices to the ridiculous levels again.

It makes me very upset and angry that nobody is talking about people like me. It makes me very upset and angry that our government would like to take my tax money to help those irresponsible people - to keep them in the homes and to keep me on the street! This is rewarding of irresponsible people and punishing responsible people like me! I am very, very angry!

Sincerely,

Gennady

For those who foreclosed on their home and abandoned their home leaving countless personal belongings, can I recommend that it can get posted on http://www.freecycle.org/ and / or possibly the “Free” section of craigslist?

My husband and I have been doing 'trashouts' in the NC area for almost 2 years now. We try to donate as much as we can. Sometimes the rate that we have to have these done, does not allow it...we have deadline. We also check with neighbors to see if they want any of it. The type of house that is shown in the video is not always the case. Most of the houses that we trashout, have been just that! TRASH! We have been in horrible conditions....rotting food in the fridge, feces, and crack pipes. It is no walk in the park for us. We have found some good things that we kept and sold. We keep all copper, aluminum and scrap metals to resale to help with our gas and food and motels along the way. It breaks our hearts at some of the things we have seen left behind. I have a ladies wedding dress still in the box. I am trying to find her to give it back, if she wants it.

Stop complaining. That house is too f@cking big. Don't complain! My god...

THE TRUTH! IF YOU CAN HANDLE IT, or EVEN WANT TO KNOW IT!

To all those who think the CRA and Fannie and Freddie, is the main cause of this, well, you are just plain WRONG! There were many contributing factors, those being extremely miniscule, if at all relevant. But, in my opinion, the most relevant are greed and ignorance.

Look at the facts. Fannie and Freddie were making a minority of the loans in the past 8 years, they traditionally, had some of the more stringent underwriting standards, and their market share of originations actually dropped over the past several years, due to lenders being able to securitize their loans and sell them to hungry wall street and their subsequent, unknowing, investors.

These pools of securitized investments paid higher interest than other investment choices and were stamped as highly rated (A class) securities by rating agencies. So, Wall Street packaged these loan pools with beautifully wrapped gift wrapping, with the help of the rating agencies. This would be analagous to putting a beautiful diamond in a pretty gift box, then adding some crap over it, then putting the top on and a bow and wrapping, to make it look like a beautifully congruent package. Or, similar to putting a $100 bill on the top and bottom of a stack of $1 bills, so the stack looks full of hundreds (more valuable then they are). Pick your favorite analogy.

This created an unusually high demand and hunger for these type of investments and lead to a proliferation of mortgage bankers, lenders, etc., lowering of lending standards, highly risky option-arm loans, NINA loans(no-income/no-assets), SISA loans(stated-income/stated-assets), and other similar products. This also lead to the formulation of a large market of derivitave security instruments, such as CDO's (collaterall debt obligations), etc.

The main point being, this securitization of mortgage loans created a high demand for these higher interest bearing investments. But, to meet the rising demand, lenders created those highly risky loans (option-ARM's, etc.), allowing a Borrower to artificially afford the mortgage for a short time period, long enough to allow the Lender to sell them to Wall Street (getting them off their balance sheet and realize the profit), making a tidy profit and keep their balance open to keep doing it over and over, as fast as possible, to keep up with the demand from Wall Street.

So, that all created the demand for the mortgages, which lead to the lowering of lending standards. This was coupled with the dotcom bust of 2000, so capital was looking for other places to flow (where to put the money), and Greenspan was kind enough to add fuel to the fire with historically lowering interest rates, which helped contribute to lowering of mortgage rates - not directly though). This all added up to the makings of the perfect storm. But, this could not have happened without the end user...........the Borrower!

Real estate was already making a comeback from the decline of the early 90's, due to the S&L bust. In CA, we had already seen significant appreciation. So, market psychology contributed to people feeling they may be "priced-out" of the market, if they don't act quickly, to buy a house. And these relatively new lending standards/programs/loans, allowed them to justify being able to afford these mortgages, at least in the beginning. Of course, the unscrupulous mortgage broker or lender didn't help by encouraging people who couldn't afford it, to buy, or, in some cases, by lying directly, etc. And the Appraiser didn't help by folding to their client's pressure to "hit-the-number", or lose business. This was coupled with people who could legitimately afford to own real estate and qualified with fixed loans, which added to the demand.

So, it was all one big house of cards, just waiting for a slight wind to unsettle the foundation. Many people are to blame and others, unfortunately, got caught up in the storm of falling cards. But now, it is a problem for all of us, not because people are losing their homes, but because, the whole financial industry is on the brink of collapse.

Well, those are some of the facts, form your own opinions.

----- Nevermind

Dave's post
"The congress is responsible for overseeing banking. The congress ignored the problem and encouraged it. Congress ordered Fannie and freddie both Goverment Sponsored Entities to buy more low income loans. This caused both entities to accumalate bad debt. Every time a senator or congressmen brought this to the attenttion of congress the democrats refused to address it and blocked any action. You see it was their constituents that were buying homes. Barney Frank, Nancy Pelosi and Chris Dodd are all on record of denying the charges of accounting fraud by the GSE`s and of any impending problems. The cause is more than just the GSE`s or low income loans. People with good credit and good incomes bought homes they could not afford after the rates re-set. This is a classic example of the stupids by everyone involved."

In the classic novel, Brave New World, author Aldous Huxley warns his readers of what could happen if the government gained total control of our daily lives. First published in 1932, Huxley wrote the book trying to imagine how his hometown of London might be in the year 2540, based on the increasing number of programs to end war, conflict, suffering, and antagonistic (aka: “free”) thought. In other words, the book is a portrayal of what the world would look like if the voice of the people was ignored, and people could not live free of the government. Huxley had and continues to have many critics. Several government programs and policies have been put into place that have structured America into a place very similar to Huxley’s 2540 London. It’s true that the communist and socialist ideals have been present in America for years, but never have these movements been too prevalent—until now. Thanks to present-day politicians, socialism and communism are creeping into U.S. government practices, which in turn, transfer our liberties into the hands of the government. As an example, elected officials have created regulations on where fast food restaurants can open up in Los Angeles. Sadly, the “man” is taking it to you and telling you that you can’t get a greasy burger and milkshake in South L.A. Even scarier are the state and national politicians that want to limit, or even eliminate, your access to fast, easy payday loans. Politicians want to win votes, and eliminating the payday loan industry is, for some reason, a good way to accomplish that goal. This necessitates action. We need to fight the against government’s ever-tightening stranglehold on our everyday lives.

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The "human" side of this foreclosure crisis aside, the most striking things about this story are:
1) The phony pathos of the WSR "trash out company" owner, who clearly is laughing all the way to his bank, reaping the profit from the misery & tragedy of others; and
2) The appallingly inadequate explanation for why ALL contents of these homes is being sent to landfills rather than being donated to charity. The environmental impact (toxic and hazardous materials being sent to the dump), the filling of landfills with material that could be used, re-used, recycled, and the sheer waste of it all are nauseating.

Obviously the banks that are participating in these "trash outs" bear some responsibility for this travesty.

Vultures, vultures, vultures.
Absolutely disgusting.

Let's just trashout this entire bloated, miserable country.

STOP TRASHING USABLE FURNITURE, ETC FROM FORECLOSED HOMES!!!
The tragedy for the thousands of homeowners in Riverside County, throughout Southern California and the entire country is being told over and over. This report told this story suptly in a very oersonal manner as we saw so many very personal itewms left behind by an ovisouly tramatoized family forced to leave on a moments notice.
One hugh question however was clearly present and unanswered.
Why trash all the furniture, clothes, appliances, etc. when so many hurting families, including this one could make good use? The last thing the land fill need in more dumpsters loaded the way this piece deopicted. Deplorable!!!!!!
Where was the Salvation Army, the foodbank, Goodwill, other local charities?
I realize the contractor was just doing his job but he could have blown the whistle had he had a conscious.
Who is going to step up and blow the whistle, stop this trashing and find a better way?

That is berserk!

"Hurry up and wait" now has a sibling! Hurry up and waste!

1) If something is affixed to the house it's *real property* and should stay with the house, not be yanked off the wall.

2) How much of that stuff was paid for anyway, I'm guessing not much. So what's happening? NO ONE is getting any value from it, the credit card companies get nothing, the buyers of it in the first place didn't take it, the buyers of the place (when it sells) don't get it, it's going from near new condition to smashed up and clogging a land fill. CRAZY!

Is it any wonder people think the US is "rich" (which is a characterization I have never liked), call us "Americans" wasteful (also bothers me since I've been recycling since the 70's since I was a kid), or "dumb"?

3) I have a pretty good feeling that if someone told me a house I could buy had furniture or no furniture in it, I'd choose furniture! Even if I was told that I would personally have to get rid of the stuff I didn't like!

4) As far as not being able to hook up with charities. I admit this guy wants to move fast, he probably doesn't get paid by the hour, but by the job. Just CALL A CHURCH, and tell them these facts. I bet they can probably assign people to these businesses and follow them around, not try to set up meetings.

5) As far as I'm concerned this just goes to show the mentality of the Real Estate agents and Banks/Mortgage brokers that were a major part of the problem in the first place.

"Just smash all the furniture to bits. It'll help the economy, the slobs who move in will have to buy new furniture. We'll just chop down some more trees."

I definitely think the buyers deserve some of the blame, but the Real Estate agents are supposed to HELP/GUIDE/ADVISE the buyers, be their "agent." Too many RE agents were just lusting after commissions and not looking after the interests of the people they were supposed to be advising.

Too many RE agents were selling houses with the line that "this neighborhood has seen home values soar by X%" and not adding what stock brokers have been forced to add to their sales pitch, that "past performance is not necessarily indicative of future growth."

Two observations:
The foreclosures did not happen overnight. People knew they would be evicted. Why didn't they sell some of their possessions to pay the mortgage? I can only surmise denial. I bet some of them never answered the phone or opened the mail as they didn't want to admit to themselves they faced eviction. And when it came, they chose to abandon ship totally, as irresponsibly as they had got on board in the first place.

The banks now own the properties. What is the hurry? I have seen forclosures sitting for months on end. Please don't tell me there isn't time to responsibly dispose of belongings. That is not true. The saddest part is they refuse to sell for the value as determined by the buyer. I cite a home that has been for auction for 3 times now but the bank refuses to sell as they owe so much more than what is being bid. I fail to see how this mess will resolve unless market values are allowed to reduce to the level that people can afford to pay. To the banks I say get what you can and get out of owning real estate, and better yet, let some of us responsible consumers finally purchase a home!!!

My two cents.

It makes me sick to see all the family belongings get "trashed" literally. Charities need to do more to collect some of these things; shame on you for not working harder. First, shame on all those that signed the dotted line for these homes they could not afford. You make want to blame govt and banks, but they didn't force you to sign up for this. Why do families leave their valuables, pictures, AND pets? Yes, I hear they get left behind to die. It makes me think you didn't grow up with any morels or values. Now, I have to pay more in taxes to clean your mess.

Watching this makes me want to move to America and buy a house. Maybe I'll even pick one up that's fully furnished. BARGAINS!

I felt sick at heart and angry watching the "trash-out" story. Today I am yet haunted by the images of the destruction of one family's personal property and, what can only be called, looting by the contractor's employees. I am left wondering: Who is the family and what were the circumstances that caused them to leave those things behind? Who hired the contractor to trash the house and what laws govern personal property when a foreclosure occurs? (Are people locked out?) How much property have such crews taken? Can they sell it? Did the presence of a news crew with cameras "modify" their actions? You can bet it did!

The argument that they could not coordinate with charitable organizations to pick up abandoned belongings was ludicrous.

I would like to see a follow-up story on this aspect of the tradgedy that is occuring in the lives of these fellow Americans who are relatively out of sight and out of mind as we concentrate our attention on the bail-out, the election and our damned wars.

For the house in question, the owners were undoubtedly Korean (Soju, rice cooker, Shin Ramen, kimchi). What distresses me as an American citizen of Korean descent, is the fact that the former tenants have undoubtedly long skipped out and returned to South Korea. The simple fact that they left behind their rice cooker tells me this.

When I see the items in the house: multiple computers, Louis Vuitton shopping bag, huge television; these are all trappings of a family that needed to show off their conspicuous consumption. This is a very common affliction.

I am angry that everyone else must now pay for their irresponsibility.

As for my sympathies, I reserve them for all other responsible people and with the contractor. He is doing a thankless and dangerous job. Everyone must now do what they must to survive. It's no longer about feeling good anymore.

As for charities, please do more research before holding them all up on a pedestal. There is a huge and damaging trade in used clothing via charities and African nations. Odds are, a piece of clothes you donate will end up being sold for dollars per ton, and have actually killed local clothing industries in Africa.

Good intentions do lead to hell.

I know we're supposed to, but I have a hard time feeling very sorry for fools so easily taken in by boundless greed. Greed, at all levels, compounded by gullible natures and stupidity caused this. Now the best thing to do would be to bulldoze these foam mcmansions and restore the farms, rangeland, and wildlife that once occupied these forsaken inland regions.

I think it's a great idea. Drop me a return email and we can
combine forces perhaps.

"How can I get in contact with John Plocher and WSR?"

Here's the website contacts: http://www.wsr.net/contact.html

Contact WSR and demand that more be done to avoid the waste. Who is pressuring him to make such quick work? The financial companies that need government help? Wake up progressive California! Contact your Reps, The Governator etc. DO NOT TOLERATE THIS PROFLIGATE BEHAVIOR!!!

U.S. Congress:

http://www.govtrack.us/congress/findyourreps.xpd?state=CA

California State Assembly:

http://www.assembly.ca.gov/acs/acsframeset7text.htm

The Governator:

http://gov.ca.gov/interact#contact

Hello,
Is there a way to find out when the trashouts occur? I live in the Cincinnait, OH-Northern KY area. Thank you!

In the 1980's, my Dad received a diagnosis of Alzheimer's Disorder and signed a business agent to care for his substantial holdings; I was serving in the military overseas. In less than a decade, this jerk managed to steal over 100 pieces of my family's commercial and residential properties in three states. My parents learned of the trouble too late; their lawyer retired after he was attacked and lost a leg due to injuries.

At that point, I moved my entire family from my childhood home in the Inland Empire to homes in the midwest, where I paid $30k cash for a five bedroom home on a couple acres of land and $10k for a two-story home on an acre of land.

We live in a forested area, as opposed to concrete and asphalt neighborhoods with cookie-cutter developments; we know our neighbors by name and each watches out for the other; grandkids play outdoors under the watchful eyes of the neighborhood. Beaches? We are minutes away from a dozen giant lakes including Lake of the Ozarks.

There is no smog or graffiti. Traffic jams are non-existent, unless you count being stuck behind a combine at harvest time. Medical care and education are world class. Property taxes are less than $200 per year, with utilities averaging $35 per month. Our weekly newspaper covers local sports, community get-togethers and the occasional mailbox bashing; as an incentive for good behavior, it also prints minute details of every incident on the police blotter (rather like getting your name on the blackboard in grade school).

I could not be dragged back to SoCal if you offered title to an entire county as enticement. The crime, high cost of living, congestion, lousy air quality, noise pollution, hours long commutes and miniscule quality of life are not worth it.

NOT EVEN MENTIONING THE REAL CAUSE OF THIS!
It's not the people's fault. But they are trying to convince us of that with emotional stories. Yeah, family left house and everything in it. By the way, gas prices are not going up. "End as a result of that...bla bla bla". Low moral little brain naive sell out reporters. If those trash-out workers had a bit of brain they could set up a pawn shop for some of those goodies. I mean common that table they are throwing out.

HOW ABOUT A REPORT LIKE THIS:
People where sucked into the greatest robbery in history. Now many lose their dream houses while the federal reserve bankers fill their pockets. Who also blame the poor people for their giant scam. Many unfortunate victims of this crime get so depressed when actually seeing what is going on that they just leave their house and everything in it. Perhaps their message is: This was our home, if there is any soul left in you, do not take it.

Where I live the banks have always had adjustable mortgages so every three, four or five years I would have to renew. What I did, if during any one of the periods I found myself behind the eight ball with less cash coming in than the last time I renewed, was to take out the new renewal over a longer amortization period. That way I was always able to make my mortgage payments. If during any period I had more cash then I shortened the amortization period.

--It's really too bad. Too bad these people who had no business buying homes were pushed through by greedy mortgage brokers.
--It's too bad these same people didn't ready the fine print on their mortgages or make any kind of effort to refinance into a standard arrangement (which probably wouldn't have happened because they were unqualified to begin with).
--It's too bad they then used their new homes as ATMs, withdrawing "equity" that wasn't really there and blowing it on shiny crap.
--It's too bad I'm supposed to blame "Wall St. CEOs" for all fo this mess when I never saw a Wall St. CEO writing loan No. 1.
--It's too bad the scumbags working at the mortgage broker telephone solicitation boiler rooms would make any loan to any body without caring about payback because they got their commissions when the paperwork was signed and the loans got sold to the people who are now stuck with them.
--It's too bad our learned "government" decided it wanted to make home ownership easier so it encouraged Fannie and Freddy to ease up on credit.
--It's too bad that the lion's share of people like me, who did it right, are now going to have to pay the price because these people were idiots.
--It's too bad that I'm supposed to feel bad because some moron got foreclosed out of a house he or she couldn't afford in the first place.
--Yup. It's too damn bad.

Hi guys, Mike from Australia here. What shocked me the most about the article was the horrendous "trashing" of the houses. Seeing all of that beautiful furniture being smashed and thrown in a dumpster just because it is more cost effective for the bank to dump it than recycle it. They have absolutely no social conscience. What is wrong with selling these houses as "partly furnished"?? I'm sure that a savvy real estate agent could do something in that regard. I mean , what a waste!!! Guys, the rest of the world sees the US as the great "throw away" society, ie use it , then dump it, and articles like this just confirm it. Obviously the charities are either overwhelmed with goods or they can't be bothered. What about all of the hurricane victims and tornado victims that have lost all of their possession recently through no fault of their own. They must be bleeding with anguish seeing this sort of thing. How many households could be re established with these goods?? It is a national disgrace and the banks should be ashamed of themselves. You can't totally blame the householders for losing their homes because you need to be a rocket scientist these days to understand all of the schemes that the banks come up with now. Paired with a slick saleman/broker, then the average Joe Sixpack & family are sold the home ownership "dream" and salesman/broker walk away with a fat commission and the family gets a ticking time bomb.
The same thing is happening in australia now , but the charities get a lot of the stuff.
Good luck to you all tho'. I hope your new president whoever he may be has a sense of social justice and can help you all to get your lives back on track.
All the best,

Mike

Left Lala land for Texas and love it!

The banks should have said "no" more often to homebuyers applying for ARMs.

Rowe, I agree 100%, her story tells me she put "0" down payment, as she has the $60k second trust! She is bitching that the 2nd trust holder won't "Discount" for her like the First (primary) lender did. Well, I live in Maryland which makes sure R.E. agents are "Educated" in Mortgages. (I am a former Md. R.E. Agt.) Any Educated R.E. agent KNOWS that the holder of the 2nd trust is "Wiped Out" in a Foreclosure, as the 1st Trust is "Primary". And she is "Befuddled" about WHY the 2nd trust holder is so Hostile?? If she does not understand this principle she has NO Businiess being a licensed R.E. Agt. and anyone that would sendher "Referrals" is as Uneducated as she is! I have no sympathy for her at all! AS a former R.E. Agt. I bought my house with the Standard 30 yr. Fixed and I would have NEVER advised a Client to take an "Interest Only ARM". She should have known better than take this type of loan being a (so-called) Real Estate Agent!

why don't uncle sam bail out bad mortages for the individuals ??? they plan on bailing out investors !!!!!!! here in Pennsylvania, were trying to abolish "all" property taxes on primary residences through legislation which you can read at grandoldusa.com

http://www.youtube.com/watch?v=gSVDM2LZhOs

goldieshouse.piczo.com

Willie, I am just a renter, but my advice to you would be to stop paying, and save that next 3 months payments, as you will need first & last to rent an apartment.

Seriously, I know they explain why the company doesn't take the initiative to sell/give away the stuff, but I have to admit the WASTEFULNESS shown in this piece is what bothers me the most. Yea, I feel badly for some of the people who were uninformed and who might have been kinda led to believe they could make it in a house that they really couldn't afford...that stinks...but there's no excuse for the lack of environmental and social responsibilty. It doesn't take money to bring something to a shelter. ARGHHHHHH!!! >:(

RIGHT ON JOSH! Anyone who did not read the last paragraph of Josh's comment really ougth to. After that, please watch "America: Freedom to Fascism" You will see for yourself what "EXACTLY" is happening in AMERICA .. and has been done (to us) on purpose. There are no accidents.

1) America: Freedom to Fascism – video
http://www.youtube.com/watch?v=3ueEfRXZCVA

2) The Fascist Blueprint – It can happen here
http://www.brasschecktv.com/page/177.html

Josh's comment that I am referring to:

We thought we have the freedom.. but look carefully and be wise to see what the government has done. Yes we think we have the freedom. Yes we think that all is fair in this country. The government today is not for the people, is not by the people or even of the people. Is the government afraid of it's people today? The French government is. Look at ours here. Think people who is in-charge of the country. You think you do? Where is our choices for president comes from.. the two big parties and people who are rich. Where are the rest?

It is sad to see that the country have to reach this desperate state to learn. It is sad to see generally the population taken for a ride by its own government. It is sad to see the so call best education system fail to greed. It is sad to see the world most powerful nation could even protect it own citizens from dying due to unavailable health care. What else could I say to create a revolution

i hope your american dream turns into an american nightmare and you will suffer even worse than those living in africa.

The American dream shouldn't be to buy as much home as two incomes can pay for to prove to the world that you are more successful then you are to have the lifestyle formerly known only by a specific class of workers; mainly well enough paid professionals who bought it on one income, the man's who would also save. As one poster said "it's been a long time coming" that this collapse happened. These dual mortgage massive overspenders put alot of pressure on others because people then expect it from them. In other words, people wouldn't marry others who couldn't give them this materialism, which had become an EXPECTATION, we all know they weren't marrying the hairdressor or the food/drink place manager because they weren't making enough money, and this is WRONG. Well, now we see what happens when you depend on a woman's income to pay half the mortgage; we see just what a stupid idea it ever was, and how they were NOT able to maintain this lifestyle, as they would be if they purchased on one income and banked hers. I don't have pity for such people, I do for people who only want to get something and then get screwed, but not for those who want it ALL with such unrealistic and unjustified expectations, and the man in this couldn't pull through either. There's no backbone in such a situation, and we see the price that the entire world is paying for it.

As my sister said to me recently, the American dream has really been built on "never give a sucker an even break". If you know that some poor,ignorant slob will ruin his life by taking on an ARM mortgage, will you sell it anyway? Will you charge a guy with great insurance with all the unnecessary medical tests, knowing his insurance will pay for it in the end, and WE will all pay larger insurance premiums? Will you get a legal judgement of several million for a questionable lawsuit, knowing that many will have to pay the cost in larger prices for certain items manufactured. It certainly doesn't come out of the CEO's salary! The fact is that those that DO KNOW don't really care!! It's a survival of the fittest or smartest, and a "don't give a rat's @ss about the rest." It's become a throwaway people society, where the stakes become higher with each mistake, and there is no forgiveness for those who get into a bind. Just trash & burn.

ummm, there is something yes. I agree, it is an "Unidentified" flying object. A swooping bird possibly? Bit hard to tell. Believe me, I am keen to see UFO proof, and this is still too "blurry" to be proof. I'm not saying you're wrong, just can't agree on this evidence.

I thank my Lord Jesus that I have the "deed" to my house and am looking/researching the ability to get the land patent/allodial so that I REALLY own it (no taxes). I highly recommend a true study of the Federal Reserve Act/System and how it works. This nation went from a gold/silver substance based money system, in line with Article 1-Section 8-clause 4 of the Constitution, to a credit/debit create-money-out-of-nothing system. This is known as a fiat currency system and all previous attempts have failed miserably. The only immediate thing that can be done for those in or heading for foreclosure is make absolutely sure that your "lender" has the original wet-ink signature note that was signed live, not a copy. If not, then the "lender" (in quotes due to the known fact that the lender did not lend anything, the credit was created out of nothing) is not "holder in due course" and has no standing in law regarding the ability to forclose. This info is for education purposes only and is not in any way shape or form to be construed as legal advice. Thanks for your time.

That makes me so mad. I was reading the comments and getting so fired up. I can’t stand that so many people got themselves into loans they couldn’t afford with no money down, interest only for 3-5 years (sometimes negative amortization) and now they are crying that they can’t make the payments. The only thing they (the ones who couldn’t afford a house in the first place) were banking on was that homes would continue to exceed the 300% appreciation (Are you serious?). I love how they take the huge risk, have no savings, and then wonder why they can’t make the payments when their loan resets????? They were either really stupid and didn’t understand the structure of the loan and/or they thought home prices would always increase. Both are pretty stupid if you ask me. The global economy is in the toilet because of the risk that the ones who couldn’t afford a house in the first place took on (bolstered by the democrats paving the way so that “all American’s could afford a house”) and Fannie and Freddie making it possible for banks to create crazy mortgages. Now they (the ones who couldn’t afford a house in the first place) want a handout from the government while all the sensible, honest, informed, hardworking homeowners bear the burden of the risk. I wonder who is getting the short end of the stick…

The govt. shouldn,t be paying out to bail the top end.They should be paying out the bottom end--ie: The people in trouble with undervalued houses and mortgages that are bigger than the homes value.
How do you do this.
(1) 1stly, have all homes in jeopardy revalued, or if this is too difficult do a complete revaluation of all homes under current market values as at today.
(2) Pay off all mortgages down to the new value--EG:
If a home was valued at say $500,000 and today its only worth
$300,000. Then Govt.pays all mortgage debt above $300,000.
Lets asume a mortgage exists on that home for $450,000
Then the amount paid off by the Govt.would be $150,000.
Next step-force the banks to lend the balance--$300,000 at least 2% below market rates for a set period.-say 5 years
until a review time.This would allow enough time for the market to readjust itself.
Keep people in THEIR HOMES AT ALL COSTS.
The banks don,t want millions of undervalued and over mortgaged homes in their possesion.
No sense in bailing out the banks in trouble, if you don,t help the home owners 1st.By helping out the home owner the banks will get theirs from the homeowner, once they are able to make their payments.Only problem with this if the homeowner has lost his job and is unemployed.
Then they need to be put on a bailout until they get work again.Giving the banks and huge Companies bailout funds is back to front.--Start at the bottom,not at the top.

moved out of so cal a few years ago to the midwest....alot of low paying jobs here and few ways to get ahead...damn its cold in the winter or humid in the summmer ,it seems like a great place if you like to drink your life away...cant wait to move back to calif..ya its crazy in cally,but life is short,and the years I have left I want to be in great weather and a place where there is alot to do and see...plus I think all the illegals moved out to the midwest with me ,it seems like there a big problem here to...

Very enlightening story about the "trash-outs." Such a waste of such great usable stuff. Trucking it to a goodwill would be cheaper than trucking it to the dumpster, Jeesh. No-one should lose there house in five years! The interest rates are at 4.25-5.25% right now! If the interest only's and low ARM's aren't refinancing now while they can afford a new 15, 20 or 30 year fixed rate, they are as dumb as they were when they got into their homes to start and should be renting. In addition aptitude test should be required to purchase homes in order to not put children through the rollr coaster ride of moving at a moments notice, leaving behind clothes, toys, friends and a school due to their parents dumb mistakes! Thinks of your children for god sakes!

THIS IS WHY APARTMENTS WERE INVENTED! SOME PEOPLE ARE TOO POOR, STUPID, LAZY, OR, WHAT HAVE YOU, TO EVEN THINK ABOUT BUYING A HOME..... THIS FAKE HOUSING BUBBLE HAS EXPOSED THEM!

I'm a little late in hearing about all this (where have I been hiding?) But when I was told about it from Oprah's show. Then I watched it on the internet. I was so upset/angry about the "trash out business". I got home and was short with my husband. There has to be a better way to deal with this. What about helping these people out by having auctions. If this area isn't going to have a good turn out, ship it somewhere else where it could sell. Or donate it to those that have lost everything to natural disasters, tornados, floods, hurricans.
Come on there HAS to be a better way!!!!

We purchased in 2006. 30% down and we insisted on a fixed rate. Although it was the lowest fixed rate (at the time) due to our excellent credit history, our payment was higher than some others & they continually attempted to persuade us to get an adjustable. We refused.

We purchased a modest 1 story house. We refused to buy more even though we were approved for more. We don't go on vacations, eat out, etc. We drive modest cars. One is paid for & one we owe very little on. We only use the dish washer, washer/dryer etc. after 7pm. We don't keep our air conditioner running unless it gets really bad. We don't buy convenience foods, we cook most of our food from scratch. We made vast efforts to be prudent during our home buying process.

I've dreamed of having a backyard since I was a child. We waited until we were established in our careers to buy a house (evidenced by the fact that we are older than most of our neighbors). Our backyard is still dirt. We refused to take out a heloc, we were saving to get our back yard done. I still love watching the family run with the dogs out there.

We were layed off, our stocks tanked. We kept making the payment from savings & now we're running out. We apply for jobs day in & day out, without success. Lender says our credit is too good to help us.

I am praying we find work. Even looking in fields that pay less we're told we're over qualified. I'm willing to take what I can get (maybe they're afraid "over qualified" people will bail on them?)

I'm not looking for pity, but reading some of the comments it appears many think everyone just rushed into these homes, & shopped & spent excess money. We really did our best to be informed & responsible & had no way of foreseeing that jobs we were in for years would be eliminated. We had back up savings (that is running out) in case of an emergency, but being unemployed this long is not what we would ever imagine.

Why don't file bankruptcy?

Shame on you and WSR!

Why destroy items in these foreclosed homes when they could help people?

Why don't you donate the usable items to shelters, churches and non-profits to distribute your loot. This is a very PR and Marketing strategy for WSR.

Partnering with Charities is "Good News." That is what this country needs right now.

INSTEAD I read in the New York Times on 3-21-09

Mr. Brewer found an unlocked window, lifted it and removed the Venetian blinds with a yank. “Oh! I want that chair,” he said, peering through the window at a leather recliner in the living room.

“Hey, dude, hold off on that,” Mr. Brewer said to Mr. Fisher, who stood beside a wooden desk with built-in shelving in one of the bedrooms. “I’m going to call my wife and see if she wants it.”

So the spoils may end up going to the worker who found them, and when trash-out crews enter a house there’s a barely contained rush through the door, as if they are contestants on a shopping-spree game show. WSR workers have made off with big-screen TVs and couches. One uncovered a rare coin collection in a tool shed. Whoever conducts the initial, of course, gets the lay of the land first.

The KCET story shows almost every item that your crew was joyously destroying were new and in complete working order.
Why throw them away?

I have no issue with your company providing the service for the lenders, but find a way to help others too.
Just do some thing good.

To take the credit for giving back the credit... Thus you behave in a debt hole. One of the most wrong credits is payday loan. But if he is necessary for you, can read about it here - http://no-fax-payday-loans-4u.com