Democracy Now puts a face on the mortgage crisis:
Woman loses son in Iraq, then faces foreclosure
FDIC Chair Sheila Bair
Earlier this week, an unlikely critic emerged of the government’s massive bailout of the financial industry. Sheila Bair, the chair of the FDIC, the Federal Deposit Insurance Corporation, criticized the federal government for failing to take more aggressive steps to prevent Americans from losing their homes.
In an interview with the Wall Street Journal, Bair said, “We’re attacking it at the institution level as opposed to the borrower level, and it’s the borrowers defaulting. That is what’s causing the distress at the institution level. So why not tackle the borrower problem?”
Bair said that the financial markets and the economy are unlikely to stabilize until home prices stop falling. In April she proposed that the Treasury Department develop a plan to make loans to as many as one million homeowners to minimize foreclosures. But the plan was opposed within the Bush administration.
Code PINK leads effort to stop foreclosure
Jocelyne Voltaire, mother of deceased Marine
Jocelyne Voltaire, a resident of Queens Village, New York, saw her home go up for auction after a mortgage company foreclosed. She had made a 50 percent down payment 20 years ago, but recently saw her mortgage payments sky-rocket under a predatory loan scam. Her mortgage is controlled by a company called “Litton Mortgage”, an affiliate of the Wall Street giant Goldman Sachs.
Voltaire had fallen behind on her payments in part because she no longer had the support of her son, a former Marine who served in the Iraq war. She was told her of son’s death just weeks after being informed of the foreclosure.
Jocelyne Voltaire’s home was set to go on the auction block on Friday. But a grassroots campaign led by the peace group Code PINK helped prevent the sale. Within hours of an emergency appeal, Code PINK raised more than ten thousand dollars to make a payment on Jocelyne’s home. The auction has been avoided for now, but Jocelyne still faces a crippling mortgage.
Code PINK’s donation page
I’m guessing the son had gone back to the Middle East as a contractor. My wife’s nephew was considering the same course.