Home Mortgages Will Kill the US

What is an underwater home mortgage? It means that you owe the bank more than the house is valued. So if you sell your house, you won't get enough money to pay back what you borrowed. The amounts are usually tens of thousands of dollars less than what you owe. In other words - You're SCREWED! This coupled with people loosing their jobs causes the housing market to crash. The trend is for the housing markets that saw the biggest growths are now facing the most houses with mortgages underwater.

Here are the towns with the highest percentage of home mortgages underwater:

• Tampa-St Petersburg, FL... 48%
• Sarasota-Venice, FL... 48.2%
• Lakeland-Winter Haven, FL... 49.2%
• Bakersfield, CA... 50.4%
• Riverside-San Bernadino, CA... 58.5%
• Cape Coral-Ft Myers, FL...60.5%
• Vallejo - Fairfield, CA... 61.1%
• Orlando, FL...62.3%
• Reno, NV... 62.4%
• Port St Lucie-Ft Pierce, FL... 62.5%
• Phonex, AZ... 63.5%
• Stockton, CA... 66.9%
• Modesto, CA... 70.4%
• Merced, CA... 72.4%
• Las Vegas, NV... 81.1%

So if you don't own but rent, then why worry? It's the economy and that affects all Americans! It's also because of Fannie and Freddie. Thanks to Barney Frank and the latest government bailout, those two lending institutions now hold about 90% of all US home mortgages. SO?

Well, with the latest Obama/Frank bailout, Fannie and Freddie have unlimited borrowing power against the United States Treasury. If they loose money because of more bad mortgages, they will come to Tim Geithner and ask for more money.

So the point is???? Don't fool yourself. The mortgages held by Fannie and Freddie can and will fail. When homeowners loose their jobs, they cannot pay their mortgages. The loans go bad and we (America) will have to make them good or Fannie and Freddie will both fail.

This is a no win situation. Our "leadership" will vote on the Wall Street financial reform package this week or next. They omitted considering Fannie and Freddie from their fix. Consequently, we can expect both of those institutions to bleed us dry in the near future.

Action To Take
Tell your representatives NOT to support the Wall Street reforms unless they include Fannie and Freddie Mac.