Friday, January 25, 2008

Guess so...

Last week I had sent an email to the Air Force Times asking if they were going to do a story on the housing meltdown and the military.

I am wondering if there is a story in the Military and the Housing Market, especially in regards to Luke and Nellis AFB. Las Vegas and Phoenix have posted some of the largest drops in home prices in the last year. Military members are particularly susceptible to foreclosure, because they are often forced to sell due to a PCS. With a nationwide drop in the housing market predicted, this is going to spread to more and more bases. Here are two references from my blog.

Legislation to Help Military Veterans Survive the Subprime Mortgage Crisis Mortgage Foreclosure & Refinance Resource

House Committee on Veterans’ Affairs Chairman Bob Filner (D-CA) on December 19, 2007 introduced a pair of bills to address the needs of veterans during the ongoing subprime mortgage market crisis.
Well in the latest issue of the Air Force Times their are four stories on the subject. They are behind subscription walls, but here are some quotes from them.

Rep. Bob Filner, D-Calif., the House Veterans’ Affairs Committee chairman, believes the VA loan program needs changes.

He wants the maximum VA loan increased to $630,000 and applied to new and refinanced loans. And he wants loan fees, which now range from 1.25 percent to 3.3 percent of the loan value, to be capped at 1 percent.

“The current VA home loan program is irrelevant because fees for the loans are too high and equity requirements are overly restrictive,” Filner said.

He also wants to expand the Servicemembers’ Civil Relief Act so that National Guard and reserve members called to active duty are protected from foreclosure for up to a year after their mobilization ends — on all mortgages, not just those from the VA.

His proposals are included in bills HR 4883 and HR 4884, introduced Dec. 19.

and this...

But some of the states hit hardest by home foreclosures and mortgage delinquencies, such as Georgia, California, Florida and Ohio, have large military populations. And it’s not just subprime loans that are getting people in trouble.

Ripple effects

A sailor in San Diego who bought a home for $417,000 two years ago using a loan backed by the Veterans Affairs Department now finds that his home is worth $317,000, said Keith Kaufman, personal financial management program manager for the Fleet and Family Support Center for the Navy’s Southwest Region.

That means the sailor is upside down on his loan — he owes more than the house is worth.

and of course they covered this:

Foreclosures negatively affect a person’s credit rating — which can affect service members’ security clearance and harm their careers, he noted.
All points I have mentioned before. Now when is CNN going to pick up on it.

parentalcation: And it starts:

parentalcation: The Military and the Housing Market Prediction

parentalcation: The Housing Bubble and the Military