Keith and Janet Ritter moved into a five-bedroom, 4,900-square-foot home in 2006, purchasing it for $1.29 million with almost no money down.
They have never made a mortgage payment, according to a report by The Washington Post’s Annys Shin.
Shin reported that the Ritters make no apology for using every tactic available to them to avoid foreclosure and stay in their house.
I’ve talked to and helped a lot of homeowners facing foreclosure, and the Ritters don’t appear to be victims to me. The facts as presented by Shin tell the story of a couple who are gaming the system.
Such stories fuel many peoples’ view that taxpayers shouldn’t be helping people fight off foreclosure, that those in trouble are either deadbeats or con artists. It gives weight to criticism that state or federal efforts to help people are hurting the housing market.
My experience with homeowners is that most are not like the Ritters. They are not living in million-dollar homes. I worked with people who were trying to stabilize their housing costs or provide a decent home for themselves or their family. I’ve counseled single parents who wanted a better life for their children. I see people in mortgage trouble by no fault of their own. They lost their jobs or became ill.
Did some of the troubled homeowners sign mortgages they shouldn’t have taken out? Yes. But does that mean we shouldn’t help them?
And helping homeowners does not mean keeping them in a home they can’t afford. I, as well as housing counselors, have advised people to bring in roommates or sell the homes even at a loss so they can move into housing they can sustain. But many other families could afford their home if the terms of the loan were adjusted. This is in the best interest of the lenders, too.
If you’re still not moved by these arguments, then think about this: The Post’s Suzy Khimm reported on Wednesday that there are too many vacant houses and not enough people who want to buy them.
What do you think this glut of homes will do to your property value? The number of foreclosures is expected to rise significantly in 2012, adding to a housing overhang that has depressed prices and held back the recovery, Khimm wrote.
By aiding homeowners, states and the federal government are helping to stabilize neighborhoods, which is in the best interests of everyone. Our housing market probably is much stronger because of it.
This week’s Color of Money Question: Do you think state and federal policies are hurting the housing market? Send your comments to colorofmoney@washpost.com. Put “Living Free in a Million-Dollar House” in the subject line. Please include your name and city.
Lessons From the Duped
Texas businessman R. Allen Stanford was found guilty of swindling investors out of more than $7 billion using a Ponzi scheme that lasted two decades.
Stanford promised people safe investments that would help them retire comfortably or pay their children’s college tuition. All the while, he was pulling their money out of his Caribbean bank to pay for a string of failed businesses and a jet-setting lifestyle, the Associated Press reported.
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