For those who have been watching the latest responses to the stimulus package designed to save homeowners from foreclosure, you may have seen Rick Santelli's rant about "loser" homeowners who are facing foreclosure because of toxic mortgages. Mr. Santelli accused the President and Congress of "promoting bad behavior" and riled up the Chicago Mercantile Exchange as he went on a rant against struggling homeowners facing foreclosure.
An excerpt is below:
"How many of you want to subsidize the losers' mortgages or would we like to at least buy cars and houses in foreclosure and give them to people who might have a chance to prosper down the road..."
He then went on to describe the people in the room as representative of America's "silent majority." Well we've got news for you Mr. Santelli, the true silent majority are those American homeowners facing foreclosure who signed mortgages in good faith.
Do you understand good faith? They believed and trusted that mortgage companies would give them a fair deal. But they didn't. They believed that the mortgages they signed up for would at least be affordable, fairly structured and that their homes would hold their value.
Even when their ARMs reset to twice or even three times the amount they expected to pay, they worked two or three jobs to repay their mortgage. Homeowners facing foreclosure have often cancelled their health insurance, sold their furniture, pawned their wedding rings, begged and pleaded with mortgage companies for modifications.
They have even sometimes reduced the amount of food they eat, just to avoid foreclosure. No, Mr. Santelli, these homeowners facing foreclosure are not losers they are survivors who are facing insurmountable odds and need our help not mean-spirited rants.