The ultimate SCAM

[lorin]

I live in Monmouth County in NJ and Fort Monmouth is closing. The guy across the street from me works at Fort Monmouth. He has his house up for sale and I was feeling all kind of sorry for him, thinking he was losing his job. Then he tells me he is an OIT guy and can work at any military fort in the world. Now HERE is the kicker............ since he is forced to relocate, he or any worker that is facing a layoff is eligible for the a special relocation program. He can list his house, if no one buys it at the top price, he can step it down every two weeks until the price it sells. The GOVERNMENT will then give him 2005 value of the house!!!!! So for him, his house was valued at $485000 in 2005 and it just sold at $219000. He owns the house outright. The GOVERNMENT will cut him a check for $261000!!!!!!!!!!!!!. He is taking that money and purchasing a home on Sanabel Island in Florida. The only rule is he has to move 50 miles from his home in order to qualify for the program. There is something like 9500 employees at fort monmouth. What a scam.

[danlo]

...our tax dollars at work...and re the budget: as Supertramp said, "Crisis, what crisis?"

[sgt.null]

i wonder how many deals like this are part of our govt's budget? stuff we piss away money on but we never find out about.

[[Syl]]

Good for him.

[lorin]

Good for him.

why?

[[Syl]]

Why not? What does it hurt you that his finances aren't going to be strained, if not ruined, by forces out of his control? From your post, I can't see any malfeasance on his part. He doesn't appear to have ever acted on bad faith or broken the law.

Now, maybe there would be some outrage if this guy was a flipper, privatizing the profits and subsidizing his losses, but considering he lived in the house for six years, it seems like you're just upset that he didn't lose half of the house's value for something that isn't his fault.

The scam is that we'll bail out the banks, the auto industry, and government workers, but the vast majority of people in this country facing real economic hardship are left to fend for themselves. I'd love to see the numbers on the money our system has lost since the advent of the housing crisis, both in dollars spent and revenues lost, compared to what it would have cost to bail out underwater mortgages.

[[Syl]]

Maybe he'll find a nice house in Texas.

[dANdeLION]

I'd love to see the numbers on the money our system has lost since the advent of the housing crisis, both in dollars spent and revenues lost, compared to what it would have cost to bail out underwater mortgages.

I can tell you it's ruined my life. I went from making 50k/year to under 25k. Subtract from that the 18.5k the government takes out for child suppoert, and I'm left with almost nothing.

[lorin]

Why not? What does it hurt you that his finances aren't going to be strained, if not ruined, by forces out of his control? From your post, I can't see any malfeasance on his part. He doesn't appear to have ever acted on bad faith or broken the law.

Now, maybe there would be some outrage if this guy was a flipper, privatizing the profits and subsidizing his losses, but considering he lived in the house for six years, it seems like you're just upset that he didn't lose half of the house's value for something that isn't his fault.

The scam is that we'll bail out the banks, the auto industry, and government workers, but the vast majority of people in this country facing real economic hardship are left to fend for themselves. I'd love to see the numbers on the money our system has lost since the advent of the housing crisis, both in dollars spent and revenues lost, compared to what it would have cost to bail out underwater mortgages.

The policy, not the MAN has actually done me a great deal of damage. I can't sell my house because I cannot complete with the lowball price he is selling it at. My two neighbors can't sell their houses either. One of them got laid off from the private side. There is no bailout for him. He has to relocate for work but can't sell his house because of the house across the street selling at 1/2 the market value. If there are 9500 employees and only 20% of them own houses (HA) don't you think that 1900 homes cut to 50% value of other homes in such a small county will upset the market? My guess is it will totally devastate the housing market.

This man makes 197,000 a year (yes it is public info available on the labor relations post), he is able to work anywhere in the world where there is a military base, the government is paying all his moving costs, he will receive a COL differential, he will retire on an 80% pension anytime he is ready and can draw immediately, (he is 42).

Eventually I will sell my house upside down and let my credit take the hit. I will dip into my pension to pay the balance. So yes, it does hurt me.

[[Syl]]

If I'm reading this right, between the time that the house was first listed and the time it sold, it lost approximately 46% of its value through the step-down process. How much was he allowed to step it down each time (and I assume that, while wanting to unload the house, he also wanted to get as much for it as he could)? It sounds like the house was on the market for a decent amount of time, and nobody would pick it up, meaning the house and the overall market were severely overvalued, something that should come as a surprise to no one.

Trust me, I know it sucks to be stuck with a house that isn't valued as much as you paid for it (according to zillow, mine is currently 88%, and that assuming I can sell it at that estimate). Considering I have to live in this neighborhood (or rent or try for a short sale), I'd rather the house next door sold for a decent price than sit empty for a long period of time (never mind the glut of foreclosures that have done more to decrease my house's value than the bursting of the housing bubble).

Besides, the market only has a reasonable expectation of that kind of price for those houses in precisely that kind of situation. Yeah, it's a steal for those parties involved, but I don't see how those in your neighborhood could expect a higher value for their houses right now. When these deals dry up, the neighborhood value should rise back up to more reasonable (but likely still disappointing) market prices.

[lorin]

If I'm reading this right, between the time that the house was first listed and the time it sold, it lost approximately 46% of its value through the step-down process. How much was he allowed to step it down each time (and I assume that, while wanting to unload the house, he also wanted to get as much for it as he could)? It sounds like the house was on the market for a decent amount of time, and nobody would pick it up, meaning the house and the overall market were severely overvalued, something that should come as a surprise to no one.

Trust me, I know it sucks to be stuck with a house that isn't valued as much as you paid for it (according to zillow, mine is currently 88%, and that assuming I can sell it at that estimate). Considering I have to live in this neighborhood (or rent or try for a short sale), I'd rather the house next door sold for a decent price than sit empty for a long period of time (never mind the glut of foreclosures that have done more to decrease my house's value than the bursting of the housing bubble).

Besides, the market only has a reasonable expectation of that kind of price for those houses in precisely that kind of situation. Yeah, it's a steal for those parties involved, but I don't see how those in your neighborhood could expect a higher value for their houses right now. When these deals dry up, the neighborhood value should rise back up to more reasonable (but likely still disappointing) market prices.

my house is stepping down at 10 grand every month. my house was valued in 2007 at 429, right now it is selling for 279. The realtor controls the stepdown. I don't blame the guy. In this life of get yours while you can he's getting his while he can. As Tony Soprano said, ya gotta do what ya gotta dooo. I just dont think the government should be bailing out anyone, including it's own.

ahhh, don't mind me. I am having a day of "pity me" and magarita party. bad combo.

[[Syl]]

Hey, if self-pity was a crime, I'd have to plead guilty and beg the court for leniency (because it's just so damn hard to be me).

[aliantha]

I hate to mention this, but...any one of us could've joined the military and made it a career, and then we'd have the same housing deal as he does. The guy's benefits come with the job, and the tradeoffs are significant (the Army can send him anywhere at any time, including into a war zone, etc.). It sucks that his benefits package impact his civilian neighbors, but it's not like he's getting something for nothing.

[lorin]

I hate to mention this, but...any one of us could've joined the military and made it a career, and then we'd have the same housing deal as he does. The guy's benefits come with the job, and the tradeoffs are significant (the Army can send him anywhere at any time, including into a war zone, etc.). It sucks that his benefits package impact his civilian neighbors, but it's not like he's getting something for nothing.

he's a civilian employee. no commitment on his part beyond anything you or I would have. He has never been in the army.

[aliantha]

Yeah, but he works for the military. I have a friend who just retired from the federal gummint after working for DoD for probably 20 years. She's been transferred a couple of times, and the gummint has paid for the move each time. (One reason she's given for not moving elsewhere, now that she's retired: She'd have to pay for the move herself. )

Your mistake and mine was to opt for jobs with somebody other than the feds. (And don't think my friend hasn't tried to talk me into getting a federal job...)