No one "deploys" to Ft. Gordon.
An unsellable home in Florida left Sgt. Cindy Reyes and her 17-year-old son confined to a one-bedroom RV parked at the edge of Columbia County.
Sgt. Reyes bought a house in Apopka, Fla., in 2005 to have a permanent place to care for her cancer-stricken mother. Six months later, the combat medic was deployed to Fort Gordon. Her mother died in 2007, and that same year, her Florida property taxes spiked.
That caused her monthly mortgage to increase to $1,700, which uses more than half her monthly paycheck. Sgt. Reyes now uses credit cards to help with living expenses, and the $170 per month she pays to rent the lot in Grovetown is all she can afford.
She fears foreclosure is imminent.
"Before this house, I was debt free. Now, I'm turned upside down in it," she said. "I just don't live like a normal person right now. I want my son to have his own space and his own room."
Her $220,000 home will sell for almost a quarter less than what she paid for it, she said. To sell it, she would have to come up with the difference, which she does not have.
"I just haven't been able to sell it, and I need to resolve this," Sgt. Reyes said. "I thought about bankruptcy, but I would lose my career if I had that on my record."
Like Sgt. Reyes, who is now deployed on an international mission, many soldiers are struggling to sell their homes in a tough housing market. A growing number are in or facing foreclosure.
Foreclosure filings in the 165 ZIP codes in or near military bases increased by 46 percent in March compared with the same time last year, according RealtyTrac, an Irvine, Calif.-based company that tracks real estate foreclosures. The increase is higher in the five ZIP codes -- 30909, 30906, 30815, 30813, 30805 -- surrounding Fort Gordon.
Those areas showed a 307 percent increase in foreclosure filings from March 2008 to March 2009. According to data collected from RealtyTrac, 708 foreclosures were filed in March 2009, compared with 174 at the same time last year. The data do not show how many foreclosures are by military families, but real estate agents contend they account for a large percentage.
Costs of ownership on rise
Al Simmons, an Evans ReMax Realtor and a retired sergeant major, said the reasons for the increase in military foreclosures are not hard to fathom.
"Soldiers either have to sell their houses or leave their families behind," he said. "You have tons of houses for sale because of the way the market is. That makes it harder for them to sell their houses."
Because of the tough market, Mr. Simmons said, the number of soldiers inquiring about renting their homes has doubled during the past six months.
Master Sgt. Glen Williams is already renting his $200,000-plus Atlanta home, but he said he hopes to sell it by September, when the adjustable-rate mortgage increases 3 percent.
"I won't be able to afford it if the rate goes up," he said. "It's a new problem that a lot of us are facing. The housing office is getting involved, but I still haven't gotten any information on what I can do."
Master Sgt. Williams bought the home in 2004 with a fixed interest rate for five years, expecting to sell it within that time period.
The 18-year Army veteran, his wife and three children now live in military housing at Fort Gordon. He has not been able to sell in Atlanta, and banks have refused to refinance the loan, he said.
Stimulus funds on the way
Master Sgt. Williams' and Sgt. Reyes' stories aren't rare in the military, said Paul Sullivan, the executive director of Veterans for Commonsense. He speaks to soldiers and veterans daily about what resources are available to them, he said.
"They're facing it like everybody else. The economy is in disarray," Mr. Sullivan said. "I always strongly recommend that soldiers consider some options before foreclosure."
Communication with lenders is one of the first steps soldiers should take, Mr. Sullivan said. There are cases where lenders are willing to renegotiate the terms of a mortgage. Service members who bought their home with a Veterans Administration home loan can also contact the VA for assistance, Mr. Sullivan said.
The federal government recognizes the growing number of military men and women suffering because of the housing market. The federal stimulus law will distribute $550 million into the Defense Department's Homeowners' Assistance Program, but there are few details on who will qualify, said spokesman Cmdr. Darryn James.
"We are very happy to have this money," he said. "The policy hasn't been finalized, but we hope to provide assistance to as many soldiers as possible."
The funds will reimburse soldiers who lose money from selling their homes, assist those who default on their mortgages and help with other housing problems, according to the department's Web site.
Renter's market could help
However, it will be months before soldiers reap any financial benefits, said spokesman Doug Garman. An estimated 17,000 applications will be filed and must be processed, he said.
The best option for military homeowners is to rent their homes until they can find a buyer, Mr. Simmons said.
"If they can't sell, they can make a good deal on renting," he said. "The rental market is booming."
In some cases, if they have to pay the difference between the purchase price and the market price, lenders will charge off a portion of the amount, Mr. Simmons said.
Sgt. Reyes, whose house in Florida was vandalized and is now uninhabitable, said she would like to give the lenders her deed and be released from her mortgage. She said she hopes the situation will be resolved by the time she returns home in October.
"I've just been in a rut, and I would like to get out of it," Sgt Reyes said. "I'd like to get a two-bedroom place and start fresh."
Reach Stephanie Toone at (706) 823-3215 or stephanie.toone@augustachronicle.com.
NEED RESCUE FROM FORECLOSURE?
- Don't be afraid to talk to your mortgage company. You can also find an organization such as Consumer Credit Counseling Service to speak on your behalf.
- Seek help from professionals. Consumer Credit Counseling Service has a mortgage counseling program that provides free counseling to those who are in mortgage default.
- Negotiate with your mortgage company by the following options:
REPAYMENT: If the resident would like to stay in the home, some mortgage companies will set up a repayment plan. The homeowner would pay extra every month until current on the mortgage.
LOAN MODIFICATION: The mortgage company could freeze the interest rate for a period on an adjustable-rate mortgage or lower the interest rate or payments for a specified time on other loans.
FORBEARANCE: If a person is two months behind, the company might grant a forbearance and put this past-due amount toward the back of the loan.
REFINANCING: Some Federal Housing Authority programs have lenders that will allow people who have less-satisfactory credit ratings to refinance.
SELL THE HOUSE: If the homeowner would rather sell the house, mortgage companies provide the option of a short sale and will agree to take the loss. A homeowner might owe $200,000 on the mortgage for a house worth only $180,000.
The following organizations can provide foreclosure assistance:
- Military personnel can call the Homeowners' Assistance Program's Savannah District field office at (800) 861-8144.
- Consumer Credit Counseling Service of the CSRA, (706) 736-2090 or www.cccsaugusta.org
- National Foundation for Credit Counseling, (800) 388-2227 or nfcc.org
- NeighborWorks Center for Foreclosure Solutions, www.nw.org
- U.S. Department of Housing and Urban Development, HOPE for Homeowners program, www.hud.gov
Source: Consumer Credit Counseling Service of the CSRA
-- Compiled by LaTina Emerson, staff writer
FORT GORDON AREA
Though RealtyTrac's data do not indicate how many military homeowners filed for foreclosure around Fort Gordon, real estate agents say they account for a large percentage.
| Zip Code | March 2009 | March 2008 |
| 30909 (Augusta) | 99 | 33 |
| 30906 (Augusta) | 81 | 48 |
| 30815 (Hephzibah) | 370 | 28 |
| 30813 (Grovetown) | 2 | 52 |
| 30805 (Blythe) | 156 | 13 |
| Total | 708 | 174 |
Source: RealtyTrac
BY THE NUMBERS
46%
Nationwide increase in foreclosure filings from March 2008 to March 2009 in ZIP codes in or near military bases, according to RealtyTrac
$550 million
Funds to be distributed into the U.S. Defense Department's Homeowners' Assistance Program through the federal stimulus law; an estimated 17,000 applications for assistance are expected
307%
Increase in foreclosure filings within a year's time in five ZIP codes surrounding Fort Gordon, with 708 in March 2009, according to RealtyTrac
Comments
No one "deploys" to Ft. Gordon.
Active duty military should be exempt from foreclosure while deployed out of country, and for 120 days after return to states. I think we owe them that.
Filing for bankruptcy does not end your military career.
It could if your job requires a security clearance.
http://hap.usace.army.mil/
Website for the Homeowner's Assistance Program
Members of the Armed Forces permanently reassigned during the mortgage crisis
Military Personnel Only
1. Permanent reassignment requires move of more than 50 miles.
2. Reassignment ordered between 1 February 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense).
3. Property purchased (or contract to purchase signed) before 1 July 2006.
4. Property sold by owner between 1 July 2006 and 30 September 2012, or earlier date designated by Sec. Def.
5. Property was the primary residence of the owner
6. Owner has not previously received these benefit payments.
7. If you are a member of the Armed Forces who is PCSing or has PCSed, download the application packet and complete the application. Carefully read all instructions, and mail your completed application to the USACE district responsible for the area in which your home is. Once DoD implementing guidance is received the district will contact you concerning your eligibility and benefits.
I never had a problem like that when I was active duty in the 60's and 70's and was "deployed " to Vietnam three times. It just goes to show you how times and people have changed. I knew many back then that couldn't manage their finances, but they were all able to cope with it, and our pay scales were alot less then than today, even with inflation. I remember this, the Marine Corps told me, if they wanted me to have a wife, they would've issued me one.
As an active duty Soldier I will say this: An E-5 SGT has no business buying a $200K home nor does an E-8 Master Sergeant. That is why they are in the trouble they're in now. It has nothing to do with their adjustable rate mortgage. I don't know how anyone making $35-40K would think they can afford to maintain a 200K home plus another residence when they come down for another assignment. I bought a $78K home because I know any day I can be reassigned and I'll need to maintain my mortgage payment plus rent somewhere else. I don't feel sorry for my battle buddies in a situation like this. I recently had an E-6 SSG buy a $160K home and he drives 2 50K vehicles. They create their own problems. The Army has other programs that would've assisted SGT Reyes with caring for her mother. As an NCO, she should've known that!
Hey common-sense, they oughta just make em all 4 star generals and admirals and buy em 200,000 dollar homes and pay for all their civilian expenses, including clothing, bar tabs, vehicles, computers, and any other recreation. Get real.
"Sgt. Reyes bought a house in Apopka, Fla., in 2005 to have a permanent place to care for her cancer-stricken mother. Six months later, the combat medic was deployed to Fort Gordon." What does buying the home have to do with caring for her mother? What does a property tax spike have to do with her situation? Does she own the RV? I, like Andy, have no sympathy for her. This is a situation where a person made bad personal decisions and she now has to live with them.
GA is number 5 or 6 ,depending on which report you look at, in foreclosure rates. Atlanta is dying. I wonder what the rate is for vacant housing and commercial properties for Atlanta? Charlotte is at 20%.
It has nothing to do with economy. It is the fact that GA is full of uneducated people making low salaries that buy homes way over their head.
Two messages that should have been heeded over the past ten years were ; get out of debt (by Dave Ramsey) and you must time the stock market (said by a few). Both Biblical principles where the debtor is a slave to the lender and there is a time and season for all things (that includeds the stock market). That pesky Bible and God keep being smarter than us. Getting God out of schools and teaching evolution should have stopped all those Biblical principles and truths from working............surely by now we must be smarter than God and His teachings.
A 200k home in Orlando is nothing that is just a simple 3br 2 bath 1200-1800 sqft home in 2005; that is equivalent to a 80k-100k home here. Then property tax depending on the location is twice what it is here. The cost of parental care in Orlando runs anywhere from 3000$ on up per month,
I agree with Andy. People knew they could not afford these houses when they bought them. And the bank knew they could not afford it but they still gave them the loan. But the responsibility still lies with the person borrowing the money. If I know I can not afford a 200,000 dollar house I am not even gonna look at one. Thus said I live in a lovely apatment..And I am just fine...People always think they deserve more than they can afford. I try to live within my means and try to look ahead and look at different secenarios could I still live like this. That is called saving for the future... That means if I get a bonus at work do I run out and spend it ....No it goes in the bank.... Yes some of us do still get bonuses...Small they may be but still extra.. and I thnak God for it!!!!!!
Don't blame the banks. Remember that they were supposed to be backed by you know who. Banks don't lend money to people who are poor credit risks unless they are backed by or forced to by the government.
Housing wise, that is.
Four years ago trying to buy the median priced home in Columbia county, was a rat race. Houses being sold so fast, there wasn't much to chose from. Wonder how it is now?
I just left the grocery store and that Master Sergeant is on the cover of the Chronicle! This guy should be ashamed of himself for making such a poor decision, yet he's not, because he doesn't understand what he did is wrong. In a career where you relocate every few years you MUST look ahead at the worst cast scenario. If he did he would've foreseen this coming. From one Senior NCO to another, "You really screwed up, and I'm embarrassed as an NCO that you are on the front page of the paper showing that even a Senior NCO cannot make good personal decisions financially." At least you can now train Soldiers on what not to do based on your personal experience.
Obama's whole plan is a crock. Savvy people are skipping payments and deliberately getting themselves into trouble so they can refinance at a lower rate, never mind that the own several other homes, are developing property, and are gainfully employed.
It's not that the people couldn't afford the houses at the time of purchase. It's just hard paying 2 mortgages if you don't sell your house prior to PCSing to a new location. Department of Defense civilians are reimbursed when they PCS....Why can't the government do the same for the War Fighters? For all of you retired military who are ashamed of the decisions that these NCO's made....Remember, just a short time ago the housing market wasn't this bad. The only people who could forsee the housing situation as it is today are the thieves who took money from people seeking the American Dream.
I feel sorry for the soldiers but they made bad decisions when the took an adjustible rate mortage. It plainly states the loan rate will rise and rise and rise. You should calculate the payment on the highest rate and if you can't afford that payment then you can't afford the house. It is also a given that taxes will rise as the government gives away more and more. The money has to come from somewhere and that is from the working people. Soldiers should still be given extra time to try and work out their finances even though alot who get the sign on bonus blow it instead of investing for their future by saving.
Thank you Andywarhol.People should not try to live above their means.Dont buy what you caint affofd.Have at least six months to a year of money saved in the bank to pay your mortgage or for an emergency.Your liveing in a R.V.trailer now.Your economic choice got you there.I'm sorry you and others are loseing their homes but I dont wont my tax money bailing you are the banks out.
I see I spelled afford wrong.But what I really wonted to say was your R.V.trailer looks like it cost as much as my home.
To buy a $200,000 home with an adjustable mortgage; knowing you can be moved anytime and that your family will be moving with you is a total lack of responsibility and judgement. In this case, he should have been able to refinance to a different loan; if he really was planning to keep the house.
Screw a mortgage I'm paying cash for my next home!
Is this story about a he or a she?The story was about Sgt.Cindy Reyes a female.Then Andywarhol posted at 10:26 says he saw a male master sergant on the chronicle.I get confused real easy so lets keep it simple.But this I do know an ajustable loan is a fools loan.
Buying more house than you can afford on a fixed rate loan is stupid as well.
Does she own that RV?
It is a story about a Junior NCO SGT Reyes(Female) and a Senior, MSG Williams(Male).
I think she does own the RV, because the article only mentions the lot payment. Damn, 200K home for mom and an RV. You'd think she won the lottery.
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