National Mortgage Settlement Already a #Fail

Attorneys General across the country held press conferences this morning to boast their 'victory' against the banks, having come to a settlement called the National Mortgage Settlement.  If you haven't heard, it is an agreement by the 5 big mortgage loan servicers--JP Morgan Chase, Citi, Wells Fargo, Bank of America and Ally/GMAC--and the government, which requires the former to pay damages for practices that violated the law and caused the housing bubble burst.  You can find out more information here.

Only hours into the announcement and it appears to be another complete failure, much like the Making Homes Affordable Program from 2009.  I've contacted Chase, as outlined by the NMS website, on three occasions today and none of their representatives have any idea what I'm referring to or what to do.  They are giving me information about my foreclosed property that has nothing to do with the NMS process.  One referred me to their lawyer's office, who also has ZERO clue about this settlement.

So what's going on here?  It looks like another complete failure by both government and the banks.  We always hear the business community tell us that capitalism works and is so great because private industry can do things better and more efficiently than government.  Oh yeah?  Then why is the government making an announcement about an agreement 5 private banks made and yet the banks have no clue about it?  I've worked in a call center before; I've even worked for a banking call center.  When big news is being released, the call center is notified a day or two ahead of time in order to prepare for possible questions and responses.  That would be an efficient business model in my opinion.

It's beginning to look like another case of the run-around, whereby the government gets positive PR out of the housing crisis by appearing 'tough' against the banks.  The banks get positive press out of it because they 'settled' as opposed to getting dragged into court and 'forced' to pay out for their violations of the law.  Good PR for everyone, but empty promises for the average consumer.

It's only day one, but this is already sounding a lot like my experience with the Making Homes Affordable Program, which we all know was a failure!


As a post script, before you comment on this blog about people shouldn't own homes if they can't afford it--like this guy--go back and read my story.  I bought the place with a very well paid job and a lot of money in savings in addition to perfect, pristine credit (in the 800s).  The reason I could no longer afford my mortgage was NOT a result of overextending myself, it was a result of a collapsed economy that prevented me from finding work.  This was also the case for millions of others in America.

A Challenge to Newt Gingrich

Dear Mr. Gingrich,

Throughout this primary season, you've been pretty vocal about a lot of things.  Most important among them has been your fierce criticism of the Occupy Wall Street protesters across America.  You've also been rather aggressive in challenging President Obama to "western style" debates that would be without a timer or arbitrator.

Today, I offer a challenge to you!

This is really a no-brainer challenge, one I'm sure you'll win:  Get me back to work.

You and your ilk have recently criticized the OWS protesters and told them to "take a bath" and "get to work!"  Well, I'm ready!  In fact, I bathe daily, so no worries there.  And here's the added bonus:  I have a Master's degree, 10 years of work experience and even lived abroad in France, like you!  As a result of these studies, I'm even fluent in French, which should be a terrific asset for any corporation now that we've built such a "global" economy.

So, what do you say?  I'm sure you know a lot of people and could get me in somewhere, right?

guardian.uk

Yikes, I'm beginning to wonder if this will be as easy as I thought.  While you likely won't read this, I am certain your response would be much like those who agree with you: "Get your own job. Don't expect a hand out!"

That's such an interesting retort.  A savvy businessman like yourself is certain to understand the importance of networking to any job search.  In fact, statistics show that 80% of jobs are nabbed thanks to networking.  You've likely landed a few jobs throughout your career thanks to networking, (you know, like those lobbying jobs after being in the House?) right?  Networking is surely of the utmost important to your campaign as well; how else do you expect votes and campaign funds?   

So, Mr. Gingrich, let me tell you a little more about myself to develop that all-important networking relationship:

My name is Del Phillips.  I'm 34 years old, I'm a white male and I come from the heartland (Illinois).  Sounds like your ideal voting demographic, eh?  I've worked hard since the age of 14, holding down two part time jobs while in high school (two paper routes in the morning and a part time, after school job) and working throughout college.  I don't come from a wealthy family, so this was necessary if I wanted any of the things most teenagers wanted during my youth.

After college, I worked hard and never had any issue finding a place in an organization....until 2009.  Just as the economy tanked I, like millions of others, lost my job.  Normally this wouldn't be a big deal either, but with scores of people applying for the same position my chances began to slim.

To make a long story short, I would go from having perfect credit (820+), a $72,000/yr job, a condo (homeownership!) and an all-around happy life to foreclosure, bankruptcy (major credit hits) and 22 months of unemployment.  What's more is that after those 22 months, I landed a great position only to lose it six months later as a result of the continued lagging economy.

You and the people in your camp keep referring to people like me as "lazy" and tell us to "quit whining" and "get a job."  Would you like to see all the resumes I've sent out?  Would you like to know the number of networking events I've attended?  With a name like Gingrich, I'm sure it's always easy to find a job, but with a name like Phillips, I simply blend in with the crowd.

Another comment I hear a lot from your side of the isle is that the unemployed enjoy being unemployed;  They get to sit at home and collect a government check.  Can you honestly believe that I would prefer the roughly $18,000/yr income I receive from Unemployment Insurance benefits over the previous $72,000/yr I was earning?  If you believe that is true, I've got a bridge in Alaska to sell you.

Most, if not all, of the things you, Mr. Cain, Mr. Hannity, Mr. Limbaugh, Mr. O'Reiley and others say about the unemployed are misinformed.  Furthermore you don't contribute to solutions; you simply belittle and alienate your fellow citizens, those whom you wish to swoon for a vote.  In fact, you are even contributing to the death of many Americans.  Yes, DEATH!

Job loss, long term unemployment, losing one's home, having to file for bankruptcy, questioning one's next meal are all very shameful events.  Our culture preaches self-reliance.  But if that's not possible when there are more people without jobs than jobs available, what happens?  The unemployed deal with rejection every single day.  This rejection turns to shame and shame leads to isolation, which can ultimately turn to a complete shut-down, including suicide.


I encourage you to read this site which contains many stories of the unemployed, including those who have attempted suicide as a solution to their desperation.

Do you think this is acceptable, Mr. Gingrich?  Do you think belittling and calling names to desperate Americans is helping to get them back to work?  Do you think calling people who have been sending out hundreds of resumes a month, attended networking events, job fairs "lazy" is a way to encourage them during a difficult time?  Do you think it's alright that many feel their only hope is to turn to suicide and end it all?  I don't!

We have to stop shaming people who are trying to move forward with their lives.  In fact, we should be helping people to "Reframe Shame."  That's why I'm an aspiring keynote speaker who wants to help those experiencing shame in our daily lives from a host of events including unemployment, bankruptcy, foreclosure and much more.  One way I do that is to tell people that filing for bankruptcy is a new beginning, a lesson to learn.  Did you know that your hero Abraham Lincoln filed for bankruptcy before becoming President?  Did you know Walt Disney also filed for bankruptcy with his first film company?

These are excellent examples of how tough times may fall on you, but this adversity may just be a stepping stone to a greater success.

Mr. Gingrich, that is the type of rhetoric I'd like to hear from my government leaders.  I'd like to hear encouraging and supportive language that promotes success in all Americans.

So Mr. Gingrich, now that we know one another a little better, what do you say?   How can we network to get me working?  I'm available to speak at your association gigs or political gigs.  Certainly my first-hand experience with long-term unemployment, foreclosure, and bankruptcy can help shed light on the "average" American you so desperately need to help you win this election.  You and your party could gain such valuable insight.  Heck, it might even help others like you change your way of looking at their fellow citizen in trouble.  Together we can work to help Americans Reframe Shame and get America's economy working again!

Check out my website to learn more about me and how to contact me for an upcoming event.  I look forward to your favorable response.

Best wishes to you with your campaign and have a great Thanksgiving,

Del Phillips

PS: Thanksgiving is a great example of how strangers (Native Americans) showed compassion to desperate individuals (American colonists) in a tough time.  Maybe we should draw from that example this holiday season.

And the Hits Just Keep on Coming...

If you've been keeping up with my story, I left off discussing the beginning of the end for my condo.

With my plea for assistance rejected by the bank and the funds in my savings account approaching zero, I had to think of Plan C: What should I now do with my mortgage?  Short-sale?  Foreclosure?  These terms both carry such negative connotations and I've never been accustomed to NOT paying my bills.  The anxiety grew within me.

After researching my options of short-sale, foreclosure or bankruptcy, I decided that my best course of action would be a short sale.  Sure, my perfect credit would take a hit, but I'd be able to get the burden out from under me and I'd help the bank recoup most of the loan.

It was a big surprise that within the first 4 days of putting my place on the market, we had not one, but two offers.  The second buyer knew we had another offer coming in so they even bid ABOVE the listing price!  This was great.  The bank would be thrilled not to lose so much!

Weeks went by and from all indications, everything looked like it would work out fine.  At the last minute, however, the Loss/Mitigation department contacted me to inform me that they were willing to approve the short sale, but would still sue me for the difference.

Huh?  That's not a short sale.  In a short sale, everyone walks away a bit bruised and that meant that the bank was going to lose a bit of their money and so would I, along with my credit.

Now this is where critics of my story lament about how I had a contract with the bank and should pay the bill for which I signed my name.  Normally, I'm all for people paying their bills as promised, but there are times when people just can't.  When the well is dry, there won't be any water to drink.  So if you want to scream at me over and over in the comment section about what a terrible person I am, I've already heard it....and I'm already over it!

But I digress...we'll discuss this topic in more detail in a later post.  Back to the story.

photographer unknown

I told Hope, my friendly (not) Loss/Mitigation Rep, that this was not a short sale.  She laid down the law and I could either accept it or not.  So, I told her no.  I asked her how it made sense from a "mitigating your loss" prospective to now put me in the position to allow the place to go into foreclosure and file for bankruptcy on it.  They had an amazing offer on the table, especially considering the market at the time.  I asked how it made sense on her end to force my next move, foreclosure.  Since I was still unemployed, I would be allowed to continue living there until the foreclosure process was over (typically 15 months).  That meant at least 15 months without a mortgage payment for them, PLUS they would be responsible for property taxes.   What's more is that they would have to price the place WAY below market value as a foreclosed property, thereby losing even more money.  Pretty insane, right?  Remember, they had an amazing offer on the table that only had them losing about $45,000.

Hope then said to me "Well, you don't understand how the system works.  We'll just bundle it with other loans and sell it on the open market, making more money."  I stopped in my tracks!  I was flabbergasted!  I challenged her with "Are you telling me that you continue to use the same toxic practices that put us in this mess in the first place?"  Her response, without any shame was "Yes!"

Once again, if you feel compelled to criticize me for my actions, please re-read the paragraph above.  A financial industry that created this mess by selling toxic loans on the market, thereby creating a huge economic mess around the world, admitted to me that they were continuing these practices, despite the terrible press in the news about it! 

So that's what happened.  I called off the short sale and met with an attorney to begin the foreclosure and bankruptcy process.

Reframe Shame Message Goes "On The Air"

The speed of Social Media has come whizzing by my door so I'm using another post to interrupt my story and tell you about an upcoming event.

I will be on with conservative radio talk show host Dom Giordano, Friday October 14, 2011 at 9:05am (central). 

How did this come about?  Yesterday I received a message from a friend who was furious about photo (see right) she saw going viral on Facebook.  In a nutshell, this is one of many examples from a group calling themselves "The other 53%," a backlash group responding to the recent Occupy Wall Street protesters, who refer to themselves as "The 99%."

Dom posted this on his Facebook page with the comment on "This is the youth we can believe in."

Reading this and other examples from this "53%" group began to make me think about my message of Reframe Shame®.  There are many letters similar to this one calling fellow Americans names like "Lazy" and a "mooch" among others. 

I decided to write my own message and share it with Dom on his Twitter account.  His producer says he liked what I had to say and wants me on the show.  However, after listening to his show today on the topic, I'm a little skeptical about how much he truly "liked" it.  It'll be an interesting discussion.

The font is a little difficult to read, so I will reprint it below:

"I am 34 yrs old & played by the rules all my life. I have worked since the age of 14. I come from a lower-middle class family, obtained a Master’s degree, lived abroad, owned my own MODEST condo, had a $72,000/yr salary, paid my bills on time, had very low credit card debt, a decent savings account and PERFECT credit in the 800s!

Thanks to the FAT CATS on wall street who played casino with the economy and our LAZY, GREEDY politicians, our economy tanked.  I spent 22 months unemployed, blew thru my savings to pay the mortgage.  After that was gone, I had to let it go into foreclosure and eventually file for bankruptcy on it (not CC debt).  My credit is now screwed.  After 22 months, I landed a great job, but due to the continued lousy economy & poor financial management of the greedy heads of the organization, I lost my job again after only 6 short months there.

STOP telling us to quit whining!  Stop telling us we’re lazy!  Stop telling us we should take a minimum wage job!  That’s not why we went to college.  We were told college was our ticket to success & stability.  Instead of calling us names & criticizing us, why not put your patriotism to use & reach out your hand to your fellow American?  Attend a networking event in your area & bring your company’s list of current openings; help someone get an “in” in your company. How about joining JobAngels or another online network to help the unemployed?

Do you really think I (and others) enjoy the $18,000/yr unemployment benefits over my previous $72,000 salary?  Get real!

If you don’t think you’re part of the 99% today, watch out!  You could become one at any moment. Pink slips continue to go out everyday.  YOU could be next!"

 


Tune in....

Unemployed and Counting...

In my previous post I discussed my loss of employment in the heart of one of the toughest economic downturns the country has seen in more than a half-century.  It came at the beginning of a presidency filled with hope and change.

Fast forward ten months from Inauguration Day to October 2009.  This is when the situation began to go from bad to worse.

Despite my reluctance, I filed for unemployment benefits in April.  Meantime, nearly every temp agency I signed up with was inundated with applicants and short on assignments, so 'stop gap' measures grew more difficult.  Worse, every resume submitted was either ignored or responded to with a rejection letter.  Things were looking grim.

What's more, as my nest egg dwindled, I increasingly worried about my ability to pay my mortgage.  President Obama passed the Making Homes Affordable program in March 2009 and banks, including mine--Chase--began accepting applications in April. 

Going into this, I wasn't looking to the banks to do this gratis, and I didn't expect the bank to lose money on me either.  Simply put, I was looking to stretch out my savings in case this bout of unemployment lasted longer than expected.  My hope was that the interest rate could be lowered which, in turn, would lower my monthly payment; The bank would still make a profit off of me, just not as much.

From the beginning of the process (April 2009), advisors from Chase informed me to continue paying my mortgage because it would better my chances of being approved for the MHA program.   From April until October--when I finally received a decision--they repeatedly requested additional paperwork that was not part of the requirements, asked for resubmissions because they 'lost' my information or claimed they never received information (despite "successful" fax receipts).  What a bureaucratic nightmare!  Nevertheless, was told all along that my chances were good given my excellent credit rating and superb history of paying my mortgage on time.

To my surprise the letter arrived and stated that I was not eligible for the program because my situation was not of a permanent nature.  More specifically, they stated that unemployment was not of a permanent nature.  Hopefully not, but it was clear that the President and Congress passed this legislation to help those who were finding themselves in a long-term unemployment situation.

Wow...now what?  I wasn't going to take this lying down.  I jumped through their hoops and I followed the rules and according to Congress, I qualified for this assistance!  The media would have a field day with this...and I was just the one to tell them!

(please forgive the background noise of a friend giggling at various spots during the story)

My story continues here...

Hope and Change

Chicago is my hometown and an amazing city!  It was an especially exciting place to live in 2008 with all the buzz of the presidential campaign.   I was personally lucky enough to meet and shake then-senator Obama's hand at the Super Tuesday event at the Hyatt (see photo below.  I'm between Obama and Jesse Jackson) as well as attend the gigantic Grant Park election night acceptance speech.  It was truly an amazing moment for my city, and like a majority of Americans, I was excited about "hope and change.

Sadly, the change that came my way just three days after Obama's inauguration was not what I had expected.  It would be the first time in my life I'd lose my job. 

At first, I wasn't worried; I've worked since the age of 15 and never had trouble landing a job.  After all, I had a Master's degree, including two years of study abroad; ten years of solid professional experience, including international work and a positive, passionate attitude!  What's more is that being the product of a fiscally conservative mother, I maintained little debt and a comfortable nest egg, so even in tough times, I could manage for several months.

Although I was confident about my ability to quickly land back on my feet, the economic free fall of the previous four months put a lot of things into question.  Unemployment rates were quickly rising as mass layoffs were announced daily; the media reported about the complete crash of the housing market, which would affect all other areas of the economy.  My first sent resumes were rejected.  This was like nothing I had experienced.

With more than 8 months of savings and a new President installed, I was hopeful that my unfortunate situation would change quickly.  Boy was I wrong...

The story continues here...

The Conversation Begins today

Welcome to my new blog!  I’m really excited to begin a conversation with everyone.  There may be times we don’t agree, and we’ll try to persuade the other of our argument.  Some reasons will be compelling and might move one or both of us in a different direction, but we’ll always remain respectful to one another.  A vigorous debate is always fun, but it should always remain respectful.  Disagreeing in itself is not disrespectful, it’s the manner in which we disagree that can be.

So what is this conversation’s subject?  Well, it’s mainly about shame and how to unlearn much of what we have learned through social cues that stop us in our tracks, or paralyze us so much that we can’t move forward.  Have you been unemployed?  Gone through foreclosure?  Bankruptcy?  Divorce?  Coming out to your family and friends?  The list goes on…
If you have experienced any of life’s challenges listed above, you’re sure to have encountered judgements and statements that, when analyzed, clearly have a negative connotation to them.  Here are just a few:

• People who are unemployed are just lazy.  They only need to apply for jobs and they’d have one!
• Filing for bankruptcy is for losers and those who mooch off the system!
• I can’t believe all those people who don’t pay their mortgage payment!  What?  Do they think they should live for free?!
• Well, people shouldn’t get divorced.  Divorce means they didn’t work hard enough on their marriage.

These statements come with a lot of judgement and can change the way we view ourselves, often negatively, which is not at all useful while we are going through a rough patch.

So what do I know about this?  What makes me an expert?  Well, like many of you, I’ve become a poster child for the Great Recession.  Despite my Master of Arts degree, over 10 years of work experience, bilingual speaking abilities (French/English) and many more talents, I lost my job in January 2009.  At the time, I had a credit score in the mid 800s, very low credit card debt and more than $10,000 in savings.  What happened next was something I never expected at the age of 32.

I would spend 22 months unemployed, having sent out hundreds of resumes, attending networking events, career fairs and the like.  I would lose my condo to foreclosure and consequently file for bankruptcy.  If that wasn’t enough, after landing a great job, the company hit financial troubles 6 short months after my arrival and I would lose my job again! 

During this round, I faced an IRS audit and a huge debacle with the State unemployment office that put me on the hook for thousands of dollars, despite THEIR errors!  Indeed, this recession has been “great” and caused much depression for many.

Through it, however, I found patches of hope, happiness and harmony.

So, this blog will chronicle some of the adversity I faced.  It will also be a place I post and discuss interesting topics surrounding shame and how we, as Americans, view ourselves as a result of what we are ‘taught’ by our culture.  It will also be a place to talk about how to reframe that shame.  The judgements and opinions of others will never go away; it’s embedded in our culture, but we can find ways to over come them and move forward with peace in ourselves.

Let the discussion begin…