ANOTHER $100 BILLION TO BAILOUT IDIOTS

WASHINGTON (MarketWatch) — Jose, 47, hoped to build a life with his wife Maria, 43, and three children in Phoenix, Arizona where he took a new job at a plastic bag factory in 2007.

Unfortunately, he was unable to sell a home he and his wife bought in 2002 in La Puente, California, six hours away by car. After five years of frustration, Jose moved back there in September to take a lower-paying job at a factory he had previously worked at.

Like many of their neighbors in La Puente, a community of about 40,000 located 15 miles from downtown Los Angeles, they are “underwater,” which means they owe more than their home is worth.

The couple bought the home for $415,000 and later took out a $65,000 second mortgage. Today, Maria and Jose owe $245,000 more than their home is worth (which is $235,000) and have a loan to value ratio of 204%.

Selling the home without harsh negative consequences seems impossible without government assistance, a prospect that is unlikely at best.

Either a foreclosure or a bank-assisted short-sale would, in the best scenario, stain their credit rating and make it harder to buy a new home in the next few years. So they continue to pay monthly into a mortgage where they have no equity.

“He [Jose] is frustrated because he would like to find another job that makes more money, but in the current situation he is taking the job that is near where we live,” said Maria.

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