Read time: 2 minutes

Hey Rick, Are These Those 'Losers' You Were Talking About?

Hey, I'd love to see Rick Santelli sit down with these families and explain to them what losers they are - compared to the Masters of the Universe l

Hey, I'd love to see Rick Santelli sit down with these families and explain to them what losers they are - compared to the Masters of the Universe like Santelli who got the country into this mess, I mean. Moral hazard, my ass:

The orders came while Navy Lt. Adam Diaz was winding down a one-year stint in Baghdad: Report to the Navy Annex in Arlington for a new assignment in April. -- Given the military lifestyle, the prospect of a move came as no surprise to Diaz, 31, who has spent his adult life in the Navy. The shock came when he spoke with his wife, Stephanie Diaz, about the value of the Jacksonville, Fla., home they bought in June 2006, near the height of the housing bubble. -- "Hey, by the way," she recalls telling him. "The house has been valued for about 50 grand less than when we bought it."

The housing crisis is hitting military families particularly hard, according to real estate agents and service member advocacy groups. Many who bought during the boom and must now relocate because of fresh orders are faced with selling their homes at a big loss. They are finding few buyers, or even renters, particularly in the hardest-hit markets. That is leaving some families facing options including renting at a loss, separation from their loved ones or, in some cases, foreclosure.

The issue has caught the attention of Congress, which included language in the economic stimulus package to compensate service members who sell their home at a loss or have been foreclosed upon because they were forced to move after a base closure, reassignment or a combat wound required them to be relocated near a health facility. The program also covers surviving spouses of those killed in combat.

Under the new provision, the government will cover 95 percent of a loss if a service member is forced to sell. The government can also choose to acquire the title of a home by paying off the balance of a service member's mortgage or paying the owner up to 90 percent of the home's previous value. No dollar ceiling has been set.

The $555 million undertaking expands the Defense Department's Homeowners Assistance Program, which helps military and federal personnel whose homes have lost value because of a base closure. The new measure would likely help the Diazes, and would expand the homeowner assistance program to as many as 17,000 claims, according to the office of Sen. Tim Johnson (D-S.D.), who sponsored the measure.

Can you help us out?

For 17 years we have been exposing Washington lies and untangling media deceit, but now Facebook is drowning us in an ocean of right wing lies. Please give a one-time or recurring donation, or buy a year's subscription for an ad-free experience. Thank you.

More C&L Coverage

Discussion

New Commenting System

Our comments are now powered by Insticator. In order to comment you will need to create an Insticator account. The process is quick and simple. Please note that the ability to comment with a C&L site account is no longer available.

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.

Please Do Not Use the Login Link at the Top of the Site.

In order to comment you must use an Insticator account. To register an account, enter your comment and click the post button. A dialog will then appear allowing you create your account.

We will be retiring our Crooks and Liars user account system in January, 2021.

Thank you.
C&L Team