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Do I Need to Have an Open Arm Revolt Agains the Government? – Gary

“Dear Steve,

I have read a few of the articles on your site. Almost 2 years ago I went trough a bankruptcy and before doing so my wife and I went through all of our savings and even our IRA’s. My wife was doing real-estate full time, even thought I did not like it, it was what she wanted, so I went along and supported her.

When the crash came and the real estate market crashed she went from just starting to break even to total meltdown. After a few months she realized the market was not going to come back up for a long time and started looking for a job, again. But you guessed it; she could not find a job for a long time. And when she did, it did not pay very much.

I am retired from the Navy and collect my retirement pay. I live in southern CA so it does not cover for much. In fact it only paid for half of my mortgage. So I got the fist job I could find, which was as a security officer. Which pay better than most office jobs here in Palm Desert, CA. So we had to put a lot on credit cards and I have to do the shuffle game on everything until our money was gone.

Then when I hired a lawyer to do the bankruptcy I had to pay up front (fun considering I went though I of the savings already. After that we lost the house because she was laid off and then two months latter rehired at even a lower rate of pay. I tried to get a remodification on the mortgage loan, but my bank would not do it. So I hired a lawyer for the remodification and after being told yes they would help, then no, they would not help over and over, yes I lost the house. Now I am renting and paying just a much as if I purchased a house. Yes, the pay scale in the desert in screwed up so bad it is not funny.

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My question is, the government paid over 150 billion dollars to Fanny Mea and Freddy Mac, where did the money go. The government kept giving money to everyone, except for the people who needed it. People in the same situation that I was in and the banks refused to help us at all. In fact my bank actually told me they did not care if I lived on the street or if I shot myself as lone as they got the house.

I am 47 and my wife is 54, how are we to recover from this and buy another house? My credit score is so far in the toilet bowel I can hear an eco. Why is the government going out if its way to help banks and Freddy and Fanny and the people that are stuck in the lay off’s and loosing their houses, we are told by the banks to go and kill ourselves. I was even to told what to you care if we take the house. I told them I paid for 4 years of mortgage payments not to mention over $100,000 for down payment and upgrades. And I wanted to walk away from that? Other than open armed revolt what can we do? I can not even get a car loan anymore.


Dear Gary,

Well I guess the good news is that you’ve learned some really important lessons that I always share, don’t drain your protected retirement accounts to pay debt and most loan modification companies are a scam. Next time, come to me first, please.

I know you are in a painful place but there is hope to rebuild your credit and it’s a relatively painless and easy process. I wrote a guide on how to do it so just take a few minutes and move your eyes over to How to Rebuild Your Credit After Bankruptcy. If you follow that process within six to nine months you will see your score start climbing and within 12 to 18 months your score should be decent again.

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Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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