Today on the CDPE (Certified Distressed Property Expert) website. Another Realtor made a comment about how it would serve the banks right if everyone defaulted on their mortgages (or note depending on the state in which you reside). I was very distraught by her comment. Right now anyone who doesn't want to continue to make payments on a home with negative equity thinks they can just claim they have a hardship, dump the house, and just move on. Well guess what? WAKE UP WORLD, this DOESN'T work long term.
For your reading pleasure I am going to copy and paste the response I posted on the thread. The names have been changed to protect the somewhat innocent (yet obviously highly misguided!)
Jane Doe,
I am very disturbed by your comment that it would serve the banks right. Yes, they could have lessened the extent of the damage by not adjusting the rates once they saw what was happening, and many other times through the last couple years. But here is the biggest thing....the home owners promised to pay. And while some have hardships and legitimate issues, many people just don't want to pay for a house which isn't worth what they feel it should be.
To say it would serve the banks right if everyone defaulted is short sighted and you should think that through. If everyone defaulted and went into foreclosure then to whom would you sell homes?
Currently, in my market people have no shame about being on the default list, going to foreclosure, doing a short sale or filing bankruptcy. It is at a point where it is nearly trendy, as if it is a badge of honor to manipulate your bank out of as much money as possible. This impacts EVERYONE, our communities, society in general.
We need to STOP blaming the banks and require people take responsibility for the choices THEY made. Nobody forced them to take out these loans, nobody.
If people took more pride in their lives, more responsibility for their actions a lot of these short sales would be prevented. But in general, I see people just not caring. And what happens? People keep having their values dropped. People like me, who have been making the payments, working through trying to do our own modifications, and watching our neighbors just give up, fabricating "hardships", so they can go rent something nicer for less money. It is crazy.
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If I may put my own spin to it, (DISCLAIMER: The views and opinions expressed by James Keil are not necessarily those of Dr. Nagelhout)
ReplyDeleteThese are just poor, struggling Americans who have been victims of an unfortunate economy and circumstances beyond their control. Bankruptcy and free bank money is simply something every American (and illegal immigrant) deserves. Along with assistance on rent, power, food, etc.. the outstretched hands of the struggling victims must be filled. Those rich bastards at the banks don't need all that money anyway. They're just like all of the other capitalists out there.. we need to take their money and distribute it to all of the people who don't have enough to raise their unplanned children, and run up credit for things they cannot afford. You have no idea how many sad stories there are out there. People are truly hurting, and need free stuff more than ever. 50% of Americans don't even pay taxes, because they just can't.. so don't even go there, girlfriend. The idea of buying nice homes and property should really go away as well, as I'd like to see our Government design and manage housing districts, where everyone can live in the exact same type, color, and size of home. Maybe if we stopped attacking people who are walking away from their homes and financial commitments, we could focus a little more on free health care for every American. Have more faith in people, and in our country. Yes, we can.
Jimmy, you are so right! I would delete my post, but feel it so important everyone see my ignorance!
ReplyDeleteNow this is funny. She actually responded. I can see how, with her neat grammar and spelling, she would go far in getting her point across:
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Tara I'm sorry that my comment disturbs you but the banks put themselves in this situation. They deserve to get screwed for a change. They've been screwing the consumer all these years. The shoe needs to be ont he other foot. They should have not lent money to people who obviously couldn't afford the house they were buying. They knew exactly what was going on and didn't care because their pockets were getting lined at the time.
And now they expect and are recieving bailout money from the government? It's a load of bull. We're paying for them to get bailouts and then they don't even want to work with the sellers on the short sales. They purposly try and make it difficult so people will give up.
I've been doing short sales since 2006 when not alot people in my area even knew what they were. I've seen way to many banks purposly mess up short sales to foreclose or not approve them because the payoff is $1000 short or something ridiculous. They are arrogant SOB's who think they are above the law and can control the situation by threatening people with foreclosure. They steal agent commissions, make people with no money borrow money from relatives and tell them that they should max out their credit cards to get a cash advance to pay for the money they want from the seller (I've had about 3 bank negotiators suggest that to me).
I only work with sellers with true hardships and those are the people that really get hurt by the banks greed. Yes their are people who knew what they were doing but as they say "it takes two to tango". The banks knew very well who they were approving loans for also.
I do not feel anything but contempt for the banks and the more that get screwed the better.
you really must see this:
ReplyDeletehttp://www.thinkbigworksmall.com/mypage/archive/1/29027
Oh yes, the Indymac Westone deal. Did you know Westone didn't even exist prior to the FDIC acquiring INdymac? They were made JUST to taek over Indymac's bad products. Makes you wonder who is on the inside!
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