Real Estate Blog - At The End Of Every Foreclosure.....The Devastaing Human Toll

Home : Blogs : San Diego Real Estate Voice authored by William Johnson : San Diego Real Estate Voice by William Johnson GRI CRS e-PRO

At The End Of Every Foreclosure.....The Devastaing Human Toll

As Real Estate professionals we must never forget this. I know we all try to put a positive face on what’s been happening in our markets but there is real human suffering and personal devastation behind all these foreclosures statistics. But for the grace of GOD, go we.

I was talking with a title rep this morning about this subject and how we don’t hear very much in the press about the human trials all this economic and housing crisis has created. Talk about the “Inconvenient Truth”, that book title might have better been saved for the book to be written on this subject.

We talk these days about remaining positive and keeping our business on track but we also can’t escape to nightmare that is just below the surface of our marketing data. And yes, we try to stay focused on the job we have to do. And I am not suggesting otherwise. But we also can’t ignore this as just an enigma either.

And while I am on the subject we should also applaud the many thousands out in our communities across the country that are trying to help. The subject came up in our conversation about these wonderful volunteers helping with the many pets that have been abandoned when the cars are packed up and these devastated families feel the need to leave the littlest one to fend for themselves. I don't even want to go there in this post but for sure there has to be better ways of handling it.

I read an article somewhere about the services set up to help all the little ones ( the family pets) that are displaced and try to find them suitable homes. None the less as a pet lover, I can’t but think about the great tragedy of the events between being abandoned and then finally getting them new homes. And that got me thinking that as real estate professionals that if we might know of some of these situations coming up, we need to help this families by providing them the names of the all the vital services in the event we could fend off the secondary tragedy of abandoning these helpless little ones.

The exent of all this suffering needs to be in our consciousness to be sure that we don’t become complacent in the humanities of all this.

I hadn’t read much about all this in our real estate writings so I am speaking out about it. Yes, I know that we need to remain positive in our actions and conversations. There is no particular action I’m suggesting here, just a reminder that as we go about our daily business lives, not to forget about this personal part of it. It’s real suffering and we can best keep our hearts tuned, if we don’t fail to think about this aspect of the crisis that we are all scrambling to try and help remedy.

Posted by San Diego Real Estate Voice authored by William Johnson on 04/07/2009 03:03 PM

Comments (90)

The Human Tragety of Foreclosures in the ActiveRain Channel

foreclosure, displaced pets

Post is included in group: POSITIVE ATTITUDE for the Weary Soul
Post is included in group: PETS ARE PEOPLE TOO
Post is included in group: Local Expert
Post is included in group: Giving Back
Post is included in group: Diary of a Realtor

90 Comments on At The End Of Every Foreclosure.....The Devastaing Human Toll

APR

Thanks for the reminder. When you said "little ones" I immediately thought about the children. Imagine being a small child and dealing with losing your family home and the stress that creates. Indeed the toll is high, and I think the much of the fallout is ahead of us. We all need to remember what is important in life.

William....this really touched my heart! I'm thinking the reason we don't see more of the human tragedy covered is because we would be drowning in tears. The media seems to feel that part of their job is to play-pollyanna

I saw a program the other night about services being cut by States to save money. In this case it was Medicaid services and a Cancer clinic offering free and reduced cost Chemo. In essence people were being told...it's your time to die.

WE are all dealing with frightened,desperate and hopless people we all do the best we can....but it certainly isn't enough.

Your idea of local services lists is an excellent one and could help many! , for one,intend to research my own area and put one up...Huggs

Hi Charles, Thank you for mentioning that , it is yet another aspect of the terrible tragedy. I could about this for hours but I didn't want to make it too much preaching to the choir. So I kept it brief but your point is one of the most important. Thank You!

As I came home from town today I passed a home that had at least 50 large green trash bags piled up next to the fence, the screen door hanging sideways from the hinges, the grass over a foot tall ... and the (what appears to be) the family dog laying on the front porch.

I had an immediate vision that these people had to leave in a hurry and left the dog behind instead of taking him/her to the local shelter. And that broke my heart.

When I got home I called the local animal control office and gave them the address so they can go check on the dog, and if in fact the owners moved and left him/her then perhaps they can take him in and find him a home.

The ripple effect of a foreclosure is huge, but seldom acknowledged.

Thanks for an eye-opening post.

I just received an email over the weekend from a fellow who's clients had lost their home and are now looking for someone who would take both of their beautiful labrador retreivers together, as Cookie and Ccco are inseperable.

I can relate as my two dogs can't stand to be apart from each other, even if only for a quick trip to the vets or the groomers. They won't even go out for a walk without one another.

It is so sad William when I show homes that have been foreclosed upon and we come across left behind toys from the children who once inhabited these homes. Or you see the personal touches that were put into the home. It really does get to me sometimes. I really take offense to anyone who clasifies these people as deadbeats or irresponsible. Everyone who once purchased these homes had every intent of paying the mortgage and raising their families in that home. Job losses, illnesses, or divorces are unforseen events that often cause people to fall into foreclosure. You are right, we should never forget the human toll this whole downturn is taking on us. Great post and good luck.

Joan, Thank You and if we can keep the conversation alive and all of us try to help a little here and there, it has to help. Knowing you the way I do as the kind and wonderful humanitarian working as a professional in our industry, you will move mountains and probably already have. You make a difference Joan and how delighted that I am to have you as my very valued friend.

Hi Carol, It is hard to imagine such a thing but it happens a lot. One can only wonder what the pet is feeling not to even mention the other part of this family tragedy. If my little one were left, she would just believe that I 'll be coming back. They are so trusting and not able to reason. It is unconditional. What a heart breaker and thanks for sharing it because this stuff is really important that we all know about it and do what we can do to help prevent it.

Hi Rick, Thanks for reminding us how so much of this happening and hope they were able to get them a good home. These pets are like orphans and you have to wonder how much attention this is NOT getting. If the press would help, there are so many people that care out there but I wonder how aware they are of all this?

Hi Jerry, We need to all write about this subject more and remind people what the residuals are in all this. And these things don't just get automatically made better when the displaced ones find a new place to live. I would expect it haunts them terribly and the children and pets that have to endure the change without any understanding. It is certainly sad and I am glad I wrote this. And I am also glad you commented. You just revealed the kind of person you are Jerry and I am doubly proud to be associated with you.

William

The picture of the man pretty well sums it all up.

Sincerely

Tom BRaatz

Hi Tom, It does indeed, but imagine the rest of the family.

William, yes it is MUCH more than the financial mess of the foreclosed home being taken away from you. An individual or family has to go through the change of NOW where do they live? What rental? Back with other family members? Move away? It is all so stressful. Thanks for bringing up abandoned pets, another real world problem.

Hi Gary, It just seemed that the time was right for this. If anyone would be empathetic , it would be you. You well understand the humanities in life and I knew you would not miss this very important one.

William, there is a lot of sadness in many homes today. You feel it when you tour a home which has obviously been abandoned.

Hi Lola, Thank you for adding into this post your own evidence. I just felt with all that has been said, that the human emotions side has received far less consideration. I have been in many foreclosures and besides the sadness , you see the frustration and anger that was left as well. Stray pets out seeking food and the symptoms of this are everywhere but hardly spoken of at all.

William,

This is excellent! We are in the people business, our job is to help people. No matter what the reason, personal follie, ignorance, fraud, or job loss there is a tremendous human toll!I don't see the majority as victims, but that's semantics. The pain is real! The pain is as intense as anything that can happen without someone dying. This to shall pass!

There is always more than one way, our job is to help the people.

Bill

William, We just got a rescue dog and I have wondered if that was what happened to him. He's a wonderful dog but has a bit of separation anxiety still going on.

Wow, how poignant! Due to my buyer base I have become a "distressed-sale" specialist and I am often overwhelmed with sadness when I am previewing/viewing these homes. The short-sales especially bring the reality home when you view a home full of people, children, pets, and belongings that you know will likely be gone once the bank takes it over. Thank you for being real!

Yes, it's heartbreaking in so many ways... the poor pets, the kids moved from their friends and schools. The loss of the American Dream - thanks for the reminder. We do need to help when and if we can!

William, this is certainly a very sobering subject. As agents, we strive to keep a positive attitude but there is another side to this whole mortgage mess. Unfortunately, there are people who could stay in their homes if the process were being run in a more efficient rational manner.~ Sharon

The ripple effect of foreclosures & short sales reaches far & wide! I recently had to find homes for a turtle, some tropical fish & a large dog! Some sellers are in paralysis and don't know what to do! In our market I deal with many, many distressed sellers & it is heartbreaking to see how vulnerable they can be. I always take a consultative approach & I find that if I can help with the added stress of pet placement is one less challenge that they have to work through!

Hi William,

So true, "But for the grace of GOD, go we." Just today I had someone in my office considering a move. Only problem, they too owe more than their loan. I always try to leave someone with positive thoughts, although they have neg-equity, they still have a nice home in a good neighborhood to enjoy.

I deal almost entirely in short sales and see and hear the carnage almost daily. At times it can take its toll on me too and I need to stay focused to get the job done.

What makes me irate is that the bankers who committed this agregious fraud go home every night to their cozy lives while they devastate the lives of others. They packaged loans of lies and now the FBI is on their tails. Maybe the new banker beds will be a federal penitentiary.

So many of my clients have simple solutions but can't even get through to the bankers that committed the crime. While I am a huge Obama supporter his financial plan is a joke. What happens to the credit of the millions of Americans devastated by the fraud of banks and Wall Street. When the banks restructure, do they restructure the devasted credit of the borrower? NO!!!

Even after the emotional devastation of the borrower, they will pay dearly for many years to come.

I would like to see a mandatory response date of 30 days or the loans is automatically modified to the request of the borrower. Instead, many lenders don't even remotely follow the guidance of Obama's "rescue" plan.

I hadn't read much about all this in our real estate writings.

William,

I am sorry to say I wrote a lot of this and set up a group "American Poor Folk's E-gold" in AR. But nobody interested to comment, let alone to get involved.

A few days ago, I made my challenge by a loan proposal. What's Freedom(1): Keep Eyes Open and Don't Shut Choice Out!. It seems no my fellow agent takes it serious.

Even I said there is a good idea to "by-pass" the 2009 tax credit "rebate" hardship to help "those little one." Nobody even asks what the idea is.

Well, I am tired of sitting and talking in AR. I am going to "DO" it by myself to help those poor folks very soon.

Thanks for a great post, it certainly is time word gets out about this side of the story. Personally I've been involved in animal rescue for more years than I care to admit to. However, recently I've been inundated with calls from people who know someone who needs to "re-home" their pets due to foreclosure. Just today I took in a beautiful corgi mix in this situation.

While I could never imagine leaving any of my "furry or feathered" kids behind, I can only guess at the emotional devastation that these people must have endured prior to making this decision.

Thanks again for shedding some light on this "inconvenient" situation.

Another obvious sign of a family disruption is when some of the kid toys are left behind. It is difficult to visit those houses and stay focus on the material aspect of the house when it is clear that a family lost its home recently.

William,

Thank you for writing this blog post. It is the best post I have ever read on Active Rain. The devastation on all -- adults, children, pets is one of the saddest tragedies I have seen in my life. --Joan

I was at a seminar last year when the presenter said that 7 of 10 people who go into foreclosure never try to do anything, never call anybody, just wait for the bank to take their home. When you compare those numbers to the fact that 11% of people can't make their mortgage payment, you have to realize how huge the human toll really is. That's why I've been having a monthly seminar to tell people about their options when they owe more than their home is worth.

I don't know what you see from your point of view. I see agents working HARD to find resources for families in need; helping them avoid foreclosure if at all possible, and helping them to solve the problems that come from the fall out - where will we live next? what about the pets? school? I am slightly perplexed at the post... you must be seeing something different than I am. I think it's about time that someone pointed out how much humanitarian aid agents are giving, or trying to give, to consumers who are in varied messes from this housing crisis/credit crunch/economic mess.

While foreclosure, or even short sales, well... SUCK, the reality is that what doesn't kill us will make us stronger. People got into the messes their in, and many of them did it eyes wide open. Now they know that the worst CAN happen, and they will be more cautious next time.

We must continue to give these people - each other - a hand up. After all, we all make mistakes. But, at some point, the pitty game and blame game must stop and people must be willing to admit where they made obvious errors in judgement and they must be willing to learn from it....or history will continue to repeat itself.

As for the children, I hope they will take with them a lesson that our generation lost. Have you ever worked with someone who lived through the depression - they are practical people who take responsibility for themselves, their families and their actions. Two or three generations later we've lost that. It'd be nice to see it return to our society.

While I agree with most of what you said, and I do REALLY feel sorry for any of the animals that are left behind by a family moving, I think some of your words are stretching it a bit. "human suffering", "nightmares", "devastated families" etc. etc. Now if your blog was about the earthquakes in Italy right now, I think those words are appropriate. But a foreclosure...?

Since 99% of the people on Active Rain always agree and praise the blogger, I'm going to play devils advocate on this one.

Keep in mind that many foreclosures are by those that put $0 money down, and are just losing a "greedy" dream, or have already bought another home and are bailing on their current home. Many foreclosures are happening to people that pulled money out of their home via a large refi, have sent money to other countries etc. and now are bailing on their current homes. In this area, there is still a lot of "buy and bail" going on. So, not all foreclosures are a "sad" thing as your "every" comment wants us to believe.

So, while there are many sad stories, I would argue that your premise of "At The End Of Every Foreclosure.....The Devastaing Human Toll, is not actually correct.

Anyway, I didn't come to pick a fight, just to point out that in many cases, a foreclosure was the easiest and quickest thing for people to do and they have already moved on to greener pastures.

William, This topic pulls at everyone's heartstrings. A co-worker went on 3 listing presentations this week. 2 out of 3 clients had tears in their eyes. Besides the human suffering, then there are the little animals, abandoned and hungry expecting their beloved master to come through the gate. I myself, have taken in 3 horses that I really didn't need... Help one another and do what you can.

William - I see alot of this with my area full of short sales and reo's. In fact, I was showing a home that was vacant except for the 5 kitties left behind. I went to the store and put food and water in the home and the next day called all the animal organizations and found homes for all 5 kitties. I think the community needs to recognize this problem and maybe some of the rentals can start allowing pets. Right now, Fix and Feed is in need of $12,000 to pay the taxes on the land where homeless horses and cats live. The owner lets them stay there as long as they pay the taxes, and they need to raise another $5000 before the end of April. What a job that will be looking for a home for 25 cats and 24 horses.

Real nice post. My investor client and I were talking about it just this last week.

a picture says a thousand words:

http://www.agreatertown.com/frederick_md/people_are_not_the_only_ones_displaced_by_foreclosure_00040883 (People Are Not The Only Ones Displaced By Foreclosure)

"What makes me irate is that the bankers who committed this agregious fraud go home every night to their cozy lives while they devastate the lives of others. They packaged loans of lies and now the FBI is on their tails. Maybe the new banker beds will be a federal penitentiary."

To which egregious fraud do you refer? Lending someone more money than they can afford or selling them a home that is overpriced? Rather is the egregious fraud borrowing money with full knowledge of the low probability of repayment to a creditor?

Does not man bear any responsibility for his own well being, Ms. Farkas? Simple math would dictate that family income of $50,000 can not afford a $300,000 loan. Unfortunately, buyers listened to neighbors and family members badger them to keep up with the Joneses. Bankers figured (wrongly) that they could make a profit off of an ever rising residential real estate market. REALTORS deliberately shunned the financial counsleing oft offered to new home buyers of decades past. Buyers closed their eyes and banked on the same rising real estate market the bankers did.

It's time for our industry to stop wringing its hands in penance for the actions of the feckless few. Generations of Americans have successfully purchase homes, ridden out market fluctuations, and paid their bills. This unfortunate faiiure is a moral one; my guess is that the impractical (and therebv immoral) who suffered from this failure will grow up pretty quickly.

This is not to say that I'm unfeeling of pain. I feel when a man fails in a worthy business pursuit because he was undercapitalized. I feel when a man loses his job because of a shift in consumer demand. I feel when death, or disability plagues a family so much that they are forced to make hard living choices.

Here is the cold, hard fact; private ownership of real estate is a privilege and not a right. When finally realized, this crisis will be over.

Simply put, home ownership is not for every American, no matter how hard the government, NAR, and NAMB promotes it.

Thank you William for posting a side that most all of us in the business don't talk about. Vicki, there are so many people that's path I have crossed that did not go into this with eyes wide open, they were sold a bill of goods on "The American Dream", a dream they could not afford. I live and work in a very small town and made a conscience choice not to be a "bottom feeder", going strictly after the short sales and foreclosures like a lot of agents chose to do, because in the end when all this is over...I still live in a small town and feeding off of those in trouble is not how I want to be remembered! Has this helped me right now? Heck no, but I can sleep well at night. Because of my choices, I am now doing property management for a self storage facility along with being a Realtor, this is bringing me really up close and personal to many that have lost their homes, most do not admit why they need storage, but I usually can tell...from statements like this one (40 something male) I sold my home and moved into a duplex, therefore I don't have enough room for all my things, it's only temporary. I know that is not the truth, but he was embarrassed, more & more young couples with children having to move in with their family's, the stories go on & on. It is devastating on the human toll and I don't think that we have even begun to see the repercusions in society.

APR

Good thoughts, it is way too sad & people need a lot more help than they are getting. It can be a real learning curve for us to step outside the box of our normal business as usual methods & find meaningful ways to help people. I have worked with the short sales & seen the sadness of loss mixed with at least a little joy of the released burden, but the fact remains that peoples dreams are fading away. Some get frozen from the stress & worry, much like a deer in the road with headlights in its eyes. There are some good help sources available who could help some, but the people have to find the sources. When I hear that 7 of 10 foreclosed owners just sat there, & did nothing that anyone knew about, I wonder how many called their banks & were given the run around or just told no we can't or won't help you.

I recently read that only 20% of people who tried to do a loan modification had any success & that 1/2 of them were back in defalt again 6 months later because the bank didn't give them enough of a reduction to make it affordable for them. Granted all can't be helped with a loan modification, but many could be that just are not getting the help. The fact is that Loan modification is the only plan that many have to keep their homes.

There is a lot of mixed thinking about loan mods out there. There are a lot of new companies & people jumping into the arena with the #1 idea of making a lot of money, which almost seems predatory if it wasn't for the extreem need & the value of the service that most can not do themselves. Sure some will be able to do these themselves, but not big numbers, remember only 20% who tried succeeded. If you have done a short sale you know negotiating with the bank is not that easy. Negotiating a maximum loan modification is about the same. Next time someone says, no one should pay for something like that, that anyone can do themselves, educate them. Don't perperuate the myths that are helping send people to foreclosure that could have been saved.

My best advise after spending a lot of time researching options is to tell people to find a successful source for a maximum loan modification, either free or pay for it. Check out the companies available in your local area. Check for things like 100% money back guarantee, length of time in business, are they a member of the better business bureau, what is their track record of success? etc. etc. Pick the best one you can find, check em out & go for it. If you do nothing you guarantee your foreclosure. Feel free to e-mail any comments or questions to CraigsHouseDeals@yahoo.com

Brian : Simple math would dictate that family income of $50,000 can not afford a $300,000 loan. Unfortunately, buyers listened to neighbors and family members badger them to keep up with the Joneses. Bankers figured (wrongly) that they could make a profit off of an ever rising residential real estate market. REALTORS deliberately shunned the financial counsleing oft offered to new home buyers of decades past. Buyers closed their eyes and banked on the same rising real estate market the bankers did.

How about the buyers that made 90 K+ and lost their job ( because of banker greed and other buyers lier's loans) and can't find anything in that pay range ? don't even get me started...

yes there is a human tragedy !!!! A real human tragedy

I got my Real Estate License 4 years ago. I had been self employed for a 15+ years. After 9/11 my last business collapsed. Hence I got into Real Estate, but things did not go as fast as I needed. The first home I sold was mine just ahead of foreclosure. (In retrospect it turned out to be one of the smartest - dumb luck - moves I ever made. It is worth less than 1/2 what I sold it for. ) That gave us capital to hold on for a while. I paid a year rent in advance because my credit was shot (Thank God I had equity!) But we have been closer to the streets than I ever let my kids know. We have finally gotten ahead some and even hope to buy another house in the next year, but there is a terror. All though I am very conservative I had to use some of those social services (Yes I am embarrassed) and they do make it hard to get off in some ways.

It has given me a sensitivity to those trapped in poverty. I have been poor and well off at different times in my life, but this is the first time I was at bottom with a family to take care of. It is hard to climb out with a family.

Jerry Murphy wrote this : It is so sad William when I show homes that have been foreclosed upon and we come across left behind toys from the children who once inhabited these homes.

I feel the same way. I showed these empty homes with custom decorations done for the children, maybe a special mural paint on a wall or a kids play set or a few toys abandoned. I showed a home not long ago where there were 2 handwritten notes taped on the inside of the kids bedroom doors,it said : I promise not to wresle in the house and to listen to my parents. I instantly started to cry as i was waiting for my buyers. I had to finally call a friend to talk about something else as I was about to have a breakdown/

I also do a lot of BPO's . I always wander what has become of this family that once lived here? how about the children.

I do short sales too

I agree, not enough is being said of people who lost their homes to foreclosure because of job loss.

Around fall of 2002 we refinanced our loan to a 15 year. Within a month after that my husband was "deselected" from Eastman Kodak after almost 25 years - yeah, they actually called it deselected. Anyway, we probably would not have been able to refinance if he had lost his job first - we just happened to grab a better rate and just in time. Since then, some years have been a struggle, some not so bad. We have a lot to be thankful for.

I would love to see the real statistics on foreclosures published. Job loss, poor credit, over extended, investor speculation divorce, alcohol, drugs, gambling. Seeing family photos strewn about and left behind is always what gets to me . . .

How about the buyers that made 90 K+ and lost their job ( because of banker greed and other buyers lier's loans) and can't find anything in that pay range ?

I'm not making the connection between the two. They lost their job because of bankers' greed?

William: Appreciate your comments.We put a lot of the blame for this mess with lenders, appraisers etc,.,but wonder how many Realtors across this country are not sleeping well because they had a part in creating this foreclosure mess. They felt good when they kept getting the referrals from that special mortgage broker and gut sucked in.

They knew to well that their client was not capable of repaying the loan, probably didn't even care to ask the right questions etc,. but cared more about the bottom line and never had their client best interest in mind. They enjoyed a nice check at closing and move on to the next one.

Glad that there are only very few compared to the number of good, honest and hard working Realtors that always put client before self and try to do the right "thing.

Just to add something else... there are Arizona, Florida and California homeowners who in fact are losing their homes, that if you add up what they originally paid for a down payment plus 5 years of mortgage payments plus the cost of any personalization of the house that EQUAL the amount of money that homes on their street are now selling for! I would hardly call them a deadbeat just because now they can't make their payment. The bank got their money and now they want up to 5-10 times as much as the house is currently worth.

The human toll to people who cannot face their neighbors, move out in the night, suffer endless phone calls, stickers, anger, debt, worry, shame and notices on their front door, loss of credit scores, move their children to a new school district not know who will allow them to rent, what will happen next?

When one home forecloses on YOUR street it not only affects THEIR family, their pets, it also affects YOU! Because it will affect your home's value at some point in time. If you belong to an HOA, your HOA dues could be affected due to their hoa fees not being paid. There are many losses.

Watch the movie, Kitt Kittredge: An American Girl, shows you what happened in the Great Depression and much like the way it is today for some people in some places, this strikes the owner of a car dealership as hard as the worker in a mill.

if you add up what they originally paid for a down payment plus 5 years of mortgage payments plus the cost of any personalization of the house that EQUAL the amount of money that homes on their street are now selling for! I would hardly call them a deadbeat just because now they can't make their payment.

How are these two connected? How does market loss affect their ability to service debt taken out five years ago?

Many of us were complicit in providing a piece of the American Dream...home ownership...to those who, in perfect hindsight, should not have become homeowners.

When the stock market was roaring upwards prior to the dot-com bust and the Fed Chairman decried the atmosphere of "irrational exuberance", did securities brokers call a halt to the sale of stock because there was no true basis for the ever rising market? No!

Likewise, we agents partook in the similarly irrational real estate market. We helped our clients to cash out at ever increasing prices and then we helped them or others to buy in at even higher prices. Now that house of cards has fallen. How many of us said, "This is dumb! I am getting out of this business until sanity returns."?

Yes, it is a tragedy when one loses one's home. It does not matter where the blame lies; there is still sorrow and anger. Depression and angst.

Is any good coming out of this economic and social tragedy? In the broad sense...yes...not just because we hope that we are smart enough not to let this happen again. (Good luck with that premise.) But, in the midst of all of this turmoil there an entirely new group of homeowners. It is likely that these new homeowners will not lose their homes because they got toxic financing!

Hi William,

Awesome post that really pushed some buttons in others. I'm not sure why the news media doesn't care about such things, why they can report about earthquakes, and car bombings in other countries when the communities we live in are being devastated. It's posts like this that shed the real light on the subject. As a Realtor, we learn so much so fast about a families finances and suffering and much of the work we do is humanitarian. Looking for and pointing out resources, making calls, giving hugs, letting people vent and cry. Some nights it's difficult to sleep, thinking, racking my brain on what else can I do to help the people I meet.

And I apologize, however I have to weigh in on Brian Brady who says:Generations of Americans have successfully purchase homes, ridden out market fluctuations, and paid their bills. This unfortunate failure is a moral one; my guess is that the impractical (and thereby immoral) who suffered from this failure will grow up pretty quickly.

Ok Brian...stop guessing!Many hardworking people put down 20% down payments, did full documentation loan and have never been late on anything in their lives,they are trapped in loans that will drastically increase and they know it,it's a ticking time bomb they cannot refinance ( due to a 50% or more drip in home values), they don't fit into any of the smoke and mirrors government programs so called designed to help, many have suffered a job loss and now take home half of what they use to earn, those are the folks who are now suffering unimaginable stress, anger,sadness and the fears of becoming homeless.) How is that a moral failure??? Get a clue!!!!

What makes me mad is how the powers that be,have created another injustice, by lowering interest rates across the board waving a magic wand for a refinance boom. As wonderful as that is, it doesn't help those who need the help the most. It doesn't help those who have been most devastated by the current state of the housing market The only homeowners that is helping is those who purchased homes prior to 2004 who are now able to take advantage of the 4.5% interest rates. If you are one of those folks, stop bragging about it and saying to friends and family that are hurting " why don't you just refinance" That is so cruel. The pain and fear they feel is real.

I applaud Gene for his candor and honesty. His statement :It has given me a sensitivity to those trapped in poverty. I have been poor and well off at different times in my life, but this is the first time I was at bottom with a family to take care of. It is hard to climb out with a family.

Now that's a man Realtor who understands...

William, thanks for putting the real face on what Real Estate is all about right now.

Ripple effects, little ones, yes indeed - - picture this - - 5 year-old child - - parents lose house, split up, pets and all that is familiar is left behind - mom must move into homeless shelter - days child is with mom, he sleeps at homeless shelter and then comes to school - - personal trauma of child's life causes "acting out" in classroom - - schools cut social workers and guidance counselors from budget because no funding left. Multiply this by a class of 15, or so - - do you think there's any learning going on in that classroom? The housing crisis is causing an educational crisis that will last so much longer than this current slump in the economy. Thanks for your thoughtful post - I really don't think people realize.

Hi William,

As a move manager I work with a variety of charities, donating unwanted home goods, clothing, food, etc. on a regular basis. I would do this no matter what was going on in the economy because it's a win-win-win situation: my clients (or their estate) get the tax write-off, someone benefits who needs assistance, and I have prevented literally tons of stuff from going into landfills. I feel fortunate that I am in the Boston area where the real estate market, relatively speaking, is doing okay and the foreclosure rate is lower than many parts of the country. Nonetheless, virtually every organization I work with, especially food banks, are more desperate for these donations than every before.

The housing market, unfortunately, won't be turning around as soon as anyone would like but there are still ways -- PLENTY of ways -- those of us who are fortunate enough to have roofs over our heads can help those who don't with little to no cost and only a little effort.

So people, start cleaning your closets and basements and don't forget to throw a can or bag of food into the collections at your local grocery store.

Lori Salzman, Room To Improve: Certified Senior Move Management and Home Staging

William... Thank you for blog about this side of the human/family pet drama that is happening every day. We forget about this, and I am glad that you have reminded us. The repercussions are tremendous.. and don't just effect the immediate family, but everyone else too.

valerie osterhoudt

WOW! What a powerful topic you have hit on. I have been pondering a book on this very subject because it's a very real story that needs to be told. Yes, it is an "Inconvenient Truth" and doesn't get a lot of play in the media. People are hurting everywhere from all walks of life. Almost everyone I come into contact with has a story. These stories need to be told. If you have a story to share, send it to me at Teresa@Teresa-Turner.com and I'll post some of them for you in my blog at Staying Balanced in an UnBalanced World.

As an reo agent, I see the losses on a daily basis and yes it can be very heartbreaking. I am dealing with a family currently that breaks my heart every time I have to meet with them. They have lost their home after 25 years because of events beyond their control. These type of people and situations are the true victims. But I also see the other side of the spectrum as well. When you drive up to a $50K house in foreclosure and there are two brand new Cadillacs sitting in the driveway, then you know the people's priorities have gotten screwed up somewhere along the way. Unfortunately I see this alot. Somewhere in the last generations, it has become more important to keep up with the Jones' and appearances and people have simply taken on too much. Every situation and every family is different and the only thing that we all can hope is that everyone will take something from this mess and learn from it. I also am so glad that you mentioned the other victims here...the animals that get left behind. This one touched me recently. I received an reo listing and when we rekeyed and opened the door, the former owners had left their little dog behind. Unfortunately it was too late for him...he starved to death and died on the kitchen floor. Talk about heartbreak. Sure these people have lost their homes but it makes me furious. How hard is it to take your animals to the local shelter! At least they won't have to suffer and die a horrible lonely death.

You make some excellent points. I don't think anyone sitting in the title company signing papers to buy their home. Has any thoughts of a foreclosure or wants it. To see the talking heads blame the home buyers for the mortgage mess..........well it not accurate.

Certainly the lawmakers who promoted the idea of banks lending money to people who didn't meet the bank's normal lending criteria was the most significant part of the problem.

Laws that shift risk to the public while keeping the profit in the private sector will always produce problems.

This would not have happened without the lawmakers pushing home-ownership to the point where banks made loans they wouldn't normally have made.

The idea that greedy bankers are the source of the problem is naive. They contributed, but the source was the politicans who don't understand capitalism and the free market system.

Yes the foreclosure isn't good for anyone. It has an impact on ALL affected. The families that can no longer afford the home, the lender that now must deal with a home they don't want, and on and on. With everything in our society we have those that get paid to clean up the mess of others, in this case it is us, REALTORS.

The Human (& pet) toll on every foreclosure is astounding. Unfortunately I DO know someone going through Foreclosure, self employed: due to the economic times they have had a depletion in income. Their bank wants them to front 3 Xs the amount of their monthly mortgage payment to then be "considered" for a loan modification! If they HAD 3 Xs their mortgage available to them, they wouldn't be in the situation that they are in! The banks are all screwy - pretty soon everyone is going to be dealing in cash.

William, thanks for this post. We are all guilty of not paying attention. From my personal observation, people dont want their family and friends to know how much they are struggling to hold onto their homes, and it isn't till its too late, before anyone finds out. My question is, WHY have there been no avenues for people struggling with their mortgage payments, to go and get help? Well there weren't last year and the year before when this tragedy began to unfold.

Great post, William. There is a lot of suffering right now from job losses, foreclosures, etc. Good reminder for all of us to remember those less fortunate and to help in any way we can.

William, thank you,

you have put into words what I feel, much better than I could.

I have decided not to use a "Are You Worthy" standard, it's up to me to present their option's and see if I can help. The bottom line is I am a realtor, that is what I do as a business.

What I do as a human being is, feel pain, sorrow, empathy, and worry for them as a family(children and pets) and all of us as a people.

You are so right what a Tragedy, that Did Not have to happen and the ones who Caused it are Still in office!! IF ole barney and his boy friend over at fannie mae and freddie mac hadn't given mortgages to people who had NO business getting one, so his boy friend could get 1oo Million and ole barney could get Hundreds of thousands of dollars! It makes my blood boil when I see the human carnage they have Caused along with dodd and barry, the ones who got Hundred of Thousands of dollars and caused all of this monumental human suffering!! The most SAD part is that these scoundrels are Still in control!!!

Every realtor needs to be at their tea party tax protest so we can be a part of the SOLUTION to the MESS the lib dems have made and continue to make! We need to get active to prevent even more human carnage!

Go to this site so we can get the attn of the Idiots in the gov't, OUR future, families and country depend on it! Official Tax Day TEA Party, April 15th, 2009 See you there!

The foreclosure of your home is a loss and a serious crisis! Some bounce back, but please remember, some don't. Every course on foreclosures should include at least a mention of this fact. Thanks for bringing up the subject.

William, your post has revealed so much more than it originally addressed. I rarely read all comments, but was intrigued by the stream of posts and the manner in which it touched on so many contiguous issues.

It reminded me of the time when this mess started to implode and all the talking heads were saying that the real estate market was only 3% of the total economy, ignoring the fact that everything is connected in our global community. The complexities inherent in this situation rightly cause paralysis, which I both feel and see every day, and not only in clients, but other realtors. Sometimes it is monumental just to put the proverbial one foot in front of another.

And we realtors are not untouched by this catastrophe, either. How about a homeless Realtor for the ultimate irony? Sadly, I think that group is silently growing.

But, we as Realtors have a gigantic responsibility to look first, to those around us who are suffering in this environment, and to go to great lengths to help them in ways that only we can. And maybe that is the first, and most important step we take.

William,

This is so sad and I commend you in sharing lest we forget.

With all the massive lay-offs in this area, I personally know many people who've had their homes foreclosed or had to do a short sale. It is terribly sad, because you do see both sides of it. When I'm taking Buyers through these homes, you just feel (and sometimes see) the suffering that might have endured for the previous owners.

Thank you William. You are right, our jobs keep our attention on transaction details and marketing and so forth. But it hurts me deeply when I show homes where families used to live. You can tell a family was there by what's left behind. This past election I worked inside a polling place in a location hit VERY, VERY hard by foreclosure in Manassas Virginia (Prince William County). I knew from showing property there that so MANY of the homes were actually vacant. As I counted the voters coming in to vote I wondered where the people who no longer lived in their homes would go....Would they come back to vote, did they feel empowered enough to vote, where did they go? After all, they went SOMEWHERE to live. I smiled at each and every person in my line and gave me their name-I wanted to make a connection and I wanted to say 'thank you'. Thank you for keeping hopeful. It brings tears to my eyes when even now I think back to the actual turnout that precinct had that day! The turnout was GREAT! They DID feel empowered and it didn't matter WHO they voted for! They came out and voted....regardless of where they were spending their nights. For this reason I feel hope each day, enough to get up and show another vacant house. But...I will never forget this time in our collective history together..

William, Thank you for this important post. I think a lot of us are carrying a heavy burden and don't even realize it. We deal with such difficult problems these days as part of our day-to-day job as Realtors. I had something wonderful happen to me totally unrelated to real estate this past week and felt a wave of happiness I hadn't had in quite some time. It was then that I realized what a toll this takes on me and all of us. Like you so eloquently wrote, we need to help and be sensative to all of those we work with. We will get through this together.

they are trapped in loans that will drastically increase and they know it,it's a ticking time bomb they cannot refinance ( due to a 50% or more drip in home values), they don't fit into any of the smoke and mirrors government programs so called designed to help, many have suffered a job loss and now take home half of what they use to earn, those are the folks who are now suffering unimaginable stress, anger,sadness and the fears of becoming homeless.) How is that a moral failure??? Get a clue!!!!

If they complicitly entered into a loan transaction that could be a ticking time bomb, but now rely on the government to bail them out, that is immoral.

Here's the problem. Most REALTORs were ill-equipped to advise people about market risk and did a disservice to the homebuyers by not recognizing that what could rise, could fall. Rather than to accept things as they are, you weep and wail and beg the government or banks to do something for these poor souls.

If you wish to do something useful, tell them the truth and prepare them for the next real estate boom. If you continue to treat them like victims, they will remain victims forever. I choose not to sentence people who lost in the market to perpetual slavery; I have more respect for their future.

We're past the blame game already... and should all know better to pass the info along. I did yesterday. Plain and simple....they overextended themselves way back when.... maybe that's why they asked me for help this time. :)

I remember the foreclosure market from the Savings & Loan companies in the 80's and the same type dramas were happening at that time. People who are losing their homes and in financial difficulty are not only stressed to the max but usually are embarrased. This does not allow for clear thinking and consequently too many personal items and pets are left behind. I appreciate the reminder and perhaps as realtors, we can address this situation in our marketing materials we send out to the community with the phone numbers of local animal shelters.

The tragedies are endless and this is just one of the many sad stories we hear about and see every day.

I personally do several BPOs for a few Servicers and drive by to take photographs of the homes. You can see the basketball hoop up, the toys in the yard, the beautiful landscaping in many cases and real evidence of a once happy family living inside.

This breaks my heart since I know how the system works, or should I say does not work. In many cases, there is PMI or even lender provided PMI (Private Mortgage Insurance). This means that the lender (Received our tax dollar bail-outs/Wells Fargo/Citigroup etc.) and the PMI Company (Many received tax dollar bail-outs/AIG etc. ) work like this. The lender makes more money from a foreclosure than a Loan Modification or any sort of rescue effort for the homeowner since they receive the PMI, then sell the home for current market even at a discount, then write down the loan in the end.

The Loan Modifications offer very little on the order of any Loan Balance Reductions, if any. You would be very lucky to see 10% out of Wells Fargo for example. Then it is really a forbearance with still high payments (perhaps 15% tops lower than the usual payment) with a huge lump-sum due in 3 months or so.

Then they will tell you that they may do a Loan Modification at that time. The terms are unknown and it appears that they are really fleecing the owner out of more money and perhaps making it impossible to have money to move should the need arise. (It usually does.)

So in essence, they are mitigating their loss by getting more money from the owner with no real promise to help the owner. In most cases, the intenet is to finally foreclose anyway.

An imminent foreclosure is bound to happen when the owner/mortgagor has lost their job or even taken another job with a substantial pay cut.

I think we're all tired of hearing about the people that took loans they should have never taken. While that is true in many cases, it is the exception and not the rule. For most good hard working Americans, they fully intended to pay for the homes they bought and could actually afford at the time. Were all of these people supposed to be financial forecasters and know where the market was headed? I suggest they most often believe that the lenders are the gate-keepers.

What is happening is Un-American! The fat-cat lenders are getting bailed out along with the other financial institutions such as Insurance Companies that work together with our own tax dollars to oust people into the streets while their families fall apart, the children's school grades decline, the stress causes diseases and accelerated health decay, the pets are left to fend for themselves, the divorce rates increase exponentially, domestic violence sky-rockets, crime increases dramatically, homes stand empty and have deferred maintenance, values plummet, tax base declines, schools cut teachers due to lack of funding, city services decline, joblessness grows rampant, education declines, hopelessness and abandonment feelings set in and dare I go on?

Yes we must remain positive however we Must see it for what it is. The Greedy Fat-Cats and Government-Wall Street-Banks and others have washed their hands of it while giving people lip service.

I wonder what would happen if we all made a run on all of the banks and took our money somewhere else. Then let us see what would happen. Would the government just print more money that our children are going to be forever indebted for. (And for what???)

This is so-o-o terribly TRUE!!! Foreclosure hurts our neighborhoods, our people our pets, etc. We, as REALTORS need to do all we can to help people not ever go into foreclosure. I feel sorry for many first time buyers who get "sold down the river" from some unscrupulous builders reps. who fail to tell them how much the payment will be in a brand new subdivision once the improvements hit the tax rolls. No longer being taxed for a small, undeveloped lot, but an improved lot with a nice home on it- many families did not budget for the increase to their home's payment.

Thank you William for the eye opening blog!! I, for one, had never ever thought about that and it is so sad! Most people that we know, their pets are like their children. I will certainly be watching now, and will come up with a list as suggested to give out. You know, Realtors are great people, and are the first ones to step up and offer some kind of help. It would be good for us to remember that Realtors are people too, and a lot of them all over this country, and their families, are caught up in this econimic mess that we are experiencing. A kind word or an offer to let them know that you are there may well be in order from another Realtor - just maybe, someone in your office or Board is having problems too.

God bless you all. I, for one, hope that it is over soon!!

Thank you for a well written article, the part of the equation that many forget as they plow through the 300+ listings they just received, to remember those are 300+ families to each listing agent that truely lost a part of themselves.

We have always had to have an ear open to hear what our clients are going through, this is many times now a hard one to swallow.

But thanks again for the post... I will forward this off to all my agents...

Connie Wildasinn - WGA Real Estate - Long Beach, CA

Thanks for pointing this out, I have been feeling it very acutely.

Sylvie

AMEN!! I recently heard about a poor soul who shot himself in the living room of the home he lost to foreclosure as the police and REO Agent were coming to evict him. This suffering is REAL! Even some of our Real Estate friends are struggling to stay afloat and are facing the very problems their clients are potentially facing. Can anyone tell me why the Lenders would rather foreclosure and sell the properties at 50% of value to a new Buyer rather than just reducing the loan by 50% and keep the owners in their homes. With the trillions of dollars that have been thrown to the Banks they may have been able to modified all the loans they hold that are upside down. It cost them more in the foreclosure process and a loss is a loss! My prayers go out to everyone experiencing this as well as the "little ones" who are being effected. Jo

Can anyone tell me why the Lenders would rather foreclosure and sell the properties at 50% of value to a new Buyer rather than just reducing the loan by 50% and keep the owners in their homes.

Jo, that's simple. This borrower has already demonstrated financial irresponsibility. It is a safer bet to turn the home over to a productive borrower rather than to take a chance on someone who has demonstrated poor financial management skills

You know this could happen to anyone of us and this is a very tragic event that is going on in the world today. Its sad to see that so many people who had the dream of being homeowners have to come to this and it is very devastating to the whole entire family. I realize even more to enjoy 1 day at a time and stop complaining because so many people are living in their cars & streets. There are so many Realtors who are in foreclosure too and I just hope we all just get through this rough time and those who are okay be grateful and not to judge. We as people sometimes can be judgemental when our neighbors, associates and friends go through challenging times instead of seeing that we all should live in realty of what life changes can do to us all.

Thank you for sharing your soul on this topic. I fully agree. There is a show on TV right now that is focusing on the devastating toll that this econimic disaster and resulting foreclosures is having on marriages and families. Many marriages don't survive foreclosures, with wives often blaming their husbands for not being able to find another job if they lost one, and for not being the stereotypical "provider" that keeps a roof over the family's head.

As a Christian, whenever I show previously foreclosed properties to potential buyers, I think about who lived there previously, and what has now become their fate. Often there are tell-tale signs of children having been in the house, or the occasional picture left behind. It tears me up. Once, I showed a house that still had the Marshall's notice on the front door. Most of the furniture was left behind, and some of the clothing. I felt as if I were walking through someone's tomb.

It is helpful to me to remember that I can't do much about what has already come to pass. What I CAN do, however, is let the evidence/memory of past horrors drive me to be the best real estate counselor that I can be to my customers in the here and now, that hopefully they will make wise decisions and not get into a predicament like this in the future. History, forgotten, is doomed to repeat itself....

Hi William - There is are many paths to a foreclosure which may be initiated by ARM adjustments, health care expenses, loss of a job or even 2 jobs. The buyers get behind in payments. Then the lender forecloses on their home. The family may move in with relatives for a while and put their personal property in storage. Some may move into a motel. In either case families are uprooted, communities fragmented and neighborhoods blighted. Children lose the support of friends and teachers that they know and love and pets are frequently surrendered to a shelter or abandoned. If work isn't found then the family may not be able to keep up with their storage payments which leads to the loss of their personal property. Without work or substantial relief these families may even become homeless. This is not the America we all grew up in but it is America today and it is not so beautiful.

The genesis of this financial mess was Caused by the lib dems, carter, slick n hil, barney, dodd, kerry, schumer, barry and all of their lib dem cronies! NOT by mortgage companies or realtors or Republicans!

It is Vitally important to our career, families and especially the future of our children to Stop these Socailists from Destroying our great country!!

All Americans and especially All realtors Must be at their local tea party, otherwise this Dangerous Socialistic Cancer will Destroy ALL of US! Only WE can Stop this human carnage!

Official Tax Day TEA Party, April 15th, 2009

Thanks for the great post! I wrote along these lines in my first Active Rain blog about a month ago. What we are experiencing out in the "line of duty" is definitely being felt by us all. We need to deal with the emotions we feel by talking amongst us as agents; it helps to know that other agents are having the same experiences and thoughts about it. We do have to keep our positive attitudes and hope for the best as we continue to serve our clients. I will be so thankful when this market is history and we get to work under more normal circumstances.

Thank you for bringing this to everyone's attention. I agree with many of the the comments posted, but one in particular. The person that said they take offense when they hear others calling these people deadbeats or irresponsible. I have had to relocate many of these people into rentals, and the devistation to their lives is heartbreaking. One gentleman was very close to tears when I asked him to sign the final paper releasing his interest to the property. While signing it, he was saying...all my hardwork, all my money, it's all gone. His wife broke into tears right before my eyes and put her head on his shoulder. He tried to comfort her, but her pain & fear prevailed. I did my best to find a suitable place for them to live and encouraged them to save for their next home. They were extremely thankful for what I was able to do, but I tell you...my heart went out to this family. I am currently assisting another family in trying to obtain a loan modification, but the outcome does not look good. I don't know how many times I can watch these people lose their homes, lose their security, lose their pride and most of all lose hope. I will do whatever I can to educate my clients and make sure they know what their options are.

APR

William .. thanks for this article and your thoughts on the devastating effect the downward trend in our economy is having for lots of families. When someone loses his or her job, sometimes it initiates a downward spiral that results in unloved children, husbands and wives.

Best wishes during this special time.omes and children not well

I agree, a list of resources available in the community is great to have on hand for those in need. Good reminder to us all :)

Yes, I agree wholeheartedly with Mr. Johnson about the human devastation associated with foreclosures. I suppose families are so devastated they feel incapable of keeping their pets. I will never forget the eery, very uncomfortable and sadnees I experienced when I showed my client a short sale home and the mother and other family members were there preparing their dinner meal. I thought to myself "if this is what I feel, how much more and what else are they feeling about a takeover by someone else of their shelter, their sanctuary of peaceful enjoyment, the upgrades they put into the home, the down payment that they made.

I wonder how the new family feels, a while after moving into a home that the previous family gave up not because they wanted to give it up, but were forced to give it up under duress. And further, what is the ousted family feeling about where they are in life, how are they coping with the loss of their American dream, what are they doing to restore their life and how are we helping them to find wholeness, dignity and respect again?

APR

I am seeing this more and more in our area, and first hand because I'm working a short sale right now. It's terrible to lose your job, your home, your self-esteem and have to try and pick yourself and your family up and move on. I feel extremely sad for everyone in this position.

APR

William...

What a wonderful post this is. We have seen so much suffering in our market. We try so hard to help everyone. Although that is impossible we are helping those we can and praying that someone down the road can help those we can't. It's a difficult market and takes it toll on us and the Consumer's.

TLW...ROAR!

APR

Not to mention the inhumane manner in which these unfortunate souls have been depicted in various forms of the media in general. In my opinion, it matters less why it happened to a particular individual than it matters that it happened at all, I suspect that the pain of losing your home simply hurts, irregardless of the circumstances behind it.

I overheard someone a few weeks back talking on the telephone to (Who knows who?) and they went into a long story about why so-and-so was in the process of losing their home.

If it hurts someone, then that's just what it does...it hurts them. We don't need, nor are we required, asked or even authorized to judge these folks. We simply need to be there and hear their stories and offer an ear, if not a hand in healing.

Carol

www.OriginalCondoQueen.com

Hi Carol, I hadn't been to this post in a while and I hadn't realized that I had not responded to so many wonderful comments. Well, here I am and I really appreciate your thoughts on this subject. I think you said it best, it doesn't matter why anymore, the consequences are that it is affecting real people with real hurt. And the further sadness is that it continues while the banks continue to take taxpayer dollars , the investors have been scared away and the whole thing is one giant mess. That haunting phrase comes to my mind again, 'We are here from the government and we are here to help you".

This blog does not allow anonymous comments