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The other side of a foreclosure

Foreclosure is hard on everybody involved, the person facing it, their families, the neighborhood the home is in, the bank tha is loosing the loan and the loss associated and so on.

I was going through the tax records in my area and noticed a home for sale in my subdivision,

it was purchased in 2007 for $539,000 and is now slated to be foreclosed on in June.

the person tha towns this home has put in a huge amount of landscaping and of course the pool,

has a newer Dodge Viper

A ford 650 truck that is lifted and has been customized

A twin hulled 25 foot plus speed boat

all the other toys and much more

Should this person be allowed the same consideration on foreclosure, forgiveness of debt and so on that a truly deserving family needs, a bread winner loosing their job that caused the foreclosure.

This persons lack of thought and fiscial restraint will cause all the homes in the area to be devalued.

And teh bank is wrong to take this home?????

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Posted by Andrew Monaghan CRS, GRI, EPro Associate Broker on 04/27/2009 12:13 AM

Comments (8)

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8 Comments on The other side of a foreclosure

APR

Andrew -

Pretty stark, and, I would have to agree with your supposition - no, the borrower should not be cut any break from the bank!

He really "gamed the system" and got in trouble - but likely will walk away with most of his toys, sans the home.

Trouble is . . . he wasn't alone!

This kind of spend, spend, spend - while you borrow - mentality is key to what brought the credit and real estate markets down.

Today, that kind of behavior would be looked at as gluttonous. But, then - he was just one of the neighbors!

So sad!

DEAN & DEAN'S TEAM CHICAGO

There are those that have done this....Too bad he doesn't sell the Viper to save the house. I see what you mean. If he were sincere about keeping it that is what he would do. I know people who have sold everything at auctions just to keep their homes. Thanks for singing my petition!

I work with alot of foreclosures and in some cases this assesment would be correct, in others you would be dead wrong.....

I have a client who 18 months ago was making over $500K a year and she was a single mom. She purchased and remodeled her home. The remodel cost more than the home and she paid for it out of pocket.

If you drove by her home you would find a large boat, and a very nice car and some other toys likely too, but that would not tell you the whole story.

The whole story is that her little girl became deathly ill 2 years ago. She struggled for her life and her mom was the only one who was there to care for her. My client took time off from her self employment to care for her daughter and save her life. The little girl has been through more surgeries than I can imagine some one going through in a lifetime and she is under 6 years old.

The health insurance my client had as a self employed person did not cover a great deal of the treatment, the client paid it out of pocket. She also had to cut back on working which began to lose income for her. Then as the stress took it's toll, she too got sick, very sick.

She became so sick she could not work either for some time and her business between her absence and the changes in the economy fell apart.

She has that great boat, but she would love to be able to sell it, she has tried, she would be glad to give up all her toys to save her home, but they are worth pennies on the dollar and are not the kind of things people are investing in right now. She is losing her home and all of her toys and so on in a Bankruptsy. She will not be able to keep any of them....in the end she and her daughter will be moving somewhere and starting over....with pretty much nothing.

Yes she had nice things, yes she purchased her home with a loan. But she paid cash for the other things....if I were making half a million a year for many years I would believe that I could afford those things too.

Thing is....this woman is thankful. She is so happy she has her little girl and her health is returning. She has told me she honestly can easily do with out anything else. She says it with real conviction and a sense of peace. I am so impressed with her......

So you see some of these folks lived beyond their means and others....well maybe not.

Great input from everybody. There are many good people going through foreclosure because they did not prepare for the rainy day. Many buyers took out 2-3 year ARMs or NegAM loan and expected appreciation continue to increase. BAM-loans become mature and home values drop leaving the buyer stuck with a huge mortgage payment. I listen to the stories every week from people who call into my radio show.

Any person should take the protection of the law based on their needs and not based if the y have a boat or a Viper on their driveway. .

MAY

Dean, Jane and anna, I agree with you.

Fernando, i agree that everybody has the rights to the law but train of thinking that you espouse is what is wrong with the market in my very humble opion, this guy gamed the system and we all have to pay one way or the other

JUN

hi everyone ...I think we must remind ourselves that our job is not to judge others. Andrew you're probably not too far from the truth about your assumptions about your neighbor and definitely entitled to an opinion but as with Anna's example life happens. Fernando I think you also have a very valid response. If we want to start peeling off the layers of what is wrong with our society we need to start with another "person" here i.e the "corporation" that invoke the very law to reconstruct at their fair disposal yet individuals when excersicing the protection of the law suddenly find themselves defending their morality!

JUL

guilt should be spread around. Wall street made money easy for one thing...profit. Borrowers treated loans as bank cards...for pleasure in the good life. Lenders refuse to modify principle balances, yet sell on a short sale or as an REO for far less. There seems to be no logic to greed or ego. We are all guilty in one form or another. Perhaps we'll learn from the experience and make some improvements. We got in to this mess, we'll find ways to get out.

And many are profiting greatly from this mess.
Turn, turn, turn, there is a season. Perhaps the viper will turn to vapor, who knows, stranger things have happened!

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