The banks have always played an anti-people role when people needed them the most in the form of unexpected problems. The banks have always had a history of them first and everything else second while at the same time having a public relations campaign that said the opposite
THIS IS WELL PORTRAYED
If you watch the movie the Grapes of Wrath based on the book by John Steinbeck, they are correctly portrayed as they really are. Steinbeck caught hell from writing the book and then having a movie exposing that truth. Of course he also revealed how many people who lost their farms were then preyed upon by others who got them to work for food only and little or no wages.
WHEN THE PUBLIC FIGHTS BACK
Now, you can sue a bank and that is what scares them the most. The fact that you can hit back and that they may get hurt. Because of the recent robo-signing antics which is the careless processing of the foreclosure system, certain people have sued and won. Currently they are waiting for the judgment amount.
HOW CAN WE LOSE?
Banks and investors never thought they would or could get hurt. I mean what could be better security than the land and improvements that they loaned money on? They don't have to care about people as long as the land had value. They can just sell it to someone else and move on.
ALL PLANS FAILED
Well their plan A collapsed which is taking the property back over. Plan B is not working either which is reselling it to recapture their monies. Plan C is being written and defined as we all go and still no predictable end in sight.
COMMON SENSE PROPERTY MANAGEMENT
When I managed property for a living for a man that owned hundreds of units outright, I was always taught that some income was better than no income. For instance, if you had a rental priced at $1000 and it wasn't moving, I was taught to lower the price until it does. Consequently the place would rent for less and some cash would come in.
OTHER PROPERTY MANAGEMENT
The other train of thought was to never bend or fold your position and to hold to the $1000 dollar mark even if it took months to get. Having some income as opposed to no income just made more sense for all concerned.
MY WAY OR THE HIGHWAY
Now, the banks just refuse to work something out and have no payments coming in for months and even years. Then, they boot you out and in quite a few of the instances, the place remains vacant for a time after that. No income doesn't make sense.
WORK TOGETHER
I knew when we were half way through this that the prudent thing to do was for banks to start a property management arm of the business. This was so that they can make arrangements to rent or lease property out and offset the loss of income with some income. People get helped too.
LOAN MODS
They tried doing this with loan mods. They would agree verbally to work something out provided you paid a trial mod price. Then, at their discretion, they would rework the note. However, in most cases, they rejected the mod, they kept the money, and booted out the people.
BANKS FOR WHAT THEY ARE
So take a look at big business who was caught off guard and still acts arrogant to the point where the whole economy is suffering and people are being displaced. Whatever school the CEO's of these banks have attended, I would stay away from at all costs.
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