We have spent several years sharing thoughts and observations about the collapse of the real estate world that existed as recently as 2006. Depending on the writer's profession, fingers have been pointed at everyone else. Today, the market is limping along with little hope for dynamic recovery at any time in the near future.
That's where we are today. Those of us that have managed to survive continue to face challenges. Breathing room is never more than 45 days away.
We don't share much about the folks we meet now. We don't really let the world know about the casualties. Those that lost homes, or walked away, or are months behind in payments are all lumped together. Those that lent money that couldn't possibly be repaid are spending most of their time dancing to the beat created by investigators questions. Federal and State officials create committees that ask pointless questions and then step up to the microphone and share patently stupid comments.
The recent tsunami that devasted towns in Japan had less impact than the tidal wave of greed that raced across the United States and beyond.
The other night, I sat with a very sweet 65 year old woman. She bought her home in 2006. She had one of those sweet interest only loans for the first 5 years of the mortgage. She lost her job. She was a house cleaner. People cut back and her firm didn't need her anymore.
Her son lives with her. He lost his home. It was financed by the same firm, using the same broker. When his loan reset, he could not keep up the payments. He lost his job. He and his wife moved in with mom. His wife lost her job as well.
None of them have a job. They have been looking. They are beyond benefits, so they don't count as unemployed anymore. Their survival is dependent on the generosity of their church. The church makes sure that the lights stay on and the heat stays on and that they have food on the table.
You can't get a loan remodification if you don't have a job.
When all the financial wizards moved on, when all the shakers and movers lost their job as loan officers, what has been left in their wake?
It is not a world of people that were all too stupid to understand the terms of their loan. It is a world of people with shattered dreams and a high level of distrust for anyone in our industry.
I am a real estate agent. Some have shared that people in my industry had no business helping people buy more home than they could afford. I am sure there are many that share that thought. They are wrong. You see, I am a real estate agent. When people come to me and ask to buy a home, I attempt to make sure that they have spoken with a lender and they have a letter from a lender stating how much money they can spend on a house. The lender helped them with that decision. Not me. My job was to trust the information the lender shared and to find the buyers a home within those parameters.
I am still here. The people left in the wake of bad advice call for help. I can't do much for them. I just have to go home at the end of the day and wonder "why"?
Why did it happen? Why did loan officers advise people to get added to credit worthy friends, relatives or paid for peoples lines of credit as authorized users to enhance their credit rating? Why did loan officers use "no doc" requirements as freedom to over estimate the earnings of people? Why did loan officers qualify people based on a temporary teaser rate, rather than the actual rate they would be paying? Why were loan officers given the freedom to tell appraisers what they needed a house to appraise for in order for the transaction to take place? Why?
Maybe it doesn't matter why. The tide is receding. Those left mired in the mud will eventually move on or die. One day things will change and the market will reach a stable point.
Until then, to all of the hot shots that ran rough shod over people that trusted them, may you rot in your own self centered, narcissistic life. In pursuit of your dream, in pursuit of your fast easy money, you have left an entire nation of people devastated by your greed.
It makes me sad.
note: This is by no means an indictment of everyone in the mortgage industry. as a matter of fact, the vermin that used their position to create this chaos have mostly either moved on or been indicted for one crime or another.
The point I hope you take away? There but for the grace of God go I. The majority of people that have lost homes or fallen by the wayside were guilty of one thing. They trusted whomever gave them advice about how much money they could borrow and how easily it could be paid back.
Remember that the next time you are in your "holier than thou" state casting aspersions on those that have not fared as well as you.
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