Pulling up to a client's home today I noticed it looked vacant. I looked in the door and saw the young husband sitting on a folding chair watching TV. I knocked and he quickly answered. A very nice family came running after him and I made my standard small talk. This was their first home and they were very happy to be living in such a nice neighborhood on their budget.
As time passed, I learned that they signed an exotic loan to buy the home. The mortgage company convinced them they could afford the home of their dreams at a payment they could afford. I think he forgot to disclose the teeth on this loan!
The house looked like they were moving out. So I asked the client where they were moving to. He replied, oh we do not know yet. I questioned why the house looked empty. The next statement is what shocked me. "The mortgage collections representative told them that they took the loan, and they should be responsible and sell their stuff in order to make the payments or they will be forced onto the streets through foreclosure." This house was cleaned out!
I don't blame mortgage companies, Realtors or anyone else for people not reading the small print. If they don't, this is what can happen. Anyone can hire a lawyer for a few hundred bucks before they sign on the dotted line for a loan or home. I'm not even upset about what the collections department told these people to do (sell their stuff). I only type this story to illustrate the casualties of this market are real people that need our help, education and compassion. We're all suffering from this difficult market, but let's be thankful for what we have.
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