“Toto, We’re Not in the Housing Bubble Anymore!”

Bob, thank you. Glad you liked it.

David, Eric definitely raised a good discussion. Thanks for your comment,

Hi James, thanks! :-)

Pamela, thank you for your kind words and the suggest. It looked like it worked! 

Adrian, I think there are always things to be cautious of -- home buying more so. Thank you!

Charlie, it has been rough for everyone.

Tammy, I know Eric was not including those with hardships. We all have had to cut out things and not do as much as we used to. Hopefully, we'll be seeing better days ahead. Thanks for your input.

Bryan, so true! When many realize it's not in their control any more, they are ready to move on and start rebuilding. Thanks for your comment today,

Hello, Adam, summer's here and the warm weather. Have to keep looking forward. Thanks for your comment today,

Greg, as I've been told, definitely need an attorney. I haven't participated in a lease purchase option though I've been asked about them. Thanks for your comment,

Joe, I agree, there is not a moral hazard written in the contract. Borrower pays, stays. Borrower doesn't pay, lender forecloses. It doesn't matter if there is a hardship or not, except when it comes to short sales, which the lender agrees to accept less than what is owed. For the lender to agree there has to be a hardship or reason to justify short payoff. That's where the hardship comes in.

Perhaps I wasn't clear, but I was referring more to homeowners who pretend to short sale thinking they can stall the inevitable foreclosure. If they get approved, great, if not, it doesn't matter to them because they were intending on walking anyway. I call that gaming the system because it's wasting everyone's time but their own. 

 P.S. As Tammy said, many homeowners would rather not walk even if they've lost equity, but do everything they can to stick it out and continue paying. That's an individual choice. Certainly not written in the contract. Thanks for your comment today,

Cheryl, practically no one read their documents during the housing bubble. I'm sure there's a few out there who did, or at least understood. I think buyers just looked at the monthly payment and trusted what they were told, that they could refinance, or they just didn't think they would get in to trouble later. Most of my short sale sellers tell me had they known where they'd end up, they wouldn't have bought their home. 

There's definitely alot of blame to go around in this mess. I certainly don't want to blame the homeowner. I like to think I'm their biggest advocate. But if we are to learn anything from our past mistakes, I think it is important to understand the consequences of what we are signing. Many of those hybrid and sub-prime loans aren't around right now, but you never know, lenders could bring them back. Thanks for your comment today,

Gene, it's true what you say, you can lead a horse to water, but... Not easy being a mortgage lender, or agent, sometimes. Thanks for your comment to day,

Laura, definitely agree with you! Hard money loans are not for investors, not the first-time home buyer. I've seen advertisements, and wonder if the public might not understand them. Thanks for your comment today,

Kevin, yep, those with not great credit.

Erica, same here. One customer told me her landlord wanted to sell to her under lease purchase option at twice the market value! The buyer will end up paying more than she needs to. Not good, thanks for your comment,

Eric, you're welcome. There are many who have real hardships. I know you weren't aiming at them. I don't know when the day will be when selling will be "normal" again. Thanks for your comment,

Tom, depends on their goals. Buying a home is a commitment. Thanks for your comment,

Christine, absolutely, with patience they'll be able to buy again and at a much lower price.

Jackie, when a homeowner tells me they don't want to continue paying because their home has lost value, and are uncooperative, don't want to make their home available for showings, don't return my phone calls, procrastinate fulfilling document requirements: those are sellers who, in my opinion, aren't serioius about short selling. They're pretending, trying to get more time to stay in their home before foreclosure. If the hardship is they just don't want to continue paying, that's not a traditional hardship. I've never submitted a short sale package where the hardship is loss of equity, and because there is so much work involved I probably won't ever. 

On the other hand, I'm not the mortgage police or a mortgage broker so I don't make judgments about their income v debt. I'm not going to compare their income with their tax returns at the time they got their mortgage loan. That's outside my job description. I have to go by what they tell me. Most hardships tend to be job loss, loss of income, divorce, job relocation, and if military, PCS orders.  

There are no guarantees for the homeowner that their lender will approve their short sale, and that means no guarantee for agents they'll be paid for their work. That's the way it goes in the world of short sales. It's tough, and not for every agent. 

I'm just saying for those homeowners who just don't want to pay any more should consider foreclosure, and not waste agents' and buyers' time with pretending they want to short sell their home. That's deceitful to everyone involved. Thanks for your comment today,

Gretchen, we can only hope. Thanks for your comment,

Shannon, thank you! Have a great weekend.

Teral, thank you for your kind words. Loved your post today!