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Looming Foreclosures - How can banks and homeowners win?

I just read fellow Active Rainer, Todd Clark's most recent post Should or can a home owner be sued by the bank for damages to a property?

In light of this post I would like to raise the question, how can banks and homeowners win in the light of a looming forclosure?

I say, SHORT SALES, SHORT SALES, SHORT SALES. When are the banks going to open their ears and listen to reason? I know there are deals being made on Wall Street right now and the banks are hoping for John Q Public to foot the bill for their lax lending practices over the past several years but let's get real here - there are people living on Main Street USA who due to rapid inflation, job losses, medical emergencies & the rising cost of medical insurance, simply can not pay their mortgages any more.

People are hurting and the banks need to take a look at their customers and try to work out some sort of compromise. These are, for the most part, good people caught in unfortunate circumstances. I know all the arguments about sub prime lending and 100% financing driving the market into this position but that is where we are so now what do we do?

Aren't short sales a viable alternative to foreclosure? Can't the banks create some new jobs (Short Sale workers) and at the same time work out SHORT SALES for their customers? At least the property in question will be taken care of during the time of listing avoiding broken & missing pipes, missing appliances & light fixtures, piles of trash and varmits.

This foreclosure market is becoming an epidemic - I'm calling on the banks to help fix what they helped create. Can we get government out of the middle of this mess and roll up our sleeves to find a real solution?

Judy Tuscano, REALTOR®

Your NH Real Estate Professional

Team Tuscano

Prudential Verani Realty

603-498-2263 cell phone

jude1220@yahoo.com

If you are having difficulty paying your mortgage, contact a local REALTOR® to help you find solutions.

Posted by Judy Tuscano, NH Real Estate Professional on 09/28/2008 09:41 AM

Comments (15)

Short Sales, Foreclosures, Bank Owned in the ActiveRain Channel

looming foreclosure, short sale, solutions, banks, todd clark, judy tuscano nh real estate professional, realtor

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15 Comments on Looming Foreclosures - How can banks and homeowners win?

SEP

2008

Excellent post Judy. It is a mess out there and until Banks decide to work with their customers and those very homeowners decide they want to be worked with it won't get better. I know too many people who simply turn over the keys and walk away.

I don't know who this Todd Clark character is, but he sounds pretty smart and good looking. (LOL) I did a radio show last year and said this was coming and that they should work with these sellers and you could easily avoid all the things that are happening now and have made even more money for themselves. But, now a year later still nothing being done and the foreclosures and the short sales continue.

Judy, right now short sales seem to be taking any where from 75 to 100 days around here, this is unacceptable. Your suggestion of hiring more staff is a good one, because not all these deals are getting done. Some buyers are unwilling to wait that amount of time and walk away, which costs everyone money. If they could get short sales done in a reasonable time, everyone would be far better off.

Judy, I wish the banks wouldn't make the short sales so darn hard. I have a client right now who is upside down but not behind in his payments and he is in between a rock a hard place as he is out of a job and now has almost used up his 401 K.

Moni - Thank you - It is sometimes hard to convince the sellers that there is an alternative to foreclosure but if they knew this avenue was open it could help.

Todd - He is pretty smart at least from what I read here in AR. You do radio? Can I have your autograph? Oh yeah - you did sign here. Thanks.

George - I agree that at this time it is still difficult but the option is there and I hope banks will take a second look.

Marchel - this is a shame for people to have to pay all they have and then to have the home reposesed wreaking havoc on their credit. I don't know where it will all stop.

SEP

2008

Judy -- I think short sales are one good solution. Another would simply be to restructure these loans just as they are planning to do with the "big loans". This would be better than a short sale because the people can keep their homes! A lot of people just need a breather to catch up. Also, they need to train people in loan workouts -- not just short sales and foreclosures - just a thought!

Joan - a good point - thanks for chiming in here.

Judy, AMEN to that! Solutions are what we need not more vacant properties. Even the investment properties with tenants inside the units, I am finding are going to foreclosure and the banks not accepting Short Sales. What the heck! Throwing out tenants in an investment property has got to be the worst case of judgment I've seen as late.

Modification of loans would be so much better off for all concerned and why this doesn't occur is beyond me. This seems like that logical solution to keeping neighborhoods from a downward spiral and vandalism from occurring. I'm not sure that anyone in power is really thinking this whole mess through to the end.

All the banks are doing right now is making a bad situation even worse. Can no one see this but those of us who are out in the public each day dealing with these Short Sales and Foreclosures?

Gena - I think we are very like minded on this situation. maybe you could be the bell ringer on the west coast and I'll be the bell ringer on the east coast and somehow, someway the whole country will hear and perhaps help get the banks to listen.

SEP

2008

Judy,

Things sure are difficult right now. I have faith that the lessons we are learning will protect us from these type of market again in the future....we have to have faith, it is the only thing free right now:)

Cherimie - I have faith in the American people in general but not so sure about our elected officials that are subject to the special interest lobbiests and all the perks they offer for votes to go their way.

Judy, excellent post with very valid points. It is time to get real. I don't have much faith in the politicians. It seems the rich are getting the bailouts and the regular guy is paying the price. You keep ringing that bell, you are doing a fine job!

Sharon - I was listening to talk radio today and they had an economist on - He is a Harvard guy and he says that the way to go is bankrupcy for these entities not the public. They should get rid of the bad laws that put us in this mess in the first place and change their lending practices. Those who did a bad job should be cut lose with no severance and reorganization from top to bottom. It will take time but it's better than dropping nearly a trillion in bad debt on the public.

OCT

2008

Judy - excellent post. you are 100% correct. Banks need to work to keep homeowners in the homes or get home owners back in vacant homes. Until then, we are going to struggle.

OCT

2008

James - it just makes sense to keep these homes occupied and cared for rather than abandoned and open to vandalism.

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