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Hey banks, I’ll let you in on a secret…

By
Real Estate Agent with eXp Realty LLC 200311024

Ok Mr. Banker, I know this secret may come to a big surprise to you, but to us that own homes, sell homes, and are working with sellers that are having problems right now, we want to keep our homes despite the loss in value.

I know that surprises you because I talk to you everyday on the phone. Your attitude is that these sellers are dead beats and are just trying to give the property back to you so they can get out of their obligation, but here is the big secret. NO THEY DON'T! They want a roof over their head, and despite the loss in value, they would rather work with you to fix a temporary situation and give you all your money, but you need to work with them.

Your logic that I keep hearing is why would a seller that has a home that has lost value want to continue paying on that mortgage and not just sell the home or give it back for a loss to you? Well, here is the real reason they don't want to do that. A lot of people that bought homes with your mortgage products have kids that are in school... it is hard on them to move. This is their home and up rooting their family isn't something they desire or want to do. The second is, unlike an apartment, this is a home, their home, they have put a lot in to it, and they don't want to leave it.

Where does this logic fit in to what you think? It doesn't, but in reality people do this everyday. People buy new cars. They drive them off the lot and they lose 33% of their value, does that mean they stop paying the payments and return it on Friday? Nope, they continue pay, and enjoy their item of necessity. I promise, if you work with home owners that are in a temporary situation, and ignore credit scores, logic, and what ever other pre-conceived notions you have, you can get yourself out of this temporary problem and help this country get back on track.

 

Comments(16)

Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Todd;

I do appreciate your post, I think you your post speaks for many people. Good Luck!!

Nov 10, 2008 07:08 PM
Amy Salisbury
Leading Edge Properties - Charles Town, WV
West Virginia Realtor/Jefferson/Berkeley

Well said Todd!  It seems that the average homeowner is often demonized by the media, etc.  Clearly there are those who signed on the dotted line who should have known better, but there are so many more folks who were thrilled to be homeowners and are now heartsick about impending foreclosure. 

If only "The Banks" would read your blog!  There are many many real families struggling every day trying to stay in their homes!!! 

Thanks for this great post!

Nov 10, 2008 08:17 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

Luckily My home was short sale to begin with and my area hasnt lost the value. But if it had been in a upside situation I would keep my home. Alot of the reasons you have said.

Nov 10, 2008 09:28 PM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

People completely walking away from their homes is not somethng that I have seen in New York City.  Our market is just now seeing a downturn so we will see how many people who are in trouble and if this happens here also.

Nov 10, 2008 10:21 PM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Todd

Very well said; I do not have a great admiration for any bank right about now. They have become such a machine it is crazy.

Sincerely

Tom Braatz

Nov 11, 2008 12:43 AM
Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA
SRES, e-PRO,ABR,GREEN,CSP

Todd,

Those who should be listening to the consumer just turn their backs.....

Nov 11, 2008 12:45 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Good post.  I think you hit it dead on.  More importantly, at least I have a face to track now.  Tell me....I was the one who inspired you when I told you to get your face out there right?  Cheers.

Nov 11, 2008 12:50 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Todd - I think the banking insituitions often times forget that a lot of folks have a pride of ownership, not to mention it isn't an investment vehicle to them... it is the roof over their head.

Nov 11, 2008 02:01 AM
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Todd- I think you summed up the issue perfectly. So how many banks did you send this too? I think you should mass email it!

Nov 11, 2008 04:28 AM
Sean Carroll
The Get Off Your A$$ Academy - Manhattan, NY
Real Estate Speaker and "Expert" Coach

what a fantastic, common sense post. Seems so simple right?

Nov 11, 2008 07:00 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Todd - With the announcement from Fannie and Freddie and Citi Bank that they will be doing loan modifications, we should get a bit of assistance with helping people stay in their homes. I posted on it if your are interested but I won't clog your blog with my link.

Nov 11, 2008 07:57 AM
Martha Brown
Long & Foster Real Estate, Inc., Annapolis MD 21403 - Annapolis, MD
Your Homes Around Annapolis Agent

Todd- Well put. Why the banks do not see that these houses are homes to those that live there is beyond me. But it is like a lot of things in the real estate industry, by the time everyone figures out what THEY should be doing we  have moved into a different market.

Nov 11, 2008 11:29 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Anthony - Now if we can just get the banks to listen and congress to write me a very large check. (LOL)

Amy - I think there are a lot more of the people that are just in a little bit of trouble that are put in a heap of trouble by the banks advice and non willingness to work something out, which puts the banks in a bad situation also.

Laura - I don't think the banks understand that people don't want to move, they only really move because they have too and if given the opportunity it could be a win-win for both the banks and the home owners.

Morgan - People don't want to walk away from their homes, they just ended up paying someone else's mortgage somewhere else. It makes no sense, but until the banks have figured that out, they will continue to be in the same situation they are now.

Nov 15, 2008 04:36 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Tom - It isn't the mortgage brokers either it is the banks that are holding these loans that have gotten themselves in this situation. They would have plenty of money, if they just listened to the home owners when they started to have a problem and not told them, "Hey, call us back when you are in default, then we can help you"

Dan - They can listen to me and it will save them money and I only charge a couple million for my advice vs their presidents that are charging them 22 million or more.

Larry - Possibly... A little bird told me during a post about my wife that I should use that photo along with a couple e-mails from other AR people.

Jason - Exactly and I thought you were heartless... (Just kidding, Jennifer wouldn't keep you around if you were like that)

Nov 15, 2008 10:47 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Lori - I may just do the mass e-mail thing and put at the bottom and if you pass this on to six other bank executives you will get one million dollars sent to you within 10 days.

Team Carroll - Not to the banks that seem to think a $500,000 retreat will help solve the problem.

Fred - I will check it out and hopefully this is a start of something good happening in the banking industry and the end to stupid policies within the banks.

Martha - Also these people's lives have been ruined, they won't be able to get another home for some 7 years and the banks lose out again.

Nov 16, 2008 12:31 PM
Brian Griffis
Realty Choice - Springfield, MO

We have to see it through bankers' eyes. They only see the numbers, the accounting side of things. That is what they learned in college. They learned the rational side of consumers. WE need to do more to let these bankers know that people do want to stay in their houses, even with a loss. We need to let them know the emotional attachments people have.  Let's face it, if homeowners were simply rational, every one of them would stop making payments so they could be eligible for loan modification and the bail out. Thankfully, homeowners are not just giving up, now if banks would have a little faith in them. 

Nov 29, 2008 12:33 PM