I hope everyone can forgive me for this is my very first blog. This is a topic I am extremely passionate about because it affects millions of people along with myself.
In all my life I never feared my life could change as much as it did a month ago. My husband and I are successful business owners with a construction company and I am the Realtor. Our lives were relatively normal juggling work and our home life. But it was that day when my husband said, "I have to talk to you about the bank." Sure, I am thinking to myself, what could it possibly be?...we are always current on our payments, never questioned about paperwork and certainly welcomed anytime I see a bank employee. After all, we have been doing business with this bank for a number of years. Hell, they have financed alot of the successful projects to date! But it was something, something big.
The construction company has several construction loans on projects that we have been aggressively marketing for sale. The banking institution holding these loans have now decided it would be in their best interest to "call" these loans due, immediately. Imagine the surprise when the bank says, "You have to either give us more collateral (everything not just something but any and everything you own or could own) or face foreclosure." Anyone who knows about being self-employed and borrowing money...you are already providing a "personal guarantee" to pay back your loan. With the declining market, I don't know too many builders with "available cash" to just pay loans, in full!
As I am trying to understand the change in the relationship (as I mentioned, we were all familiar with each other and very much appreciated for the amount of business we did), I am scrambling to think, "what now?" The last time I watched the news, the banks were receiving MILLIONS of dollars to pass along to consumers. This would help them with stimulating this economy and get people to borrow money! Instead I am given an ultimatium that either I pay up or shut down. Meanwhile, I have never been late on a payment and prepared to continue making payments until these properties are sold. The bank agreed to do new appraisals to see if there has been any decline in property value and to help us better understand what we will have to do to satisfy this debt. Instead they fax over paperwork indicating we owe them an "unlimited" amount and to obligate the spouses (who never originally signed the personal guarantee) to the company's obligation to pay the loans. In addition, not providing us with the appraisals and other documentation that WE are billed for!!
I apologize for the lack of better explaining the situation but how I see it is the banks are capitalizing on the power they hold during this difficult time. Why not require the consumer to "pay up", collect federal money for "bailout" then profit from the properties collected during foreclosure! It's a win-win situation for the banks. Does the consumer just write off the "bad debt" like a bank would? NO. Banking institutions will get cash money (to be incredibly selective with) as well as build assets along the way. We all know the real estate market will rebound and with all of these valuable properties....banks will just rake in the profits from it all!
Meanwhile, my husband and I, who were never given anything in life, self-made...are hung out to dry. My father told me there were only two things in life...your name and your word. Those were two things you and only you could control. That's how my husband and I lived. A handshake was your word and failure was not an option, besides we both have lived in our community for YEARS and plan to die here! We wanted to have that type of reputation of being "good folks." The bank is about to ruin it.
What is the option for a consumer? Do we just lie there and get trampled on? Do we stand up and say, "NO," not this time? What do I tell my children? How can I go about and re-build what took 20+ years to make? All because a "banker" wants to secure his "bank rating?"
Please help in the fight against "forced foreclosure." We must stand together and protect our interest and our livelihoods. I have always paid my bills and plan to continue doing so but what about those folks who "just don't know?" How can the government stand by and allow this to take place?
My battle isn't over and I don't know how it will turn out. All I know is I will continue to do my best and continue the never ending search for success in all that I do. Besides, what better example could I be to my children, our future?
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