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Consumers Reponsible When Lenders Put out a Bad Product at the Wrong Time - hmmmm?

By
Real Estate Agent with Keller Williams CA.BRE# 01395219

I try not to put out negative stuff, but I tell ya, it is starting to get to me.  I generally don't even read the papers because of the negative news. Unfortunatly, I did read the papers this am and came across these disturbing articles.

Foreclosure Backlog in the O.C. Grows:

Loan Servicers Prefer Big Losses rather then forgiveness

Now I understand the banks are in this business to make money and these articles may not surprise you, but something is morally wrong here.  Maybe I live in fantasy world where I hope the organizations that I go into business with i.e. a purchase contract are true partners. But where is the partnership in this mess?  Of course the rules apply but when there is clear disregard for the consumer after they sold a bad product at the wrong time they need to be held accountable.

If you received your Orange County Property Value notice this week then you understand the hit the consumer is taking.  What hit is the lender taking in this mess? There is no principle reduction, fee's waived, interest reduction to truly help the consumer, they are all added back in, increasing the value of your property which 1 in 5 are already underwater.

Look at what is happening in the commercial sector, landlords are providing rent concessions as they understand empty shops bring in no dollars.   Why do the banks not get it!!!!!!!!   Manufacturer's and retailers get it.  If a manufacturer sold a bad product, what do think the retailer expects that manufacturer to do, they expect them to help with the loss i.e. markdown dollars. Again, Why do the banks not get it!

Well I guess they are getting it as they are writing off the loss, recieving bailout money and not helping their partners.  Why because the partner is not the consumer it is the investor.  Wouldn't it be wonderful if you could write of the loss as well vs. having your home taken away, your credit ruined and having to start over with no bailout to support your new life. 

Ok, I got that out of my system.  I will focus on the good, there is opportunity in this market for buyers and probably a lot more opportunity to come.  There is also a great opportunity for equity sellers if they are realistic about pricing. 

For the sellers in distressed situations who truly want to save their home and are responsible and understand they are part of this partnership, all I can say is hang in there. Continue to bang the drum try to have patients for your OWN SANITY and focus on the positives of getting to the other side of this.

 

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Kelly's positive spirit, sound business and marketing skills, and experience negotiating multimillion dollar contracts all combine to make her one of the premier real estate professional in the communities of Portola Hills, Foothill Ranch, Lake Forest, Trabuco Canyon and throughout the Saddleback Valley.

 

 She takes a big-picture approach to make sure all of your goals, both short and long-term, are part of a larger plan that's guiding you towards success. Call Kelly to schedule a free consultation on how she can help you achieve your objectives. Whatever your Real Estate Dream is, with Kelly Turbeville at your side, It's Possible!

 

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The above information is provied for informational purposes only and is deemed reliable but not guarenteed. Based on information from California Regional Multiple Listing Service, Inc. as of [date the AOR/MLS data was obtained] and /or other sources. All property data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information

Comments (7)

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I don't get the lenders who rejected "reasonable" offers in the fall... let properties sit through a very cold winter... and now the properties are so damaged, that it takes 1000's of dollars to fix them!  What is up with that?

Jul 09, 2009 05:29 AM
Kelly Turbeville
Keller Williams - Lake Forest, CA
Turning Real Estate Dreams into Reality

Joan - I don't get it either.  I had a client who received over asking price offers on their short sale yet the bank went to auction, for 45k less.  The investor turned around and sold it at our original asking price.  Who won there..  Guess the bank and investor did, wrote off the loss and now has a new asset.  You would think selling in less then the a month the value wouldn't have jumped $51k.  How did it ever appraise. hmmmm.

Jul 09, 2009 05:39 AM
Anonymous
Charlie

I sure have to agree with you on this Kelly. Everyone gets help except for those who really need it. It's a shame and a pity and it's just not right to top it off. I'm looking for a mountain top to go live on!

Jul 09, 2009 05:50 AM
#3
Kelly Turbeville
Keller Williams - Lake Forest, CA
Turning Real Estate Dreams into Reality

Thanks for checking out my blog, Charlie.  I know it is frustrating for all, but maybe if we all bang the drum a little louder results will happen. But then again, I live in a fantasy world.

Jul 09, 2009 05:17 PM
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing

The banks don't get it because they are suppored by the goveernment and therefore they don't have to get it.  It's inexcusable and it's ultimately Congresses fault!

Jul 09, 2009 06:58 PM
Cathy McAlister
Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA
Sacramento DRE#00648507

I had a monthly lunch today with various financial professionals.  The attorneys in the group were conveying interest that their industry has in the possibilities of class action suits over exactly these types of issues.    I would love to see it.  We need help in getting these lenders busy.

Jul 09, 2009 06:59 PM
Kelly Turbeville
Keller Williams - Lake Forest, CA
Turning Real Estate Dreams into Reality

Thanks Kate and Cathy for your comments.

In terms of Accountabilty you are certainly right Kate.

Cathy, I agree I had a client ask me the other day if I heard of anyone suing a lender for stress.  They did everything right, hit by the economy, understand the bank has to take a position, but when they were told by Chase that thier file hasn't been reviewed and they sent it on April and that "no you can not talk to negotiator" only collectors - yes we may foreclose but today have made no decision---- it says it all!

Jul 10, 2009 03:15 AM