SHOULD I STAY OR SHOULD I GO?

By
Real Estate Agent with Mason Real Estate CA BRE 01444168

The song by CLASH, with the same name as this article, may have been a hit back in 1981, when they asked the question that seems to be the question of today, "Should I Stay or Should I Go?"

Today, however, the question takes on a more serious tone than the confused singer in his tumultuous love affair begging for confirmation as the chorus ends with the line...

         If I go there will be trouble
            An if I stay it will be double
            So come on and let me know

(LISTEN HERE)

The tone of the question today, of course, if focused on the housing chrises, as more and more families are trying to figure out what to do.  It's not like there is a single authority on the subject of what will happen to them - in either scenario.  Should they stay or should they go?

            This indecisions bugging me

Should I Pay or Should I Play?  The Real Question of the Day

When asked by local residents in the Hemet - San Jacinto Valley if they should pay their mortgage or should they play the game that seems to have gained in enormous popularity over the last year.

The game, of course, is the Strategic Default (my article).  This is when the homeowner analizes their personal sitution and then decides to not pay their home loan but often continuing top keep all of their other credit in pristine condition.  In many cases, homeowners today are reporting that they have been in their home for over a year without paying the mortgage or property taxes.  If you are interested, the Wall Street Journal has an artilce that addresses the moral question of walking away from your home.

NOT MY CROSS TO BEAR

So, when I am engaged in a conversation along these lines I first have to protect myself with an almost obligatory disclaimer that I sell real estate for a living and am not in the business of resolving anyones personal problems.  However, as a trusted friend and/or colleague if they want to bounce ideas off of me, I'd be glad to lsiten and respond with what I know but I must emphasise that any decision they make has to be their own decision that is based on their very personal set of circumstances...that I will never fully understand.  I'll also mention that if they need legal or tax advice theat they should consult a professional in those fields, as neither has anything to do with my skill at selling real estate in the Hemet - San Jacinto Valley, CA.

This point is so important, I make a point of repeating it, at the end of any converstaion that may follow.

The first point I will share on the topic is that when a short sale or lon modification is being negotiated that it is much easier to do when the payment is deliquent, althogh it is no lnoger mandatory, as it was last year.

The next point is every lender is different and every lender has different policies for how they treat different situations.  For example, two borrowers may both be 60 days late.  One may be eligible for a loan modification and the other may not.  The income levels, the hardship and so many other facotrs are considered.  Again, the rules change from lender to lender, as well.

SOOOOOOO MUCH INFO

There is so much conflicting information because there is no industry standard for either Short Sales or Loan Modifications.  The market is full of scam artists right now, despite the fact that both State and Federal Authorities are cracking down on them, big time (Including the State Bar going after ATTORNEYS!).

The government is doing it's best to confuse the entire situation with more rules, regulations, moratoriums and mandates than anyone can keep up with. 

Industry trade groups, such as the National Association of REALTORS (NAR) or the Mortgage Bankers Association (MBA) are pretty much powerless in regulating their members when it comes to this uncharted territory.

         Should I stay or should I go now?
            If I go there will be trouble
            And if I stay it will be double
            So you gotta let me know
            Should I stay or should I go?


Sorry, but this is not the place to come for easy answers or heavy questions...

Now please, go talk to your attorney or tax advisor and let me sell my real estate.

Posted by

Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

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Show All Comments
Rainer
68,078
Epcon Communities Epcon Columbia
Epcon Columbia, SC - Columbia, SC

Interesting take on things.  Love reading stuff like this and love the song!

Oct 27, 2009 11:14 AM #1
Rainer
68,078
Epcon Communities Epcon Columbia
Epcon Columbia, SC - Columbia, SC

Interesting take on things.  Love reading stuff like this and love the song!

Oct 27, 2009 11:14 AM #2
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

epcon,

thanks for the comments

john

Oct 27, 2009 11:16 AM #3
Rainmaker
1,147,431
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

John, What would the banks do if facing this issue? What would most corporations and businesses do? They would cut their losses and move on with their business.

Unfortunately the prospect of some one under water by 60+% EVER getting back to the surface is nil. At least for the next decade or two. Many people made financial mistakes over the last 10 years. Should they really have to suffer fort it for the rest of their lives? I don't think so.

Oct 27, 2009 12:06 PM #4
Rainmaker
758,053
Bob Force (REALTOR®)
Century 21 - Redwood Realty - Mount Airy, MD
The FORCE in Maryland Real Estate

John:

I liked this post.  As a mater of fact I just sent it (emailed it) to a prospective client that asked me that quesiton this morning - Should I stay or should I go.  My answer was like yours - See your Lawyer and Accountant first, before you come to me.

 

Oct 27, 2009 12:58 PM #5
Rainmaker
1,095,103
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

John, this is indeed the question of the year and I think for the most part, every person knows in their heart and mind what they should do...the unfortunate part is if their spouse thinks differently! :)

Leilani

Oct 27, 2009 05:48 PM #6
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