Foreclosure: Why can’t we do it do?

“We basically walked away from it…It's underwater, anyway, so we've lost it…” Sounds like the typical quote from a homeowner who ran into unforeseen circumstances like unemployment, divorce, or a job transfer and can no longer sell their homes for what they owe doesn’t it? Well, it isn’t. That is a quote from Clark McKinley, a spokesman for the California Public Employees' Retirement System (CalPERS), the nation's biggest municipal pension fund. CalPERS is one the investors in the largest U.S. residential purchase in history. In 2006, Tishman and BlackRock Inc., a joint venture, purchased a 56-building, 11,232-unit apartment complex in Manhattan for an estimated $5.4 billion. Last month Tishman and BlackRock Inc. walked away from their $4.4 billion default on this property. Wait, this is where it really gets good: CalPERS wrote off the $500 million loss. Yes, they just wrote it off like it was nothing.

As a homeowner, you can walk away from you house too. And if you do, try writing it off on your taxes and see what the fine folks at the IRS have to say about it! There are hardworking people that fall into a hardship and can no longer afford the payments on their mortgage. And what do they get? If they are lucky they are allowed to sell their home for a short to the bank (a short sale). The homeowners thinks that’s the end of it. Well, it’s not. Now those fine financial institutions are going back to the former owners for a deficiency judgment. What? They didn’t have to money to pay you, now you go after them for the difference? And what is the alternative for these people that have already lost their home? Bankruptcy. Isn’t that like kicking a dog when it’s down and out? There needs to be something done to help homeowners that have hit a hardship and not the banks. What ever has been proposed, enacted, or suggested is not enough.

If you are one of the unfortunate people that are facing a hardship and are behind on your mortgage payments, call us. Suck up the pride and ask for help. I know it’s hard.  Trust me, I know. We can help. Let us fight with the bank for you and get you from under that mortgage payment that is keeping up at night and stressed the other times of the day.

You can email me at derrick@thekinseygroup.net or call me at 469.248.7653.

Alright all. Until next week...I gone. 

DL