Can we stop Home Owners from Walking!

By
Real Estate Broker/Owner with Mills Realty
Can we stop Home Owners from Walking! U.S. banks are looking at how to ease terms for distressed homeowners on home-equity loans and other second-lien mortgages. Too many people are walking away from their homes because they owe more than it is worth. Real Estate will come back but I believe the consumer has lost confidence in it and are concerned it will take too long to ketchup. http://bit.ly/aL6bol

Comments (6)

Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

It can be a real issue if people loose faith in the system (which we have now) they walk.  Some do not think we will ever come out of this problem in the near future.

Mar 13, 2010 01:03 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is difficult to control distressed home owners. Some will walk away from their obligations and others with the same means will meet their financial commitments. Those that walk may be hearing from debt collectors in the future.

Mar 13, 2010 01:05 AM
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I believe many consumers do not see hope because the banks are not working with them. I have seen people's home get sold at the court house steps when their bank said do not worry about it. We have lost faith in the system. We do our best to maintain faith.

Mar 13, 2010 01:06 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi George,  You're right .  Many have lost faith in the ability of the market to recover soon enough for them to hang in there awhile longer.  Too bad.

Mar 13, 2010 01:11 AM
Stephen Arnold
HomeSmart Elite Group - Scottsdale, AZ
CRS, GRI, SFR

Hello~  So many are now looking at the situation as a business decision and not a personal one!  Difficult times for sure!

Mar 13, 2010 03:26 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

George,

Confidence is part of the mix for sure. But as Harry #3 said some borrowers experiences are demoralizing. Representative Barney Frank's recent letter to the Big 4 Banks is a sign we saw coming.  There will be principle reductions. Just like the banks were considered TOO-BIG-TO-FAIL borrowers will be assessed as TOO-NUMEROUS-TO-FAIL.  It won't surprise me a bit when the FICO credit scoring models are modified due to the large numbers of credit challenged borrowers.  They're just too big to ignore. IMHO

Steve

Mar 13, 2010 04:05 AM