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60 Minutes Foreclosure Story - What Were You Thinking?!

Real Estate Agent with Keller Williams Premier

May 10, 2010 07:09 AM

60 Minutes Foreclosure Story - What Were You Thinking?!

I've watched 60 Minutes for as long as I can remember. My father had it on every Sunday back when there were only three TV channels and used to complain during football season that his beloved show was delayed for a sporting event.

I grew to like it a lot. Uncovering scams and holding the government accountable and even a few interviews with actors on the lighter side.

Last night I saw a first; reckless journalism reporting one section of what's going on in the foreclosure crisis. Shame on you 60 Minutes!

If you didn't see it the foreclosure story and video can be found here: 60 minutes

The story basically details how people who can afford to pay their mortgage are walking away from their homes. The people in the story are in hard hit foreclosure areas and they don't have hardships so they are walking away from their homes.

I don't argue with this as an option since people without a hardship currently have only two options: stay and keep paying or walk away and have a foreclosure on their record.

I DO have a problem with 60 Minutes' failure to mention that for those WITH and hardship they can get a loan modification or list their house for a short sale.

When a major network show tells one side of the foreclosure story and fails to mention loan modifications and short sales, they give the impression that walking away is the best choice for everyone who decides they can't stay in their home.

Stories like this hurt people since they only give them part of the information they need to make the best decisions. I speak to people every week who are days away from a Sheriff's sale and their bank lets us know that if they had called sooner a loan modification could have been possible.

In addition 60 Minutes went on to give free press to a walk away website! These guys seem dubious in their service offering. Why do you need to pay someone to help you walk away?! You would be better off spending the money on a consultation with your lawyer and accountant.

C'mon 60 Minutes, this is bush league and you know it. If you have further stories about the foreclosure crisis contact me (www.NateGerard.com) I'm happy to give you the WHOLE story!

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The Scott Loper Team Bux-Mont Premier Properties

Keller Williams Real Estate - Montgomeryville - Lansdale, PA

Hi Nate,

I agree with your post except that I don't think this is the first time 60 Minutes has been reckless with its reporting.

~Lisa

May 10, 2010 07:14 AM

Greg Cook

Platinum Home Mortgage - Temecula, CA

Mortgage Consultant NMLS ID# 283159

Nate, I just did did a post on the same topic and included another video because the 60 Minutes video was so short.

In SoCal our numbers are much higher than most of the country so our problem is exacerbated because the declines in value have been much steeper than most other markets.

Regardless of whether we agree with the HAMP/HAFA program and the disappointing results, the fact remains that millions of homeowners are underwater and in essence renting. The seond video I attached goes into more depth on the topic without making the moral judgement.

All we can do is get out front and let people know they have options.

Things are going to get worse before they get better.

May 10, 2010 07:17 AM

Darla Maddalone

Bend Oregon Homes Online-Principal Broker, SFR, CSP - Bend, OR

I too have watched 60 Mintues for more years than I care to admit. But, last night's show illustrates an excellent point we all need to remember....just because it's on TV, or 60 Minutes, etc. doesn't mean whatever issue is being presented is being reported 100% completely and represents the whole story. Like you, I was disappointed in their presentation. And thinking back, the story you saw 2 weeks ago likely suffers from the same inadequacies.

May 10, 2010 07:21 AM

Nate Gerard

Keller Williams Premier - Stillwater, MN

CDPE, East Metro Twin Cities Realtor

Thanks for the comments!

Lisa, maybe the changing of the guard there has made them careless.

Greg, I'll check out your post.

Darla, right on but unfortunately the largest portion of our society thinks that if it's on TV it MUST be true!

May 10, 2010 07:29 AM

Ally Wangsness - Seattle Real Estate Broker

RE/MAX Metro Realty, Inc. - Seattle, WA

It is sad and disturbing that people would believe "talking heads" on TV rather than getting an advice from professionals: Realtors, lawyers, etc. I never really trusted media. :-) Thanks for the post. Good point.

May 10, 2010 07:41 AM

Anonymous

Nate,

You are missing the point, it was a SCAMMING THE SYSTEM and not a POOR FORCLOSURE VICTIM PIECE YOU NIT WITS! The 60 minutes piece is pointing out the fact that these #$@*^!# scumbags are walking away from mortgages they can AFFORD TO PAY! The morons even expected the banks to forgive them some of their debt because they made a poor investment. The piece last night has nothing to do with legit forclosures but rather how certain persons whom have the ability to meet the obligations on a contract they entered into of their own volition, opted to instead walk away and leave the banks holding the debt. The banks then sell short bringing all of our housing values further down. Iv'e lost 75k and counting on my home value but as long as I can afford the note I wouldn't even think of walking away. I think the 60 minutes piece was spot on and although there is no law against this abhorrant behavior, we as a society should ostracise any individuals whom engage in the practices of scamming the system

May 10, 2010 10:00 AM

RJ, Thanks for your comment. My concern (and one held by many other agents) is that they were discussing only one possible solution to the problem.

I wouldn't characterize those who are walking away as "scumbags", I would say they made a strategic decision. I also don't feel they're "scamming the system". Personally I pass no judgment on anyone in this crisis except when they pretend to convey useful information that is full of half-truths.

My point was that I felt it was irresponsible not to mention that for those with a verifiable hardship, there are other options. I think many of us felt like they publicized walking away too much. We all want to see more modifications and short sales (in that order) instead of foreclosures.

May 10, 2010 10:16 AM

Paula Hathaway, REALTOR, LBA

Douglas Elliman Real Estate - Southampton, NY

...A Local Expert in all The Hamptons

Nate--Good for you! I am in total agreement that the report was a typical one-sided hachett job on homeownership---all it did was give the desperate homeowners out there false hope that maybe, just maybe walking away is the way to go!!! ...and then the neighbors? What do they think happens to the neighbors? What a super-selfish thing to do to the housing market in general!

60 Minutes has lived up to it's new reputation as a rag sheet of the networks--dishonest journalism and half truths are the order of the day at that network!!!

May 10, 2010 10:46 AM

Thanks for checking out my blog Paula, I'm honored! I really wish I didn't have to write it but for some reason there are those out there (including TV producers & reporters) that think they know a lot about real estate without actually studying it.

May 10, 2010 10:53 AM

Mike Martin

(909) 476-9600 ~ WeLoveSellingRealEstate.com - Fontana, CA

Realty Masters & Associates

I have to say I agree that while I generally trust 60 Minutes, this piece was unfortunate in it's one-sidedness. What bothers me is basically what you said originally Nate - that while we as Realtors know the whole story, the people watching don't have the benefit of our training and therefore might potentially look to 60 Minutes as a source of guidance in their decisions. I guess all we can do is try to get the word out that there ARE options and not to take the desperate option if they don't need to. Great post Nate!

May 10, 2010 11:48 AM

Thanks a ton Mike. I had one of my short sales tell me they saw Donald Trump advising people to walk away too. I asked them if they thought Trump knew the foreclosure laws and options in Minnesota.

You are so right, it's our job to keep preaching the right information. Paula Hathaway here has a great post referencing this story too and also discussing tactics to combat the phenomenon with regard to proper pricing.

May 10, 2010 03:23 PM

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