STRATEGIC DEFAULT?? HOW ABOUT A TATTOO???

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

PENALTY FOR STRATEGIC DEFAULT

The only logical solution to the matter of what should happen to home owners who makes the decision to default on their home loan and walk away would be for that home owner to suffer the moral judgmentof a citizen panelLenn Harley

In addition to the penalties agreed in the Deed of Trust or Note, there should be a citizen panel who determines who can "afford" to continue to make the mortgage payments and for how long.  There should be no extenuating circumstances such as job opportunity, school needs, etc.  Personal circumstances are not pertinent to financial decisions.  Loss of home, credit and dignity cannot be entered as evidence that the penalties in the security instrument under the law are sufficient.  It is the judgment of the citizen panel who is deserving of punishment for their decision to walk away from their home.

If the citizen panel determines that the home owner has the resources to continue to pay the mortgage payments, and the home owner decides to walk away anyway, the citizen panel would then have the authority to order that a

TATTOO applied to the forehead of the citizen in default in the shape of a

"$"

It should be a green permanent tattoo.

In especially egregious cases whereby the home is in a non-recourse state, the offender must wear a green armband with a black "$" prominently for a period determined by the citizen panel.

That'll teach 'em to walk away.

 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Michael Lissack 07/05/2010 03:32 AM
  2. Ruthmarie Hicks 07/05/2010 01:46 PM
  3. D B 07/05/2010 02:22 PM
Topic:
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Rainmaker
1,821,922
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist
What's coming next month to month mortgages !!!!!!!!!!!!!*L*
Jul 05, 2010 11:34 PM #60
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Joan.  YES!  Great idea. 

Ed.  I want to save time.  I want a "FAST TRACK to BANKRUPTCY" where folks with negative equity can file and the negative equity evaporates in 24 hours.  Then those folks will be able to buy, sell, shop, plan, retire, live their lives free of the yoke of negative equity that has them imprisoned in their own homes.

Adam.  Thanks for stopping by.

Joetta.  10 Czars??  YES!  Then the government would need a new marble building and a lasting bureaucracy.  Of course they would not need a budget since the U.S Government no longer uses budgets for planning.  They just spend and appropriate money to cover by selling a few more $Billion bonds to the Chinese.

Tammy.  HA!  Learn your "ladies room limits".  Mine is 70 minutes or 70 miles, which ever comes first.

Lana.  Indeed.  Another Czar, but careful, no budget.  Our government no longer has a budget.  We want spending on this Citizen Panel at least of a couple of $Trillion Dollars, just like they had for TARP and the Stimulous.

Jul 05, 2010 11:42 PM #61
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
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Wendy.  Indeed.  Sometimes it's a tad too stirring and, for that reason, I almost deleted it.  However, I was out and when I got home, I saw that the AR members got the message I intended.  The possibility of the absurd. 

George S.  HA!  Nice try.  You can't get away with that.  Isn't the consumer supposed to get pre-approved by a lender BEFORE looking at homes?????  FHA says so.  Every lender I know says so.   We ignorant agents are really capable of being walking key pads, can only write contract for the home the buyer meets the criteria published by Fannie Mae, we can't approve the mortgage loans.  Fact is, lenders weren't always in control of that matter either since Fannie was poking, poking, poking them for more loans, more loans, so they could have the food for Wall Street.  We know where the pressure came from.  I don't blame lenders either.

Kate.  What was the government supposed to do by intervening???  On whose behalf were they to intervene.  I thought the government DID intervene and they gave about $2Trillion to Wall Street.  Wasn't that supposed to help home owners with negative equity??????

 

Jul 05, 2010 11:51 PM #62
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
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Katerina.  BINGO!!!!

Damon.  WHO gets to decide who can????

Joe P.  HA!  I grew up in the tradition where the really, really important thing about Sunday services was who wore what???  I guess I was jaded at an early age.

Christa.  Such wonderful circumspect.  You might be on the panel.

Ruthmaria.  Mmmmm.  And to think this post was an afterthought.

Brian B.  Uh Oh!  Shucks.  They'll get the money.  Aren't there a few $Billion left over in TARP.   Or, they can just go to the FED window and draw down a few $$$$$$ at ZERO interest.  Such a deal!!!!!

Anna.  HA!  That Sheriff is too busy enforcing the law to go chasing after folks with massive debt.

Joan.  Home owners deserve a separate panel since they are clearly the cause of the recession since the ones with negative equity all bought homes they couldn't afford

Larry S.  HA!  The Conressional reps who voted for TARP don't need an armband.  They are easily identified by the title Senator or Representative.  The few who didn't vote for it, could wear a "gold star". 

Michael R.  The corporations can take care of themselves, thank you.

Evelyn.  Somehow it just happens.  I believe it's an American tradition.

Missy.  It is scary, isn't it. 

Aaron.  You lost me.

Terry C.  Indeed and it should be in the luxury part of town, not where they are usually licensed.

Bill B.  I know the American home owner.  They have a sufficient loss of dignity to satisfy many, sadly, not all.

Michael.  I'm not smarter, just have a different perspective.

Fernando.  Not to worry.  Home owners who don't attempt that agonizing Short Sale sentence will cede future business to agents who sell foreclosures.  Eventually a real estate agent will dispose of the property.

Michael J.  What a clever idea.  High security deposits, and the bank gets an assignment on the debtor's oldest childs first 10 years of earnings.  Let's get this penalty into the next generation.

 

 

 

 

 

 

Jul 06, 2010 12:14 AM #63
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

FOR ANGELA FRENCH.

Come on out!! 

There's lots of bad grammer herein for your criticism. 

Lots of criticism of government for you to admonish members too.

 

Jul 06, 2010 12:16 AM #64
Rainmaker
719,220
Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Lenn--Oh how I have missed your humor! Though it is really not a funny subject. If ole' Nate Hawthorne wrote with your wit, more kids would have enjoyed English Lit. Sadly, I agree with Bill B...some wouldn't be ashamed to be marked the way Hester was. Public humiliation doesn't work as well when a portion of the public isn't outraged but apathetic.

Jul 06, 2010 02:44 AM #65
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Lenn: Sorry! I'm really not a tattoo guy!

Jul 06, 2010 03:00 AM #66
Rainer
26,089
Ann Gravel
Pat Bennett Realty - Plaistow, NH

You certainly are a rebel rouser but, I do love your ready answers and suggestions.  Lenn, I answered a post on the strategic default thing and I will say it again here.  This is a matter for the person who chooses to go this route.  I wish we were all so moral.....this is not the case.  If a homeowner decides to walk away then as was said earlier, he will have to answer for the consequences.  I thought your idea of a citizen panel was really visionary and a bit scary.  This might be a possible in the future.

Ann

Jul 06, 2010 03:05 AM #67
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Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Lenn, If this should happen, straight bangs will come back into fashion! Ha-ha!

Jul 06, 2010 03:07 AM #68
Rainmaker
622,210
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

I like the idea of the armband, the green tattoo would be hard to hide with makeup.  But you are correct at the absurdity of the idea of moral judgement.

Jul 06, 2010 04:39 AM #69
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

#69.  Thanks.  I agree.

Wanda.  Funny!  How will I manage with curly hair?

Ann.  Indeed and it could easily be populated from AR members.

Paul.  Neither am I.

 

Jul 06, 2010 04:49 AM #70
Rainmaker
1,839,204
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Lenn - between Damon and Joe you missed a lot of us!

Jul 06, 2010 05:13 AM #71
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
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Patricia.  Thanks.  Keep smiling.

Jay.  Why not.  Surely the loss of their home, their credit and their dignity isn't sufficient.

Simone.  George S. is a valued friend.  He's just misguided from time to time.

John E.  That makes more than a few of us.  However, I suspect that, as long as there is negative equity, there will be strategic defaults.

Richie.  HA!  Trump knows how to wield the power of the financial system.  BTW, didn't the Pres. "STRATEGICALLY DEFAULT" our space program last week??  NASA is now a public relations firm for the promotion of science and technology in Muslim countries.

Katerina.  I lost my sanctimony badge at an early age.  I believe it was when I realized that Popeye was my hero with "I yam what I yam."

 

 

 

Jul 06, 2010 05:32 AM #72
Rainmaker
222,657
Scott Baker
www.eHomeReports.com Coldwell Banker West Shell - Liberty Township, OH
Realtor Homes for Sale in Cincinnati, West Chester, Mason, OH Area

I like the panel idea, But I would like to change the Tatoo to an "L" which would obviously stand for LOSER. My parents would have never even thought of doing such a thing. They sign, they pay. What in the world is going on?

Thank you

Jul 06, 2010 05:41 AM #73
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Scott.  Your parents also probably enjoyed a slow but steady appreciation of their home value. 

They probably never had their equity evaporate into the bowels of Wall Street at the hands of The Treasury and the Fed. 

That was the biggest transfer of wealth in the history of our country.  Families working for years, even a decade or more to build equity only to have it evaporate in a year or two into the treasuries of the biggest banks in the country, insurance companies and brokerages in the country.

Jul 06, 2010 05:58 AM #74
Rainer
92,061
Kathy Kenney
Keller Williams, Princeton, NJ - Robbinsville, NJ
Realtor - Princeton & Central NJ Homes for Sale

I think the $ should be blue and upside down, as in "underwater"!

Jul 06, 2010 07:43 AM #75
Rainer
137,004
Brent & Deb Wells
LivingWell Properties - Prosper, TX
Prosper TX

Lenn, its a sad sign of our times where folks will do anything and everything to avoid owning up to their responsibilities. We live in a world of instant gratification and avoidance of responsibility. Signing your name or shaking someones hand does not have the same meaning it did years ago...

Jul 06, 2010 09:23 AM #76
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Kathy.  Good idea.  I picked Green for money of course. 

Brent.  On the contrary.  The folks who "walk" are willing to take their lumps.  It's the other folks who believe that they have no right to move out of the property and then "take their lumps".  Folks against walking are advocating some type of house arrest.

 

Jul 06, 2010 09:38 AM #77
Rainer
245,155
Michael O'Donnell
Berkshire Hathaway Home Services Arizona Properties - Scottsdale, AZ
GRI, ePRO, Accessible Homes

Wasn't "Too Big to Fail" a Strategic Default?

Is exercising a legal option provided for in the mortgage documents immoral for one party, but not for the other?  And, if immoral, perhaps those clauses, and options should be removed from the documents altogether, rather than impuning the integrity of the signatories.

But no one ever promised a level playing field, did they?

Jul 09, 2010 08:42 AM #78
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Lenn Harley
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Michael.  The playing field is hardly level.  The home owner has watched his entire estate evaporate caused by the actions of the government and the Wall Street gangs. 

Jul 09, 2010 10:36 PM #79
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