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The Other End of the Telephone--I am starting to wonder whether it exists

By
Services for Real Estate Pros with Topkins & Bevans-etopkins@topbev.com

Regrettably, I am many times involved these days helping people who are "upside down" in their mortgages, and generally not in a position to make the required payments to their Lenders. These are not subprime "scamsters"; these are families who have lost jobs, gotten sick, perhaps lost their way for a while. They are now in recovery. Financial and personal security are attainable goals. They need a place to live; their present homes seem like the best solution. They can make some payments, just not what is required under their Mortgage Note.

Our firm has developed expertise in getting through the red tape so the Lenders will speak to us. The Lenders have developed a type of "new-speak" that varies with Lender. The Universal part of the communications, however, are consistent. "Your clients are failures, and there is not really anything we can do for them to permit them to stay in their homes."

As I speak to these people, I wonder whether they have ever been down on their luck. I wonder whether they have three children who are flourishing in school, with no options if their families are forced to vacate their family homes. I wonder if they ever go to Church or Synagogue. Do they even know what the word "empathy" is?

I have written before about the financial folly of taking a default situation through foreclosure for the Lender. Tack on legal fees, fees to secure the property, and the fees of the REO Realtor. Add on "delay" and you wonder who is keeping the books for the Lenders. I have people ready to resume some kind of regular mortgage payments, right now, and the Lenders are turning me away.

Somebody needs to start listening to what's happening in the other end of the telephone. Someone, needs to assess the family heart-aches needlessly caused by the disruption of foreclosure. My problem is "I have not been able to find that SOMEBODY", and I have looked very hard.

Comments (80)

PHIL MCGREEVY
Chesapeake, VA

Yep  Tim/Lyn the old "Nothing personal, it's just business"

I hear that quote from many 'Great' people like Bernie Madoff, The Godfather, Corporate CEO'S ECT.

FOR NOT BEING IN BUSINESS TO LOSE MONEY THEIR[BANKS,WALL STREET] OWN BEHAVIOR, INCOMPETENCE AND CORRUPTION HAD A MAJOR ROLE IN THIS FINANCIAL CRISIS AND THE DESTRUCTION OF OUR FELLOW AMERICANS LIVES, JOBS, PENSIONS, HOME VALUES AND THEIR OWN NEED FOR A BAILOUT.

"foreclosure is the best remedy." REALLY?

"The servant who owed ten thousand talents fell on his knees before the King. "Be patient with me," he begged, "and I will pay back everything." The servant's master took pity on him, canceled the debt and let him go.

But when that servant went out, he found one of his fellow servants who owed him a hundred denari. He grabbed him and began to choke him. "Pay back what you owe me," he demanded.

His fellow servant fell to his knees and begged him, "Be patient with me, and I will pay you back."

But he refused. Instead, he went off and had the man thrown into prison until he could pay the debt."

Feb 26, 2011 05:06 AM
Deb (Brengman) Muelken
iloan Home Mortgage - Eagan, MN
The Mortgage Lady

Maybe, to add the human touch,  homeowners need to start submitting family pictures along with all the other documentation that the investor requires.  No answers, just emphathy.

Feb 26, 2011 06:30 AM
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches
Elliott, I'm finding that many of the Lenders now have lost their ability to feel empathy. These mortgage foreclosure papers before them are just PAPERS! There are no humans involved! And I don't see an end in sight!
Feb 26, 2011 06:39 AM
Dennis Neal
RE/MAX, Big Bear - Big Bear Lake, CA
Your Home Sold in 21 Days or We Sell It For Free

I couldn't agree more. The lenders are tone deaf and these diplacements of families is just creating more chaos in our society.

Feb 26, 2011 06:57 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I wish that our government had not said "Too big to fail" and handed these people their free tickets. Instead, some of those CEO's should be in jail.

I agree with Andrea in #4 - they must screen their people to make sure they hire only those who have no hearts. I don't know if all power corrupts, but I know that when you give power to people who haven't earned it through good leadership, it certainly does.

A little power in the hands of a small person is a dangerous thing.

 

 

Feb 26, 2011 07:07 AM
Brenda, Ron, Lee Cunningham & Tara Keator
West USA Realty - Phoenix, AZ
Realtors, Homes for Sale - Phoenix Metro

It is pretty bad!  I have the same problem.  And you would think the could do something to make it work with a seller rather than foreclose and sell the home for WAY less that the seller was willing to work out!

Feb 26, 2011 07:23 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

As the tax payers have bailed all the big banks chestnuts out of the fire they have no right to look down the nose at anyone.

Feb 26, 2011 09:28 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

I'm surprised since you are an attorney that is advocating for a modification of a contract wherein a loan modification is non existent. Would you modify getting paid after providing services to your clients? Would real estate agents give back their commissions to their clients after providing services?

I have compassion for the circumstances and the consequences homeowners have, yet blaming the lenders for not getting paid isn't the solution.

Educating consumers about how to manage their money is the solution and we know that isn't going to happen anytime soon. So many opinions and many uniformed or misinformed, regardless, we can only work within the parameters of the system and lenders are not budging, aren't they?

Feb 26, 2011 12:39 PM
Jeanne Kozak
RE/MAX In Action - Martinsburg, WV
REALTOR and Broker/Owner in WV and VA

It does seem like they have to remove themselves from the outcome, could be they see the other side, and it looks as hopeless as we think from this side. When you do get someone that tries to go above and beyond, they seem to disappear

Feb 26, 2011 03:02 PM
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Savvy Broker - ABR, CRS

Elliott ~ I hear an echo of your sentiments among the masses here... and all I can say is DITTO!

Feb 26, 2011 03:39 PM
Farooq Khan
5 Star Realty Partners - Newark, CA
Real Estate Broker/Owner - CDPE

Elliot, I am all with you. I wish instead of bailing these banks with $800 Billion dollars we could have helped a lot of home owners with retention programes, where they could mark down the loan and stay in their homes with smaller payments. But looks like the banks got the money and now they are only worried about their own profits. Home owners are left in the cold.

Feb 26, 2011 07:42 PM
Jamie King
Hoty Enterprises, Inc. - Huron, OH
Sandusky, OH

It's part of the many things wrong with world today. Government can dole out money to non deserving leeches with their hands out since the day they were born, but can't help a poor elderly sole about to lose their once totally paid off home because they became ill and took out a mortgage to try to pay off debt. It's all so wrong.

Feb 27, 2011 01:22 AM
Joyce Albert
Southern Real Estate Professionals - Metairie, LA
Your Realtor for Life

I am so glad to see so many reponding with such a sympathetic voice to this situation. I had begun to wonder if the 'me' generation' had taken over completely and forgotten all about their fellow man.

As for Kimo's responce (number 68), he has obviously never gone though a prolonged unemployment or other financially devastating situation. Neither has he ever felt the satistfaction that by going through the short sale process with a client, he had qualified his client for a 'deed in lieu' when the short sale fell through - thus saving his clent's job by not having a foreclosure on his credit report. Sometimes it's not about the money. It's about people.

Feb 27, 2011 01:50 AM
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

It sure is a sad time and frustrating when you try to do the right thing and are constantly presented walls. Keep it up, Hopefully it will start to turn around!

Feb 27, 2011 02:28 AM
Anonymous
Brian

It seems that noone has anything nice to say about a lender, but without the lenders, none of you would have carreers. In the past at times when you could have told a buyer that a home was not really within their prince range, you instead found people who would creatively finance them. Realtors are grossly overpaid for work that requires no education, and I don't know any of you will work for free. Agents make as much as surgeons, who have gone to school for nearly a decade, and don't expect that to continue, especially considering that agents often do not appear to be genuilnely looking out for a buyer's best interest.

I like the way Kimo put it: Would you give back your commission if the owner runs into financial problems? If no, then why should the banks, since you both bear responsibility, along with the owner.

If I were in the business of lending money, I certainly would want my money back... That seems normal to me... There certainly does need to be regulation in place, though, to prevent predatory practices that unsophisticated buyers do not understand, and that there realtor is too eager to close a deal over, to bother helping them understand.

Feb 27, 2011 03:52 PM
#75
Laura J. Lycans
Sandhills Choice Realty, LLC - Southern Pines, NC
Your Dream + My Passion = Success!!

This could not have been said any better!! Thank you.

Feb 27, 2011 08:28 PM
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Broker | Realtor | Serving Santa Fe & Northern NM

Elliot, thanks to Andrea Swiedler I got here. After reading all the comments, I agree with Norm #41 and Elizabeth #44 and certainly your post. After living for 25 years on Capitol Hill in Washington DC before "getting out dodge" in 1994 to relocate here, I learned how power took away dreams. The dream of home ownership has been on a fragile course now for nearly 5 years. I wish I had answers, I only have dreams of making a difference. I think that is what keeps us going here. Thank you and hang in there!

Feb 28, 2011 12:03 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

The banksters forget that it was our tax dollars that paid for their bail out.  They were the failures perpetuating fraud on the public and not one of them has gone to jail for it.  They are the losers, not the poor SOB who lost his job because the economy tanked and now can't pay his mortgage.

Feb 28, 2011 03:09 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

The Banks got a break, the Bailout, but seem very reluctant to pass on any of that largess.

Mar 28, 2011 03:39 PM
Elliott S. Topkins
Topkins & Bevans-etopkins@topbev.com - Boston, MA
Massachusetts Real Estate and Title Atty

Hey Wayne--This is the post that inspired a series on Axcess News, by Brenda Huffman. 5 parts, the second part is today. Take a look at it. She is speaking the truth.  www.Axcessnews.com

Mar 28, 2011 11:32 PM