Interesting observation over the past 12 months here in St Peterburg. Good people that have always paid bills on time and never thought about turning their backs on responsibility are going bankrupt. My recent clients always paid on time and had a slow down at work. Went to apply for a re fiance to reduce monthly expenses and could not as the equity in the their home declined due to local foreclosures and or short sales. Remember they always paid on time and just wanted a new loan. Bank refused and my clients opt't for a short sale. Long story short, deal was made and the bank refused to release the equity line ( 2nd mtg) and insisted on payments after the sale. Given my clients lost everything they felt they had no choice but to Bankrupt. Follow this and its a sad resolution. They included the house in the bankruptcy, the equity line, all other credit cards, boat payments, car payments and student loans. Why, the bank would not allow them just to refinance on a perfect credit score and then insisted they repay on the 2nd or equity line. This is going to be the 2nd wave and you can imagine the impact on all of us regarding the cost of our credit cards and other personal debt fees.
Just an observation
Steve Busse CRS, GRI, CLHMS, CDPE
BROKER ASSOCIATE REMAX ALLSTAR
ST PETERSBURG FLA WWW.STEVEBUSSE.COM
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