Reverse Logic or The Art Of Shifting The Blame

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

Bryan Robertson posted Why are banks not held accountable for delaying short sales? It is featured, tons of «I agree» comments, everything in classic AR style. Of course how the idea so darn wrong could be featured is beyond me, but I digress...

OK, we are tired that it takes banks more time that we would like to in order to forgive often hundreds of thousands of dollars. And we want to hold the banks accountable. Just listen to what we are saying... Don't you hear what I hear? (it is buzzing in my ears that this is BS)

So, let's imagine that a few years ago I went to the bank and got a loan. In exchange I promised to pay it back.  I agreed that if I fail, they can take the very property they financed. I also signed that I knew that they would go after me for all unpaid money, and that they had the right to make me pay for their legal fees and so on and so forth. Of course, I did not have a problem signing it.

I do not remember signing anything that would state that when I would not want/be able to pay back, they would have to consider giving me a break. There is nothing that I can hold them accountable if I do not pay. But there are pages and pages of how they can and will hold me accountable if I do not pay. Not fair? Do not take their money, take your uncle's money...

Now, for some reason I stopped paying. And now, I am asking the bank to allow me to pay them less than I owe. Read carefully. I ASK them to accept less than I owe.

And now the twist to the story. I ask them, but if they do not do it fast enough, I want to hold them accountable.

And why is that they can't hold me accountable? How? By not responding to my request, or denying it plain and simple.

Wasn't it me who promised to pay? Then shouldn't it be me to be held accountable?

When did we transition from understanding simple things to twisting the arms if we find it personally inconvenient?

There is a big difference between asking and forcing. Since when real estate professionals lost the ability to tell one from the other?

As real estate licensees, we’re involved in Short Sales, and we are making money doing it. Is it a cry that we want to make it faster, and that's why we are ready to hold accountable whoever is the way to money?

Is there such thing as reverse logic? When you take the desired end result and then build the justification for it?

There is an old-old Russian fable, and there a wolf is telling sheep begging to let her go that the sheep is guilty because the wolf is hungry. I got it, I got it, I got it...

P.S. Please, spare me from all these horror stories about banks. Because it is not about banks. It is about the borrowers, and they are the ones who should be held accountable. And do not forget that they have agreed to that before taking money. No surprises here.

Doesn't matter who gave them the money, and whether banks got the money from the feds, and all that stuff. It is about personal responsibility. Not returning money because you do not like banks, or because they got money from the Feds, is lame excuse. And silly...

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31 Days of May Challenge 2011
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
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Jon - I think there's a lot of validity in your statement, but I also think things are very different, and I do feel that the fact that the fed money came from us should have given the bank some responsibility, but then I'm not in particular favor of all the too big to fail stuff either.  Somehow, I feel like this all send me in circles.

May 26, 2011 03:07 PM #45
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William Johnson
Retired - La Jolla, CA
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Hi Jon, One of the ways that government grows is when many come to rely to heavily upon it. And there are many more relying solely on it today. Personal responsibility is out the window and not likely to be the growing principle of this country again. Where this really rubs me the wrong way is that when it is  cited, some act like this is birth right and that the haves owe it to them. Sadly it has now been agreed that they do!

May 26, 2011 04:09 PM #46
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Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

It is a request to sell for less than owed.

It is the nature of the economy right now, for those homeowners who have lost jobs or divorce or other hardships coming into play.

IMHO if they are going to consider Short Sales and most are, they need to hire efficient negotiators or just say no. Dragging it out doesn't benefit anyone, the banks, the potential buyers and the sellers.

 

May 27, 2011 12:58 AM #47
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Jon Zolsky, Daytona Beach, FL
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Brian - yes, it is black and white, thank you. It can only be black and white, the basics can't be shifting at will and at the convenience of participants.

It is a big surprise to me that real estate professionals have different "perspectives"

May 27, 2011 03:18 AM #48
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Virginia (33) - I guess so, I just did not look at the  banks in this blog. I am not against them working more efficiently, and do it in expedite fashion, but I am against twosting the  arms and ask and threaten at the same time.

And this is what holding banks accountable for delaying short sales is.

May 27, 2011 03:25 AM #49
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Jon Zolsky, Daytona Beach, FL
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Marge - how true. But we forgot how to look in the mirror and how  to understand what we see. Blame the banks is the  name of the game

May 27, 2011 03:27 AM #50
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Jon Zolsky, Daytona Beach, FL
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Adam - but if they do not agree, we want to hold them accountable? For me better longer than never

May 27, 2011 03:28 AM #51
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Richie - thank you

May 27, 2011 03:29 AM #52
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Tim - yes, but I want to stress one thing: we may not like what the bank does, but it does not give us the RIGHT to force them to accept what we want.

May 27, 2011 03:31 AM #53
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Mike - of course. the trouble is that we become lenient for not following simple things. Simple things do not rot from the checkbook, they rot from the brain

May 28, 2011 05:59 AM #54
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June - thanl you for pointing it out. Who is screaming the  loudest?

It is same old "follow the money" thing

May 28, 2011 06:01 AM #55
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Jon Zolsky, Daytona Beach, FL
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Erica - education for kids is learning simple thhings and as they learn, move to more complex. Our problem is not that it is too simplistic, but that we neglet doing simple things.

Nothing has changed if you look at the Agreement between Lenders and borrowers. There is only one if there, and  it is when you stop paying. There is no provision that the economy should  not change in that 30-year period.

Everybody knows that it would change, so if you are afraid of change, do not borrow. So it is still a simple "you take the money, you got to lay it back"

How many months the banks are waiting and what they are doing does not change a simple thing. And what? Things were not changing before?

the only difference is that then you would be simply foreclosed upon, and start from scratch. Now there are some lightheaded people whho decided to waste the future and change the economy by overspending.

Believe me, if there would be no short sale option, we would not lose our lives (but would have saved money)

May 28, 2011 06:07 AM #56
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Jon Zolsky, Daytona Beach, FL
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Dale - thank you for this very important comment. We are barking at the banks, because they overshadowed what we, as real estate agents, did just a few years ago.

It was us who was hyped with customers and did not warn them. It was NAR that kept saying that the market will not slow down.

The banks dealt with customers that we worked with and who we brought to them. We saw the properties that were not worth that money, not the banks.

 

May 28, 2011 06:15 AM #57
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Barb - wow, there is a lot of drama out there.

May 28, 2011 06:18 AM #58
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Leslie - they do not want to understand, or they do not care, and I don't know which is worse

May 28, 2011 06:20 AM #59
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Jon Zolsky, Daytona Beach, FL
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William - thank you for the comment. You said it so well. Yes, it is now looked at as the right, hence the calls to hold others responsible for our own acts

It is a shameful thinking, but people are not ashamed

May 28, 2011 06:22 AM #60
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Missy - maybe, this is all true, but hey, if we are so upset, we can vote by walking away, aren't we?

May 28, 2011 06:24 AM #61
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Christine - maybe the feds shouldn't have started these circles in the first place?

May 28, 2011 06:25 AM #62
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Jon Zolsky, Daytona Beach, FL
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Brian - if that is the root of the problem, then the culprit is you (and me, and other agents) who, actually, stood between the Buyer and the Bank.

Did you tell people that the value is hyped? that the growth like that couldl not sustain itself. Because besides the Buyers not really being qualified, there was a problem with the values.

And you comfortably forgot about 1993, when Clinton twisted the arms of  the  lenders forcing them to start giving risky loans.

May 28, 2011 06:28 AM #63
Anonymous
Daisy

Theres a gap betwen buyers and sellers and thats something many bancks dont care abut, we need to do something in order to get some benefits

Jun 03, 2011 06:15 AM #64
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