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Foreclosure is Losing its Stigma

Reblogger Anne Clark
Real Estate Agent with Metro Referrals

This post was written about two years ago.  And while home owners are probably no longer convinced they have a bail out coming, the stigma of foreclosure is definitely gone.  It's amazing to me that people are willing to walk away from their home, choosing to view it as an investment instead.

Original content by Chris Ann Cleland VA License # 0225089470

Foreclosure is losing its stigma.  We've seen it happening. Sellers who are upside-down in their homes will proudly announce to neighbors, friends and family that they are going to let their homes go to foreclosure.  Many of the folks you hear openly contemplating foreclosure are not even in financial trouble. 

Five years ago, you did not hear your neighbors or friends talking about their personal finances in public.  Now, it's a subject on everyone's lips.  The most troubling part of all of it is the loss of personal responsibility

With foreclosure and short sale being seen legitimate options to people simply because they are upset over their homes value in a down market, personal responsibility is gone.  The contracts these home owners signed to repay their mortgages mean nothing.  That commitment they made is lost in the anger and bitterness of the perception of a broken promise.  The promise that their homes were always supposed to appreciate in value.

And as our government continues its chosen track of bailouts for mortgage companies, the upside-down home owner is waiting for their personal bailout, convinced it's coming.  I've got news for you...it's not.   Is it any wonder our government is shoring up mortgage lenders who are losing more than they could have anticipated?

I wonder if our Country will ever be the same once we get out of this economic mess?  I somehow think that the do-overs that foreclosure, short sale and bankruptcy are starting to be viewed as, may be the symptom of a larger problem.   If personal responsibility goes out the window, I'm afraid that our Country may never recover.

  

 

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header is a combination of photos, taken by Chris Ann Cleland, of various listings and neighborhoods in the Bristow-Gainesville-Haymarket area. 

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Daniel H. Fisher
www.FisherHermanRealty.com (704) 617-3544 - Charlotte, NC
MCRP - Charlotte Real Estate, NC or SC

While some homeowners are discussing their financial matters not all are. Many people have no mortgage and others continue to pay on their upside down homes because they believe it is the right thing to do.  Lenders need to be comfortable that their investment has enough equity or insurance in the event of default.  If they do not, the lender should take the loss, not the American taxpayer.

Sep 13, 2011 07:58 AM