Special offer

If foreclosures are making us sick, what are we going to do about it?

By
Real Estate Agent with Weidel Realtors

If foreclosures are making us sick, what are we going to do about it? Laura Giannotta has written an interesting post about foreclosures making people sick.  http://activerain.com/blogsview/2548841/are-foreclosures-making-us-sick-it-might-be-true-. I believe that the threat of foreclosure and the stress of living through a short sale is negatively impacting families healthwise and mental healthwise across the country.

For all the people who may have used their home as an ATM, there are many, many others who faced an unexpected job loss, serious illness and other pressing needs. There are also many people who worked hard, had equity in their home and because of substantial declines in market vaue over the last five years are now under water and perhaps need to sell. Short sales and foreclosures create a lot of physical symptoms. I personally have a client who had a heart attack AFTER the successful short sale. 

If foreclosures are making us sick, what are we going to do about it?

Rather than put "compassionate counselors" within a mortgage company as the recent New York Times editorial suggested, we need to increase funding for the local agencies who help homeowners in trouble. Not all short sales are successful and short sales and foreclosure can wreak havoc on families. Helping families to move forward is a very necessary and laudable goal. These agencies are understaffed and underfunded. Usually non-profits, they are a wealth of information and compassion for families and communities in trouble.

Weakened families and sickened heads of household are affecting our entire society. The greed and "gimme" ethos of the last 50 years permeated society at all levels. The belief in the infallibility of the American way of life contributed to this as well.  We cannot as a society turn our back on those in need or assume that every homeowner is 100% responsible for the pickle they may be in.

If foreclosures are making us sick, what are we going to do about it?

Our strength as Americans lies in our ability to recognize a problem and find a solution. There are no easy solutions to the mortgage meltdown, the economic crisis and the problems they have brought. Our leaders continue to struggle (when they try) to address the economic issues and the job losses that continue to make it worse.  

Homeowners in trouble deserve our compassion, no matter how they got into the situation they are in. Our strength as a society and our ability to go forward as a people depends on it.

If foreclosures are making us sick, what are we going to do about it?

Posted by

Anne M Costello 



Anne M. Costello
REALTOR®, ABR, CDPE, ePRO, GRI, GREEN, SFR, SRES
SALES DIRECTOR
Weidel Realtors Newtown/Yardley Office
10 North Main Street  • Yardley, PA 19067
Cell: 215 771-1642 • Office: 215-493-1954
Email: acostello@weidel.com
URL: www.AnneMCostello.com
 
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Morning Anne

Thanks for the post and information. have a great day

Oct 24, 2011 01:15 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I have to wonder how foreclosures and short sales are going to be affecting the children as they get older. I've seen what some parents have done to a house they are losing. What kind of a message does it send to their kids to see their parents destroy a house. I've also seen the personal property that is left behind. Kid's bikes, toys and other items. How is this going to affect the next generation?

Oct 24, 2011 01:49 AM
Anne M. Costello
Weidel Realtors - Yardley, PA

Patrick: Thanks for stopping by. Have a great week!

Debbie: The sadness I feel in a house that has been destroyed is beyond words. However, I think the hidden costs are with the families that have been struggling for years to keep it together. The common misconception among the public and some professionals in our industry is that every person faced with a foreclosure or a short sale just allowed it to happen. In my experience, that couldnt't farther from the truth. There are homeowners that have struggled for years to pay their bills - unemployed, underemployed, etc. What have those struggles done to families as well?

Oct 24, 2011 02:24 AM
Diane M. Phillips Realtor 443-286-4365
Frankly Real Estate Inc. - Manchester, MD
Specializing in Carroll Co., MD

Anne ~ You are right, many families in distressed situations did not bring this on themselves. The ones who did live beyond their means and used their homes as atm machines have gotten all the attention while others truly in need have been shattered.

Oct 24, 2011 04:37 AM
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Anne -

What to do, what to do?  I like the current approach to the refi plan Obama is putting out, I think. I'm not an O fan but if we can waive gov fees I'm all for that.

Cathy

Oct 24, 2011 02:15 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Hi Anne. Very informative post about foreclosures... a must read by every homeowner and sellers. Thanks for sharing.

Oct 25, 2011 01:22 PM
Roy Kelley
Retired - Gaithersburg, MD

Real estate professionals could help a lot by encouraging financially distressed mortgage borrowers to seek assistance.  Something like 60% never even contact their lender.

Enjoy the fall festivities and be sure to keep your camera in hand for those special moments.

Orchids is Lewis Ginter Botanical Garden in Richmond, VA

Roy and Dolores Kelley Photographs

Oct 26, 2011 12:28 AM
Anne M. Costello
Weidel Realtors - Yardley, PA

Diane: We are in very strange times. It's always interesting to see how people within our industry and outside are so quick to judge.  Even for those who feel they have always "done everything right", I think our philosophy as as nation for the last 50 years or so affected everyone.  I also believe the "blame game" has gone on far too long and is contributing to our national malaise in coming up with solutions.

Oct 26, 2011 02:46 AM
Anne M. Costello
Weidel Realtors - Yardley, PA

Cathy: I think the original plan was sabotaged by uncooperative lenders. I also think the lack of education and communication to the general public did not help.  People in all kinds of circumstances need help. To help as many as possible will bring a good result. People who are struggling to pay their mortgage may also be struggling to feed and clothe themselves and their children. There is a moral consequence of doing nothing and there is also an economic consequence. I truly believe some of these programs will help families and in the end will help the economy.  I guess we will see.

Also, for those who get help and then behave irresponsibly, the natural laws of foreclore will occur.

Oct 26, 2011 02:52 AM
Anne M. Costello
Weidel Realtors - Yardley, PA

Nestor and Katerina: It was an interesting point of view. Hope all is well. I need, (really) need to catch up with you.

Oct 26, 2011 02:53 AM
Anne M. Costello
Weidel Realtors - Yardley, PA

Roy: I think many distressed homeowners remain in denial mode. By the time foreclosure proceedings begin, they are ashamed, exhausted and embarrassed. The real estate industry, the mortgage industry and everyone connected to them need to do a much better job of getting the word out that help is available - in many forms. Not every howeowner will be able to save their home or short sell it to avoid foreclosure, but with the help of qualified professionals, many can and will.

Oct 26, 2011 02:57 AM
Susan Mangigian
RE/MAX Preferred - West Chester, PA
Chester & Delaware County Homes, Delaware and Ches

Anne, I only wish that we can rise above this challenge as easily as the situation got out of control.  I was in a networking meeting yesterday and someone asked me how loan modification could possibly help the real estate industry.  If more homeowners managed to hold onto their homes, this gluttinous oversupply of houses would ease up and we would have more of a balance between number of homes for sale and number of people buying.  

Oct 27, 2011 12:16 AM
Anne M. Costello
Weidel Realtors - Yardley, PA

Susan: I agree. It's amazing how challenging the intricacies of the economy are to so many business people. Loan mods, refis, will put more money in consumers' pockets. That is a really good thing - especially if they save some and spend some. However, I think even more important is the psychological boost. How many Americans are consumed by constant worry about money?

Oct 27, 2011 12:27 AM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Anne.....Great question!  We can just hope they come up with a solution soon!

Have a great night!

Oct 27, 2011 11:00 AM
Shar Sitter
Rooms With Style - Minneapolis, MN
Home Staging and Redesign Minneapolis/ St. Paul, M

#4s comment above is so true. We should always have compassion toward our fellow man no matter what they did to bring it on themselves.

Oct 29, 2011 10:12 AM
Pam Hills
Innovative Artistry - Kendall, FL
ASP/IAHSP- Stager Miami, FL, Creative Minds Innovatively At Work

Dear Anne - This stress that this has caused & damage to health is just yet another issue in the overall problem.  There are many that may have been caught up in the frenzy of going up & never the mindset it would come down...but they are still victims to a degree (as it never really has gone down til this, so who would have thought?) 

You are correct, this is not counting the innocent ones that just got caught in the mix & have had life issues (unemployment, health, divorce brought on partly by the stress?..etc., etc.)  This is a terrific post & thanks for sharing!  In my lifetime,I can not ever remember a home ever being worth at least as much as you originally paid for it...??  Can anyone else?  What happens now when they age or are transferred for work or don't have work any longer, or their health sets them back?  

Nov 01, 2011 03:36 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Anne, compassion must be part of this job and there is no doubt i have seen it with my short sale clients as well as neighbors who had total denial and went through foreclosure.  However, many need to move out of their homes...there is no way they should have owned a home, are not responsible human beings and i feel for them because they didn't have the knowledge to know not to buy.  Let's get those people settled back into rentals that here are so scarce- it is a real heart wrenching issue...good share.

Nov 02, 2011 01:44 AM
Roy Kelley
Retired - Gaithersburg, MD

Have a great week and be sure to have your camera in hand to capture those special moments.

Sunday afternoon, November 6, 2011, walk through Kentlands and Lakelands.  Seeking the colors of autumn.  Photograph by Roy Kelley.  Canon PowerShot G11 Camera.  Roy and Dolores Kelley Photographs.

Roy and Dolores Kelley Photographs

Nov 07, 2011 12:06 AM