I Thought We Were Friends!

By
Real Estate Agent with Momentum Realty Group
https://activerain.com/droplet/m4T

I had a conversation with a good friend of mine yesterday who owns a few properties in a small Oregon town.  He shared with me a story that is not unlike that of many people who have been devastated by the bubble burst and predatory lending.

He has lived in the same town for most of his life and used the same bank to obtain loans on all of his houses for the past 22 years.  For the past five years he has been upside down $600.00 a month on an investment property, never being late or missing a payment.  Recently, he visited a "friend" at his bank to discuss the possibility of refinancing this property.  He explained to this "friend" that he was literally going broke trying to stay current on the property and that he needed help.  After explaining his humbling position, he was told that there was nothing they could do for him.  He was told that if he only had more reserves...blah, blah, blah, (If he had more reserves, would he be asking for help?)  This "friend" went on to explain to him that if he stopped making payments, they would foreclose on the property, sell it, and then sue him for the difference.  This wasn't a surprise to my friend, his wife is a real estate agent and he already knew the foreclosure process.  What he didn't expect was the level of callousness that was given to him by someone who has made a decent amount of money from his real estate transactions throughout the years.  

Times are tough for a lot of people.  Many folks are facing circumstances that they never thought could be possible in their lifetime and they deserve to be treated with respect.  Although there are some people who have walked away from their financial obligations without batting an eye, there are many who have done all they can do to save their homes and have just fallen victim to unfortunate times.  As professionals, we need to remember that clients are clients in good times and bad.  It's how we treat them during difficult times that leaves a lasting impression! 

 

 

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Thanks,

Mike Engeman

Momentum Realty Group


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Rainmaker
856,626
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

To many people who never thought this could happen to them are in this situation.

Oct 27, 2011 07:11 PM #1
Rainmaker
2,032,664
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Mike, unfortunately, I had a couple of  clients that were in the same financial position and were given the sme callous reply..Really a sad situation.  Too bad these people can't show some compassion...

Oct 27, 2011 08:08 PM #2
Rainmaker
1,256,496
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I'm sorry * I'm paying 2 mortgages INCLUDING one on a tenant occupied property.  I have increased the rent each year, maintained it PERFECTLY and even done upgrades.  My tenant pays on time and I enjoy the tax write-offs.

There is a VERY old saying - BUYING a rental property is the EASIEST part....

Oct 27, 2011 11:41 PM #3
Rainmaker
780,641
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Maybe he should try asking the tenants if they are willing to pay more each month, and offer them first right to buy if they want to, and that extra money would be given back to them at some point for closing costs, etc?

Oct 27, 2011 11:46 PM #4
Rainer
14,263
Mike Engeman
Momentum Realty Group - Irvine, CA
Irvine Real Estate Specialist

Wallace - I'm not sure you understood the context of my post.  BAD times fall on GOOD people and a little COMPASSION goes a long way.  It sounds like you are an AMAZING investor and landlord.  I hope that if you ever face ADVERSITY people treat you with a little more understanding than you have shared in your post.  

Oct 28, 2011 04:21 AM #5
Rainer
14,263
Mike Engeman
Momentum Realty Group - Irvine, CA
Irvine Real Estate Specialist

Jeff - Good advice.  Thanks for taking the time to stop by.

 

Oct 28, 2011 04:23 AM #6
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Rainer
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Mike Engeman

Irvine Real Estate Specialist
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