An article I read from Realty Trac, one of the paid foreclosure web sites I do like. This article really got me thinking. I have to say we are in danger of this attitude!
I got a phone call not too long ago from a potential client who wanted to sell his home as a short sale; he had made a bad investment. However he was not behind in his payments, but it was taking all of his extra cash and just wanted to be done with the house, thinking everyone is doing it now. After showing him what this can do to his credit, he has decided to wait. (I think)
I wonder how many people are washing their hands of a home, who could be counseled about bills, credit and home management that may not have to walk away.
We have several local companies who are non-profit that help people get back on the right track. The services are NOT reported to the credit burro and I have seen the get payments reduced as well as give free/or low cost classes on home ownership.
Walking away from your mortgage is getting as common as people filling bankruptcy. Bankruptcy was originally design for hard working adults who had unforeseen bad luck. So I ask you, now that it has gotten easier to file and you can buy a new home in about 2 years after filing, are we taking the easy way out?
In the article they talk about a person who owns a home, knows he can not get what he owes on it if he sells, so he buys another home, moves into the new home and then sells his 1st home as a short sale. Yes, his credit takes a huge hit............but so what, he already has his new home. DANG! Not everyone can afford to do this, but just another twist to this crazy market!
So the irresponsible lender that sold the "high risk" loan, are they just as much at fault? Should they have to take some kind of responsibility for their actions? That is if they are still in business. Or do we take responsibility for our own actions, for making the bad financial decision?
I think there are some true hardship cases, death, job loss, illness etc..........I worry that the benefits for these people will go away or the guidelines eventually become stricter due to people who take advantage.
After reading this article, I realize we have a long way to go, before things even out.