I guess its my turn to be unpopular again..But I do try so hard to be consistant. I found a featured post by Teri Ellis, a vey nice & proffessional person, and read it with a sense of disbelief. Having worked in this field now since 1992, I too have seen many changes in the market .file:///C:/Documents%20and%20Settings/Administrator/Desktop/The-New-Buy-and.htm
This market is not without its challenges, but the homeowners that bought in the last few years were encouraged by the entire proffession to jump into loans that were intentionally difficult to understand. They were encouraged to buy homes that everyone knew were just off the charts, but buy now and refinance later.
Who did not get the teaser loans brochures in the mail. By telemarketers. In fact the TV and other media were alive with the new social acceptance.
Everyone was doing it and getting rich. Who among us did not sell homes to OUR CLIENTS while turning our heads at the prices, the paper work, the entire industry promise of the increasing market will justify all decisions. You know it. I know it.
Now there is a trend toward those responcible home owners who cannot stand another increase. Interest only loans that have increased the rates to nearly double home payments are eating into your savings. The promise of refinance is now an ugly memory, its just a matter of time before there is nothing else to cut out of the budget to keep the payments up.
So the post discusses how terrible it is for these people in this situation to go find another, smaller, now much cheaper home and purchase it, and default on the original home. The home that was driving them closer every month into bankruptcy.
When I read this story it was hard for me not to personalize this post into the faces of a handful of couples that I know are doing this now. One is a family member, who can do this or face the obvious consequences. The post seems to have quite a following, and I really don't understand. Here is my response..Like it or not..
I came back to see these responces...I am surprised at this outrage....I guess its better for these people to just whittle thier savings down to nothing, go into foreclosure, and join the ranks of all those with ruined credit and still have no home...Have you tried to get someone in foreclosure into an apartment...Sorry...you didn't pass the credit checks.....
I take those who read back to a fact...A recession is when someone down the street loses their home..
A Depression is when you lose yours..
If the mortgage fraud police go back a few years and start putting everyone in jail that participated in No Doc loans, then we as a society better kick all the murderers and robbers out to make room for the thousands and thousands of Realtors, mortage brokers, Bank Employees, Loan Officers, Appraisers, and all the rest of us that need to show up and turn ourselves in now. Lets just get off the high horses and go turn ourselves in..
Quit blogging, just go turn yourselves in for all the home loans and mortgage fraud that has already happened in your presence over the last few years. Just because you did not sign the docs yourself dosen't mean that you weren't involved..Just because everyone was doing it does not clear your concience.
How many here did not turn your head as YOUR CLIENTS signed these loan docs with the full intention of Re-financing before the new rates started kicking in...This situation is always about the family that has to make choices..The majority of these deals are interest only with increasing payments...They will NEVER PAY THE HOUSE OFF...
Like it or not, this is my opinion... One last Question...What would you do if it was your situation, your financial ruin that was coming up...
I am all done now