Many of us have taken vitamin c when we feel a cold coming on and why do we do that? Because we know if we don't we could be missing a lot more work and money during the down time while we try to get better.
But, why don't the banks take this same approach when it comes to home owners? If a home owner who has had a good payment history calls them and says, "I'm in trouble and I'm about to go in to default." The bank tells them, "Sorry, there is nothing we can do for you until you are late on your payments."?
WHAT? This makes no sense to me? Once they are late, they can't possibly re-finance, and the bank has to pay lawyers to send out letters and file with the courts a notice of default. Why can't the banks be pro-active and take the home owners word for it and figure out a way to help them and save themselves thousands in the process?
If I were the bank, I would say, "I'm sorry to hear this and let us see what we can do to help you in your situation." Then proceed to ask why they are going to go in to default, was it a temporary job loss, relocation, death? There are lots of reasons people get in trouble, but with a little thinking outside the box on the side of both parties, their may be a win-win for everyone involved that hasn't been thought of yet.
I want to see the banks succeed and the housing industry to survive, but unless someone rips up the scripts these banks are given, I'm afraid it is going to be the same thing over and over until half the banks are gone and no one is lending.
In a way, I almost wish it would happen. Then my niche of owner financing could make me even more money, but that isn't why I do what I do. I do what I do to fill a gap in the industry. But as the gap gets bigger, than I guess I'm going to have to step it up and be the one thinking outside the box and do what the banks won't!
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