Lenders and Agents, you are on the front lines, so I NEED your input here. Tell me of situations that you see that result in foreclosure. Don't get into blame... I want to know what the situations of the homeowners are, why it is their only choice. I don't (for purposes of this question) want to know who caused the situation, just what the situation is, and how we could/should be keeping it from getting worse. Things that are of interest to me....
1. Was there a hardship that caused the home to become unaffordable, and if so, what?
2. Was there an ARM that adjusted that caused the lack of affordability?
3. Was this supposed to be an investment property or a primary residence?
4. What kind of loans do they have (80/20 with 2 banks, 1 bank; something with PMI or government insurance (VA, FHA, etc.); was this no money down or how much cash did they put in originally?
5. How far upside down are they (both in NET dollars - after the cost of sale - and in % of the value of the loans) I need both to understand the national picture?
6. Was this subprime, no doc, or some other high risk category?
7. Where will they live after the foreclosure?
8. Before relenting to foreclosure, what efforts did they expend to prevent it and what results came of that (i.e. did you try a short sale and get 10 offers but the bank wouldn't talk or did they take the ostrich approach and stick their heads in the sand)?
I am hoping your answers will help me/us develop some ideas for solutions... once we have the ideas, we still have the uphill battle of getting people to implement them; but maybe we can make a difference here. I for one, am willing to try.
THANK YOU for taking the time to share. Remember - "Be The Change You Wish To See In the World"... we all agree someone has to do something... why should't it be us?