We have all read about the homeowner who has taken out the 50 year, interest only, adjustable loan 3 years ago and now that the payment is recasting, they can no longer afford their home. It seems you can't read a blog or newspaper article about homeowners, and not find one who hasn't fallen behind on payments. Now these homeowners are looking at bankruptcy, foreclosure, short sales or attempting a loan modification, just to survive. If you read my last post, you know I feel for these people, and hope a solution is right around the corner. However, I want to explore a different borrower that seems to have done everything right, but cannot catch a break.
The recent change in the economy has caused many to fall behind one way or another. The increased prices to gas, milk, bread, and everything in between has caused even the most prudent consumer to be stretched beyond their means. Homeowners that have paid their mortgage on time for years and are now facing tough times, cannot seem to catch a break. Have we now reached a point where we cannot extend help to those that have been so good to us in the past? Aren't we all allowed a moment to gain our composure and regroup?
I see it in sports all the time. I watch NFL teams so out of sync that they need to call a timeout and regroup and regain some composure. Why doesn't this work for some homeowners?
If I am a homeowner and have paid my mortgage on time for the last six years without a hitch, and suddenly I had some financial hardship, can I call a timeout? Shouldn't my past give me some type of breathing room? Doesn't a flawless payment history for 6 years on EVERYTHING and a 750 FICO score allow me to get something other than a collection call from my mortgage company?
NOT IN THIS ENVIORMENT!
It really is sad to see what has happened in the mortgage industry, and how so many bad loans have caused so much paranoia amongst lending institutions. Mortgage companies are no longer hiring wholesale account executives to sell, they are now staffing up on collection agents and loss mitigations specialists. At what point do we realize that everyone, regardless of Credit, Capacity, and Collateral, are going to run into a road block along life's journey? It can happen to anyone, even you!
My question is simple. Who is going to be there to help those that have done right so many times in the past, and have always figured out a way to make a payment, now that they have fallen onto hard times? I want to help, but there is only so much I can do. The bailout by the Federal Government? Hey, I don't want to get political here, but most programs I have seen are for those that have fallen behind on their mortgage after it has adjusted. What about Mr. and Mrs. Jones that are in the 30 year fixed at 6.5% and have had some medical issues the last three months and their mortgage history has suffered? Do we have some economic stimulus for these people?
I have heard the saying many, many times....LIFE IS NOT FAIR! I understand this now more than ever. I just wish there were more ways to make the playing field a little more even.