Is CNN Being Responsible or Irresponsible?

By
Real Estate Broker/Owner with The Jordon Wheeler Group GA License# 264359

Today I caught a brief news segment on CNN where the reporter was discussing the state of the United States housing market.  The CNN numbers reported that 53% of homeowners are upside down on their mortgages.  The reporter went on to state that many homeowners are walking away from their homes not because they cannot afford the payment but because they don't like being upside down.

While I hate all of the negative aspects of the story, I was floored when the reporter went on to tell homeowners the steps to take before they walk away from their homes.  One step in particular was really alarming when the reported advocated that homeowners lease their homes out while listing the home as a short sale.

WHAT???  Seems like a good idea to help the homeowner, but eventually the home will sell, the owner is offered a deed in lieu or the home goes to foreclosure.  So what about that tenant who is renting the home?  What obligation does the owner have to tell the tenant the property is heading to foreclosure?  What is to make the homewner be responsible to the tenant.

Ms. Reporter at CNN, you already have a homeowner who just doesn't want to pay the mortgage because they are upside down.  Ms. Reporter, you add insult to injury and offer the owner the idea of leasing the home out while doing a short sale?

I may be a little sensitive about this issue because I am currently helping a tenant who signed a lease in December and got a knock at her door in January that the home was up for foreclosure.  The foreclosure sale date has been postponed until May 3rd, but it is planned and my client has to find a new home.  and the landlord wants her to pay rent anyways.  This single parent mother has enough on her plate with four children.

For help with leasing, buying, or selling in metro Atlanta, please call 404 923 4210 or 404 246 3210.  Thanks!

 

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Ambassador
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Michael Thornton
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspector - Nashville, TN area - 615.661.0297

Sorry, but I do not believe anything the Communist News Network broadcasts...

April 04, 2011 04:13 PM #1
Rainmaker
487,008
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Michael - LOL!  Unfortunately too many other people do.  Thanks for commenting and best of success to you!

April 04, 2011 04:14 PM #2
Rainmaker
645,151
Team Honeycutt
Allen Tate - Concord, NC

Thanks for sharing your comments. The suggestion sounds to me to be very ethically incorrect.  I have never heard that particulazr suggestion before.

 Betty

April 04, 2011 04:19 PM #3
Rainmaker
347,271
J. A. Michail
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

As long as there is full disclosure to tenant, I don't see leasing as an issue.

April 04, 2011 04:25 PM #4
Rainmaker
487,008
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Betty - yes, it is out there and people are talking about it.  Thanks for commenting and best of success to you!

John - you're right!  As long as there is full disclosure...but how many homeowners will tell the tenant what's happening behind the scenes with their mortgage?  Hmmm...thanks for commenting and best of success to you too!

April 04, 2011 04:41 PM #5
Ambassador
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Renée Burrows
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker - www.urLVhome.com

I wish this was public so I could reblog! 

Lots of tenants here have found themselves in the middle of the foreclosure and they can't do anything (like stop making rent payments or move out) until their contract expires or the home actually forecloses.

Maybe CNN should run a (want to insert expletive here) story about all the tenants whose lives have been turned upside down but landlords who don't disclose or tell the truth.

April 05, 2011 08:11 AM #6
Rainmaker
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Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Renee - that is exactly what I'm dealing with now and it is happening too much.  Too many homeowners not disclosing the issue and causing more problems for tenants.  Thanks for your comments and best of success to you!

April 05, 2011 02:27 PM #7
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Jordon Wheeler

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