It Is Not Your Fault! You Did Nothing Wrong!

By
Real Estate Broker/Owner with Keller Williams Realty North County San Diego CA BRE #01129886

It Is Not Your Fault! You Did Nothing Wrong!

It is not your fault! You did nothing wrong!

Recently, I was contacted by a homeowner that had their loan modification declined, twice! When I met with them, they were going through the myriad of emotions that many people go through in this type of situation. To talk with them, I could tell that one of the emotions  they were experiencing was guilt.

They mentioned that "they should have known that this was going to happen!" "All the signs were there! Why weren't we more careful with our money?" So, I asked them, take me back to the time when you decided to buy this home. What was happening? "People were buying as fast as they could." Why? "Everyone had seen such an amazing increase in prices that they felt a sense of urgency to get in while they could still afford something decent." So, it was like a frenzy? "Yes, it really was! Our friends, family, co-workers and just about everyone we knew were buying as fast as they could! It was crazy!"

What were you hearing from the media at the time? "How fast homes were selling and how fast they were going up in value!" What were the politicians and the Federal Reserve saying at the time about the future? "That the economy would continue to grow for many years to come." How can you control the market? "I can't." So, how can you feel guilty? How can you feel like you did anything wrong? The fact is, all you did was you purchased a home at or near the peak of the market run up and the market price of your home dropped out from under you! Now you owe more on your home than it is worth. You are not alone, millions of homeowners across this great country find themselves in the same type of situation.

It is not your fault! You did nothing wrong!


The facts as we know them now are that out of 300 million citizens of this country and the several billion people on this planet, there were only a handful of people, most with access to much more sophisticated information sources than any of us have, that actually predicted this collapse of our economic system. Many of these unique individuals made a fortune betting on one of the worst financial calamities our nation has ever experienced.

If you have watched any of the many documentaries that have been produced or read any of the accounts of what caused this terrible recession, some say depression quietly, you probably know by now that this was caused by companies and financial engineers who, in the name of profit, got really creative with securities and financial instruments that gave wall street firms more to sell.

As the world economy continued to grow long term, the attitude of the world was one of confidence bordering on arrogance that this economy was almost bullet proof. As this confidence grew, the world sought more investments that yielded a greater return without greater risk. As the world sought these securities out, wall street delivered AAA rated securities that met those increased yield desires. Many of these wall street firms knew internally that these securities were not and should not have been rated AAA.  But they sold them as such to the investing public and secretly bet against the success of these very securities so they could increase their companies' bottom lines and they could make more commissions and bonuses. When congress called them on it in hearings they said they had no responsibility to tell their investing clients what their real or private opinion of that security was. Nor did they feel a responsibility to their investing clients to disclose that they were "hedging" the market risk of those very same securities. Wow!

The fact is that this is not something you as a homeowner did that you should feel guilty for.  It is rather something that happened to all of us and we just need to each figure out what our best option is to move forward so we can recover and our economy can recover.

Thank you for your time.

Sell your home.

Buy a home.

Find your dream home.

What is your home worth?

Finance your home purchase.

Refinance your home.

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Mike Litton, SFR, CDPE, FSP, PSC

Broker/Owner/Realtor

Keller Williams Realty North County San Diego

760-802-9500

reomike@cox.net

www.littonrealtygroup.com

DRE License #01129886

 

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Topic:
Home Selling
Location:
California San Diego County Escondido
Tags:
it is not your fault you did nothing wrong short sales
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Show All Comments
Rainmaker
696,459
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Seals the Deals in Temecula Valley California

Mike, what is really disgusting is how these so-called financial engineers constructed it so the loans would fail. The banks/lenders were just one cog in the wheel. Unknowing home buyers came along and were eaten up. Everyone made money, except the homeowner who is now underwater, and probably makes less money than they did at the boom time. The banks, or should I say, "investors" are foreclosing on the very same homeowners who made them tons of money. Now they'll rake in even more money, and all on the backs of the American homeowner and taxpayer. They are all slime-balls, and I agree, it is DEFINITELY NOT THE HOMEOWNER'S FAULT!!

Apr 07, 2011 02:15 AM #1
Rainmaker
87,638
Mike Litton
Keller Williams Realty North County San Diego - Escondido, CA
Realtor - 760-802-9500 - Homes For Sale Escondido

Pamela: Thank you!

Apr 07, 2011 02:20 AM #2
Rainer
234,262
Doug Bullwinkel
Vitek Mortgage Group - Roseville, CA
NMLS #281609

We are definitely in an upside down world. 

Apr 07, 2011 02:20 AM #3
Rainmaker
87,638
Mike Litton
Keller Williams Realty North County San Diego - Escondido, CA
Realtor - 760-802-9500 - Homes For Sale Escondido

Doug: I agree!

Apr 07, 2011 02:33 AM #4
Show All Comments
Rainmaker
87,638

Mike Litton

Realtor - 760-802-9500 - Homes For Sale Escondido
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