LOWERING INTEREST RATES WHILE WE CONSIDER PRINCIPAL REDUCTIONS

By
Real Estate Broker/Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #636943

I have actually seen landlords turn away rent because it wasn't for the full amount. Yes, there are people who will hold you to the strictest interpretation of what is going on and that is their right to do so. But does it serve or compliment the big picture? I have always accepted some rent as opposed to no rent and things work out

TITLE OF THE POST EXPLAINED

Now, saying all that, how hard is it to implement a program of reducing interest rates that are abnormally high to a more reasonable amount which in turn would lower payments and then we all can go on from there. If this program helps anyone, then it was a success.

CURRENT SYSTEM GIVING NO RESULTS

Doing nothing or maintaining the status quo between borrower/lender is proving to be an economy KILLER. We can operate by the strictest interpretations and accept that outcome or we can create an outcome or result more to our choosing. He who hesitates is lost applies here too

CAPITALISM REQUIRES MOVEMENT

Capitalism requires that the buck never stops but keeps moving thereby benefiting all who temporarily have it in their possession. Holding on to the buck only helps to create and supports.... a meltdown. Accepting no money from people in default and letting that take place for months and even years makes no sense at all. No income versus some income is a no brainer

START HERE

Why not send a message of hope, of reconciliation and re-negotiation where all parties benefit? There is no reason why any loan mod request cannot begin with the question of.....Can we lower the interest rate and will that help this borrower?

 

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foreclosures
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Rainer
209,856
James L. Katz
Katz Realty Group - Aventura, FL

really nice post.  i wish that we lived in such a reasonable world.  unfortunately, greed is causing people to keep so much for themselves, that they do not even realize they are risking it.  i like the analogy of the dollar needing to move forward

Oct 26, 2011 10:57 AM #1
Rainmaker
171,387
Debbie Holmes
Gold Key Real Estate - Boise, ID
Gets the job done!

I have reduced rent for a good renter....The renter has been with me since 2007 and should be with me until I sell them their next home.

 

Oct 26, 2011 11:02 AM #2
Rainmaker
291,484
Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Excellent observation.  I have very mixed thoughts about the various principal reduction plans discussed - but am "all-in" for allowing as many people as possible to take advantage of the historically low interest rates now available.  Its a "low cost" option for lenders that could make a huge difference for many families.

Oct 26, 2011 11:06 AM #3
Rainmaker
339,089
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

The banking lobby has done all it can to crush any efforts at principal reduction on mortgage loans. Take a look at how much money they've spent to maintain the status quo regarding load modification proposals.

Oct 26, 2011 11:19 AM #4
Rainmaker
1,369,839
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Hello James....in the end, one sees that common sense will get you through anything if you remain open to its soft, steady beckoning. Who was it that said..."The enemy has been sighted ...and it is us"?

Debbie...I have done the same. The owner resisted until I reasoned it out with her. To her credit, she reluctantly agreed and now a steady monthly check comes in during one of the most challenging recessions.

Jeanne....bravo for being open and approachable on this subject. Why cant we just take some baby steps to solve our problems and in a very short period of time, we all will recognize forward movement. Humans can do anything if they put energy into it...

Hello Eric...I hear you...there is a powerful movement to keep things the way they are for nefarious reasons...This great one of a kind country can only stand up to so much abuse...We should be cooperating not sabotaging

Oct 26, 2011 11:30 AM #5
Ambassador
475,608
Larry Lawfer
YourStories Realty Group - Westwood, MA
"I listen for a living." It's all about you.

Richie, our economic system is built on profit and Banks are notorious for keeping theirs.  What you are suggesting is more like a helping hand approach which can sound more socialistic than capitalistic.  I am ok with that.  I think if we can float the boat for more of the American homeowner than less that is a good thing.  Banks can just take less profit which will help their communities and untilmately help themselves.  As it is, I can't imagine too many people going back to big banks any time soon.

Oct 26, 2011 11:55 AM #6
Rainmaker
1,369,839
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Larry....your comment is all good food for thought. I do lean toward the helping people approach and sometimes I am not business realistic on. However, I wonder what we are all quibbling about sometimes. Life is good, the planet performs well, and there is enough for everyone here...Start with that. Turning a deaf ear to tens of millions of people becoming collateral damage in this economic battle of the wills makes no sense. Thank you for your thoughtful commenting LL

Oct 26, 2011 12:38 PM #7
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Rainmaker
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Richie Alan Naggar Author PEARLS SERIES of books

on LIFE and LOVE plus Real Estate too!
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