Are YOU a Part of the Entitlement Generation?

By
Real Estate Agent with Remerica Integrity, Realtors®, Northville, MI
http://actvra.in/DG5

Are YOU a Part of the Entitlement Generation?

Quick rant here, people.

I've been hearing for the last few years about the "entitlement generation." In fact, I totally agree with it. (call me, I'll tell you my personal situation about it)

I understand when a homeowner has a situation where they can't pay their mortgage anymore. Hospital bills, loss of job, etc. play a part in that.

What I'm talking about here is the people who happen to Owe more than their house (or condo) is worth, and has decided that they just won't pay for it anymore.

Where, in the closing documents that you signed, does it say that the home/condo that you're purchasing will always go up in value?

If you can't make the payments for a reason, this isn't for you.

If nothings changed, and you just want to stop paying for something that isn't the "value" you thought it was, then this is totally for you.

Suck it up, people. Pay what you agreed to purchase.

Karma's a bitch.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 07/11/2012 03:06 AM
  2. Ernie Steele 07/11/2012 03:45 AM
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eric michael

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Rainmaker
157,023
Rich Arnold
Keller Williams Realty East Valley - Tempe, AZ
Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix

I've had many visitors to my Open House ask me if the value of the home will increase - and they stress that they cannot buy the house unless I guarantee the value will increase.  I give them a quick lecture and explain that no one can guarantee that.  Some of these people want to live in the house for 20+ years -- I ask them why they need the value to increase -- are they anxious to pay higher property taxes?

Jul 12, 2012 08:16 AM #67
Rainer
83,887
Brad Baylor
ERA Coup Agency - Milton, PA

Eric - Terrific post.  Thanks for telling it like it is!

Jul 12, 2012 08:25 AM #68
Rainmaker
212,362
Judy Orr
Classic Realty Group - Orland Park, IL
SW & Near West Chicago suburbs
I try not to judge since those that want to walk away just because their home isn't what it is worth anymore will face consequences. It is their choice to have to pay rent to a landlord instead of owning their own home. They'll have to deal with compromised credit, which could affect them for more than just purchasing another home in the future.
Jul 12, 2012 08:40 AM #69
Rainmaker
640,754
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Sorry Eirc, big corporations walk away from losing investments all the time.  I disagree.  Why pay 2X as much for housing for you family for the next 30 years than you have to?

Jul 12, 2012 09:54 AM #70
Rainer
22,418
Justin Peck
Miller Real Estate - Hastings, MI

WAY TOO MUCH ENTITLEMENT THESE DAYS! It starts with simple back aches and can end in lifetime disability payments out of our paychecks. It starts with one Food Dispursement and Ends with Lifetime Food Stamps.

What really opened my eyes to this entitlement is working on a Church Mission Trip. There was a family who had been living in a trailor next to a old foundation. We came in and built them a new home. What was so very sad is that this family had 2 of the newest / biggest Pickup Trucks, several dogs and pounds upon pounds of dog food, 3-4 flat screen televisions with cable television, several video gaming systems with multiple games, each member - including the 14 year old youngest had cell phones, and the list goes on. So where in that families book did they get a new home entitlement?

Similar to loads of foreclosures.....and a continuing education teacher put this picture together well. There are those that look at home purchasing as a business deal, if the deal is no longer a good investment, its time to jump ship. Then there are those that are wise and "old school", the ones that know they signed on the dotted line, and know that in the long run this sinking ship is theirs alone to keep afloat.

Now like you said in the post, there are those that run into difficulty in the game of life, but please if I come over to negotiate a short sale.....I BETTER NOT SEE: New cars, top end appliances, electronics to the hilt, fancy cloths, and all the luxurys of life. O and if you invite me to your Summer BBQ where sushi / wine / cheese are served, you may be loosing my sign out of your yard!

Jul 12, 2012 10:09 AM #71
Rainmaker
1,273,388
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Although I struggle with the entitlement mentality of our culture I am going to go counter the common theme on this one.

Thane's comment in #24 about there being no clause that says you can walk away from it.  Actually there is. At least in California it is called the law and it makes it a non-recourse loan if it is a purchase loan.  In short you can walk away.  The lender knows that is a possibility when they make the loan.

Now I am a capitalist and absolutely disgusted with the assault on capitalism in this country.  However, our government and big finance in this country have basically manipulated markets to the benefit of the elite and the detriment of many.  This is not capitalism.  I could write pages about the many ways this is happening but I think those on the right and the left know what they are.

Foreclosure, bankruptcy, and other such tools have a Biblical origin to keep us from economic enslavement. If an obligation can be legally disposed of it keeps lenders from making bad loans.  Now it should also have some pain (which it does) for those doing the disposing so it is not an option taken lightly.  

I have no problem (especially in this current economy) of people doing what is best for their family, even if it is strategic foreclosure.  Oddly enough now that banks are working the Short Sales more prices are going up and it may help end this mess. 

 

Jul 12, 2012 10:37 AM #72
Rainmaker
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Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Eric,

I was reading more of the comments.  By no means take this down.  Although I came out counter to you I think it is a very good discussion with good points on both sides.  

We are not idiots or savages; we are adults.  Issues need to be discussed.    I am really glad you posted this and by no means should you take my disagreement as a personal assualt or mean I am offended. I am actually symathetic to the idea there is a lack of responsiblity in this culture. 

Jul 12, 2012 10:44 AM #73
Rainmaker
342,298
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

I like this a million times!!!!

Jul 12, 2012 12:58 PM #74
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Karen Fiddler, Broker/Realtor
HOM Sotheby's Intl Realty, 949-510-2395 - Laguna Beach, CA
Laguna Beach & Lake Arrowhead, CA (949)510-2395

I don't know....it depends. I can understand why some people do walk away. Depending on their lives/plans...good money after bad. We have bankruptcy laws in place for just these scenarios. I'm not judging.

I agree in general with the entitlement generation, and have made sure my kids understand that they are not owed anything. I also am amused when I hear the agents have violated their fiduciary duty by helping buyers buy in a high price period. Too funny.

Jul 12, 2012 02:07 PM #75
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Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9663

Strategic foreclosure???, are these people willing to pay their lender extra if the value of their home goes up more than expected?

I think that many foreclosures are just a sign of low character, and when screening renters I often treat them as if they went through an eviction, unless they can prove circumstances beyond their control.

Jul 12, 2012 02:52 PM #76
Rainmaker
695,477
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

To me, these strategic defaults are a business decision.  Plain and simple.  If you cut your losses and stop paying, it is the bank's right to damage your credit, chase you down for the deficiency, or work out a deal.  I have done private lending in the past and to me a partial payoff is far better than trying to foreclose and chase someone down in most cases.

Jul 12, 2012 03:05 PM #77
Anonymous
Anonymous
Jo Ann Poole

Richard, I have many thoughts that I could put down on paper and don't want to offend anyone.  However, I also feel that you have a right to your opinion...

For what it's worth, I do believe that so many people look at this as entitlement and can easily walk away.  What happened to a home that one purchases for living with their family...

Not to offend anyone, as I am in California...but being from Pennsylvania, the east is much more conservative in so many ways and lifestyles...I am in my home here in Ventura County since 1998 and do not plan to move...

Yes, there are valid reasons for short sales, but I do know of many that are just not wanting to own up to the fact that their home's value has gone down.

What goes around does come around, and there are those that say when?  We may not see it in our lifetime.  People need to step up to their responsibility.

Enuf said.

Jul 12, 2012 05:04 PM #78
Rainmaker
964,442
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

Don't take your post down. Don't ever crumble to pressure about what YOU write on YOUR blog post unless you are violating the terms of service or COE. This is America. If someone doesn't like your post they should move on. This isn't a dictatorship or popularity contest. Good conversations here. We wouldn't have that if we all walked around like a big fat pussy cat.

Jul 12, 2012 08:43 PM #79
Rainer
184,548
Bill Fields
Bill Fields Learning Systems - Treasure Island, FL

From the comments you would like this attitude of entitlement is something new or relates just to real estate. NOT!

Jul 13, 2012 04:49 AM #80
Rainer
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Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Kimo's Lifestyle Solutions

Very interesting comments about your post. A primary residence is NOT an investment, it is a liability when being financed. 

Jul 13, 2012 06:31 AM #81
Rainmaker
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Betty & John Knowles
Coldwell Banker Vanguard - www.teamknowles.com - Springfield, MO
REALTORS® - Springfield MO Real Estate

Well said Eric,  You have only voiced what some many of us have wanted to for a while now!  Thanks

Jul 13, 2012 08:39 AM #82
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
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Glad to see it is still up and running:)

Jul 13, 2012 12:48 PM #83
Rainmaker
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Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

There is not a clause in the contract that says: "If you don't like or it doesn't increase in value, please just walk away."

The law states you can file bankruptcy and you can walk away per the LAW, but not per the contract. Yes, those are two different things!

It has become too easy for people to say "It isn't going my wayt, oh well, I'm out of here!"

Jul 13, 2012 03:23 PM #84
Rainer
27,028
Amy Champion
MetroTex Association of REALTORS - Dallas, TX

I'm a part of Generation X, the generation immediately preceding the Entitlement Generation. =D

I'm also a proud Metro-Detroit native (Royal Oak) and very warm transplanted Dallasite. Most of my family is still in the Metro Detroit area. My uncle loves to buy homes in Macomb and Oakland counties to renovate and re-sell. He told me a few years ago - 2007ish - that people are just walking away from their homes. Sometimes, a person could qualify to buy something else without selling their existing home. They close, move in to the new house and just abandon the previous one. It will foreclose eventually, but the people don't care because they've moved on. It really shocked me. It felt like "playing the system."

Jul 25, 2012 02:54 PM #85
Rainmaker
283,579
Kasey & John Boles - Jon Gosche Real Estate
Jon Gosche Real Estate, Boise ID - Boise, ID
Boise, Meridian, Ada/Canyon/Gem/Boise Counties

There is certainly a different mentality these days than there used to be.  And, I think as the younger generations continue to grow and bring about other generations this will continue.  Times are a changing. -Kasey

Nov 25, 2012 09:23 PM #86
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Eric Michael

Metro Detroit Real Estate Professional 734.564.1519
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