The Real "Home Wreckers"

By
Real Estate Agent with Keller Williams NJ Metro Group

"Home Wreckers -- How Banks Are Making the Foreclosure Crisis Worse...What Happens Now?" is Business Week's lead story this week (Issue of Feb. 23, 2009). Finally, a major national publication has picked up on and researched the dirty-and-getting-truly-filthy story of how banks are handling bank-approved sales and foreclosures: And I quote: "One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problems....The industry strategy all along has been to buy time and thwart regulation..."

Any agent who has handled one of these transactions knows all too well how the system works -- or doesn't. To participate is like falling into Dante's inferno head first. My first experience of this type, two years ago, handling an abandoned, falling-down property that the old WAMU had inadvisedly refinanced at more than $1,000,000, had 6 worthy buyers over 18 months, but no real opportunity to close. Strange obstacles conjured by the lender would enter the picture and buyers would disappear. After waiting months for a bank response, they would scream, cry, rage against the machine and then just give up. After a while - and hundreds of phone calls to the "Home Preservation Department" -- I figured it out: Something is rotten here, something so big and terrible I wouldn't be able to fix it.

Okay, I so get it now, and it makes me mad. At this point, like most agents, the mere thought of dealing with a foreclosure (or, even worse, a short sale) makes me hyperventilate. Today, we Realtors are on the front lines of helplessness and hopelessness. We see it everywhere, desperate homeowners without resources, losing everything they've striven for. Neither they nor we can get a straight word from a bank. Showing these properties is a trial, but I just planned my schedule for tomorrow. Half the houses I'll show are in jeopardy, most are empty and forlorn, many have been vandalized. On our end, caring is not nearly enough. Neither is submitting an offer, because the powers that be aren't really interested in getting the job done. In my mind, that would be enabling new families to embrace empty properties as their own for fair market value; or, even better, keeping beleaguered homeowners who are still hanging on, right where they belong.

Business Week reveals that banking lobbyists are renewing attacks against possible legislation to adjust overblown mortgages that should never have been issued and help homeowners get back on their feet. The nation's banks are apparently threatening to raise interest rates and reject future borrowers in retaliation for so-called "cramdown legislation" because, they say, it would "destabilize the market." I don't buy that, do you?

 

Posted by

Roberta Baldwin, Principal

The Baldwin Dream Team

Keller Williams 

Montclair, NJ 07042

973-420-9043 (direct)

RobertaBaldwinTeam@gmail.com

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Topic:
ActiveRain Community
Location:
New Jersey
Tags:
foreclosures
short sales
bank approved properties
mortgages
banks
lenders
foreclosure crisis
nj

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Rainmaker
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J. Philip Faranda
Broker-Owner
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

This is an absolutely brilliant observation.

The lenders CONTINUE to be their own worst enemy, and, by extension, the enemy of recovery. I do quite a number of short sales and it isn't lost on me.

This would be a great post to be put on some group postings so you'll get more people to read it. Drop me an email and I'll explain.

Phil

February 14, 2009 02:31 PM
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Rainer
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Roberta Baldwin

The West Essex, NJ Area's #1 Realtor
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Additional Information

Award-winning agent, team leader and HGTV "Bought & Sold" cast member Roberta Plutzik Baldwin ruminates on the real estate biz from a New Jersey/so-close-to-NYC perspective. Follow The Team at twitter.com/TheBaldwinTeam.