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Wednesday, June 9, 2010

REALTOR® Magazine-Daily News-Lenders Warn Foreclosure May End in Lawsuit

REALTOR® Magazine-Daily News-Lenders Warn Foreclosure May End in Lawsuit

In our profession and I am sure some of the public has heard the horror stories of homes that have been vandalized by the previous owner. Cement poured down the pipes, copper plumbing torn out, and I don't even want to mention the stuff left on the carpets. I'm not too sure what they expect to get out of a lawsuit unless it is a criminal lawsuit and looking to put them in jail. The old saying says you can't get blood out of a turnip so basically how do you try to get money from someone who is broke. This is vandalism and the police need to step in and arrest these vandals. I feel for those who lose their homes but I feel worse for those children who have parents that are teaching them that it is okay to vandalize because you are angry. Let's see if this threat from the banks will help but I have always said that the banks need to be more proactive in working things out.

Short sales and loan modifications are very similar to a dog chasing its tail. Even if the dog catches his tail it is still a lose-lose situation. Banks do not realize that had they actually helped more people out at least temporarily or been more efficient at approving short sales then values would not have dropped so fast. Maybe the borrowers would not have left so angry had they seen the transparency from the lender as to why they were not approving the short sale. I wonder if the banks will ever apply the principles of cash flow that I learned in college. One dollar today is worth more than one dollar tomorrow.

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