WHAT CAN WE DO TO HELP ?

[b]Most people in the Real Estate business know that many families are losing their homes to foreclosure at an alarming rate. The experts predict that this trend will continue.

MORE THEN A MILLION HOMEOWNERS FALL INTO PRE-FORCLOSURE MONTHLY
(90 DAYS OR MORE BEHIND ON THEIR MORTGAGE PAYMENTS).

These homeowners usually find themselves in this unfortunate situation because of a temporary problem or setback. They may have been out of work, had a medical problem, possibly a divorce or some other expense that caused them to get behind.

For the most part, these are good people who want to stay in their homes and want to pay their mortgage. Many have even attempted to catch up on their last two or three mortgage payments, but their lender demands to get paid all of the delinquent payments, plus late fees, legal fees and filing fees and will not accept partial payments.

Lenders fail to realize that the homeowner really wants to work out the problem. The lenders stance is, “We are in the lending business not in the Debt Collection or Loss Mitigation Business.”

THIS CURRENT TREND IS NOT GOOD FOR AMERICA

This is a national dilemma that affects us all, impacting our communities in many ways.

It strains the economic fabric overall and especially those institutions we Investors rely on for our livelihood.

It can contribute to the burden on the welfare and health care system.

It can affect the family unit, our children’s well being and disrupts their education.

It weakens our nation when we should be the most alert and strongest.

As we confront the daily threats of this world, this “One nation, under GOD, indivisible….”
has to sleep with one eye open. By the grace of GOD we will surmount the problems that face us and continue to live by the universal credo that says we are to “ Love our neighbor as our self” and we should also attempt to HELP our neighbor as we would help our self.

[/b]
What can we do to help ?

A few good people get into jams such as you discuss. MOST of the NODs today are due to buyers who had NO business buying in the first place and were also able to borrow from lenders who had NO business lending to these buyers. Both sides of this equation got themselves into this jam. Both sides probably “stretched the truth” in the process. We provide a valuable service to both parties because we know how to solve these problems. The fact that we make a profit in the process is why we’re willing to expend our talents and energies. That in itself is a vital service to mankind. Individuals ARE responsible for their actions - it’s NOT someone else’s fault. Actions have consequences. Every once and a while, we go through cleansing periods like this to clean-out the mistakes and get the industry back on the right path. This is just another one of those periods. Use it to learn and to make some money for yourself. If you want to be an altruist, you’re on the wrong blog.

There’s nothing altruistic about the OP. It’s a semi-blatant advertisement for a business which is more than candid about the fact that it’s in business to make money from people in foreclosure.

He’s not offering anything unless he’s getting paid…just like the rest of us.

Hi OldGuy,

I totally 100 % agree with your opinion. We all know how we got here.
“Liar Loan” applications, a great cycle in the market two/three years ago, low interest rates and lenders who would whip out the rubber stamp and approve a fly if it landed on their desk.

And I agree that there will be some good deals on the market (although margins will probably be tight due to early NODs and falling values).

I read some of your earlier posts on this forum and was impressed with your range of experience and helpful suggestions.

Sir, as a southern gentleman myself (South Bronx) and a neophyte, I would welcome any future comments, advice or suggestions you may wish to impart.

As far as being altruistic, and as our friend PaulBroni points out above,
There IS a signature at the end of my blog.

God bless and have a great day,

RealProfits

Guess it’s time for a real world economics lesson. Our current problems started in 1913 with the creation of the Federal Reserve. The “dollar” they were charged to protect and keep stable now has a purchasing power of LESS than 5 cents. Good job, Fed!

In their operations, the Fed controls short-term interest rates. I won’t go into the Resolution Trust (S&L crisis) explanation due to Fed actions. I will delve into the current fiasco. “Bubbles” Greenspan as Fed-Head is directly responsible. After the 1987 stock market "melt-down, Greenspan made excessive credit available to try to avoid more serious problems. Problem is, he never quit inflating the supply of currency and credit. He ran the printing presses 24/7 and lowered the interest rate to 1%; WAY BELOW market rates.

With all that cash sloshing around the economy and insanely low interest rates, guess what happened? Yep, folks who had no business owning a home bought one with the “liar’s loans” processed by the folks who brought you the “subprime” wars. To pretend that no one saw this mess coming is to deny reality. Problem is, too few folks understand and too many want “something for nothing.” What you get in the real world is less-than-nothing for nothing. Hence the current escalating NODs.

So, yes, to feel sorry for the folks who don’t believe they are responsible for their own decisions/mistakes falls into the Altruist category. Sorry but as I said, actions DO have consequences in the real world.