If we cannot laugh at ourselves, then who can we laugh with? Seriously, this video portraying a Realtor cold calling on a distressed home seller is genius. It captures the internal argument that resides within most sellers who are having difficulty staying afloat while waiting for the other shoe to drop. Sadly, this is a conversation many homeowners are afraid to have with their Realtors. Many allow their mortgage holder to progress too far down the pre-foreclosure road prior to having this “come to Jesus meeting”, as we say in the South.
Realtors have a Point
Despite this blood sucking vampire Realtor video saying it in a humorous way, there is very import advice given: do not count on a loan modification to be your saving grace. In way too many cases, loan modifications fall through in the eleventh hour for a multitude of logical and wholly illogical reasons. I’ve heard them all, but honestly, there is very little incentive for a bank to modify your mortgage when in many ways, it is easier, cleaner and sometimes beneficial to simply foreclose. The debt is shifted to an entirely different balance sheet, the bank’s ratio of overdue loans is lowered and here’s the big one: your mortgage (or note) is worthless paper that cannot currently be resold in the aftermarket, your home however, is an asset that is readily marketable to an established set of buyers. Homes sell, bad paper does not.
Many inevitably ask, why don’t we just change or even eliminate our mortgage banking system? Credit is an integral part of any capital market. There is really not way to eliminate it and expect an economy to sustain itself, let alone grow. That being said, there needs to be a better loan mod program available to homeowners. Simply eliminating homeowners is not making it better for anyone.
Distress Does Not Guarantee Foreclosure
If you are in a situation that is beginning to feel a little dire, don’t ignore it. I know that this is not a pleasant time in one’s life. Shoot me an email or give me a call. I’ll do my best to point you in the right direction sans judgment.
