As more and more people realize that they may have to go in to default, I'm starting to get more and more calls from people asking me how to talk to their banks about how to avoid losing their homes.
The story time after time is that they called their bank and the banks all say, "Sorry, can't help you until you are already in default." Now, I've been able to help a few of these people, but most of the time I have to sit down with them and discuss their options with the HOPE program, talking to a lawyer to contact the bank or just stop the payments until the bank is ready to talk.
I tell the people that I understand that they don't want to ruin their credit and are looking for options, but the banks just aren't willing to listen and I just can't understand this. Most of these people are just in a temporary situation with a temporary job loss and are just looking for away to do something such as a loan modification that will just move 2 or 3 months worth of payments to the end of their loan.
But, I keep hearing that the banks tell the owners of the homes that if they had called when they their credit was fine, they probably would have done the loan modification, but because of their credit score, their really isn't much they can do! WHAT? They tried to call you when they didn't have credit problems and you told them you couldn't help them.
I would love to see the banks help these people who want to keep their homes do exactly that. Yes, there are situations where people won't be able to keep their homes, but I think in more cases than not, people don't want to default on their loans, they want to keep their homes. But, if these banks aren't willing to listen when the people want options, I don't think they should be surprised when these people hang up on them when they call and ask why they are late on their payments and when they are going to be expected to catch up.
Please, banks, try to show some compassion prior to the default. I think you will find you will get a lot more money in the long run and a lot fewer homes sold on short sales or be given back to you in foreclosure.
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
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Is your family looking to buy or sell in Washington County, Oregon? Then give me a call, I would love to help your family home! (503)-524-9494 www.IFoundYourNewHome.com
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In Hawaii you need to be a Distressed Property Consultant to call the bank. Other states may be enacting similar laws so it's something to watch out for.
Same thing with credit cards. They won't talk to you about lowering your interest, skipping a payment, anything, until you are 60 days+ late. It's a heck of an incentive to stop paying everything to get someone to finally help. Crazy world.
Todd, I have seen a definite slow-down in bank responses over the last two weeks. You're right. It has seemed impossible to get a response. However, I did get a call from 2 listing agents today that my buyer's offers were being submitted to the bank. I'll report on any positive results.
Aloha Todd. . . Thanks for the Post. I have often felt the same way and fully endorse your position. Hey . . . what's the market like in your area ?
Mahalo
Jim
It is a fitfall that we see to often. Bank of America is working to help this situation. I had a client that got a modification in 2 weeks. They helped them. Now I wont list it and thats fine with me!
Todd - you have said a mouthful here and i could not agree with you more - the banks are putting people in a position where they have to go into default before they will have a conversation and then ask them why they did not come to them sooner????????
Todd, more important, the banks need to learn how to talk to their borrowers. Hope they pull it together soon!
Todd, I really think one of the problems with the banks is that they have people doing that job that have no background in Real Estate or for that matter Mortgages. You get an accountant type that really has no idea how things work. Maybe the new bailout will help with that.
Todd- Compassion is a concept I don';t think mnay of these people understand at all. I would settle for common sense...that would solve many problems.
Hey Todd,
It seems so nonsensical. If the borrowers are making payments and still have good credit ratings, then no one sees them as "having a problem." Therefore, no need to modify.
When they do have a problem, oops, it is too late.
Too be honest everything everywhere is so messed up i do not think anyone has a clue of what to do. the banks are scared . homeowners are scared. No one wants to make any more moves until ???
If we can figure out the until maybe everyone will then take a deep breath and trudge forward.
Todd, wouldn't it be nice if the banks were reading your post. LOL. It is indeed a catch 22 and who knows if the government with all its programs will make things any better. Here on Kauai, where we all are learning about the recently passed Act 137, Realtors are becoming very wary and concerned about being involved with this section of the market. And it's too bad, because we are some folks who could help.