I wrote a post a couple of days ago about “walkaways,” a term used to describe banks failing to finalize foreclosures and then abandoning the homes. The post discussed the problems brought onto communities, taxpayers, and homeowners whose former homes are then destroyed by vandals and thieves. The post was read by more than 7,000 and has received almost 200 comments. Many of the comments blamed Realtors® and bankers for causing the housing crisis.
However, the great majority agreed that while banks were operating within their rights, most understood that their actions made little overall sense. Ultimately, the banks would lose money, the cities would lose tax revenue, the owner loses their home, and neighborhoods experience declines in home values. In such situations, there are no winners.
I found it interesting that a few wanted to point fingers at the banks and Realtors® for creating the crisis by forcing people into homes they couldn’t afford with loans they’d never repay. But that’s just not the reality. Did certain lenders participate in fraudulent lending practices? Of course; and some are being prosecuted. Did some Realtors® push buyers into homes they knew were far beyond their means? Certainly. But those cases are minimal when compared to the millions of transactions that took place.
Finally, a few pointed fingers at those who are facing foreclosure, saying they were just stupid or greedy. I have listed a few of the more pointed and interesting comments below:
• Realtors and lenders…pushed people to buy these homes
• …good comments, sad to say, all true. I've been, and still am, in the banking end for over 30 years, and the bank ONLY cares about its bottom line, period! Banks don't have a heart, they have a board of money makers, that's it. Some banks allow you to get a file done when others wouldn't, but the client has to pay a "premium" on their rate. I agree there should be a better way, the local governments could speed up the process, but they are afraid of making somebody mad. That somebody is usually the bankers that backed the election, so round and round we go.
• Behind every sub-prime loan was a Realtor anxious to close a deal John. Conventional lending and wisdom said "TOO MUCH RISK"
• And here I sit trying to BUY some of these properties and can't get a response for weeks for a CASH deal. The bank just shuffles you from one place to another. They act like they could care less if they hold it for a year rather than selling it now. I don't mean offering them less than what they were owed. I am offering what they bought it back for PLUS costs
• Banks do have a heart of gold but it's more like the James Bond villain, GoldFinger
• I've wondered what the deal was on a number of properties in my town...now I know. I tried to buy a foreclosed property that's been sitting for over a year now, and the bank just refers me to their regional arm, who tells me they know nothing. They have a potential, even probable, buyer, and they choose to do nothing. It's maddening.
• WHERE DID YOU EVER GET THE IDEA THAT BANKS ARE SUPPOSED TO HAVE "HEART" IN DOING BUISNESS? HOW MANY REALTORS WOULD GIVE BACK THERE COMMISSION TO HELP A HOME OWNER?
• Mention the term "heart" and "Realtor" in the same sentence and you REALLY have an oxymoron! This is yet another example of the hundreds of blogs my friends and I read on this site where Realtors accept no responsibility whatsoever for the housing crisis that's now affecting EVERYONE. It's honestly become so discouraging to think that 95% of you think the way you do. It leaves no hope whatsoever.
No one had any problems driving their clients around, making "small talk" with them, finding out they both worked at Walmart as greeters, and selling them a $549,000 house. By the way, it was only worth $450,000 but the Realtor demanded that the lender get the appraiser to bring it in at value. She even shopped it a few times til she got what she needed. Hell, even SHE knew it wasn't worth it. And then, the "real estate professional" went through 11 loan companies until she found the one crooked enough to finally make the loan.
• Are all borrowers victims? Did any of the homeowners involved abandon all common sense when they made the obligation to buy the property? Were all borrowers involved the victims of brokers, appraisers, agents bankers, and securitizes?
• Am I the only one who gets tired of hearing about the "poor people' who lose their homes. I'm sorry, but I think more of my fellow Americans to believe that everyone who has lost or will lose their home is so stupid that they could not figure out that there was a downside to buying a house they could not afford. I don't care how slick the alsoeman might have been, or how many ads they heard on the radio or how many firends and family did it - who cares.
• "Foreclosure Victims"...Now that's the oxymoron. You can have victims of identity theft...victims of murder...victims of a hurricane, but people that get foreclosed on are NOT victims. They made an agreement to pay, then failed to satisfy that agreement. They knew what the consequences would be…
Has the economy caused many in both the mortgage and real estate industry to rethink how they conduct business? I know it has. The economy has suffered a tragic reversal of fortune, and it has caused millions to suffer consequences they never imagined.
The country was caught up in the “irrational exuberance” of a real estate boom like we’ve never experienced. No one wanted it to end, and few imagined it would end as it has. Now that the boom is over, our country will be forever changed, and it extends far beyond banking, real estate, and consumer spending habits. Overall, many of the changes will be positive. We needed to change. And we need to work together to solve some serious problems that remain; merely pointing fingers at one group or another is a meaningless and unproductive waste of everyone’s time.
http://activerain.com/blogsview/1151300/punishing-foreclosure-victims-some-banks-take-one-last-shot
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