Real Estate Blog

Mortgage Crisis
July 14th, 2009 3:45 PM

As the market has been changing I have been getting a lot of REO work. Although it is sad to see it is to be expected. There is just one thing that bothers me with these foreclosures. I hope someone can help me understand the process. I keep hearing on the news and different advertisements how financial institutions are willing to work with those who are having trouble paying their mortgage. Now I am not sure if this is specific companies or all companies, but I know of a few instances where this has not been the case. In one instance they were trying to sell their home. This home was purchased two years prior. No one was willing to look at the property even when it was listed at their purchase price. It took numerous phone calls from the home owner and the agent to the mortgage company before anyone was willing to negotiate a short sale. This company did not seem willing to work with the homeowner at all. With a lot of persistence and patience, they were able to sell the home. Another instance is one where the homeowner was getting behind on their payments. They tried numerous times to speak with a representative at their mortgage company but were continuously told they needed to be 3-6 months late. I just don’t understand this concept. Why not help the borrower out while they can still see light at the end of the tunnel?

The most disturbing situation to me is this last case. I have a good friend who is a Realtor. He has had two listings that were short sales. Each listing had a buyer and a ratified contract. All the paperwork was turned into the mortgage company for approval. The mortgage company did not stop the ‘foreclosure clock’ on the house. The mortgage company took so long on the paperwork that the house went into foreclosure. I just don’t understand that. Why would a financial institution want a house that they will now get less for? They had a buyer and a signed contract. Why can’t these documents go to the front of the line for review? Now not only has the seller lost their home but so has the buyer as well as the buyer may have missed other buying opportunities while waiting for the mortgage company.

This whole situation is so frustrating. The government is throwing money at these companies to help the economy. What is happening to the funds? I have not seen a change in business at all. Wait a minute, I think I have to correct myself. I have seen a change in one company I deal with directly. That would be Citifinancial. I have a 2nd mortgage with this company. They sent me a letter a couple months ago thanking me for being a good customer and have cut my interest rate in half for the next six months. Do you believe that? They also requested that I speak with my 1st mortgage company to request the same from them. I have not done that, nor do I think that they would be willing to do that. I am a big fan of Citifinancial right now. Think about it. If I default on my mortgage Citifinancial looses everything. They have nothing to gain by lowering my rate except good will and me bragging about it. This is one company that is doing something with the TARP funds that is helping the economy.

If anyone can assist me with the foreclosure process it would be greatly appreciated. Also if anyone has any interesting stories you can post them to my blog.

Posted in:General
Posted by Betsy Hughes, SRA, AI-RRS on July 14th, 2009 3:45 PMPost a Comment

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