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Americans seeing record foreclosures

December 5, 2008 by  

The foreclosure rate is risingThe number of American households facing foreclosure has risen to a record high, according to statistics from the Mortgage Bankers Association.

Some 3 percent of families are facing the prospect of losing their home – a proportion which has increased by 76 percent compared with last year’s figures.

Meanwhile, an increasing number of people are also falling behind on their mortgage payments, rising to 7 percent from 5.59 percent in 2007.

The MBA suggested that the figures could grow even worse in the months to come, due to the large number of negative economic indicators the country is facing.

"We have not gone into past recessions with the housing market as weak as it is now, so it is likely that a much higher percentage of delinquencies caused by job losses will go to foreclosure than we have seen in the past," commented Jay Brinkmann, MBA’s chief economist.

The U.S. government recently admitted that the country had begun a recession in December 2007 – an announcement that did not come as a surprise to many financial experts.
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  • thedirtydemocrat

    Only Fox xnooze could twist the tale so well. I hope all quotes or videos are not from RNC news sources.

    • Bob Livingston

      So are you saying these foreclosesures really arent’ happening? This is a pretty off-the-wall comment, Mr. Dirty Democrat. Bob.

    • Ron Baker

      He should call himself – adirtydemocrat – as all democrats are tainted!

  • Alfred Boggs

    MR. Bob, I would like to havethe mortgage figures for the last 3 or 4 years. I believe the foreclosures really atarted about 4 years ago where I live. I know I was trying to sell 4 years ago and It was a dead market then and became one of this years foreclosures. Al

  • Jeff Riley

    Hi Bob- I can tell you absolutely that foreclosures are happening as my wife and I , many friends and associates, are all in foreclosure proceedings in Cape Coral, Fl. In fact, there are currently 25,000 foreclosures on file( Lee County, Fl) and many more to come. I’m in the mortgage business and my wife was in the title business. We have been devastated by all of this. Most Americans have been duped by media coverage, the government. All the media does is pump out more of the same crap w/o really explaining what has caused it. Wall Street and Washington D.C, are complicit in all of this. While all the major financial players and now other industries get their taxpayer funded handouts( too big to fail theory) hardworking people like ourselves have been wiped off the map with nothing more than lip service. Hope for Homeowners etc are a joke. Not one lender is participating in that program.
    I have been able to help people get their foreclosure proceedings delayed just by writing letters to judges, telling them what really happened. Its amazing how many people got duped into mortgages. i have files on my desk right now, Where the borrower makes $25,000 a year but has over $500,000 in mortgages. This is a simple case of the lenders( all names you would recognize) hadn’t it out. Its all about selling the borrowers signature over and over again through the CDS market on Wall Street. Its an absolute fraud–

    • Alfred Boggs

      Jeff, I know exactly what you are saying. We were doing just fine. Yes we owed alot but most was due to an accident I was in. Then the plant where my wife was working, closed the doors. there went 55% of our household income. When this happened noone will even talk to you about refinancing or trying to work out you debts. They can’t tell me they don’t want your property. Maybe not if it is a newer mortgage with little room to make money on them. If it will be a money maker for them you’re out oof luck.

      • Jeff Riley

        Same here we were doing fine until all this started unraveling 3 years ago in our area. You are correct, if the lender thinks it can make more money by foreclosing on your property you can bet they will. There are plenty of stratagies to fight them though. I wrote a letter to a judge that was going to sign the summary judgment that the lender sought against a client I was attempting to do a short pay re- finance on. I explained to the judge that the lender had absolutely nothing to gain by foreclosing. In fact by foreclosing the lender would have ended up with less money than by just agreeing to do debt forgiveness( difference between current mortgage and new mortgage that I could do). I ask the judge in my letter to give my client an additional 90 day stay while we try to work it out with the lender( who incidentially) is no longer in business. The judge agree and wrote the stay for 90 days. So I was able to at least buy some time for this client. However, this shows that judges are on the side of the borrowers right to his property. I can instruct people what to do to make all of this happen. People are just giving up-

  • Alfred Boggs

    Mr. Bob, Do you know of anyone who keeps a record on the real and true cost if livingincreases? I know the way our government figures it isn’t the real ones. Thanks Al

  • Jorgaone

    I know for a fact that realtors are buying up these mortgages that have been foreclosed through the various lenders that in trouble. In just the case of Countrywide–there were SEVERAL homes that went into foreclosure, was assigned to a realtor to list–got listed for as little as ONE DAY at a “buyout” price–and promptly got bought by the REALTOR who listed it.
    They were NEVER allowed to be bought by a new owner who COULD have paid the mortgage. I did check with the Board of Realtors, this is not illegal–just very much similar to insider trading…

    • Jeff Riley

      Hi Jorgaone- You are absolutely correct about realtors. I see this all the time. matter of fact a great portion of realtors only get into the business for that purpose, They have no intent on representing anyone but themselves. It makes me sick- They should be ousted!The Board of Realtors is just another special interest group lining the pockets in DC
      Most realtors in my area are bold enough to ask for cruises, cash stipends, to refer business to me for mortgages. I don’t bite on it. They are scumwads and there are plenty of them
      I have one realtor friend who has the most integrity of any I know and he is sickend by what he sees. He doesn’t participate in all of that backhanded crap, just trying to make a living

      • Gerry

        Jeff Riley,
        If you listen to the big media you would think the biggest lobbyists in the country were Tobbacco Companies, the NRA, Unions, Lawyers, the AARP, or Abortion activist. But the number ONE biggest special interest which out spends the next 10 industries combined is the Real Estate Lobby.
        And what is worse that from an economic standpoint realestate is a net loser, but most people aren’t capable of comprehending the idea. Would anyone in their right mind borrow money to by stocks that guarentee no dividends and intentionally pay 30%or more, more than the market value, then pay property taxes on it every year, then on top of that pay insurance, then by the time they’ve paid 30 years worth of interest (another 100% of the purchase price). They then sell the stock for maybe an inflation adjusted 1% above the purchase price. You’d say they were crazy. The only people that make out on realestate are developers who build crappy overpriced homes at the top of the market, and leave with their profits. Remember every ghost town was first a boom town.

  • PrairieStar

    Jorgaone and Jeff Riley: Here’s a flash! There are many Realtors who are working diligently to keep borrowers in their houses — and succeeding. If it had not been for lenders like Jeff selling people on stupid mortgage products without adequate information to make an informed decision (called “Pie-In-the-Sky Lending”), and stupid builders who put their own mortgage companies into business to do the same thing, we might not be in this spot.

    It is unfair to blame Realtors, who only work for a client and do not make the decisions — the client does, for listing prices. Do you think that a Realtor could go out and list a property for a “fire sale” price, or as jorgaone says “buyout” price on their own? There are many steps that go into deciding at what price a foreclosed property is listed, including layers of Broker Price Opinions, Appraisals, Asset Managers and all sorts of people. Do you really think that a Realtor could talk a bank into taking a multi-thousand dollar loss on a property just because the Realtor said so? Get some real information before you begin placing blame where it doesn’t belong.

    Don’t look to Realtors as the cause of this mortgage mess. Most Realtors are not trained mortgage brokers and need to rely on those who are “professionals” to help them get properties sold to happy homeowners. (Unfortunately, there are not and have not been many professional mortgage brokers in the past — hopefully this mess will help improve that situation.)

    Those brokers who sold mortgages that they knew or should have known were not sustainable by borrowers should be placing the blame squarely where it belongs — on their own shoulders. If the Realtor oversold a buyer on a house, the mortgage broker knew or should have know that the buyer was not qualified and said “NO” to the mortgage. This didn’t happen.

    In fact, as a Realtor I know of several instances where friends of mine found out that the mortgage broker was doctoring the qualifications and said “NO Thanks” to the mortgage broker in an effort to protect their clients.

    And some of the blame is on the shoulders of today’s consumers who have to have the “new home” right now, but who should know or should find out how much house they can afford and whether or not they can sustain a mortgage on that house. If a mortgage broker or anyone else offers them a deal that is “too good to be true”, they should RUN not WALK right out the door. I work with many first time buyers and counsel them to buy what they can afford right now and for the foreseeable future, and then move up as their employment conditions and other economic indicators say so.

    I’ve been in real estate as a Broker for over 30 years, and a commission check has never been so important to me that I would put a client in a position to lose their property almost before they even get started. During the early years of this mess, I counseled my clients to pay more interest on fixed rate loans, and buy houses they could afford, instead of caving in to the builders and mortgage brokers who could have caused them to be in this mess now. Fortunately, most of them listened to me, are still in their houses and are able to make their payments. They have decent jobs and are not in danger of losing those jobs because of what has happened. They don’t work for high-risk companies.

    Your posts are a cover for the mortgage industry, which in my opinion, has caused the entire mess and caused the entire financial industry in this country to go off the rails. Blame it on Wall Street, blame it on the government — the system worked well for a long time, until mortgage companies and mortgage brokers started monkeying around with the paper in an effort to enrich themselves.

    Wake UP. Get a clue. And stop blaming others. It’s all too convenient.

    • Jeff Riley

      Hi Prarie Star

      We were talking about realtors who are buying foreclosures who are fattening their own pockets without even listing the property for the public to have an opportunity, you know it’s called cherry picking, not who created the mortgage mess. Make no mistake about it, there is room for blame everywhere, But you are sadly mistaken as to the cause. Mortgage brokers, DO NOT create mortgage products, they sell them. LENDERS( WALL STREET) create mortgage products with the blessing of your friends in DC. As a LICENSED mortgage broker( unlike the 10,000 KNOWN FELONS that the State of Florida licensed to originate loans) we are bound by laws, rules, and enormous regulations just like you are I presume. However, as for myself, I made sure that I didn’t get tangled up in the greed. In fact, I refused to even offer Option Arms products although I could have and I could have written a lot of business. But I knew what would happen. The product is a good product if used properly.
      However, when you have customers who have been brainwashed by constant mass mail, media blitzs adversting “teaser” rates like 1%, it gets a bit much. I denied far more loans than I approved simply because I knew it would most likely end up in a foreclosure. I counseled many people who just simply went to the next broker( with less ethics, most likely the unlicensed felon that the State of Florida let in) and most likely working at the local bank( yes you heard me correctly) and got it done.
      This is really not about blaming, it’s about the facts. There are honest hardworking realtors, mortgage brokers( imagine that, I’m sure a oxymoron in your books) that are simply trying to make a day of it and live their lives the best they can..
      BTW, one of my biggest complaints if you want one is that realtors should never be allowed to discuss mortgage products, rates, how to “bully” the broker and so forth. This is a constant, or should I say it was.
      Like most meltdowns, there is a cleansing that takes place and that is what’s happening.
      But forgive me, I’m not a conventional thinker. I’m outside the box.
      It’s a known fact that banks have been trying to eliminate the wholesale mortgage market where broker make their living) although the banks themselves helped create it. They take from the retail( walk in) and wholesale( brokers)
      Now with this meltdown, they have the perfect vehicle for doing so.
      I teach my clienst how to fight foreclosures and keep their home( all for free unlike many others so called loss mitigators). The media does nothing but repeat political jargon. They never point anyone or interview anyone who really knows. I have heard Suze Orman spew out more BS about mortgages than I can handle. The sad truth is that beacuse she has a rostrum more sheep will follow.
      I was free born and born awake so I don’t need your call to action, I’m already doing it. How many judges have you written on the behalf of borrowers to help them during these times. Its far easier to sit back and do nothing while the house next to you burns down.
      Shame on those who take the easy way. It’s time to stand up and fight and forget the status quo and move on- Who will stand? Count me in I’m already doing it.

      • PrairieStar

        Thanks for your reply, Jeff. Your comment that real estate brokers should never be allowed . . . . etc. is completely wrong. The real estate broker is charged with getting the best transaction for their client that they can and to keep all of the other providers moving along.

        During my years in real estate, I spent a fair amount of time as the manager of a fairly large portfolio refinance by Associates National, and because of my real estate knowledge and my knowledge of the markets, was able to refinance about 4,000 loans. This is ancient history. Then we were trying to get our borrowers to lower rates because of the 18% interest rate debacle in the mid-80s. But my point is, I and many other real estate brokers have lots of knowledge of the lending industry. If this bothers you, maybe you should choose some other kind of banking where you don’t have to be bothered with other professionals who may challenge you.

        Many real estate brokers started out as mortgage personnel and have lots of knowledge of mortgages. To say they shouldn’t counsel their clients in this important part of the transaction is completely wrong. We are counsellors, and we don’t get paid unless a transaction works for everyone, including the mortgage broker.

        I don’t know any Realtors who discuss mortgage products with their clients, unless they also happen to be mortgage brokers, which in our state at least is frowned upon. Mortgage brokers that I work with send me rates every morning. I assume the reason for this is so that I can discuss the rates with my clients. And I do, and I should. If a rate is being offered which works for my clients, then I should send that client to that mortgage broker if I believe the mortgage broker is honest and can get the job done.

        Contrary to what you read into my reply, I do not generally have a poor opinion of mortgage brokers. I have a really poor opinion of mortgage brokers who earned hundreds of thousands of dollars on the backs of unsuspecting buyers, who are now in foreclosure.

        I work all the time with mortgage brokers, mortgage lenders, banks and trust companies. The people that I work with are carefully chosen by me so that they do the job they are charged to do. I stay away from the high fliers, because they generally are out for themselves only, and if a deal flies, they take the bucks, and if it doesn’t fly, oh, well on to the next sucker. Not my clients, kiddo.

        Contrary to your last statement, there are many brokers who have already stepped up and are working with clients in foreclosure to save their homes — also free of charge. My philosophy and that of other brokers is that this mess will never be straightened out, until our neighborhoods and communities are out of the stigma of 4 or 5 homes in foreclosure on every block. I have not only written judges in BK court, but I have written judges in divorce cases, and worked closely with any attorney who will do so to get these borrowers a break. In the last year, I have helped approximately 90 homeowners not only remain in their homes but get a lower rate and a lower mortgage amount from their lender. This saves everyone — not just the borrower, but the bank who no longer needs to show the loan as non-performing in their balance sheet, certainly it helps the neighborhood where the home could become another foreclosure statistic, and overall, it helps our towns and cities to get back on track. And guess how much I made on these 90 homeowners? NADA, nothing, zip, zilch. Please don’t preach to me.

        I was not their Realtor when they bought the house, I didn’t make a commission then, and I’m not being paid now. It is the bigger picture I’m after.

        Far more people than you know are helping in this manner. And maybe, just maybe, we can solve the problem on our own, far better than all the millions and billions the government is throwing at the problem. Without strong home ownership in this country, we will fail. With strong home ownership, we will survive.

    • Gerry

      The reason that Mortgage brokers didn’t say no was because it was illegal. If you turn down too many bad mortgages then the Gov’t comes after you for discrimination. That is why they all say “Equal Housing Lender”. That means keep your mouth shut, make out the mortgages, and dump them off as quick as possible for a quick buck and leave the taxpayers to bailout the banks. Why not the stupid voters put these guys in congress and keep them there.

  • Larry

    ANYONE who has any doubts about the big banks taking bailout money and turning around and screwing mortgage holders whom they were supposed to help, only needs to pick up a daily paper and look at the “legals” section ans see how the foreclosure sales have INCREASED!

  • thedirtydemocrat

    In 2005 a carpenter friend of mine told me he was going to leave for Wyoming where he had a little spread and retire away from the coming crisis. I laughed at him and told him he was just paranoid. He told me to laugh at the fact nearly 25,000 just built houses were empty and had no one wanting to buy because the prices were too dear.

    I went to se for myself. The weeds had started to grow up through the sidewalks and in the streets of the subdivisions. It was true then and in Vegas foreclosures are highest in the country. The population actually has reduced by 10,000 in this past 6 months, a first in my 36 years of living here.

    Thanks BushCo. May you die in misery.

  • PrairieStar

    Larry, just to clear something up — many of the banks that received bailout money were not the same banks that “screwed” the borrowers in the beginning. Some of these same bank were sucked into the “mortgage securitization” market because of pure greed, true, but some of them were also sold a bill of goods by their Wall Street brokers, and many “very educated” people were talked into believing the real estate market would keep on escalating, ad infinitum. Too bad that all of these high fliers in the upper floors of mortgage companies didn’t have enough acumen to take a look at the products that were being offered, and take a pass — for themselves, and as it turns out, for their clients. Greed is a bad thing!!

  • PrairieStar

    The other thing, Larry, is that this is not going to be an overnight thing. Foreclosures sometimes take a year or more to get to the point of filing the formal foreclosure, and during that time the banking firm (except the worst ones) are trying to work with their borrowers to get the loan straightened out. When it becomes apparent that there is no solution between the borrower and the bank, then the bank begins foreclosure proceedings, which it is allowed to do under the terms of its agreement with the borrower.

    Unfortunately, Las Vegas had a bigger hit than other parts of the country, because of the inordinate number of new subdivisions that popped up seemingly overnight, and because of unscrupulous practices by builders, and (yes, I have to say it!) some Realtors, mortgage brokers, mortgage lenders, and anyone else who saw a chance for a quick profit.

    But Colorado is not far behind Las Vegas — our foreclosure rate is the highest it has ever been, and even though some of us are working diligently to save as many borrowers as we can, there are those that cannot be saved. The best we can hope for is to sell their house on a short sale and avoid the foreclosure that way.

    I have one client right now whose husband has lost his job due to injury (not work related), the wife had a long-term good job and has now been cut to 20 hours a week, and try as I might, I can’t see a way to keep them in their home. (They don’t now have enough income to qualify for any type of loan when their mortgage payments is added to their other debts.) We have been to all of the social agencies, the public agencies, the welfare agencies. Probably, she will be calling me in a few weeks to list her house at next to nothing (which is pretty much what it is worth now) and try to sell it on a short sale, so they can move on with their lives. But I am not giving up yet. I will stick with them until they call “HALT”. In the meantime, they are still in their home, and maybe something new will pop up that will help them, before they lose their home. It’s a tireless effort on the part of those who are trying to help.

  • Jeff Riley

    Hi Prarie Star- Thxs for your reply to my last post-

    I think that we can both agree, there is a huge problem and throwing more and more money at it will not resolve it. Only level headed thinking and action will do that.
    I’m all for change and cleansing, I have often made that known in the industry.
    On your reply as far as realtors being counselors to prospects on lending. That is an area that I would not change my position on. There is a fixation on rates and that is one of the root causes of borrowers being duped. If you are receiving rate sheets how would you know how to interpret them or which one of those rates and all the adjustments would actually apply to your prospects. Do you take a loan application, pull credit reports and run automated underwriting in the secondary market like I do? After all, you can’y qualify someone off a rate sheet. The broker sending those to you is making a mistake.
    I have never given into that. What I teach realtors who really want to do business, is that because I’m the professional the first thing they should do is refer the prospect to me to determine what the prospects can afford to do beforehand. All too often, I see realtors( mostly newbies albeit) that shuttle prospects around for days on end looking at properties, w/o even knowing what they can or can’t do.
    Then to discover, after many hours of this that the borrowers can’t do anything period. I realize this is a rookie mistake most of the time, but I have seen very seasoned realtors do it, because they are affraid of running off someone. I don’t get it.
    That said realtors( even those with mortgage license and backgrounds) aren’t in a position to discuss products that are constantly changing by the moment. It’s a full time job. Brokers are not about quoting rates, we are about determining what the best product is to meet the borrowers need. There are many adjustments to any mortgage product, and simply receiving a rate sheet doesn’t make one an expert or even a competent counselor in financial instruments.

    I have a realtor that I have worked with for years, that sends them to me before he does anything. From there, he can decide whether he needs to get involved with them. You see I supply noy only a valuable service to you, the realtor by letting you know the financial ability of your prospect, but I help the seller of property by writing approval letters so they will know that you the realtor is bringing them a well qualified prospect to make an offer. We all win.

    If you are helping those in distress, my hats off to you. There needs to be more of that from every one.

    There are no easy answers, and for the love of God, lets stop pointing fingers and share solutions that will work and be promoted.

    • PrairieStar

      Easy, Jeff. I think I made it clear I don’t think throwing $$ is going to solve the problem. As always in this country, it is going to take a grass-roots effort to get things going again. The grass roots should include all of us who are serious about our buisnesses and who know what we’re doing. So I agree with that statement totally.

      I never “shuttle” buyers around for days on end until after I have a lender letter in my hand or I have prequalified them myself. In fact I never shuttle buyers around for days on end. I always have a plan in mind as to how many properties I will show before I decide they are lookers and not buyers. Then I put them on my email list and contact them once a month (drip mail) until they really decide to become buyers. I run my business, it doesn’t run me.

      I am not a “newbie” as you so quaintly call it. And yes, I am able to do all of the things that my lender will also do. I am also qualified to do it. I choose not to be a mortgage broker because that kind of dual agency is frowned on in our state.

      I have waited as much as 4 days for a “lender” to get back to people I referred who are interested in buying a property — 4 days in this market where there are so few buyers???? Since I am competent to do a prequal, I do it, show the property if they are qualified, and then help them find a lender to match their qualifications. I’m sorry, but you are off-base thinking that real estate brokers are not qualified to do these things. I can still do a qualification by pen and paper if I have to, right in my car. (There are some advantages to having been in real estate a long time, and knowing how to do things without computers — although computers have certainly made my life easier.)

      The lenders who send me rate sheets are also my past wholesale lenders, and I have lists of who their mortgage brokers are, so that I can choose the best rate from their (the broker’s) offerings. Rates are important, especially since i don’t choose to use ARMs, Option Arms or any of the other off-stuff that most brokers offer.

      Most of my buyers choose the straight-forward, time-honored fixed rate for 30 or 15 years, and it has stood most of them in good stead. If they choose an ARM, it is usually because they expect to move up in the next few years, or they know they are in for a job transfer in a few years.

      As a mortgage broker, you do not need to “teach” Realtors anything. Our licensing education should teach us about financing, and most Realtors who are worth their salt spent lots of extra time in continuing education classes, including finance. If you have to teach Realtors these things, they should be part of the exodus.

      Having said all that, I still don’t choose to be a mortgage broker/dual agent. So, if my preferred mortgage broker can’t get back to a buyer who is ready, willing and qualified to buy, then I will do it myself, because I never show properties to anyone I don’t know is qualified to buy. Then, I send them to a broker who will return their calls (who isn’t out of business since I talked to him/her last week), and who can get things done. In the meantime, I don’t mind showing homes to a buyer who has been qualified by me.

      I, too, don’t like all the fingerpointing and name calling. I am always willing, in fact eager to help a fledgling mortgage broker get started by referring business to them. And I’m happy to keep doing so, right up until they prove to me it isn’t a good idea. (Doesn’t usually take long if that is the case.)

      I just don’t like the superior attitude of some mortgage brokers, who believe and say that Realtors are a bunch of dummies who don’t know about mortgage products, don’t know how to explain them, don’t know how to write them and don’t understand them. It’s hoohah!!

      The market will always weed out those who don’t know what they’re doing. They will fail and be gone (this includes Realtors and mortgage brokers). In fact, the National Association of Realtors is reporting that the membership is down 125,000 since the mortgage mess began. Hooray! But it’s still twice what is was in 2003 when this whole mess began to build up to the present unravel (800,000 then – 1.5 million now). It’s greed, plain and simple, and everyone who can pass a real estate exam thinks they are going to be a star while working part-time. The fact of the matter is, real estate brokerage is a full-time job, carries a lot of responsibility, requires a lot of knowledge, and is not for the faint of heart.

      I am helping those in distress, have been doing it for a long time (am not a “newbie” in that arena either), and have a huge interest in getting this country moving again. So, let’s agree that you don’t know more than I know, and I don’t know more than you know. Okay?

      • Jeff Riley

        Okay, I agree with you that we both know our stuff. I guess you must be in a reasonably sane market where civility and courtesy are still a valued commodity
        I’m in SW Florida, and I can tell you in all fairness that I’m not.
        It’s funny, before the real estate boom started I had a solid book of business with several realtors who didn’t think twice about sending their customers to me. Incidentially, all my loans were full doc and my closing ratio at that time on loans that I approved prior to submission to my lender, were 100%. In other words I only approved loans that I knew were done deals, why bother with anything less. Then the “boom” started and everybody and their brother was a mortgage broker. We swelled from 20,000 to over 90,000 licensed mortgage brokers not counting all the “originators’ that got a pass because they hooked up with banks and correspondent lenders who were exempt from having loan officers to be schooled, tested, fingerprinted, etc. You know the drill.
        Suffice to say my market turned into greed city. I actually did less business during the boom instead of more, simply because I would not fall prey to what was happening. My once solid realtors, started sending business to other brokers. I inquired as to why since I was 100% and the gambit wasthey get paid an extra $$$$$$$ or broker xyz dropped off some cruise tickets etc. In other words I get dumped because the realtor was getting something on the backside. Its a shame. However, as you have rightly put it are gone, like mortgage brokers , title companies and the whole mess of players. No doubt that had to happen.
        Now, the mire that is left is 25,000 foreclosures and counting. Buyers , except for those buying foreclosures are almost non- existent. The problem is with that many of the foreclosing banks have layers of players to work through as you know. Buyers in my marker get yancy quickly and pull out of purchase agreements on a heart beat. Recently received a new purchase on a foreclosed condo from a realtor that is now trying me because I’m HUD approved. The loan had to close and fund in 2 weeks. I looked at it, saw that I could do it, quickly set it up, got it to my lender, they gave it priority handling, I locked the rate. Within 2 days the buyers pulls out of the deal citing he didn’t care for the condo association rules. The realtor calls me and ask me to write a denial letter so he could get his deposit back.
        Now the above is typical of what we deal with as I’m sure you know given the years you have been in it.
        Most don’t know that lenders take a very dim view of brokers locking rates and not deliverying files. In fact alot of them will charge.125 to .250 of point.
        On the above I have an enforceable contract for my fee. I performed, the buyer pulls out. He signed all disclosures knowing this to be the case.
        However, I give the realtor what they want, the buyer pays nothing and I’m left with nothing. I could go on.
        My point is that we perform a valuable service and don’t get paid alot of times.
        I take pride in what I do as much as you do in your business. There is little or no respect unfortunately within the business ,at least in my market.

        Well , gotta work on a file that I’m trying to get to closing although the lender is throwing up roadblocks. Cest La Vie!

        I have enjoyed chatting with you and wish you well.

  • Anthony

    I didn’t read all the comments word for word, but I am a Realtor. I do not think Realtors buying and flipping houses is right. There is no way, I repeat, no way that one can be on the look-out for themself and have anybody’s interest but their own in mind. There is a thing of ethics and morals.

    Now on banks lack of will to foreclose, if they are subprime, from what I have seen, they don’t hesitate. Then again, the consumer has paid the insurance for the bank so they will not lose money. Funny, the people that need the help don’t get it, so bail-out becomes corporate hand-out. Preditory lending practises were and ARE being practised. Just yesteday I was cashing a check and they wanted to know if I needed a home equity mortgage. The guy in front of me held up the line because he was making a deposit and asked about a refi, and this was in the drive through!

    I have had people come into the office not knowing which way to turn, losing their home from a teaser rate or ARM (I did not sell anybody with these). Putting them in contact with a few honest MB’s that were able to help them, their refis were bought back by the same companies that screwed them then refused to help them to start with. No, I don’t get paid for this, but it’s nice to know you helped someone.

    I don’t think there is any 1 person to blame. There are few that ride the system, many are there from either beyond what is controllable ie: health, lay-off, etc, or stupidity. I have saw much, much wrong, then again, nobody forces us to remain amuzed. If to muze is to think, adding an A means the opposite of the word. That is why TV is for “A”muzement, Amuzement parks, etc.

    To answer a pervious question on inflation, figure back into the numbers they give you food, fuel, and other commidities to get the real numbers, it was (when they said 5%), actually about 12%. When theyt give you the unemployment numbers, they do not include those who’s benefits have run out.

    For those freaking out about the housing burst, just wait until the Credit Card burst coming soon, it’s bigger. By the time Dc gives the money to GM to finish their 300 million dollar plant in Russia and the 1 Billion to Brazilian plants, costing no less than 70,000 more jobs, we will be broke. The deficit is already over 3/4 of earnings as a country and as Iceland found out, when it becomes 101%, its bankrupt. Should be about Feb 09, no later than June.

  • http://www.aloansite.com loan

    Nice site! thanks for the great post…%d%a%d%aPeople should read this.

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