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Just a Question
A couple of days ago I was out with clients looking at a bank owned home (foreclosure). The buyers have already made an offer on a property but that was in January and the bank still has not responded. They did not really want to look at bank owned properties but it just kind of worked out that way. It is too bad they have to look at all, they already found the perfect home and made an offer but as I keep saying banks can't sell real estate.
They had a question I can't really answer. They want to know where the people that used to live in the homes that are now vacant went. I don't know but I assume they are renting something somewhere. I think it is wonderful that there are still people in the world that would ask a question like that. It is nice that there is some awareness that the vacant homes used to have people in them and that something happened, and they got behind on their mortgage payments, and now they don't get to live in their home any more.
Here a resource for people that are having trouble making their house payments: 1-888-995-Hope.
They have a web site too: http://www.995hope.org/
They provide counseling, and encourage home owners who are struggling
to call as soon as possible. The sooner the call, the more options the
owner has.
Counseling Overview
The counselors for the 888-995-HOPE hotline are provided by five leading HUD-approved nonprofit allies - Auriton Solutions, Consumer Credit Counseling Services of Atlanta, Consumer Credit Counseling Services of San Francisco, Novadebt, and Springboard Nonprofit Consumer Credit Management.
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Great post Teresa. I am a Broker in Phoenix and we have the same challenges here. It can be very discouraging at times to deal with the banks on the REO properties. The buyers can get a great deal but it can try everyones patience. The downside is that hopefully during the interim we don't lose our clients.
In Phoenix we also have many homes for rent. Many of the owners are actually renting at a loss just to avoid having to pay the whole mortgage by themselves while the home sits vacant. Many folks that could not handle their $2,000 plus per month mortgage payment are now renting a comparable house for about one-half of that.
I hope it warms up for you guys soon. As a native to Phoenix my blood is thin. I know the snow can be beautiful but the COLD comes with it. I wish you and your clients the best on that transaction.
Phoenix - I have clients renting at a loss too. It is better to get some help with the mortgage payment.
I will warm up in a few weeks and be gorgeous here for months. :) come for a visit in May or June and Minnesota will make sense.
A lot of people are trying to answer the question - where did all the people go? The short answer is that they seem to disappear. Cities like Detroit that are really getting hit hard by foreclosures are seeing drops in school attendance, etcetera - the people are just going away.
It's like a great big Neutron Bomb - the buildings remain, but the people have gone.
Something very bad is happening, because we know this can't be the case. It's a very good question - one that may tell the future.
I hope our hostess won't mind if I take things off topic a little, but here's some new coverage of a subject we talked about last week: delisting/relisting.
Ms. Boardman is a proponent of this practice, and so is one of her local Realtor colleagues, who spent some time defending it to ABC News. Here's my favorite of his comments:
"'It's let the buyer beware. If you go off and buy a car and don't have someone check it out, you deserve to get a bad car,' he said."
Nice guy! He truly personifies that ideal stated in the Realtors' Code of Ethics, namely, "The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations."
Here's the link to the ABC piece: http://abcnews.go.com/Business/Economy/story?id=4316775&page=1.
And, here's the link to the " Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS," just in case anyone needs a laugh: http://www.realtor.org/MemPolWeb.nsf/pages/COde. Seriously, take a look at those first few paragraphs of the Code and then think about Mr. "You Deserve To Get A Bad Car." Pathetic....
Bubble_up - funny you mention the news story. I don't have much respect for the media. They called me three times to interview me for that story, I passed because they were trying to make a sensational and stupid story out of nothing. They kept insisting that listing and re-listing property is an important part of marketing it. I disagree with that approach.
But the issue isn't whether delisting/relisting is an "important part of marketing" or even useful -- in fact, if you look at the many comments on the ABC piece, a pretty good case is made that the practice ultimately is harmful to sellers, too. Instead, the issue is whether it's fair and honest, since that's the standard to which the NAR supposedly holds its members, and I'm sure it's the standard to which you hold yourself.
Anyway, I am sorry to hear that you don't respect the media. In my experience, it's not really fair to generalize about groups of people -- even Realtors!-- and just as I am confident that you are fair and ethical, so too I know that there are members of the media who deserve your respect. In fact, I think you've praised one or two such individuals on this blog.
On the subject of delisting/relisting, the fix is simple: either prohibit the practice, or put each home's listing history in a publicly-accessible database. If the Minnesota Association of Realtors or the keepers of the MLS had any real concern for the reputations of their members, they'd institute such policies tomorrow. In the meantime, take a look at the comments to that ABC piece to get a sense of how this practice appears to us members of the general public.....
Regarding the comment about where did the homeowner go.. I get asked this question too, and do not have a good answer either.
It is very sad feeling when showing bank owned homes and one room is painted pink-the little girls room and one is beautifully decorated with trucks and tractors for the little boy. It makes you realize this was someones home, but now it is just a statistic- one of many foreclosures that sit empty. Hopefully the banks will show their humane side and really work with families to keep them in their homes and help them through these tough times.
Great post. I too have been working with several buyers looking at REO properties. We have made two different offers on two different over the past 60 days with no response on either property. I have advised my buyers to try and be open minded about buying a home that is not in some state of forclosure but their mindset has been swayed by all the media play. We continue to look but both of us are getting frustrated. What are we to do??
I also get very sad when going into REO properties that have been trashed, and some of the trash is children's toys and clothes. I hate to see a child's life out of control, as I've seen this in my family and know that kids need a stable home environment. On the ABC news thing, I saw that too, and did not like the agent interviewed at all. I'm glad you turned that down Teresa.
I agree, it is a very good sign that people would ask that question. By the way, love the picture you used on this blog post, very soothing.
I agree, it is a very good sign that people would ask that question. By the way, love the picture you used on this blog post, very soothing.
Thanks for great post. It will help many peoples who left their homes due to foreclosures.
The peoples who are working for this case are true human having love for humanity.
Teresa,
I just finished writing a post and linked to your article in the "related reading" section at the bottom of my post. You continue to be an inspiration for me as I get the feel for the blogosphere. I love the pictures you take, the simple approachable demeanor you exude, the valuable information and insight you provide, and the way you're not afraid to be a dork sometimes, just for fun.
Me a Dork? LOL