HOME FORECLOSURES AND AMERICAN INTEGRITY
Posted in Professional Real Estate Investors By Julie Jones, Friday, October 17, 2008.After watching a disturbing video on Inman on home foreclosures in Southern California, I became acutely aware of how much Americans caught up in the net of losing their homes to the volcanic mortgage situation lost something more precious than their homes: They lost their integrity.
The video showed abandoned, completely furnished homes being “trashed out” by a company hired by the banks to empty the property to be ready for sale. Brown lawns are being spray painted green to improve curb appeal for marketing. What are these people thinking?
Now, since the Bail-Out Bill was passed by the house and senate, banks are now drawing out closings on short sales, or cancelling them altogether. Their reason? Let the Federal Government shoulder their troubled assets and once again, save their tails. Not only is this a gross case of “passing the buck”, it again shows a huge lack of Integrity which will, once more, ripple down through America.
America was built on Integrity. Integrity generates self-worth and concern for each other. I am prepared to work side by side with my colleagues to continue bringing Integrity to the real estate market.
I invite every entrepreneur in the investment, mortgage and real estate industry to take a good hard look at their professional ethics. I invite each of us to take our eye off the bottom line and revisit our place as honorable, trustworthy and experienced agents who chose this industry, not only for the excitement and opportunity it offers, but the satisfaction of helping buyers and sellers realize their real estate dreams—and keep them.
What would you do to improve the Integrity of the real estate world?
Julie Jones, Broker Associate
julie@premierestateproperties.com
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Submitted by Mark Owens on October 17, 2008 - 7:06am.
The mortgage crisis has absolutely nothing to do with the ethics of Joe Lender and Joe Realtor.
In my experience 99.9% of the folks I work with in the transaction are honest hardworking people. They drive their kids to softball in mini vans and volunteer at their church.
Joe Lendor originated loans based on the parameters he was given by the Wall Street loan packagers.
Joe Realtor's "duty" was to sell homes for sellers at the highest and best terms possible.
The ethics problem is at the top of the food chain in Washington and Manhattan. They SET the rules and they will benefit from the bailouts..not Joe $60k a year guy.
Ethics at the "local" level in not the problem..the problem is at that the top.
Submitted by Ken Smith on October 17, 2008 - 7:45am.
The whole mess is sad and there are a lot of people to blame, but I think it's more important to focus on ways to help. The past is done and there are a lot of people in our communities that need help.
Our team just raised some money for a group that assists in housing expenses for our troops, firefighters, and police officers to help avoid foreclosures and/or evictions. We are working on 2 fundraiser ideas to bring in more money for them.
The next item on our list is a food drive for some local food banks that are in desperate need of assistance. Goal is to fill one moving truck of food during the drive, but no matter how much or little we raise it will help.
We as a real estate community can make a difference in the lives of our local communities. Just takes a little time and effort to step up and make a difference.
Ken Smith - Arlington Heights, Illinois
Suburban House Hunters Team
Submitted by Tom Teece on October 17, 2008 - 8:09am.
Great point, Julie. I especially like your provocative question to us. You remind us to focus on the next step in the solution to the mess we are all in together. There seems to be a pervasive lack of trust, no matter who, when or why it formed. The important question is, "What do I do next to help resolve the problem?"
I can appreciate Mark's feelings and agree that 99.9% of folks are good people and really want to do the right thing. But according the webinar Freddie Mac gave to the National Association of Realtors Friday, Oct 10, 2008 (available at NAR's website), 50% of all foreclosures occur with no contact between the seller and the lender (or HUD-approved counseling). They emphasised the role of the real estate professional in directing the homeowner to free counseling BEFORE recommending any course of action in dealing with the defaulted loan (like signing a listing agreement).
So to answer your question, Julie, I think we should encourage everyone connected with real estate to direct the homeowners facing default to get publicly funded counseling. That will ensure that the homeowner has guidance from a neutral 3rd party, qualified to truly help. The good-intentioned homeowner can take proper moral and ethical action only if they learn their options and what steps they can take to show a good-faith effort in resolving the default.
Best regards, Tom