Letters to the Editor

Re: 'Walk-away homeowners are bitter pill for real estate' (Feb. 12)

Dear Editor:

Marcie's article makes it sound like it is a flip decision on the part of many homeowners to abandon their homes. While there may be some who "ditch" the house, many struggle with the emotional crisis of having to give up a home that they invested both dollars and hopes for a better future.

This past year I've seen a number of families in crisis. In three cases, a spouse just couldn't handle the financial stress, and walked away from the other spouse leaving him/her to cope with small children and rising costs.

Many try to sell their home and find that they are upside down, owing far more than what the market will bear. Monthly payments on adjusted rates have jumped $400 to $500 a month, and the homeowners just can't keep up. Banks, in most cases, are swamped with files and offer little advice or real help to homeowners. Communications from large institutions is always in English; borrowers who speak another language are lost. I get these phone calls every week.

Mostly, what these people tell me is, "I don't want to lose my home, but I don't know what to do." They are cash-strapped, overextended and very scared. Their dreams have turned into a nightmare. Add to that the predators who tell them they can help them refi at inflated prices and even higher interest rates, and we have a disaster.

Unfortunately, we are going to have to go through a barrage of abandoned homes, and get some affordable loans where people can build a life in their home instead of being drowned in debt. Everyone has contributed to the false boom. Loan officers, appraisers, Wall Street and real estate agents were all thrilled to see prices skyrocket and have buyers sign on the dotted line. How many agents know that loan officers got paid much higher commissions for dumping people in ARMs? Was it good for the client, or was it good for the loan officer? Before we point fingers, we have a lot of soul searching about what our job is, and how it affects the community at large.

Mary Jo Quay
Realtor
Edina, Minn.

Re: 'How the foreclosure crisis could be fixed' (Feb. 4)

Dear Editor:

This interview is totally sympathetic to people (primarily scholars who are not IN the marketplace) letting other people off the hook for ineffective decisions. People have constantly been bombarded with marketing telling them they are entitled to things they haven't earned and that keeping up with the Joneses is more important than saving for our future.

Most of the folks in trouble are not because they have kids like Vogel claims, but because they felt they were entitled to live like kings even though their income proves otherwise. Since when does someone who makes $30,000 a year DESERVE to live in a $250,000 house? They gambled on a LIBOR or MTA, which is totally inappropriate for a wage earner (former lender speak here) and only appropriate for borrowers who have discretionary income that can outpace a bump in mortgage payment should interest rates rise (as they have).

His solution is way off-base. These folks need to reap what they have sown and not be placated or they will never learn. If there are no consequences for bad behavior, why would anyone have the motivation to exhibit good behavior?

The lenders are not at fault totally; it is the individual loan officers who committed the fraud. The ONLY legislation should be for loan officer accountability, like what stock brokers go through to be a registered representative. I have been lobbying for this for years. Maybe now someone will listen.

Heather Quintero
Designated broker
HQ Real Estate and Investment LLC

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