Pass Your Own Legislation To The Housing Crisis From Your Kitchen Today!
I have read article upon article in major publications and I listen to the people get advice from the pundits on CNBC. Why are so many people so lost and distraught over the housing crisis? I can tell you that I probably don’t need to mention that there is an awful lot of misinformation on potential solutions circling and a lot of people are very confused.
Here is a link to a recent Washington Post article titled “House Trap” http://www.washingtonpost.com/wp-dyn/content/article/2009/03/07/AR2009030700172.html
This article is representative to exactly what I am talking about. The article focuses on people that are underwater on their homes. Many people are finding out that they simply do not qualify for any government programs. Even the folks with FNMA loans that exceed 105% Loan to Value may find they are also stuck. People are facing the decision of default and subsequent foreclosure. Others in the article are listed as going to bankruptcy as a solution. Lastly, professed experts are suggesting people hoard cash so they can pay down the loans if they go the rout of a short sale. Why is the real solution hardly ever represented or even mentioned? I don’t have the exact answer but I am somewhat sickened that so many people are prey to the housing crisis. Families are being hurt and so many pundits and Wharton Professors and the likes can’t provide credible guidance towards a real solution. The answer is that this is your problem and, if you are in trouble, nobody really cares a rat’s tail about you. What is the incentive for them to take on your troubles? Frankly there is none.
Let’s look at the details of the newest government programs and find the real positive that can help you if you are in trouble with a property. The general program highlights were touched on in a recent blog dated March 4th. Now that many of the details are out you should recognize that it is time to take action and simply review your credible options. Here are your extreme options:
1) Do nothing. Continue to make what payments you can on the property and eventually go into default and suffer the ramifications of a foreclosure. I term the time surrounding the inaction to the date of foreclosure as the “waffling period”. This is the period where you waffle and dissipate assets with no real means of a solution.
2) Pay everything to make your lender whole. This is almost never financially feasible but it needs to be noted as an option. If you want to empty out every assets including your retirement and your children’s college fund to make the lender whole regardless of the selling price and associated expenses you have that option. This is just plain stupid but it is an option for those caught in the good moral character and willing to sacrifice all for their lender.
Both of these options are at extreme ends of the spectrum and make little sense for anyone.
What are the more realistic options?
1) Bankruptcy. Be a quitter and bail into the refuge of bankruptcy. There is a significant price for this and we don’t recommend it but you can certainly take this path. I can’t stop you from jumping off a tall building either so it’s all about what makes sense to you and personal choice. Attorneys will take your money to help you do this just about every day of the week.
2) Government program. Seek the assistance of a governmental program to help you stay in your home. Many of you will find out that based on your gainful employment and income that you simply do not qualify for any program. It will soon become clear to you that you are ultimately responsible for the adverse financial effects of being stuck upside down with a property.
3) Loan modification. See what you can accomplish with a loan modification. You will save a couple hundred bucks per month that will be tacked onto the back of your mortgage note and you will find out where you stand with your lender. You will not be able to stay in your home and have all the debt forgiven by your lender. It is best I tell you this so you don’t sweat sleepless nights over the details. There is a very high probability that you will not be satisfied with the results of this option. A big problem here is you need to have a job to qualify in the majority of cases.
4) Deed in Lieu. You can hand the keys over to your lender and dump your problem in their lap. This again is something we do not recommend given it has many of the same ramifications of a foreclosure.
5) Short Sale. This is the only option where you can achieve a fair and level playing field with your lender and obtain significant forgiven mortgage debt. Think of it like rebooting your computer when it is completely stuck. When it comes back on you get a fresh start. I am not going to go into too much detail because I have been promoting this on the blog since September and the course is on our site a www.thenegotiatedsolution.com . Investigate when you have the time for more details.
The real positive is that most of the details on the governmental programs since the Spring of 2008 are out in the open. We now have much more clarity. Now is the time for you to evaluate a real solution to your problem by a simple process of elimination. Stop with the denial and the false hope. If you have a good job, but you have significant paper losses on real estate, you are not going to get a free ride from the government. My recommendation is for you to sit with your family and pass your own legislation to the housing crisis today. Name it “My Personal Financial Freedom Act”. From the great halls of your kitchen you can objectively determine where you are and where your collective objectives lie. If you are really having difficulty and want to stay in your current home at all costs the most realistic options are government program or loan modifications. I am not endorsing these options nor do I think you will be happy with them but this is where to start if you must. If you otherwise like to outsmart your lender and mitigate the majority of this housing crisis from your credit and finances for years to come, by providing your lender a solution with real substance, then you need to follow me down the free market road of “The Real Estate Short Sale”. Stop foreclosure and/or Avoid Foreclosure all together with a well planned short sale.
Denial and good moral character are ok as long as your eventually address the problem and don’t allow it to completely ruin you financially. Take your time if you so choose but investigate credible options towards a solution or conversely pay the missed cost of opportunity. The blog is free and we have a No Risk 7 Day Free Trial for The Negotiated Solution. Its free so don’t be a fool. The papers and the pundits are not helping the people. Legislate today from your kitchen and win!
Blogging from the front line of the housing crisis.
GHunter
