I Am Not Facing Foreclosure

Well, now that the Casey saga is winding down, we will try to transition back to ‘Not Facing Foreclosure’.  Admittedly, this blog has been mostly commentary, humor, and satire based pretty much exclusively on the trials and tribulations of our hero.  It was fun, what can I say?  Almost like a never-ending Saturday Night Live skit.

If there is any news on Snowflake, we will comment on it - fleeing the country, arrest, perp walk, Jamba Juice sighting, etc.  Otherwise, we will try to write more about having success (sweet!) in real estate investing.  Maybe people will want to read it, maybe not.

I’ll start with a brief commentary on a story that ran on The Today Show this morning on NBC.  One talking head was giving solutions to those caught in the bubble.  These included refinancing, reverse mortgages, and renting your property.  The problem here is that most people who are in big trouble in their property cannot do any of these things. 

Refinancing - if your house has lost value or you have bad credit due to being late with your new ARM adjusted payment, refinancing is often not an option at all.  Either the equity is gone or your credit has gone down to the point where you can’t borrow enough to make it worth your trouble.

Reverse Mortgages - nice for people with paid off homes or low balances (in the right situation) but useless for those who are upside down or have no equity.

Renting the property - Typically in the areas where people are in the most trouble, many people have gone this route and the glut of properties for rent drives the rent prices down.  Rents in many areas don’t come close to covering the monthly nut.  However, if you are in dire straits, something may be better than nothing.

My only other comment on the story is about a lady that was interviewed.  She has equity but no luck selling so far and doesn’t want to drop the price.  I did not catch all of the story but the part I did see on her included quotes of ‘I was lied to’ and ‘I was misled’.  Now I know there are unscrupulous lenders and brokers out there but here is what I have to say regarding this - READ WHAT YOU ARE SIGNING!  Read the loan documents.  If you don’t want to read them, at least find the places where the interest rate, term and prepayment penalties are disclosed.  Personal responsibility is a bitch, I know, but it’s your name on the papers.  If you are grown up enough to buy a house, you are grown up enough to read what you sign or ask questions.