Should I Continue Paying My Mortgage- Even If It No Longer Seems To Be In My Best Economic Interest?
This is the question I get from people in trouble with their mortgage facing Short Sale or Foreclosure ALL OF THE TIME.
Let me first declare, this is a personal decision and one that each household has to decide on their own. You should also consider the advise of a professional – tax, CPA, attorney etc..
Today, while getting my “news” on the web, I watched Frank Garay & Brian Stevens with Think Big Work Small. They shared that the CEO of the Mortgage Bankers Association, John Courson, “would like you to know that you should keep paying on your loan, even if it no longer seems to be in your best ecomomic interest. He says, paying off a mortgage isn’t only a matter of personal interest, he believes defaults hurt neighborhood’s by lowering values. Also, Mr. Courson wonders ‘what type of message are you sending your kids’ if you get your house foreclosed on?”
Frank and Brian go on to explain, The Mortgage Bankers Association just sold their headquarters on 1331 L Street, to CoStar Group. Just months after purchasing the building. the Mortgage Bankers Association got out of their $75 million loan for a sales price of around $38 million. That means the MBA just stiffed their financeer for about $37 million. The CEO of the Mortgage Bankers Association, John Courson, would like you to know that like millions of households, the Mortgage Bankers Association, found itself stuck with real estate that’s market value had plunged far below the amount it’s owed to its lender and had to extract itself from the perdictament.” “Well Frank and Brian would like to ask Mr. Courson WHAT TYPE OF MESSAGE HE SENT HIS KIDS BY SELLING HIS BUILDING AT 55 CENTS ON THE DOLLAR!”
I would like to ask Mr. Courson, Did your credit get trashed? Did you have to move out of your home? Are you still making MILLIONS of Dollars?
Watch Frank and Brian give this report: http://www.thinkbigworksmall.com/mypage/player/tbws/23206/1457274
I really don’t think the average American has gotten the true story yet. This whole financial mess is not about lending with zero down. This is about the level of fraud in our most sacred of institutions, the banking system. I continue to ask, why are they allowed to commit fraud with no recourse? Why do they loose millions with no recourse? Why did they destroy our ecomomy with no recourse? Why can they buy property at 50 cents on the dollar of today’s value and make huge profits and kick people out of homes. Homes that would have been saved from foreclosure with a principal reduction 60-80% of loan amount.
Hello, thats 20 ot 40% more return to the investor. Oh, wait, no it isn’t. In many cases, they have the government making up the loss. So, for example if they sell at 50% of the loan amount, the government is paying them the other 50% with our TAX dollars. If you even think this isn’t true, please do your home work. The Internet is open 24/7!
I honestly don’t know how to fix this whole mess. But what I do know they can do, is stream line the Short Sale process. I see this all the time. The last sale is $175,000 and there are 5 short sales listed around $155,000. Why so low??? Because the buyer has to wait, 3, 4, 5 maybe 9 months to get an answer from the bank. Interest rates could go up 1%, which is a 20% increase in interest paid from todays levels. They could miss out on the First Time Home Buyers Tax Break. Mainly, when you want to buy something, what ever it is, you want to get it done. Move forward, move into your new home. Waiting for an unknown amount of time is unreasonable and thus the buyer will only buy the home if they are attracted by lower prices. Give us a 3 to 4 week answer and those short sales above are selling at $170,000. Give us an answer in 10 days and they sell for $175,000 or more. Plus, if they close at $150,000 then the next foreclosure home will be listed at $150,000 and the short sales may have to go lower!!!!
See how the FDIC gives our tax dollar to banks: YOU MUST WATCH THIS VIDEO! http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1457274
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