Last week I featured a blog titled “Two Economies at War.” The subject was about CEO of Bank of America’s positivity regarding economic recovery. He thinks the economy and housing market are on the up and up while Main Street continues to suffer. Anyone or any company getting multi billion dollar bailouts is bound to be a bit biased and today’s news makes it entirely clear that Main Street and Wall Street are still at odds.
Today’s Austin American Statesman ran an article about a real estate agent in Las Vegas using a bus to take wealthy investors around the hard hit Las Vegas real estate market to take advantage of the bank held properties for sale, some including granite countertops for as little as $61,000.00 ion a market that previously sold for above $300,000.00. When hard working American’s have trouble with their mortgages it seems its just fine to foreclose on them and sell for pennies on the dollar instead of trying to workout agreeable terms with them…absolutely unbelievable!
Renters are being abused as much as homeowners in the market as well. Bloomberg ran another article today describing one of the most under-reported instances of outright fraud that renters with pefect payment history are subject to. Imagine that you consistently paid your rent on time and without any warning a bank official came to your door and told you that you had 30 days to get packed and leave.
This just happened to Laura Hecox, a San Diego native. Apparently, Mrs. Hecox paid on time since her rental agreement was signed and unbeknownst to her, the home was sold at foreclosure. Now she, her four children and her mother she takes care of are out of a home. Making matters worse, “more than 20 percent of properties in the U.S. facing foreclosure are rentals, according to a December report from the National Low Income Housing Coalition” (bloomberg.com).
How can anyone think that things are getting better for Main Street? If our homes are being sold for pennies on the dollar and if the homes we rent and pay for in good faith can be swept out from under us then what, pray tell, are we supposed to be satisfied about Mr. CEO Ken Lewis?
While major corporations, banks and auto makers continue to get bail out money it seems Main Street continues to get the short end of the stick. Appeals to Main Street are only platitudes from our representatives and from the media telling us that things will get better and warnings not to use loan modification firms to help us get out of our situation. While I understand that homeowners should beware of loan modification firms that ask for money up front, would these same representatives tell us not to utilize bar approved, well intentioned attorneys as well?
It seems to me more than ever that the mass media is involved in fear mongering putting the American Homeowner in a perpetual state of pause…”beware of the solutions out there available to you! Everyone is out to take your money!” Here’s my simple question in response: What are we to do? Sit around and wait for our homes to be foreclosed on? Wait to be kicked out of the homes we pay rent on in good faith? Negotiate with the same fraudulent lenders that put us in predatory loans?
If it’s not apparent by now that there are two economies at war to all of my readers I hope this post gets the thought across in good form. With the flood of news coming out about fraud in residential rentals, fraud perpetrated by lenders and loan modification firms and the response by attorney generals from across the nation I worry that the American citizen will be frozen in to a state of shock.
Hopefully, our representatives and the mass media will start giving us news about what to do instead of what we should be afraid of sooner than later.
{ 7 comments… read them below or add one }
This is the best piece of journalism I have read all year. Very well written, Moe. Thanks for having our backs.
Thanks for the thanks DR! Just doing my best to educate Main Street and it definitely motivates me when I get comments like this
First good article I’ve read in a while regarding this situation and how it affects Main Street. However, I wonder do you believe there are any loan modifications companies that are legitimate and doing a good job?
Yes, I do believe that there are a “few” law firms in the country that are doing this right. The vast majority or mortgage broker operated modification companies are scams because they have no idea what they are doing.
Many of these scum bags and are acting like lawyers, RUN from these types of firms.
My advice is to first try a non-profit or do it yourself if this is your primary home. If you cant get help on your own because you own several properties, you are the victim of predatory lending or you have an emergency legal situation, then by all means, call an experienced attorney.
Once you speak with the attorney, perform your own 24-48 hours of due dillegence on this lawyer and law firm to make sure they are legit and really a law firm.
An educated consumer is a powerful one!
I agree that it was wonderfully written. I work for a loan modification company and we are working so hard to fix this disatster caused by these irresponsible banks. As for the renters, it breaks my heart that these poor people no longer have a place to live because the investor was so cruel about lines of communication.
I am a renter and just found out the house is in pre foreclosure. I have been trying to figure out my opions and it is like no one is wanting to give me any advise on what to do. Does anyone have advise for me so i don’t end up like the family that had to move out without notice?
There is not much help for renters. I am in the exact same situation and I have refused to pay the landlord. She served me with a 3 day pay or quit notice and I answered via a friend who is an attorney and we havent heard back in 7 days. Needless to say, I am now looking for a new rental.
In California, the law is that tenants have 60 days after a home is foreclosed on to move. Check with your state’s laws.