Dear President Obama,
Welcome to the desert, I hope you have brought with you a plan for the ages that will help you and your team go down as the “financial saviors” of our generation.
You managed to push a very large stimulus package through that will hopefully help get our economy back on track - or at least on something that resembles a track.
I know that you may find this hard to believe, but when you come to town, the “mainstream media” tries to get out in front of you and “build a story” so they have something to talk about when you are here.
Often times, the story that they are reporting is not the story that is happening - but the story that has already happened.
Please don’t think that reality is represented by whatever is being covered on the evening news. I have seen first hand the “theater” that goes on behind the scenes these last couple of days and it is filled with stories about people who have been foreclosed on (old news) or are in crisis and are currently late on their mortgage payments.
Whatever you see, whatever people are telling you about the “current” foreclosure crisis… I worry it might get worse, possibly far worse than it is now.
The reason I worry?
Most of the people that I speak with every day are not currently late on their mortgage payments but are “about to be”. They are searching for help and information about the ramifications of what will happen if they miss a mortgage payment. Or two. Or what the impact on their credit will be if they do a short sale or a loan modification. Or how long I think that they can stay in their home if they quit making payments.
These people who are about to be late on their mortgage payments so that they can still feed their families are supposed to be the good loans - as in the ones that are not supposed to default.
Is anyone in the news media covering the story of what is so close to happening - so many of what appear to be “good loans” about to go bad?
Not that I have seen.
But America is hurting.
From the inside out.
And I just wanted you to be aware of it, because I am a simple soldier on the front lines speaking with these people every day and I know how to write a blog post.
Good luck - and please be aware that there is a big bulge under the rug in America’s living room.
About the size of an elephant.
Justin
Last 5 posts in Costs and Fees
- New Refinance Break-Even Point and Savings Graph - October 1st, 2009
- Renovation Financing: Not all loan officers are created equal! - September 23rd, 2009
- Tips & Tools for First-Time Buyers - September 17th, 2009
- Successful Short Sales…I mean plural…more than one! - September 14th, 2009
- 203K Rehab... A Diamond in the Rough! - September 10th, 2009
- Stumble it!
- Categories: Costs and Fees, Credit Scores/Bad Credit, Loan Modification
Comments
23 Comments so far
Jay Thompson
Brilliant.
Colleen
Hopefully someone, somewhere will begin to hear this message. THIS is the ugly truth of what’s going on. Bank bailouts won’t help. Loan modifications might help some. But we MUST HAVE an effective, streamlined short sale process for those who can no longer afford to stay in their homes, want to sell, could sell if a negotiator could use some common sense….and at a price significantly above a liquidation value.
But no one seems to want to listen to those of us “on the front lines”. We don’t have a big enough parachute.
Carolyn G-Tu
Agree that there needs to be more coverage on these supposed “good loans” and that there really needs to be more emphasis on loan modifications. Good post.
Courtney Cooper
Well said - the elephant is in the room!
Jay Thompson
@Colleen - funny you should mention streamlining short sales. Look what I told a reporter yesterday…
http://www.eastvalleytribune.com/story/135597
President Obama in Phoenix | Arizona Mortgage Team
[...] post was originally posted on Zillow’s Mortgages Unzipped - but I had a request to re-post it here. addthis_pub = [...]
Tom Vanderwell
Justin,
Very well written and very well said. I’m going to take the liberty of guest posting it over at Straight Talk. I hope that’s okay!
Tom
Straight Talk About Mortgages and Real Estate : A Letter to the President….. (A Guest Post)
[...] Dear President Obama | Mortgages Unzipped Dear President Obama, [...]
Justin McHood
@Jay Thompson,
Thanks.
@Colleen,
Thanks for stopping by and commenting. Streamlining the short sale process will help. REO departments right now remind me of the DMV.
@Carolyn G-Tu,
Thanks for the comment! I am interested to see what kind of program the President is going to announce tomorrow - I agree that certain types of loan modification programs might help. If it is another program like the FHA Hope for Homeowners program? Uh, not so much.
@Courtney Cooper,
From everything that I see, it is a very large elephant, not a small one. Possibly the largest-one-seen-on-record.
@Jay Thompson,
REO departments still remind me of the DMV right now.
@Tom,
Please re-post. Then tell all of your friends to re-post. Anything that you can do to help get the word out! Somehow we need to get the right information into the right hands and maybe, just maybe we can fix this mess. Keyword = maybe.
Thanks all,
Justin
Mesa, AZ is Backdrop for Obama’s Mortgage Relief Plan | Zillow® Blog
[...] is, until I read Justin McHood’s “Dear President Obama” letter on Mortgages Unzipped. Justin is a loan officer in Phoenix, and tells the local [...]
DallasDirt » Blog Archive » Today: Real Estate Stimulus D Day
[...] check out this letter to President Obama from Mortgages Unzipped: we need loans and we need them now. Leave a [...]
Janice Jaworski
Thanks Justin I am sending a copy of this to my congressional representatives - you said it so well
Justin McHood
@Janice,
Thanks. Feel free to use however you want.
Justin
Gene
Yes, the situation is bad. And the situation will get worse as we (US Government) continue to prop up people who do not have the means on their own. The problem exists because people overextended themselves and bought things they could not afford.
Oh, I bought stock in JDSU in 2000 for $700/share, now it’s worth $3. But I really just thought the stock would keep going up. Can’t someone just give me the money I lost? Sure, I could just take personal responsibility for my decision, but why? It’s not my fault the stock went down.
Up to 9 Million Families to Get Mortgage Help Through Obama’s Housing Plan | Zillow® Blog
[...] is, in effect, saving people who are potentially facing foreclosure (hey, maybe the Prez read your Dear President Obama letter, [...]
Obama Housing Plan Could Help 7-9 Million Homeowners | Mortgages Unzipped
[...] is, in effect, saving people who are potentially facing foreclosure (hey, maybe the Prez read your Dear President Obama letter, [...]
daniel
Helping the homeowner is great, but the bigger problem lie with the investor they own more real estate, the government need to help the investor so they can start to buy again ant start the ball rolling.
Justin McHood
@Daniel,
Thanks for stopping by and sharing.
I have to be honest - I speak with people pretty much *all day long* every day and maybe about 5% (maybe) of them are investors.
If investors truly do own more real estate than people who only own 1 home, I am not talking to them - so I really can’t tell you what their current mindset is because I haven’t talked to enough of them.
But I am guessing that they are hurting just like everyone else.
Something of note - for whatever reason, the investors seem to be almost a bad word when people start talking about who to help. It seems that every proposed “help/bailout plan” that I have seen or heard about does *not* include help for investors.
I don’t know the reason behind this, I am just making an observation.
Anyway, thanks again for commenting and sharing.
Justin
Dear Mr. President…A MUST Read | Northwest Home Blog
[...] Read the complete article here [...]
SaraG
Couldn’t have said it better!
Obama Housing Plan Could Help 7-9 Million Homeowners : Mortgage Behind Solutions
[...] is, in effect, saving people who are potentially facing foreclosure (hey, maybe the Prez read your Dear President Obama letter, [...]
Tammy
Well said, my husband and I called our lender (Indy mac)in December to see what all we could do to get our payments down. We weren’t late or behind then, but knew we had to do something. My husband had been ill for three months so we spent our savings for medical bills, food, mortgage etc…we filled all the paperwork out for refinance and waited, and waited. A month and a half later we were denied for the refinance and any other programs. All Indy mac had to say was, “Put the house up for sale.” OK, who the heck is going to buy my house in this market? We eventually ended up getting two and a half months behind. Fortunately my husband is now back to work and that won’t last long, seeing his company is laying off and filed Ch 11. Once again our savings is drained and the next time this happens which probably in the next year, will. We live in a high area of unemployment. Indy Mac should be ashamed of themselves they aren’t out to help anyone but themselves but then again there a bank which has been bailed out. Imagine that!
100% Mortgage
I think Obama seems to be doing a decent job of a tricky situation, good on him.