White House “Short Sale” Washington, D.C. (April 1, 2010) –President Barack Obama today announced plans to sell the White House as part of the government’s ongoing efforts to reduce the national debt. However, with an estimated fair market value of $200 million, secured by a $13 trillion mortgage, President Obama acknowledged that, at present, the...Read More
From Stigma to “the Norm”I was at an industry conference yesterday where the speaker compared “strategic default” — making a business decision to walk away from an “underwater” mortgage — to society’s notion of divorce up until the 1970’s. Back then, relatively few people divorced, so there was a stigma attached to it. Fast forward...Read More
Strategic Default . . . Minus the Consequences Imagine you bought a house 4 years ago for $540,000, putting in a (very) modest 2% down payment, or $11,000, and borrowed the other $529,000. Today, your home was worth $180,000 (no, not a typo), yet you were still faced with making payments on the original $529,000...Read More
Friends, Family — & Clients: Tough Mix You can love your pet, just don’t LOVE your pet. –“The Truth About Cats & Dogs” (1996) That’s one of my favorite lines from the movie starring Janeane Garofalo and Uma Thurman. Oddly enough, it also applies to Realtors’ relationships with their clients (and I mean that in...Read More
Stopping the Runaway Foreclosure Train The [mortgage modification] rules now being applied . . . have a Goldilocks quality. To get a modification a borrower has to need it a lot, but not too much. If the home is “underwater” ” worth less than the balance of the loan securing it ” but the borrower...Read More
