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Posts Tagged ‘Foreclosure’

Cheronda Guyton’s bad decision

Donald L. Plunkett, Jr. Donald L. Plunkett, Jr.
Monday, September 14th, 2009

Cheronda Guyton, a senior vice president at Wells Fargo, is getting an enormous amount of flack from her ill-advised decision to temporarily move in to and throw parties at a recently repossessed home in Malibu Colony, a really high end subdivision.  Apparently some of the parties had her guests being dropped off by yacht (oh brother).  The previous owners had put all of their investment eggs in the Bernie Madoff basket and could no longer afford the home.

This is a disaster that Congress will use as proof that banks don’t care about borrowers.  My guess is that Wells had a legitimate reason for not listing the property yet (e.g. the prospect of an IRS tax lien on the owners, a restriction in the deed-of-lieu, etc.), but the poor decision making of its Senior VP will make it a mute point.  Let’s just hope Congress does not use this as ammunition for passing another law that adds to the deficit or to the long-term cost of mortgage finance, doesn’t work and prolongs the natural recovery of the housing market, which is well underway at least on the lower end of the market.

Job Losses contributing towards foreclosures

J. Andrew English J. Andrew English
Thursday, November 13th, 2008

Declining prices aren’t the only thing driving the increase in foreclosures. As the economy weakens, more and more homeowners are finding themselves unable to make their payments…even when they want to.  Areas of Detroit and Ohio are being hit especially hard. Originally, predatory lending and other lending mistakes were blamed for the large increase in foreclosures. Now, job loss is the driving force behind many foreclosures throughout much of the country.

http://money.cnn.com/2008/11/04/real_estate/job_losses_fuel_foreclosure/index.htm?postversion=2008110705

Not everyone wants to be helped

J. Andrew English J. Andrew English
Thursday, August 28th, 2008

The Hope Now Coalition refuses to take into consideration that many homeowners don’t want help. CNN recently published an article that focused on the millions of Americans who are not taking advantage of the programs available to them to avoid foreclosure. The Hope Now team repeatedly has claimed that we need to do more to make everyone aware of the options available to them. Here is the problem, about 80% of every homeowner contacted by the Hope Now Coalition ignores them. (they are contacted after the foreclosure process has started) So why would a homeowner not want help?

Let’s say you are 100k+ upside down in your home. You see no future signs of the market turning. Is it possible you would be hurting yourself more by keeping the property? Yes, it is. Each situation is different and many homeowners feel that by keeping the property, they will only be continuing to get deeper and deeper in debt. The media, the Hope Now Coalition, and others.. need to realize that while it may not be ethical, many homeowners are better offer losing their home to foreclosure than piling on more debt in order to keep a depreciating asset.