Mortgage failures in Cape Coral. How bad was it?
Well, I have been doing what is known as loss mitigation for a company that will remain anonymous. Essentially that means meeting with folks that were given a loan in lean times and are now strangled trying to figure out what to do next. I’m hired to help the bank help the people keep their homes (the bank doesn’t want to own any more). If not able to do that, put it on the market and short sale it.
I’ve discovered that there were horrible business practices. I don’t pretend to have all the answers but one couple told me his wife makes $60,000 yearly and he was not put on the loan because of self employment. She was given a loan for $325,000. He wanted to know how that was possible. I’d like to know that one! I’m trying to help them.
There are some people with selective memories. It was explained that the rate would go up and it was explained the negative amortization. But, with that never ending value increase in 2005 people just saw huge profits coming their way and thought it would work out. It is the American dream. Those 80/20 loans were always a bad idea.
Don’t get me wrong. Life is getting better for many. Real people are buying the foreclosures and short sales and moving in. This is good news for our economy. It won’t happen overnight, but it is happening.