Nightmare on Main Street
House Keys
By Marcie Geffner, Tuesday, July 7, 2009.Should a loan officer who forecloses on a homeowner's mortgage be dragged into the fires of hell?
That intriguing question is at the heart of director Sam Raimi's new horror film, "Drag Me To Hell," which opened May 29 in theaters nationwide.
I have to confess I don't like horror films. I'm too impressionable, too gullible and too easily fooled by the oldest plot contrivances and cheapest special effects. And, I'm very easily frightened by scary movies. Just ask my mother.
Despite my aversion to the genre, I went to see "Drag Me to Hell" on a breezy Friday afternoon in a Culver City, Calif., theater with an audience of mostly teenagers.
I won't recap the plot, such as it was, or give away the ending since all of my friends know I abhor spoilers.
But suffice it to say that "Drag Me to Hell" is about an attractive young loan officer named Christine Brown. Christine has long blond hair, impossibly high-heeled shoes and a handsome boyfriend, who drives a convertible and has a platinum credit-card.
A good loan officer is an important person for most homeowners since most of us rely on these folks to help us buy a home or to refinance a mortgage. A good loan officer can help us save money and achieve our financial goals as homeowners. A bad one can lock us into a subprime, interest-only, payment-option, 40-year nightmare of our choice.
Christine is a lactose-intolerant ice cream-eater who volunteers at a puppy shelter, but she's no lightweight when it comes to bank loans. She reads The Wall Street Journal, is up for a promotion, and casually tosses off such terms as "asset-based lending guidelines" and "long-term debt restructuring." A sign behind her desk at the fictional Wilshire Pacific Bank reads: "Rates as low as 5.7%. Apply Now." ...CONTINUED
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Submitted by Deede Wockenfuss on July 7, 2009 - 3:33pm.
I have personally come to NOT trust any banks due to some of the horrors we have experienced in the past couple of years. I can honestly say that all of my old, trusted lenders are either out of business or work for an institution that makes making loans almost impossible.
As an example, we had a buyer 'pre-approved' for his mortgage loan with XYZ bank. He was purchasing a short sale I have listed. The short sale lender approved the short sale pretty quickly, so we assumed that we would close per the contract at the end of June. The lender requested an additional week, which we gave him. But, around the 4th of July, he stopped returning our calls. The selling agent went to his place of business on Monday and sat in front of him to get the real story. He says he can definately close the loan, but that he needs another 10 days. WHY? Because, banks are changing the rules for qualifying for mortgages on a daily basis. A letter of pre-approval may not be valid in 30 days. Meanwhile, money is spent by the buyer, seller, and agents to make repairs, pay for inspections and appraisals. All of this is done is good faith, as the buyer has PRE-APPROVAL. When something goes wrong at the last minute because of lenders further tightening up their qualifications, all of these people get stuck with the bill and agents, title offices and some repairmen, never get paid. In this case, the foreclosure is looming on the property and the short sale bank has threatened to 'move up' the foreclosure if this buyer does not close.
Someone please tell me why lenders gave absolutely ANYONE a no money down loan a few years ago when prices were double what they are today, but tighten their standards when the prices are finally right and buyers can afford the loans? Chances are much better today than 3 years ago, that today's loans won't go bad. Why? Because the prices are low, the rates are low and no one wants to make these mistakes again. If we are really flirting with the 'bottom' of the market, isn't NOW the best time to take a risk on a loan?
These banks continually throw out the baby with the bath water. Until they fully understand and accept that they MUST make loans to stay in business, they will continue to drive our country down the financial toilet.
Deede Wockenfuss
CybrSold Concepts
A Frugal Virtual Real Estate Company
480-248-9500
http://www.CybrSold.Com