Industry News

Lenders, it’s time to clean house

Letters From the Home Front

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

In what is being applauded as the most decisive response yet by federal officials to end the housing crisis, President Bush signed yet another mortgage relief measure today to help homeowners avoid foreclosure. This one, which according to an undisclosed source "should pretty much nail it," authorizes a few more billion dollars in government-backed relief. Specifically, it reads: "Make check payable to Merry Maids." OK, I made that up, but my fantasy relief act is brilliant in its simplicity and cuts directly to the heart of the problem. According to my informal survey (margin of error equals 100 percent), the biggest single cause of people losing their homes to foreclosure today is lost paperwork. In my latest personal installment of "Lenders Gone Wild," we have been trying to get bank approval of a short sale for a selling client. We have been doing this for two months now. This is reality television at its worst, and it is so incredible it s...