We've all heard the statistics that are sometimes hard to internalize. For instance, when HousingWire.com noted that more than 9% of US Mortgages were delinquent or in foreclosure in the 2nd quarter of 2008 or when in 2007 Money Magazine predicted that 1.4 Million Americans would see their mortgage payments more than double as ARM's reset over the next 5 years through 2012. This shouldn't be surprising as there are statistics that show over 11% of those ARM loan holders had defaulted PRIOR to a reset indicating that the borrowers couldn't even afford the low introductory rates! I know what we were all thinking in 2008, maybe this will happen in Arizona, or Florida or California - but not in our neighborhood for sure!
Well that was 2008 or 2009 - we all know better now! Most of us have seen friends or neighbors struggle with keeping their homes in the current economic setting. I shouldn't have been surprised last week as I researched pre foreclosures in my home town that I saw two of my friends on that list! Those dire predictions are coming to fruition and we're no more ready to handle the circumstances because of the forewarnings.
Why is that? I can't help but think it's because when someone is faced with the dire likelihood that they are about to lose their house that there has to be some fix - something that will happen that will keep them from having to face andadjustment to their life style. I guess it's the embarrassment, the adjustment that it will take for a family to get through it. So in order to handle such a challenge, many just simply avoid it - which of course adds more stress and fewer options each and every week they stay dormant and not pro-active.
I just completed a close on a house for such a family. It worked out well for them as they found a home in town in which to downsize. Their fears about the children not handling the move well were dispelled over time as the kids adjusted to the move and even saw it as an adventure of sort. The biggest change was the relief the owners had once the sale was behind them and their expenses were brought more in line with their ability to afford those expenses in their new - smaller home. The relief is visible on the faces of this family. And I'm excited I could have been a part of making that happen. I expect I'll be there at some point as they enter the home buying market again in another year or so.
Recently, I completed the certification in Distressed Properties (CDPE) and I hold a (LMC) Loss Mitigation Certification issued by the Mass Assoc of Realtors. Those certifications simply mean I am trained to assist people who are facing these challenges and helping them plan a future that is far less stressful than the present. If you know of anyone who is struggling with their current loan situation, have them give me a call so I can help them understand their options. I look forward to the opportunity!
