How is it that the Banks are feeling so powerful and secure that they can step in and auction off a person's home without warning? How is it that the banking community has no qualms about selling someones home while they are in the process of loan modification and recovery from the crisis in 2008; and while the homeowner is desperately working on all the paperwork required to convince the bank that they are capable of going forward, capable of being able to pay the mortgage? PRESTO! CHANGO! YOU ARE NOW HOMELESS!!! (This is the link to the article abou the Boston woman who had her house auctioned off by her bank, while she was in the review process for a modification: http://www.bostonherald.com/business/real_estate/view.bg?articleid=1235053 )
This outrage is happening everywhere in our country right now---it is repeated endlessly, but most of the time it is happening to a level of homeowner who has no voice--the "Little Guy"...the homeowner who is struggling to carry his home after the "crash" of '08!
Does anyone not remember those days?: The days when our President and his Secretary of Treasury stood with the "deer in the headlights" look on their faces? The day we saw them telling the nation that something went badly wrong and they had to put billions of dollars back into the banking system or we would fall into the abyss?.....Remember the fact that an "entity" or "entities" had removed billions of dollars from the money market fund on September 18th, 2008--and broke the dollar value for that fund for the first time in history? THE BANKS LITERALLY HAD NO MONEY!
We would all do well to remind ourselves of those days---Remember them well!... Because if things are really going in the direction that I suspect they are going, and if we really do see hundreds of thousands of "short sales" come on the market in April, as has been speculated, we will need our wits about us. We will need to look long and hard at the way we live; look to see where we can cut back even more than we already have because that is what is coming. First, the value of the dollar drops to new lows, then inflation cripples the buying power of everyone, fear sets in and confidence, which is at new lows now, will go even lower.....
The most outrageous thing about the woman who lost her house because Wells Fargo auctioned it off without her knowing it is that SHE IS NOT ALONE!!!
The best kept secret about the housing crisis is that big banks are doing this all the time, just not to anyone who has a voice---I dare say that this time they didn't realize who they were dealing with and they were caught off guard.... It won't be long now for the effects of the "new" housing crisis to take it's toll: I believe that the first time home buyer---the one who is buying now with trepidation, will literally disappear from the market place---home values will drop precipitously and no one will be able to determine the bottom.
All this will follow the release of the wave of "short sales" that the government is demanding the banks release into the housing market in April of 2010!
WE MAY ALL BECOME PRISONERS TO THE VALUE OF OUR HOMES--
AS MORE AND MORE FALL INTO THE CATEGORY OF "UNDERWATER"
**ALL INFORMATION AND CONTENT IN THIS BLOG IS ORIGINAL TO PAULA I. HATHAWAY
Paula I. Hathaway, Senior Broker Associate, Douglas Elliman Real Estate
Southamtpon Village Real Estate Specialist since 1995; Also Specializes in North Sea, Noyac, Water Mill and Bridgehampton, New York
Diamond , Gold and Chairman's Circle Awards; Top Producer since 2005
Click here to see my Hampton's website to see all my listings; please email me or call me for all your real estate needs in Southampton, Bridgehampton and Watermill: http://www.elliman.com/paulahathaway
MY REAL ESTATE SHOWS: