Today’s is a good day to vent about the mortgage industry!
After a very rough day in the real estate business yesterday, I decided to share some of my views about the mortgage business with anyone that might read this. First, this program instituted by the government to help home owners reduce their mortgage payments is actually a joke! I am now in the process of helping a good friend do a modification and we have now submitted the paperwork 5 times! It’s the same paperwork, sent in a provided envelope, faxed, emailed, fedexed and sent UPS. They call her each week asking for more stuff…stuff we have already sent! We call to verify they have rec’d it, if we can leave a message (the mailboxes are usually full), they never call to confirm. It is understandable why home owners let their houses get foreclosed on! It is ridiculous! They give up from all the stress! I would give up and I do this for a living! This is the 4th time that I have assisted someone with trying to get a loan modification. Each time I have prepared them for what is to come and after about the 4th or 5th time of sending the same paperwork in (which in the last fax was 57 pages), they tell me, without my help they would have given up. It is a joke! You would think they would be trying to assist these people that actually want to try to keep their homes but instead they make it so blasted hard on them that they lose the will to even try to keep it! THE LOAN MODIFICATION PROGRAM IS A JOKE!
Next, when they say there are banks out there wanting to lend money. That is a joke too! For example, I have a young couple, getting married this month, wanting to buy a house. They paid down their debts to qualify on their debt to income ratio. We were supposed to close this week and then we found out they have to pay off one more debt to satisfy the underwriter plus get a letter from a contractor stating the roof has at least 2 years of life. First, the home inspector or appraiser, neither of them, asked for a letter on the roof. The underwriter sitting in who knows where but not our area, asked for it. She has never seen the house but because we have had storms on the news, she wants the letter. The roof is less than 5 years old! Does she think that contractors go out and do these letters for free? If so, in these days of everyone trying to protect themselves from getting backlash, contractors wouldn’t have any time to do their actual jobs for writing all these letters. Just because of her wanting this letter, the seller will now have to pay the contractor to go out and write this letter. Lending has tightened up and I warn my buyers and sellers that in all actuality about 25-50% of the loans get turned down or the houses don’t appraise out. I understand that the standards needed to be tightened. At one time, if you could breath and had a credit score, you could get a loan! But do we actually need to require all of this extra stuff? Give me a break!
The moral of this story…play the lottery and buy your house with the proceeds! Just kidding! I know a good lender if you need one!
Well, that is my venting for the week. It’s a much better day today. I’ve enjoyed seeing some of my clients today and am looking forward to a wonderful 4th of July! Hope you have a great 4th too!