The song by CLASH, with the same name as this article, may have been a hit back in 1981, when they asked the question that seems to be the question of today, “Should I Stay or Should I Go?”
Today, however, the question takes on a more serious tone than the confused singer in his tumultuous love affair begging for confirmation as the chorus ends with the line…
If I go there will be trouble
An if I stay it will be double
So come on and let me know
(LISTEN HERE)
The tone of the question today, of course, if focused on the housing crises, as more and more families are trying to figure out what to do. It’s not like there is a single authority on the subject of what will happen to them – in either scenario. Should they stay or should they go?
This indecision’s bugging me
Should I Pay or Should I Play? The Real Question of the Day
When asked by local residents in the Hemet – San Jacinto Valley if they should pay their mortgage or should they play the game that seems to have gained in enormous popularity over the last year.
The game, of course, is the Strategic Default (my article). This is when the homeowner analyzes their personal situation and then decides to not pay their home loan but often continuing top keep all of their other credit in pristine condition. In many cases, homeowners today are reporting that they have been in their home for over a year without paying the mortgage or property taxes. If you are interested, the Wall Street Journal has an artilce that addresses the moral question of walking away from your home.
NOT MY CROSS TO BEAR
So, when I am engaged in a conversation along these lines I first have to protect myself with an almost obligatory disclaimer that I sell real estate for a living and am not in the business of resolving anyone’s personal problems. However, as a trusted friend and/or colleague if they want to bounce ideas off of me, I’d be glad to listen and respond with what I know but I must emphasize that any decision they make has to be their own decision that is based on their very personal set of circumstances…that I will never fully understand. I’ll also mention that if they need legal or tax advice that they should consult a professional in those fields, as neither has anything to do with my skill at selling real estate in the Hemet – San Jacinto Valley, CA.
This point is so important, I make a point of repeating it, at the end of any conversation that may follow.
The first point I will share on the topic is that when a short sale or loan modification is being negotiated that it is much easier to do when the payment is delinquent, although it is no longer mandatory, as it was last year.
The next point is every lender is different and every lender has different policies for how they treat different situations. For example, two borrowers may both be 60 days late. One may be eligible for a loan modification and the other may not. The income levels, the hardship and so many other factors are considered. Again, the rules change from lender to lender, as well.
SOOOOOOO MUCH INFO
There is so much conflicting information because there is no industry standard for either Short Sales or Loan Modifications. The market is full of scam artists right now, despite the fact that both State and Federal Authorities are cracking down on them, big time (Including the State Bar going after ATTORNEYS!).
The government is doing it’s best to confuse the entire situation with more rules, regulations, moratoriums and mandates than anyone can keep up with.
Industry trade groups, such as the National Association of REALTORS (NAR) or the Mortgage Bankers Association (MBA) are pretty much powerless in regulating their members when it comes to this uncharted territory.
Should I stay or should I go now?
If I go there will be trouble
And if I stay it will be double
So you gotta let me know
Should I stay or should I go?
Sorry, but this is not the place to come for easy answers or heavy questions…
Now please, go talk to your attorney or tax advisor and let me sell my real estate.
