Foreclosure News Misses The Point

Foreclosures in San Antonio are up slightly since last year this time; according to mortgage research firm CoreLogic®.  As noted in the San Antonio Business Journal a few weeks ago,

For the 30 days ended March 30, 2012, 4.69 percent of all mortgage loans in the San Antonio/New Braunfels area were delinquent by 90 days or more. Of those outstanding loans, 1.33 percent had entered some stage of the foreclosure process.

San Antonio and Bexar County are still in better shape compared to national statistics overall. Even compared to the rest of Texas, we’re hanging in there with a robust economy. But these numbers are still too high.

If there were a way to stop foreclosures in San Antonio, most government city officials and lending companies would welcome the process, endorse it loudly, and encourage people to participate.

But the truth is, the answer doesn’t come from them. Those very institutions enjoyed profits when the mortgage bubble was inflating. Banks and government programs and policies are not going to provide real solutions now.

An interesting story revolves around a government program created to “help” people who have been through the difficult ordeal of a foreclosure. The story between the lines reveals what I believe is the real pulse of consumer confidence these days.

Many homeowners have been financially injured by foreclosures in 2009 and 2010. They are qualified to take part in the Independent Foreclosure Review Program that’s set to expire on July 31.

The people who may qualify for a foreclosure settlement have genuinely justifiable grievances. They include:

  • Those whose loan balances may have been overstated or miscalculated at the time of the foreclosure
  • Those who were waiting patiently for a resolution through a loan modification, or who were already in bankruptcy when the foreclosure process was started
  • People who were actively serving in the military at the time the foreclosure proceedings.

But get this: most folks who could benefit from a foreclosure review – a settlement of $2000 and most of the deficiency balance waived — haven’t bothered to apply for one.

Consultants assure people who’ve had a foreclosure, that the program costs nothing and doesn’t impact any of their rights. Yet most have flat-out ignored this program.

Just 7.7 percent of the estimated 4.4 million homeowners believed eligible have applied for review. Why is that? I have a theory…

The Office of the Comptroller of the Currency has a tagline that reads “Ensuring a safe and sound national banking system for all Americans.” I imagine that phrase is supposed to make everyone feel a-okay with the banking system in this country.

If you’ve personally tried to stop a foreclosure process on your home, however, I wonder if that phrase instills trust and a feeling of security. Many who haven’t been hit as hard by the economic downturn are just as dubious. Is it any wonder that most “qualified” people haven’t applied for a “review” by the OCC?

My guess is they just want to put the whole bad experience behind them and move on.

I do believe that any unfair damages should be returned or at least acknowledged. However something new is in the air. Maybe it’s the belief that you can turn the page and start the rest of your life. It’s the strength in the knowledge that you may be bruised, but you’re not beaten!

This premise that people who’ve been foreclosed upon just want to start over (my opinion) proves that the American spirit is alive and well.

Why would you go back into the belly of the beast to get some small restitution? Not that some folks don’t deserve it, mind you.

The reason, I think, is that consumers don’t trust our institutions any more…that’s certainly disheartening. But the good news is that free markets and private citizens can now come to the rescue by doing what they do best — create profitable transactions for all parties.

Home buying companies in San Antonio offer real solutions. For the homeowner who is behind on mortgage payments for over a month or two; that’s the “real news.” Or it should be!

As trust erodes between homeowners and institutions, San Antonians facing foreclosures should talk with a private investor. Some, like Markette Properties, can purchase homes quickly without a lot of hassle and paperwork.

As foreclosures tick up this year, the real news (that you won’t read in the papers very often!) should not be about foreclosure statistics and how you can repair damage to your life and your credit after the fact. It should be covering real, alternative solutions before a foreclosure occurs.

San Antonio homebuyers can help. We at Markette Properties will walk you through your options before it’s too late. And that’s some great news!

We can buy your house fast in Texas! Markette Properties presents an unique, simple approach for selling your home! We are real estate investors. We buy houses in Texas just like yours! We are dedicated to the highest professional real estate standards for all of our clients.

Do you want to sell your house fast in Texas for top dollar with the least hassle? Give us a call! (210) 853-2788 or click the button below.

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Photo Credit Flickr CC: Mike Lawrence

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