Cohousing-L Mailing List: Re: Foreclosures and short sales

[Elizabeth Magill (pastorlizm]

I'll say that many of our theories of what to do in these tough
situations presume that people will make logical choices and that
banks will act in their own best interest.

In my experience, neither of these are true. Banks have written rules
and they follow them whether or not that is to their benefit. And
people have internal rules and they follow them whether or not they
make sense.

-Liz

On Wed, Feb 11, 2015 at 1:37 PM, Thea Hensel <theahensel [at] gmail.com> wrote:
>
> Thank you for all the questions and feedback.
>
> It is important to remember that we opened in July 2005 - at  the height of
> the free giveaway of loans by the banking institutions.  It was easy to get
> a loan with no money down and no documentation of income.  For a first time
> buyer that looked pretty good and it must be Okay, right?  the White suits
> were doing this and they must know!!  Well, we all know how that story
> ended and Yulupa fell victim.
>
> I agree that Eris's book is great and she nails it by realizing how
> difficult money discussions are.  We did use it as a foundation to have
> community discussions.  However, how many of us would feel comfortable
> talking to a perspective buyer about their finances?
>
> As for Sharon Villines question about us lining up perspective buyers
> before hand - two things need to happen:
>
> The homeowner needs to admit they have stopped paying their mortgage and be
> upfront.
> The bank needs to accept legitimate offers and be transparent.
> Our experience proved different time and time again.  We even had willing
> community members submitting offers so the community could have some
> control and input in to who moved in and the bank was not particularly
> cooperative.
>
> The good news is that the banks are not giving loans to folks who cant pay
> the obligations, the bad news is they have swung too far in the opposite
> direction.
>
> --
> Regards,
>
> Thea Hensel
>
>
> (H) 707-545-5281
> (C) 707-953-1207
> _________________________________________________________________
> Cohousing-L mailing list -- Unsubscribe, archives and other info at:
> http://www.cohousing.org/cohousing-L/
>
>



-- 
-Liz
(The Rev.) Elizabeth M. Magill
Worcester Fellowship
www.worcesterfellowship.org
508-450-0431