Tampa Palms, Westchase, Carrollwood and Tampa Bay Real Estate News From Jeanne Prigitano

I’m sure that you, like most of us, are very unhappy about the prospect that this great country is on the brink of default. I know that the quickest way to lose clients is to get political. So, I’m not going there. However, I did want to comment on the bailout money that went to the banks that was supposed to help homeowners. Where did it go?

From reading my blogs you know that I am not in favor of strategic default (that’s where the homeowner is capable of paying their mortgage but chooses to walk away without paying their mortgage obligation). I’m not so sure I’m particularly supportive of people who got equity lines to pay for cars, boats , and vacations and are now in default because they cannot pay the extra costs associated with the equity they used or are complaining that they “lost” money on their house when, in reality, that “lost” money was used on other purchases. I’m not saying I haven’t done that myself.

Nevertheless, there are people who need help. I have not been aware of one single client of mine in the Tampa area who has received any of the government money that was slated to help homeowners. Let me tell you just one story that I think highlights the situation. I was helping a homeowner who had purchased a home a few years ago. She put down new tile flooring, purchased new appliances, and took pride in maintaining her home. She was in a serious car accident, had several operations, and subsequently lost her job. On top of that, her daughter-in-law died leaving her with the care of her young granddaughter. She could no longer pay her mortgage. She tried to get a loan modification but to no avail and was forced to sell her home. She ended up selling her home for a third of what she paid for it and the bank took the loss. She couldn’t understand why the bank just didn’t lower her mortgage payments to a third of what she was paying. The bank suffered the loss anyway. She could have stayed in the house. Where was the money to help homeowners like her?

Yes, there is fraudulent activity out there. Yes, there are people who can afford to pay and don’t. And yes, it is very difficult to investigate every case on an individual basis. I just want to know where the money is that was supposed to help the homeowners and, subsequently, help our ailing housing market.