The View from South of the Potomac River: I JUST Became My Father!

I JUST Became My Father!

 

HAMP for Investors Announced

I just saw an announcement on Bloomberg TV that the HAMP or Home Affordable Modification Program will be extended to investors for up to 4 rental properties.  Starting in May, investors can make application for a loan modification that can include reduced interest rates, increasing the length of the loan, and principal forgiveness.  One caveat is that the property must remain as a rental, though I did not hear what length of time is imposed for participation.

percentage                                     scissors

 

 

 

 

 

 

 

 

 

 

 

 

 Where has personal responsibility gone in today’s world???

Purchase a primary residence with a no documentation loan that you knew you couldn’t afford in the best of times.  Stay in the property for months/years with paying a mortgage or property taxes… shrug it off.

Take out big college loans for a degree with limited career potential/income at an expensive college when a state university would have done, make minimum payments for 20-25 years and then it is forgiven… no sweat.

I may have just become my father in that I’m a bit alarmed & irritated with the way some people have totally forgotten that decisions have consequences and expect someone else to take care of them when it doesn't turn out.  We all want to get through this financial crisis, but have we taught anyone who is listening that there are no moral hazards left???

I welcome your opinions, whatever they might be.

 

 

AJ Heidmann ~ CRS,  ABR

Cell 703-474-1260 ~ Office 703-717-6324 ~ Fax 703-839-8283

AJ@AJHeidmann.com

www.AJHeidmann.com

McEnearney Associates, Inc.

4720 Lee Highway, Arlington, VA  22207

Licensed in Virginia

Comment balloon 25 commentsAJ Heidmann ~ CRS • March 08 2012 12:41PM

Comments

I have a rental home on a 10 year mortgage due Oct 2013 - I've been doubling up payments to pay it OFF and keep the income.....without the interest deduction....WHEW!

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) almost 8 years ago

Your last paragraph makes a lot of good sense to me.  I love the way you used "I Just Became My Father".

Betty

Posted by Team Honeycutt (Allen Tate) almost 8 years ago

AJ, funny how much more intelligent our parents seem as we get older, thanks for sharing your thoughts.

Posted by Nancy Laswick, Your REALTOR® For The Valley Of The Sun (United Real Estate) almost 8 years ago

Wallace - You're one smart cookie... maybe it is a property manager thing???

Betty - Making that admission was not easy... since he didn't seem to know a single thing when I was in my teens.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

Nancy - Especially now that I have a son of my own... I get it.  Now, admitting that to my parents is another topic.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

Great title, AJ - I think we've all had our 'parent' moments! With the recent economic issues and banking/housing crisis still very fresh, you'd think we'd learn...?

Posted by Karen Hawkins, MBA - Langley & Surrey, BC (Royal Pro Real Estate Network) almost 8 years ago

Karen - You would think, but as a whole we seem to have a case of amnesia.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

The older I get, the more I become my parents. My teenage self would be horrified! Thanks for the laugh, AJ, I can totally relate.

Posted by House Hunt (HouseHunt.com) almost 8 years ago

Those parent moments can be scary and are eye openers for sure! I too can relate my friend.  Have a great day.

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) almost 8 years ago

Some folks just have the attitude that the government or someone owes them and they have no fear of making stupid decisions.

Posted by Al Raymondi, Ormond By The Sea Florida - Home and Condo Sales (Ocean View Realty Group in Ormond By The Sea Florida) almost 8 years ago

Jaime - My teenage self would be horrified too!

John - I expect that there will be more to come...

Al - I worry that this is becoming more and more prevalent, and personal responsibility is fading out.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

AJ, the lack of responsibility issue is one I felt has been coming on for a while now.  I see it in the way some children are being raised...as little as a generation or two ago the mind set was different...it wasn't the "ME NOW" mind set of today.  I'm not saying that all youngsters or adults are of that mind set, but it's tough to stand tall when so many around you are slouching.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) almost 8 years ago

Nick - I agree and your last sentence sums it up perfectly!  Thanks for stopping by.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

AJ -- there can be certain sense of satisfaction knowing you are becoming/or became your parents --- it's another sign of growth.

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 almost 8 years ago

AJ - this should have been a featured post ..... while I believe we need to be more compassionate and caring there are issues here that go beyond the norm ..... there is something wrong with a society that does not take any responsibility, or is not held accountable, for it's actions and as I see it this is the slippery road we are headed down just three intersections away from what ever comes next.

Posted by Kathy Clulow, Trusted For Experience - Respected For Results (RE/MAX All-Stars Realty Inc. Brokerage) almost 8 years ago

AJ...

I have lost quite a bit of money on some stocks ... how do I get a bailout? I agree, what has happened to personal responsibility?

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) almost 8 years ago

Let's have a little compassion for the small investor...

I have a client who will be delighted to know about this.  She used her entire home equity line on her home to buy a three family rental to provide her with income in her retirement years.  (I was the listing agent at the the time of purchase and she was represented by a buyer agent, so don't blame me.)  Historically, properties have increased in value 4% per year until the "housing bubble" and it's deflation 2000 to present, so it wasn't a particularly risky investment at the time.  Now she has to do a short sale on the property, except that lenders don't like to do short sales on investment properties and she still has to pay back her home equity loan.

I read in the paper about a young man who came to this country and lived very frugally to invest in properties and build wealth.  He had a number of investment properties and lost them all in market downturn.

Investors aren't just wealthy folks who can afford to take a hit.  They are also people, who looked at the historical increase in value of homes and saw it as a safe investment over time.  Unfortunately, they had no way of foreseeing the market downturn and unemployment levels that would cause tenants to miss payments and leave their units vacant.

Posted by Gail Robinson, CRS, GRI, e-PRO Fairfield County, CT (William Raveis Real Estate) almost 8 years ago

All the permutations of HAMP have failed before. We'll see if this one succeeds.

Posted by Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) almost 8 years ago

A lot of so-called "investors" back during the boom were people unqualified to buy but who got loans anyway.  This might help them or it just may delay the inevitable.

Posted by Bryan Robertson almost 8 years ago

Remind me not walk across your lawn AJ. Seriously, it is alarming how enabled we have become as a society and I am just as disheartened as you are about it....not raising my kids that way!

Posted by Brian Kuhns, Fort Wayne Real Estate by Brian Kuhns (Coldwell Banker Roth Wehrly Graber) almost 8 years ago

AJ, I understand that personal responsibility thing well, and sometimes we turn into grumpy old men trying to change the world. Others will not be responsible and it seems the government programs encourage them.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) almost 8 years ago

Michael - As long as it doesn't mean I'm maturing

Kathy - We are definitely on the same page

Richard - That is the problem, where does one draw the line.  The only reason that can support this at least partially is to help right the overall housing market.  I would feel better if the investors who got pricipal reduction had to earn it over several years and then share any increase in value at the point of sale.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

Gail - I have compassion, but just because things didn't work out as planned, doesn't automatically equate to relief.  If the lender has to take a loss on the principal, it should be earned over multiple years and any appreciation should be shared with the lender when it is sold down the road. 

Dave - It would be nice if it actually had a measurable impact in the market.

Bryan - I remember an article on the cover of Money Magazine back in 2006 glamorizing newbie investors who planned on flipping their property purchases.  I am willing to bet that most of them are already washed out of the market.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

Brian - That's my main concern... what are we teaching the population as a whole and specifically our kids.

Gary - When the Government tries to back stop everything, things get muddled & expensive.

Erica - Totally agreed.  Though I will agree with Gail #17 in that the scale of the downturn was unprecedented.

Posted by AJ Heidmann ~ CRS, YOUR Alexandria & Arlington, VA Real Estate Expert (McEnearney Associates, Inc.) almost 8 years ago

AJ - Just dropping by to wish you an awesome Saturday in all you do!  It's going to beautiful in the Q, clear sky, calm and mid 70's.  I hope to make it a day of yard work.   I haven't had a day off in a long time and we're way behind in our spring cleaning. 

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) almost 8 years ago

Participate