Realty World Northern California & Nevada

When you buy a big boat and register it with Homeland Security and the Coast Guard you have to name the vessel and its hailing port to obtain your documentation.  So, years ago when it came time to name our boat, which we worked hard for and we’re fortunate to finally get, I took the matter seriously.  I wanted a name that reminded me of good dealing, clean hands, equity and honor.  So I named her Covenant.  I thought the name would best represent our faith, goodwill, meaningful alliances and promises we make with others and our consequential relationships with much of the universe.  And, I’m equally proud of her name as the American flag she flies.

Recently I’ve had some dark thoughts about people’s obligations to mortgage companies and other creditors in these tough and trying economic times.  Those small lingering thoughts of default; the breaking of a promise and the premeditations of allowing one’s self to break a covenant with another have met a different reality and environment that give these notions birth.  Sadly, these seas are rooted politically.

I’m not referring to borrowers who have suffered a substantial or complete loss of income or those who obtained mortgages that shouldn’t have; I think those are separate matters entirely.  I’m talking about the people who have equivalents in income and other growth and income opportunities that otherwise could financially afford to maintain their present obligations and promises to lenders and simply choose not too.

Increasingly, reports of creditworthy and stable individuals are weighing the risk of future losses in real estate equity and purposely plotting strategies to benefit from mortgage default.  They reportedly move to a similar property in the same area that has gone down in value and walk on their present loan(s).  How they get financing remains a question to me?

Many have coordinated time lines to maximize withdrawals on remaining credit lines, equity loans and have somehow balanced in their mind a cost benefit factor of living with derogatory credit report.  Just the thought of that is a big reach for me and I grow increasingly worried about this situational ethic, off-the-rack culture and what that will mean for self worth of America’s children and our investment reputation in the financial world.

But, this is what I have to say to the real estate brokers and agents at Realty World…  Please stay clear of any involvement in a transaction that smells of this.  Even in times of desperation your self worth and personal integrity has greater equity than a commission from a transaction that is part and parcel to this behavior.

I understand economic waters may be rough; I’m right there with you.  But we have navigated through tough currents before and during these times, and while trying as they may be it brings me no justification to change the name of my boat.

I hope you feel the same way.

Scott LeForce
President
scott.leforce@rwnc.net

Tags: Buy and Bail, Crisis, Default, Economy, Foreclosing, Foreclosure, Loan, Mortgage, Real Estate, Realtors, Realty World
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