First, a little good news: Starting this month, according a New York Times article FNMA (Fannie Mae) will be easing policies for those with ‘unique hardships’ … don’t we love the language? … thus a few homeowners facing difficulties and trying for modifications may (may) find more flexibility … for the full article go here.

Hardly a day goes by without some hardship story floating my way … that’s a fact of life for a real estate agent … heck, on Thursday’s tour there were half a dozen short sales … and congratulations to Warren Carreiro, Frank Howard Allen, for the sale of 319 G Street, San Rafael for $960,000 (remember the blog when it was $1,250,000?) …. Anyway, for those who know me, I’m primarily an upbeat person and I do try to keep my energy up, but I’m still puzzling as to how a homeowner in trouble gets a new fresh start. Of course there are the cheerless options: loan modifications, short sales, foreclosures, jingle mail, rentals … which hardly work … they’re a little like a lawsuit, rarely any clear winners …. And there’s downsizing, … of course if you come to me for a short sale I’ll be the first to tell you that a real estate agent is not the one to advise you … you’ll need to explore those options with a CPA or attorney … but call me anyway and let’s look at the options. www.tomverkozen.com

More good news: From August 12 thru August 16, while I’m helping put on Camp Erin, the Hospice By The Bay bereavement camp for children, Chase’s Homeowner Assistance Department is running a 5 day event at the Marriott City Center in Oakland. They will have a full dog and pony show and accept paperwork … so if you’re with Chase (or were with WaMu), these are your talk to guys. Maybe. For information, 1-888-708-7105.

Two stories from the modification wars ….

First, A Mill Valley couple were referred to me … they had been in the midst of a loan modification, thinking that the foreclosure process had stopped when, out of the blue, their NOD turned into a notice of sale. With 18 days remaining (they did not find out straight away) the wife had a heart attack (a real one) and the husband a pay cut. Yes, they lost their home of ten years. With help from an angel they may yet get that fresh start.

Next story … a single woman googled me after she had had a ‘professional’ modification company work for her in trying to get a loan modification. After a bit of time the company (unnamed here) offered to a) return her money, b) have her pay more money, or c) have them to a short sale for her. All this after she filed bankruptcy, while she was ill, on disability, dealing with family matters, having her job pay cut … then she received a NOD and began her own loan modification efforts. Told by her lender that the loan modification process stops the foreclosure process … twice (but not in writing) … she was looking for guidance from me. We used email to contact a department of here lender to ask whether the process was stopped and got a nebulous answer … including a statement that it has happened that people romp quickly into the foreclosure process when their modification is declined and they aren’t told and do not find out until it is too late. Off to an attorney … and yet … this left me still pondering …

how do you get a fresh start? Obviously the bankruptcy may have helped with credit cards, taxes, etc. but even successful loan modifications fail fairly often … or so I’m told … from my point of view, as teaching faculty at the Academy of Intuitive Medicine… I intuit that the emotional cost of going through the lengthy, uncertain, intrusive process of a potential loan modification …. Knowing that so far very few are working out … is a waste of physical, emotional and psychic energy.

Enough for now … life’s too short to spend two years trying for a modification … but one last thought … any shame you feel, let it go, there should be no shame involved during this world wide economic melt down.

Blessings to you

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Posted by:  Tom Verkozen