Son Of A Lender
It is utterly frustrating and undeniably irritating, when the lender’s conversation with “customer service” results to a pesky business run around. Phone calls do get transferred to mysterious Departments/Offices when requesting for serious or urgent help, even simply to ask questions concerning interest reduction—known today as mortgage loan modification or some other alternative courses of action (ie, fixed rate, forbearance, deed in lieu, term extension, etc.). One of these should prevent an imminent non-judicial foreclosure or an auction sale of the property.
People run to lawyers as a result of this unfortunate predicament, which is not right. The process is worse than talking to an IRS employee because it is getting clearer everyday, very few lenders could really help. The IRS may be even friendlier these days.
We are reminded; lenders are in the sheer business to get money. Their “investors” never lose money like the banks.
In the first place, Lenders are upset because people have defaulted on mortgage payments. These banks were at fault, having given bad loans to borrowers unqualified to pay. You may find no employee of the Loan Service Company giving a straight answer that will be helpful. They use the phone system only to collect late payments, we should be aware of that. That is all what is important to them.
My experience from calls for two (2) clients could very well be the norm with what is going on today in negotiations with the lender across the country. “The Lender is King” as it appears. We could cuss them and declare “Son of a Lender,” and it would be an appropriate expletive. Even as we may be pink and blue in our eyes, the Lender would still foreclose on the property.
Yes, there may be exceptions as with any negotiations but mostly all Lenders do not give a damn. All they want is the late payments to the mortgage and their fees. But Lenders do not normally lose money; their loans could get insured. And government at our expense also helps them.
Take the case of a loan with a Purchase Money Insurance (PMI) coverage; the banks do get paid the late mortgage payments after a foreclosure. Say, “Son of a Lender!” again to this. The banks would get paid all arrears plus still get the property back through a foreclosure.
Yes, we do not believe this as “good business” It is woefully double dipping. When we think of buying real estate again, we should also think of the following. The lender-capitalist was up to just get our hard-earned money from interests and charges. And when they take back the property we simply took possession of, did we only temporarily borrow it?
Throw the “good investment leverage” and the “pride of ownership” arguments away; we are simply leasing the utility value of the property in exchange for interest payments. It is worse than renting, if we could believe that. And what a capitalist concept this was!
It was a stealing of the value of our hard-earned money for life, which we do have the primary right to keep.
One wise thinker of late, Mr. Mark Levine, equates this thought with tyranny, the taking away of our God-given freedoms. He maintains our God-given freedoms to life, liberty, and the pursuits of happiness are all inalienable rights that cannot be taken away. The author of these rights was no other than God.
The truth is, mortgage loans do steal our life and liberty away if we could only realize that. And therefore if in the pursuit of happiness was ingrained with it our inherent right to possession or ownership from our hard work, why then should lenders enslave us with such an entrapping long interest payment scheme?
Was it because we have allowed them so or gave our freedoms away? We are not even thinking anymore, we just want to get that home, or this home or whatever we borrow for, no matter the cost.
The Bible states, the “Borrower is a slave to Lender.” And so we are. God’s book further advises, to “Owe no Man no money.” But yet we owe in rebellion. We should follow that now. Maybe the answer to our mortgage problem is back to zero slate. No mortgage. We came with nothing, anyway, and we depart with nothing but our soul. If we could truly realize, it was all for vanity and nothingness at best.
Maybe, a foreclosure is the answer, not a Loan Modification, or even a bankruptcy to clean up the dirty Debt Slate. Be debt-free from now on! Back to where when we did not own any piece of real estate. Maybe, that will be to our good and should be the end of it all.
May God find us since we do not even seek Him after all? May He find you my friend!
Angel Y. Dayan, EA, CPA, ABA, ATA has been helping clients lately with their financial and emotional decisions in finding solutions to mortgage loan delinquency and foreclosure matters. These transactions have far reaching tax implications that cannot be normally addressed by the Realtor, Escrow Officer, The Broker, Loan Agent, and the Lawyer. Angel Y. Dayan is a licensed Federal Tax Practitioner in 50 States, a CPA in Texas and the Philippines, an Accredited Business Accountant, and Accredited Tax Advisor. He could be reached at (213)-365-1040 for appointment in his office at 150 East Olive Avenue, Ste.-116 Burbank, California, 91502
Last 5 Posts by Angel Dayan
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