Homes Are for Families - Happy Thanksgiving

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"Homes are homes again — as in places to live — and not considered quick-flip investments or ATM machines," blogs Jessica Swesey in a list of positive things that have come out of a bad real estate market. Though get-rich-quick Realtors always disappear like rats from a sinking ships when selling gets tough, for me the best part is the slimy brokers who've started selling shoes or copiers or, pray God, anything but loan packages.

(I wonder where they are this Thanksgiving Day, and what they're telling their extended families about their new jobs and how the market "done 'em wrong" over the last year or so.)

Ben Jones says "The San Francisco Chronicle reports from California, 'Four major sub-prime lenders promised to give a break to California homeowners who cannot afford escalating mortgage payments, under a plan announced Tuesday by the lenders and Gov. Arnold Schwarzenegger. To qualify, borrowers must occupy their homes, have made their payments on time and prove they cannot afford payments with the higher interest rate.'” That almost sounds like a normal "fixed rate mortgage," doesn't it?

Are you on my mortgage savings tips list? Here's the quick link:

In fairness to lenders, borrowers are partly to blame for what has come to be called in almost every quarter "the mortgage mess," or if not that then "the sub-prime scandal." I've spoken before of greed in every participant–including home buyers. In the case of monthly mortgage payments home buyers can no longer afford, they knew when they signed up the rate would be rising. The schedule of possible increases was spelled out. I have acknowledged "Ninety-seven percent of home-buyers are being misled by their lenders."

But I wasn't talking about adjustable rates. I wasn't speaking of Option ARMs where less than the accumulated monthly interest is offered as a payment. Nor was I talking about the investor-buyers (often flippers, hoping to buy at one price this month and sell at a higher price next month) who simply gave up when the monthlies became too high. They were probably insulated from personal losses by corporate entities, so why not walk away?

What doesn't make the news very often is that half of the foreclosures are on investment properties. So 10% is really 5% when we think about Jimmy and Susie moving back to Grandma and Grandpa's.

I'd just like to see short-cut mortgage brokers, home loan lenders and Realtors at Grandma and Grandpa's house this Thanksgiving. I'd like to be a mouse under the table listening to that conversation. Homes are for families and love and forgiveness. Homes are not ATM machines!