We investors get that a lot, the “they’d have been better off," thing, and it’s pretty much bogus.
Hope your office was able to watch the Nightline segment last night about foreclosure rescue schemes.
It did make a couple issues all the more apparent and demonstrated what foreclosure investors are up against, that’s for sure.
And Mr. Ira Rheingold was an interesting fellow. He made some comments I agreed with, sort of, but for the most part I felt he completely missed the mark and his bias got the better of him.
Blame Us, Amos
Not to put words in his mouth, but he pretty much called the concept of foreclosure rescue a “scheme.”
We’ve learned throughout my experience with your office that all foreclosure rescue is automatically assumed to be a scheme, and Ira is in lock-step with that mentality.
I’ve sent him an email and have asked him to contact me. Perhaps I can enlighten him. I’ll let you know.
He maintains he’s never seen a foreclosure rescue scheme that actually works, admitting it might buy the owner a little time, but they’d have been better off refinancing or simply selling.
We investors get that a lot, the “they’d have been better off,” thing, and it’s pretty much bogus.
Sellers we talk to are already in foreclosure, which means they can’t refinance. Suggesting they do so shows there’s a clear reality disconnect here.
How does someone with no credit and in foreclosure refinance?
They don’t, Ira, and suggesting they could shows there’s little actual understanding of the dynamics involved.
But, that’s the least of the problems.
Or they could just sell
Ira went on to suggest sellers would have been better off just selling outright.
Psssssst . . . they don’t want to move.
It’s their home.
Selling is out of the question. The’ve chosen to do whatever it takes to keep their home.
How do you not get that?
That’s why they’ve waited too long to call me, by the way. It’s why they’re now out of options and why, with only a day or two remaining, they’re asking me to drag out my cape to save the day.
Consider the Source
It amazes me that someone like Ira can stand there and say all foreclosure rescues are scams.
Sure, there are investors who are scam artists, and there are attorneys who are scam artists, and I’m guessing the ratios are pretty much the same.
Blaming investors for doing whatever it takes to save a home the seller has brought to foreclosure’s doorstep completely ignores the reality of the situation.
Given the circumstances, we investors do our best.
And AAG’s and Ira’s living in fairy tale land suggesting refinancing or selling or God forbid, letting homes go to foreclosure to collect overages would have been the seller’s better alternative?
They call us scam artists because they have no clue.
In the arena,