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Name calling borrowers from a pedestal

I didn’t realize the subprime interest rate freeze was such an emotional issue for so many real estate agents. I can’t tell you how many blog posts I’ve read in the last 24 hours, where the borrower has been referred to as “stupid”, “irresponsible”, “idiot” etc. etc. Also most real estate bloggers don’t seem to think this plan will help anyone. The view coalesces around a general feeling that this is a cynical political move by lenders and politicians.

I am here to remind folks in the real estate industry that regardless of what you might think the vast majority of “stupid” borrowers who took out subprime loans are doing just fine. Subprime loans offered them a path towards homeownership and achieving the American Dream. That’s pretty cool in my book.

Second, if you were in real estate the past few years, then you very certainly benefited from these “irresponsible” borrowers who took out a subprime loan and bought homes (and paid your commission).

It’s easy to sit on a pedestal and denounce the move, however, I believe the parties who hammered out this deal are sincere. I think the move will help hundreds of families in need and at the end of the day lenders will benefit as well. And by the trickle effect so will the general economy.

Let’s not forget that these borrowers whom real estate bloggers are calling names are our clients and customers. That makes me scratch my head. That is why I’m choosing to extend my professional services to borrowers whose rates are being frozen. I want them to make the most of this new found reality. All power to them.
Now, if bloggers really want to an emotional issue where you can call anyone any name you want, there is a brewing CIA torture scandal with destruction of evidence. Just the fix you need.

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Written By

Writer for national real estate opinion column, focusing on the improvement of the real estate industry by educating peers about technology, real estate legislation, ethics, practices and brokerage with the end result being that consumers have a better experience.



  1. Scott

    December 7, 2007 at 1:34 pm

    Amen! Enough with the snide, smarter-than-thou conspiracy theories so many bloggers have spouted of late. Thanks for your post.

  2. Chicago Real Estate

    December 7, 2007 at 2:32 pm

    Thank you.

    I just wrote about this same thing at my Chicago Real Estate blog.

    When you take a step back and think about it, anything that provides stability and predictability to the real estate and mortgage markets is a good thing for sellers, buyers, and mortgage bankers and brokers.

    Of course, it is good for agents, too.

  3. Wade Young

    December 7, 2007 at 9:26 pm

    The FBI says that up to 70% of early payment defaults may be linked to borrower misrepresentations on mortgage loan applications (according to the FBIs Mortgage Fraud report). The FBI is engaging in name calling as well. It appears that many “liar loans” were indeed made to liars. I’m sure that there were some uneducated, innocent people caught up in this mess, but there were a lot of guilty folks too.

  4. PeterT

    December 7, 2007 at 9:28 pm

    Good post, Shailesh. While I don’t think this bailout plan will go to far in fixing the problem, I think it is a step in the right direction. When things were hot we all did our best to get people in houses. If there was a way to do it I didn’t spend much time telling people they were making a mistake and being irresponsible by buying. I did think some of the loan programs seemed insane, but more from a lenders perspective than the borrowers.

    The bigger problem is that home prices are going down. If prices were still inflating this problem would still be on the backburner.

  5. Ines

    December 7, 2007 at 10:31 pm

    I totally agree that the name calling is uncalled for – those people ARE our clients and they achieved their goal of home ownership. The real question is for those that did not take the time to explain the consequences, although everyone is responsible for their own actions, I do think it’s our responsibility, as professionals to explain.

  6. Vicki Moore

    December 10, 2007 at 4:25 pm

    Has anyone heard: people in glass houses shouldn’t throw stones. How about before you judge me, walk in my shoes?

    Those stoopid people took the advice of us “professionals.” They didn’t make those purchases on their own. They had help.

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