Strategic default.....sounds good until your character is questioned....

I overheard an interesting conversation in the office yesterday. Apparently, an agent showed a rental property that was listed by another agent in the office. Of course, the listing agent asked about feedback and the showing agent excitedly mentioned that his clients were interested in the property. Their conversation quickly changed to the reasons why the prospective tenants are now choosing to rent and he mentioned that they were doing a strategic default on their home.....WHAT????

Do you mean to tell me..... that the individuals who are now breaking a contractual obligation just based upon a "strategy" has now decided to enter into a contract with my client????

A strategic default sounds good in theory...and I understand that it all boils down to a business decision. However, there are ramifications involved and if your client doesn't have to worry about their character being questioned, then it's fine. There are so many other options available to homeowners today besides a strategic default. There are many short sale options available as well. Yes, there's a lot of time and effort involved, but it gives the impression that the homeowner made an attempt to mitigate the loss to themselves and to their lender. Shoot, even a deed-in-lieu sounds better on paper than a flat-out strategic default.

People really should begin to think past the "here-and-now" because there really are after-affects.

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Comment by Ben Benita on May 2, 2013 at 3:44pm

answer to the riddle:

Why did you do it?"

The young boy was apologetic. "Please mister ... please, I'm sorry... I didn't know what else to do," he pleaded.
"I threw the brick because no one else would stop..."
With tears dripping down his face and off his chin, the youth pointed to a spot just around a parked car.
"It's my brother," he said.
"He rolled off the curb and fell out of his wheelchair and I can't lift him up."

Now sobbing, the boy asked the stunned executive, "Would you please help me get him back into his wheelchair? He's hurt and he's too heavy for me."
Moved beyond words, the driver tried to swallow the rapidly swelling lump in his throat. He hurriedly lifted the handicapped boy back into the wheelchair, then took out his fancy handkerchief and dabbed at the fresh scrapes and cuts. A quick look told him everything was going to be okay.

"Thank you and may God bless you," the grateful child told the stranger.
Too shook up for words, the man simply watched the little boy push his wheelchair-bound brother down the sidewalk toward their home. It was a long, slow walk back to the Jaguar. The damage was very noticeable, but the driver never bothered to repair the dented side door. He kept the dent there to remind him of this message: Don't go through life so fast that someone has to throw a brick at you to get your attention!

Comment by Phillip Allen on May 1, 2013 at 3:49pm

Wow...! Ben, I going to give you the benefit of suffering from an aliment we have all had to overcome... "youth"...!!!  

I hope after a few more years of experience you will come to see the 'light'; and if not... then Venessa, as one of my favorite comedian's says; "You can't fix stupid... stupid is FOREVER...! 

Comment by Vanessa Calhoun on May 1, 2013 at 3:40pm


Comment by Vanessa Calhoun on May 1, 2013 at 3:39pm

Ben...WTH are you even talking about???? These people were denied because they failed to help soften the blow to the other obligator to the contract. THAT'S WHAT THIS POST IS ABOUT! LOL!!! It's not about some kid throwing a brick at a car, it's not about COE violations, it's not even about the weather in Santa Domingo. It's about the fact that our actions (or the lack of) dictate how other people may view us. At the end of the day, the people that I was speaking of in the thread would have been more sympathetic had they even attempted a short sale. If you owned rental property and some guy who'd recently been evicted because he just decided that he didn't like the home anymore and stopped paying rent came to you to rent one of your homes...what would you do??? Enter into a year long lease agreement with him???

Comment by Ben Benita on May 1, 2013 at 3:32pm

I get the initial thread, my point is that there are several persons here judging that persons financial decision about "strategically defaulting".....and what has not been touched on here is that it is not at all easy to do either.

Few folks that can afford to pay actually "get to just walk away" without consequences, i.e., many are forced to miss payments, contribute cash, sign prom. notes etc.

My point is only that EVERYONE pre-judges others....we all have past experiences, good and bad, that we carry with us and make us form decisions about events and other people.

VERY VERY VERY few people actually take the time to learn the "why" and even fewer consider that they would very likely do the EXACT same thing if they had the same experiences in their lives.

What were your thoughts on the story I posted about the guy driving the Jaguar that got hit with a brick?

if you are like 99% of the people, you were thinking:

1)  Where is this little punk's parents?

2)  What the heck is he doing throwing a brick at a car?

3)  He should be grounded for a MONTH!!!

4)  Maybe you are hoping his mom or dad is close by and he gets the spanking of his life?

Do share.....I encourage EVERYONE reading this to comment based on the story and what I wrote.

Comment by Vanessa Calhoun on May 1, 2013 at 3:11pm

Oh....and by the way....I'm ANYTHING, but weak! Lol!

Comment by Vanessa Calhoun on May 1, 2013 at 3:11pm

Okay, Ben....I'll advise you to read the initial blog again and you'll note a few things (hopefully, you will). 1) This was a conversation that I overheard. I was neither the leasing or showing agent. 2) The potential tenant informed his agent who told the listing agent that they wanted to upgrade to a bigger property. They could afford their mortgage and just decided to stop paying. 3) THEY DID NOT ATTEMPT TO MODIFY THE LOAN 4) THEY DID NOT WANT TO GO THROUGH THE HASSLE OF A SHORT SALE. They just decided that they wanted to rent a bigger place for the same amount of money per month that they were paying towards the mortgage. This information provided the basis for the landlord to deny the tenant's application along with the credit report that showed the mortgage delinquencies. I'm sorry, but I can't make this any simpler for you. You've taken this thread into an entirely different tangent, which would indicate that you didn't quite understand the original post (or subsequent comments). At any rate, I wish you the very best in your business endeavors! Have an excellent day!

Comment by Ben Benita on May 1, 2013 at 2:51pm

Yes that last comment DID include a "free plug" from someone that will help ANY homeowner, without prejudging them for ANY of their past actions.

I think it is weak that you deleted it b/c there was also some GREAT points made....but to each his own.

Lots of good stuff here, and I certainly respect your opinions though I strongly disagree with your pre-judging tenants or any homeowner for their personal decisions.

I think that in itself speaks to character......I have not admittedly read everything here, BUT it seemed like you were saying you would not rent a property to someone that did a "strategic default".

Pretty certain that would be an ethics violation and that we will NEVER see that listed on any rental application for that very reason?

Again, under the presumption you did NOT speak to this tenant or know his or her reasons or situation for doing what he/she did......just does not seem fair for you or anyone here to pre-judge.

Quick story on being prejudice:

(as defined by judging people and situations BEFORE knowing everything or speaking to them directly):

A young and successful executive was traveling down a neighborhood street, going a bit too fast in his new Jaguar. He was watching for kids darting out from between parked cars and slowed down when he thought he saw something.

As his car passed, no children appeared. Instead, a brick smashed into the Jag's side door! He slammed on the brakes and drove the Jag back to the spot where the brick had been thrown.

The angry driver then jumped out of the car, grabbed the nearest kid and pushed him up against a parked car, shouting, "What was that all about and who are you?
Just what the heck are you doing? 
That's a new car and that brick you threw is going to cost a lot of money.

Think about that for a few minutes.....I will post the rest of the story later......what are your thoughts....what are you thinking right now......

be honest and feel free to comment!!!!

Signed - "Anonymous" so this does not get deleted!!!!


Comment by Judi Fiolle on May 1, 2013 at 2:29pm

that was a good idea Vanessa. You are right, we are all professional for the most part and anyone who wants to use this for advertising is going off the subject. 

Comment by Vanessa Calhoun on May 1, 2013 at 2:04pm

I actually had to delete Ben's last comment because it advertised his services as a short sale negotiator. I'm not against his advertising his services, but that was not the overall tone of this thread. I'll happily discuss the merits of every position on this it relates to the subject at hand.


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