West Jordan Home Buyer Reads My Blog-Cancels Sale!
A West Jordan Home Buyer canceled her Condominium purchase last week after reading my last weeks blog.
Frankly I didn't know folks were paying attention to what I was saying.
In this case, although we lost a home sale, I think our "heads up" was for the greater good.
The bottom line is this West Jordan home buyer received a notice in the mail the day she read the article, that the minimum payment on her major credit card was going to be raised from 2% to 4%.
This decreased the money available to pay the HOA dues on her new West Jordan Town home.
This is what I had written, just like I had a Chrystal ball:
I was just getting ready to blog about how ticked off I was at the way Banks seem to be doing everything they can to muck up any Salt Lake City UT Real Estate recovery.
Then it dawned on me. It may just be worse than I thought.
It started last week when I became engulfed in Broker Bryant's blog about making a strategic decision to walk away from a Mortgage loan commitment.
It was a great article and a great exercise in cutting thru the crap.
It was also frustrating for a mugwump like me.
Every time I was ready to take a stand, adapt a philosophy and emphatically state my position, someone would post a position contrary to the one I had just embraced and send me into a wishy washy type spin.
But all that is for another post. Which I will put off until tomorrow.
Today I need help because I think things are worse than I thought. Or I'm dumber than I thought.
Heres part of what I read this morning:
" But Chase recently threw James-- and perhaps hundreds of thousands of other consumers - a huge credit card curve ball. The firm sent letters to customers beginning in late June indicating that minimum payments would be raised from 2 percent to 5 percent. In August, his monthly payment will spike to $750." Read entire article
This article exposing credit card companies ability to increase the traditional minimum payment from 2% to 5% seems to indicate that if banks choose and many of them have already, they could more than double the amount of monthly payment, reducing the cash flow necessary to keep already strapped and struggling home owners current on a shaky home mortgage..
On a $10,000 balance, the monthly payment could go from $200 per month to $500 per month.
Forget about reducing what a SLC homeowner could qualify for if they were trying to work out of their housing woes by refinancing.
It certainly eliminates $300 per month that the distressed homeowner has to try and do the "right thing".
Some would say that this falls under the heading of unintended consequences.
I would say it's just pure greed and in no way makes me feel like any one but the Salt Lake home owners are trying to solve the delinquent mortgage problem.
Maybe I just dont understand, but I know what tomorrows post is going to say.
If someone has already covered this, understands it and doesn't think this could create problems forgive this rant.
If not, then it's worse than I thought.
Follow me now.
While the bank that owns the credit card in this instance is not the same bank that holds the paper on the West Jordan Condominium for sale, (it is facing foreclosure).
It could be.
Simply put, banks are complaining about the amount of non performing loans they have on their books, while at the same time implementing programs that make it almost impossible for any home owners facing homes foreclosure to enter into any type of work out agreement with the mortgage lender.
Not only have the banks discouraged our client from buying this Condo in W.Jordan, when the current owner misses a payment it is likely that the interest on any cards will increase to the max, and the minimum payment will be increased so that no payments will ever be made on this distressed home.
To see all of the foreclosed homes and condominiums in West Jordan, stop by our website Salt Lake homes for Sale. You will see pictures of Salt Lake Homes for sale, prices of homes and condos in SLC, directions to drive by a home and a lot of Utah Real Estate Information.
Or call us at 801-567-0946.
Particularly if you are a West Jordan Home Buyer that reads my blog.