Foolish Babe February 21st, 2008

These days, unless you live under a rock or in a cave or in some long lost island, you are probably aware of the mortgage disaster that is threatening to cripple our economy. Yes, I said, cripple. A few years ago, we spent weekends shopping at Home Depot, Lowes, and (if there was time) Bed Bath and Beyond, our heads bubbling with home decor ideas. Hmm, what color should I paint the guest room? That orange color I saw on Trading Spaces would be nice. Remember Trading Spaces? Is that show still on? And if so, who in the heck is watching it? I’m certainly not.

A few weeks ago, Foolish Cat and I spent an hour or two strolling down the aisles of Home Depot. We felt like rock stars. The place was practically empty. It was almost as if we had rented out the place. Staff couldn’t wait to help us. We weren’t there for paint, patio furniture or new blinds. We were there for filters and light bulbs. That’s it.

Man, a few years ago, staff were so overworked and busy that if you dared ask a stupid question like, “Excuse me, where is the restroom?” You would most likely get a stare that translated into something like this, “no you didn’t just interrupt me from talking to this customer, who is about to purchase 10,000 dollars worth of hardwood floors, to ask me where the freaking bathroom is.” Ah, those were the days. I miss those days. Well, not really. I call those days, Free Spirited Matrix Days. We were all walking around with blindfolds over our eyes, in a simulated reality, subdued and perfectly oblivious to the fact that we were being fed lies and pipe dreams. A lot of us fell for the hype. Easy credit, exotic mortgages, McMansions…

What’s done is done. Let’s own up to our mistakes. Lenders, investors, appraisers, consumers, real estate agents, all played a role in creating this mess. Instead of pointing fingers, we need to concentrate on fixing it.

We have a choice. Keep living in a simulated reality (translation: stick our heads in the sand) or face the truth. I say choose the Red Pill.

Here’s my advice to anyone going through hardship with their mortgage, CALL your lender and ask for help. Do not walk away from your house. There is no shame in asking for help. Educate yourself and learn from your mistakes…your blunders, so that next time someone tries to feed you hype, you’ll recognize it and walk away. In other words, say NO to the Blue Pill.

I recently came across a site called LoanSafe. It’s probably one of the best sites I have seen in terms of helping folks keep their homes. You’ll find sample hardship assistance request letters, real stories of folks whose loans were modified enabling them to keep their homes–overall it’s a nice community of people who are aren’t afraid to keep on keeping on.

From their site:

Please join our one of a kind homeowner’s forum where you can ask questions and get answers in this unique and interactive community that was created to assist people in an anonymous, yet open question format. Meet other homeowners that are trying to stop foreclosure and are going through the same thing. Get the information you need from industry experts and attorneys to help you fix your loan and save your home.

Visit Loansafe.org and Blunder on, Fools!

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