A scarlet letter for (underemployed) real estate licensees

Mr. Marino, your judgment in some of your suppositions is sorely lacking and I’m shocked to see that you were involved in any way with the publications listed and used for First Tuesday’s continuing education programs. For you to equate this with “debtor’s prisons” and “stockades” is a weak attempt at hyperbolic entertainment without offering any true editorial substance; this situation is little different than having your personal bad debt and credit history show up on a credit report when you’re looking to buy a car, a home or open a new line of credit – it may not be an absolute story of your reliability but it can be used with reasonable certainly to determine the probability of your future behavior until evidence builds up to show otherwise. And, like those with bad credit, the way to rebuild your reputation is to correct the problem and to begin exhibiting behaviors consistent with responsible behavior – not to give them a pass by saying times are tough, it’s a rough market out there, etc.

How many $100,000 tax debtors do you think there will be?, this is practically an empty threat. To state that this is taxing the jobless out of the job market is utterly ludicrous, what would you suggest, that we just allow their debt to pile up until they maybe get around to paying it at some point in the future? This dollar amount should be lowered substantially, you don’t get into tax debt of $100K+ in short order, this evidences a pattern of repeated neglect over an extended period of time at best and potentially criminal tax avoidance at worst.

In fact, these are the type of people that apparently did nothing to allow for the payment of their personal, corporate or sales/use taxes and I would offer that they are at least temporarily not showing the type of responsibility required of an individual in a business where you are contracted to conduct negotiations, act as a fiduciary and give advice to those entering into an agreement for what is usually the biggest investment of their lives. In short – you haven’t bothered to pay your debts nor did you make provision for doing so, tell me again why I should trust you to representing me in buying or selling a home and making financial decisions regarding same?

Yeah, yeah, yeah, like in so many politicians speeches we always hear about the anecdotal “Joe Commonman” that with some dramatic tearjerker storytelling “ended up” in this position through little fault of his own. But by and large getting into that position took quite a bit of time and most $100K tax debtors “worked” their way into that position over a period of time. Sure we know how it could have happened – you put off paying your estimated taxes for the quarter, anticipating a better period next quarter or the one after that, but that didn’t happen either. Then another quarter and then it’s a year and whoops!! – what happened?

Newsletter after newsletter there seems to be some absolutely crazy ideas put forth in these articles and most of them are either making excuses for bad actors, looking for sympathy for those in the industry that can’t make any money or looking to change the rules in the middle of the game to accommodate those who’s earnings have been reduced.

Can we please get some writers in here with intellectual honesty and get away from entertaining the masses?

To: “Lince V”

No, not mad, just that much smarter and infinitely more ethical than you. If you have intelligent commentary to make on the subject matter being discussed, why don’t you offer it? Let me give you a hint as to why you don’t – the word “troll” comes to mind.

Funny how people anonymously trash my periodic commentary yet my comments consistently get chosen for Comment Of The Week on the First Tuesday Facebook page. Wonder why that is, hmmmm? Back under the bridge with you, troll !

“Wow – first it’s those with no intelligent input on the subject matter and now Mr Irmer who attacks me while invoking the good Lord as one who will guide the hand of the evil government punishers to strike me down ! For your information, I have fallen on as hard a time these days as many others and maybe worse.

But in no case does that change my attitude towards personal and professional ethics, towards personal and professional responsibility, towards understanding that actions have consequences. When legal processes have been followed and someone has the right to be paid what they are owed, it is not “”stealing”" from your bank account, it’s merely collecting back into their own bank accounts that which is rightfully and legally theirs. When the government garnishes your wages to ensure your children are supported in a manner conducive to a positive upbringing, it’s because you have failed to do so. When your license gets taken away, it is the taking of a privilege, not a right since there is no “”right”" to drive. How dare you make the assertion that someone should have to wait for what’s theirs because you just don’t have the ability to pay right now? They should miss payments to their creditors because you missed payments to yours? That’s not their problem, you entered into agreements, contracts or a business fully understanding what the responsibilities are and were. Then you can’t live up to it for whatever reason good or bad and now want to point the finger at the creditor as being unfair in their effort to make and keep themselves whole?

It is the responsibility of any creditor, whether a private business, a public company, the US Treasury or the FTB to take the necessary steps to collect what is owed from who owes it. When you don’t pay, someone else has to; this is the simplest of concepts but one that seems to elude those with a sense of entitlement – “”So what if I don’t pay, it’s just the evil government anyway”". In managing homeowner associations for the past 15 years I’ve had to deal with many homeowners delinquent in assessments and have had to obtain judgments against them on behalf of the remaining owners in the building. I’ve had to garnish wages to get the HOA their money, had the court issue rental levies where the tenants were ordered to pay the HOA until the debt was satisfied, had the sheriff’s office conduct til taps at a place of business until the HOA was repaid – all because if I didn’t the rest of the people there would have to pay on their behalf. There’s a large HOA in the East Bay of SF that has a budget line item equal to more than 10% of the budget for delinquent and uncollected assessments (not bad or uncollectible debt, just delinquent) because the Board refuses to take legal action to collect the money, as a result the remaining owners pay a monthly/annual assessment 11% higher than is necessary to defray the HOAs costs because they are paying the freight for others. What make you think they can afford to subsidize others?

Many years ago I owed a five figure sum on back Federal taxes and you know what, I owned up to it, I requested and received a payment plan and paid it back over the course of four or five years. We ALL have had problems in our lives except some of you want to change the rules once it’s you that has the problem. I’m probably one of the few people that have no complaints about the IRS – every time I needed help and asked for it politely and respectfully, I got it. When I needed a workable payment plan, they gave me one. When I had to miss a payment and asked them to not file a lien since I would only be a month late, they gave it to me. When I got laid off and couldn’t make any payments for a few months, they suspended enforcement action and the filing of a lien based on my history of being on the up and up about what I owed.

I’m gathering that you would suggest that falling behind in child support payments, failure to pay taxes, failing to pay mortgages and credit card debt should have no consequences whatsoever, thereby having no effect of actual enforcement.

Your attitude and that of others that do not understand responsibility in even the most basic sense are part of the problem we have in this country and more particularly, in the State of California, those who would rather complain and rail against “”the man”" than to take the necessary steps to improve their lot in life.

Shouldn’t you be somewhere in Oakland with your like-minded cohorts inhaling teargas right about now?”

Right on Vince! The problem with Terry and those of his ilk is that they are part of the (1) Entitlement Mentality Group and (2) the Don’t make me RESPONSIBLE for my mistakes in life group. We have been raising generation after generation (since the 50′s) in this country of people who believe that they are entitled to everything and forgive them for the stupid ignorant mistakes they make. It is all part of the “I want it now” instant gratification mentality that has overtaken this country.

The real estate melt-down wasn’t caused by the mortgage industry as the feds have been trying to tell you. Oh yeah sure, we can and rightfully so, should start the blame with President Cliton and his cronies Barney Frank and Chris Dodd. They started and created this mess, and anyone who has been in the real estate or mortgage industry and hasn’t been hiding their head in the sand know this. And yes Wall Street did some very unethical things. The proof is all there.

BUT….the real blame is on the heads of the homeowners….the borrowers! They and only they are to blame! Why you ask? Because the homeowner borrower is the guilty party for LYING about thier income for the purpose of buying more home than they could afford. These people felt ENTITLED to own their own McMansion! They did the same thing when they LIED about their income to take cash out of their home to purchase the BIG Screen TV, the HUMMER, the BMW, the Motor Home, etc., etc.. More of the I want it and I want it now syndrome.

And now they want to pass the blame onto the BIG BAD BANK. Well I got news for you left leaning liberals…no one held a gun to the head of these borrowers and forced them to commit fraud (a felony) on their loan applications. These borrowers made a promise that if the BIG BAD BANK would please lend them the money, they (the borrower) would pay it ALL back. And now millions of DISHONEST borrowers (many who are still making enough money to afford their payments) are just walking away from thier ethical and moral RESPONSIBILITY, and refusing to pay the money they borrowed in good faith back. The don’t want to pay for something that is worth less than what they paid for it.

News Flash…. The minute you drove your Beemer off the dealer’s lot it was worth 35% less than what you paid for it! A house (contrary to what real estate agents will tell you) may not be a financial investment. It may, and ofte does, go down in value. I have been in the real estate business as both a real estate broker and mortgage lender for 27 years and I have been through 4 real estate down-turns. I have bought real estate that declined in value and took 10 or more years just to come back to what I paid for them. I own real estate that is worth less than what I paid for it and more than likely will never reach what I paid for it. But I owe the mortgage payments to a lender who I promised to repay and I will not screw that lender.

And to top that off, there are companies advertising on TV, radio, etc., telling these loosers that they shouldn’t feel guilty about repaying their debts, and that they will show them how NOT only to get out of paying thier debts, but how to feel good about doing it. Their message….”poor little babies, you aren’t responsible for the choices you make in life…..let us help you screw your creditors”.

I have asked all too many people who are walking away from their homes….”would you be walking away from your moral obligation to repay this debt if you had borrowerd the money from your parents or grandparents?” They usually refuse to answer my question. Sadly I believe their answer would be yes!

Until the people in this country become morally and ethically responsible…..we will not recover from this economic disaster. As long as the borrower refuses to repay money owed … the lenders will tighten their lending guidelines and refuse to loan out THEIR money.

@Michael G losers*