The Realtor and the skilled immorality of “NegAm” mortgaging

November 10, 9:41 AMSpiritual Life ExaminerRabbi Ben Kamin

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We’ll call him “Lenny” the real estate mogul, and he is successful, opulent, and, without question, works very hard.  It is difficult—even hard to imagine—having a discussion with him about anything other than houses, mortgages, amortization, the market, and how well he is doing.  He is so happy.  He is focused, energized, and he squeezes you in between his unremitting cellular traffic and his almost audible brain calculations:  he is single-minded about one thing and one thing only and that is making money.

Negative amortization?  No problem—you’ll pay less and get more house!  The market will only get better and you can either then sell and make a fortune or stay and build up the equity.  No, no, the monthly payments won’t fluctuate too much!  You love the house.  This is your chance, just close, let me take care of everything!

Lenny is smooth and silky and he’s your friend and he knows your family and when you have those shrill little doubts about this or that (things that turn into major unrevealed liens, for example, or ballooning loans that looked so positive but are, in fact, scientifically negative) he just murmurs all these sweet cozy aphorisms that aren’t exactly mistruths maybe but aren’t exactly selfless either.

The recession, the foreclosures, the trouble out there, exist in a vacuum around this sanguine individual  who moves people into homes and financial situations that are sometimes fortuitous, yet often enough calamitous.

This writer is currently visiting with four very unhappy and morally bruised clients of Lenny’s and the research will be detailed in subsequent reports, both here and in other publications.  He either shoved them into “NegAm” deals (now widely criticized by loan officers, especially in the current economic environment), or skimmed over the murkier details of their mortgage contracts.  They are hemorrhaging money and remain in real agony.

Bottom line:  The high-end real estate culture continues to operate with values equivocation, leaving some folks in deep trouble, despair, shock, and too often foreclosed.   Some people in his community, experiencing emotions ranging from frustration to moral outrage at the commercial culture Lenny personifies, sitting in homes or condominiums bleeding them financially and psychologically, want to impart their feelings.

When all you have is what you do, then what you do is what you have.  To be continued. 

Image: Fotosearch

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