ONE WAY TO CURE THE ECONOMY.....TAKE THE LOSS AND MOVE ON....

By
Real Estate Broker/Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #636943

People who have lost something suffer for the experience. Have you ever had a car stolen, a home burglarized....your purse or wallet taken? How about people who gamble. They play and lose and hide that failing with a vow to WIN IT ALL BACK...when in reality they may need to just stop gambling

It is not a good feeling to lose anything, at anytime for any reason.....but it does happen.....

HOMEOWNERS:

I feel your pain deeply. You bought a home and had every reason to believe that it would go well. You borrowed against it and bought things thinking that you finally arrived. You forgot about the NO GUARANTEES in life statement. You were caught short even though your thinking was sound and you crashed and burned. Not everyone is conservative when it comes to money management.

INVESTORS:

You reached the point in your life where you had some money put away to play with. You researched your product and then made decisions hoping all would go well. You were looking for maximum returns with reduced risk. Wall Street wasn't performing to your expectations, but Real Estate was looking good.....then the bottom fell out and you lost all you monopoly money...your play money

BANKS:

You made loans, loose, fast, and hard. Profits were coming in and your investors, staff, patrons and even your competitors were making money..You had a nice run while it lasted and you made money...Lots of it...You thought you had it sewed up having the right to foreclose if something went wrong and you were right. You could have never imagined the current scenario kicking in and exposing your practices, weaknesses and ineptness...

POINT OF THE POST

It's time for everyone to sober up and move on. If we are ever going to get out of the current mess, we are going to have to realize that having a mortgage for twice the amount or more than the property is worth will never work out to the current HOMEOWNER, INVESTOR, OR BANK....

Investors, banks and homeowners are going to have to take the loss and move on. If not, we are stuck in limbo...a sort of grayish zone where everyone is right and hurting, but no one is recovering or moving forward. You lost your money, your home and your investment.....now you must deal with it....

Mortgage lenders and investors who have invested in securities based on Real Estate have been wiped out. Banks, you must know now that no one is going to make good on a home worth 60% less than what they owe. Either write down the mortgage and take the hit or short sale and move on...do this quickly because by dragging your feet, you are keeping us from the recovery process......

When we admit the loss and accept it, it is at that time that the government can contribute here or there to offset only to move things forward, not bail anybody out, make good losses, or rescue people from a failed structure. Help to get up and move forward, not help to stay here....

The longer we delay this procedure....the longer we will remain in this void of no hope, no opportunity, no job recovery, no business building, and most importantly, not letting this current Real Estate cycle die already so that a new one can begin

close

Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Ellie Shorb 11/20/2010 09:39 AM
  2. Tony Marriott 11/20/2010 10:07 AM
  3. Barbara Hensley 11/21/2010 07:59 AM
  4. Ritu Desai 11/21/2010 08:20 AM
  5. Sandy McAlpine 11/24/2010 02:21 PM
  6. Kelly (Byrnes) Waugh 11/29/2010 12:49 PM
Topic:
ActiveRain Community
Location:
California
Tags:
economy
investors
banks
lenders
mortgage defaults
securites
government
homeowners
financial loss
real estate cycles

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Rainmaker
309,318
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

Very true and you presented it so well even I could understand.  When will the banks step up?  Margaret C.

Nov 21, 2010 10:32 PM #88
Rainer
37,647
Michael Emerson
Keller Williams Realty - San Juan Capistrano, CA

Good blog. In life it's difficult to let go of the past, stop worrying about the future and live in the present. Hopefully we don't repeat the mistakes that got us into this real estate mess. 

Nov 21, 2010 10:44 PM #89
Rainmaker
583,535
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

You got it right here Richie! We need to move on so we can recover.

Nov 21, 2010 11:01 PM #90
Rainer
121,278
Eva Erdmann
Lion International Inc. - Holiday, FL
interior decorator

Richie,

Generally I agree with you.

Let's forget the loss and move on !

It sounds great but I would like to ask you here one question. Did you ever lose everything at once ? I mean everything you have been working for for many years; house,car,business,all your belongings and life of someone dear to you ?

Think about it and then say let's forget it and move on.

I'm sorry but I will never forget what had happen to me. I'm one of this people who will not forgive and forget. I'll go after the ones who stole from me and who harmed me and I'll make them pay. That's just me.

Zijuzijazijana

 

Nov 22, 2010 08:43 AM #91
Rainmaker
81,527
Debbie Solano
Coldwell Banker Select, Realtors -- Tulsa, Oklahoma - Tulsa, OK
CRS -- Tulsa, Oklahoma Horse Properties & Land

What you say is true.  Moving forward is positive.  Whining and moaning is looking at the past and focusing on negativity. 

Nov 22, 2010 08:52 AM #92
Rainer
25,303
Esther Harnsberger
Keller Williams Realty Success, Littleton, CO - Denver, CO
Your Denver Home Source 303.902.1435

Move ON

Right on! Let's pull up our bootstraps and move on and finally when that horse bucks you off, just git right back on 'er and mosey on ..... and don't ya look back now. 

Nov 22, 2010 09:55 AM #93
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Hi there Debbe....your comment demonstrates how simple it is...we can talk this thing into the ground and I know investors and banks are being deliberately stubborn as a way of putting pressure on the government to make good losses. The stakes are no less than people....No more rescues or talk...write it off and ride into the sunset. Thank you Debbe

Gwen.....he is our dad now. Thanks for sharing him with us. Can the bee unsting...?

 

Margaret....your the best....the banks like to manipulate instead of using business plans and models like everyone else. Look what we uncovered when the economy crashed. We caught lenders/bankers with their hands in the till and asleep at the helm. These people are well paid and in high places....American people got taken again

 

Thank you girls for visiting

Nov 22, 2010 10:16 AM #94
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Michael...life has a way of teaching you in real time what you should have known, what is going on now, and what to expect.....The only thing missing from this formula is the people paying attention to the data coming in.....The country doesn't promote being conservative with money. It actually needs you to spend and keep spending. Well, we all obeyed and when something went wrong, the ordinary guy out there is the first to get wounded here. The banks and investors got rescued....Where is the justice in this type of system...?

 

DeeDee...my make-up is to instantly go to solution whenever there is a problem. Some people need time to mourn or get there lesson in time. There are deadlines to forgive debt in pace now that expire in 2012. Acting now begins the recovery process so that a homeowner can participate in buying another home in 2-3 years using FHA programs. As painful as it is, we need to move toward opportunity.....sooner the better for all...

 

 

Nov 22, 2010 10:23 AM #95
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Sweet Eva...First off....THANK YOU for visiting and commenting with me. I will answer your question best I can. Yes...I have lost everything....I retired at 34 with a million dollars, a beautiful home, 3 nice cars and all the rest of it. I also had lost my father at some point and was surprised that I wept for 3 weeks intermittently. I have/had a family too. Since the beginning of creation, problem/solutions have been coming in steady. So, I knew I was not being singled out and that things happen to mankind as we journey. We must move forward after every situation or what is the purpose of life...? You have to live it.....That is what gives it meaning and causes us to grow and prosper and not just materially either. As to your system of paying people back, be advised that everyone gets what they deserve between now and the end of their journey(and beyond). There is no escape.....You have a conscience that reminds you of personal error and it requires repentance before it gives you a fresh start. If you don't let go of this PAY BACK mentality, you are sentencing your-self to a false destiny and not the one god would have you have.....My first reaction to all my WOES.......I wept and mourned and cried asking God to give me the strength to move forward and think clearly. I did that until I stopped. I am private man so I kept it to myself. In time, (and it can be different for everyone), I got over it and my new path was presented. Get on this program and you will prosper...but your heart has to be one of sorrow not arrogance and blame......Do this not only for yourself, but others are counting on you too.....Travel well...dear lady and may your pain pass quickly enough... it will if you will

Nov 22, 2010 10:38 AM #96
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Debbie...I don't mind some whining and moaning with the understanding that it is just passing through...like a phase. That is not where anyone of us wants to stay or hang out....How can you get rewarded for that...? It is not a reward-able behavior, but it can lead to one if you navigate through it correctly. Picking ourselves up, brushing ourselves off, taking stock and then moving forward is required by everyone who has life in them....thank you for joining me on this subject....best Debbie to you

Esther...yes...to your comment. Acknowledge the circumstance, take stock, and then lift your bootstrap up into the stirrup and aim for the horizon...keep riding until sundown then camp out. Repeat this as many times as you can......You will get somewhere using this program....thank you Esther....

Nov 22, 2010 10:50 AM #97
Rainmaker
242,098
David Ames
Zephyr Real Estate, San Francisco - San Francisco, CA
San Francisco

Richie...a "fresh start" is most definitely needed.  Granted...that's an understatement.  If only there was a "hard reset" button to bring the economy and the housing industry back to a "factory default" postiion.  Perhaps that's over simplifying the situation, but I feel there's some potential power behind that idea when you think about it. 

Nov 22, 2010 12:36 PM #98
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

David....I thought of the reset button too......My friend, everything that is happening is for a reason....so we both agree that something else is going on.....A big something else.......It will come out soon enough

Nov 22, 2010 02:00 PM #99
Anonymous
Anonymous
Diane Z

As a Realtor and a single mother of a disabled daughter, this post could not have come at a better time.  I live in one of the worst areas for unemployment and foreclosures in Florida right now and while I have done well as a Realtor in the past and I have 7 countract pendings (all tied up in short sales and foreclosures issues), I have agonized for months about letting my house go into a short sale.  I have many repairs that have been put off and my house is worth $60,000 less than I owe.

This post has convinced me that this needs to be done - breathe deep and just do it!  Thanks guys

 

Nov 23, 2010 06:31 AM #100
Rainer
4,889
Tim Blankenship
SCV Legal Doc Assist - Santa Clarita, CA
Providing Affordable Divorce Services In CA

I have been preaching the same thing for a long time.  Stop messing with the market and let it adjust normally.

Nov 24, 2010 10:35 AM #101
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Hello Tim....you may have it down to just that.....letting it adjust normally. I suspect that many will not like where it lands thus the manipulation....sore losers if you will.......Eventually, water will seek its own level if we don't dam it up...thank you

Nov 24, 2010 10:40 AM #102
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Hello Diane....I travel with you during these difficult moments and times. It is not an easy subject and realize that it has too much of a grasp on us. This was not meant to be. You are greater that all this. Your math on the house makes sense. Your assesment of your situation makes sense. let sense prevail and you wont be sorry. You will suffer and feel some discomfort, but this is all short term. You will recover, you will prosper and you will continue to do great things......Strenght to you and your daughter...I leave you with deep and warm thoughts....

Nov 24, 2010 02:53 PM #103
Rainmaker
263,650
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

A tremendous amount of damage has been done. I hope we learn some lessons and don't let this happen again.

Nov 27, 2010 10:18 PM #104
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Tigard....that is how we learn. You see, prior to 911, we don't listen. Try convincing anyone we need a new cabinet post like the Department of Homeland security at a cost of multi-billions and they will tell you..... you are crazy. OK...now, do a 911 and we fully understand the need..learning after the fact is not always profitable, but it is the way of mankind.....dysfunctional to say the least...thank you Tigard....

Nov 28, 2010 03:26 PM #105
Rainmaker
1,014,198
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Sometimes we just have to take our medicine and live with the fact some lost money.

Nov 30, 2010 11:23 AM #106
Rainmaker
1,320,209
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Hello Gary...good comment....You know they add sweeteners to medicine because in its natural state, it tastes horrible....but with or without the taste factor, we need to take it and move on......Life is to be lived and not mourned about especially material things.....we are greater than that.....much greater...best Gary

Nov 30, 2010 11:28 AM #107
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