SHORT SALES AND FORECLOSURES - GOOD FOR REALTORS AND LENDERS. BAD FOR CONSUMERS AND THE ECONOMY!!!

Reblogger Pat Laracy Baker
Real Estate Agent with Key Advantage Realty 113011

I could not have said it more eloquently than Lenn has.  All so true and all so sad.  The housing industry is the answer to recovering the economy.  When we suffered through 9/11/2001 the housing industry kept going.  There is still and American Dream.  Buying a home is the best investment anyone can make.  Lenders can't add.

Thank you Lenn

Original content by Lenn Harley 303829;0225082372

LENDERS and REALTORS are vigorously processing short sales and foreclosure across the country and have been for about 4 years now. 

Richard Zaretsky relates a meeting he attended with Bank of America representatives in a "Short Sale Summit".  In reading Richard's account of the meeting(s), a statement that got my attention spoke volumes.   

"There was zero mention of principal reduction programs."

CAN'T LENDERS ADD??  The fact that the banks are so adamantly opposed to principal reduction programs leads one to wonder, WHAT IS THEIR MOTIVATION??  I realize that the government worked very hard to make banks solvent through the redistribution of wealth in TARP.   I've come to the conclusion that, not ony are the banks zealous in preserving the mantra of "IF YOU DON'T PAY, YOU DON'T STAY", banks are either simply wrong headed in their zeal to foreclose OR banks simply can't add.

LOSS OF EQUITY HAS CAUSED THE FOLLOWING:
Upside Down
Short Sales

Foreclosures
Loss of credit
Lost employment opportunities
Loss of education stability for children
Loss of property values
Loss of local government revenue
Loss of consumer confidence
Loss of savings

Degradation of vacant units
Reduction in home maintenance
Loss of community housing values
Disruption of family stability

THERE IS NOTHING LEADING TO FINANCIAL STABILITY FOR A CONSUMER IN A SHORT SALE OR FORECLOSURE.

PRINCIPAL REDUCTION COULD CAUSE THE FOLLOWING:
Dramatic decrease in Short Sales
Dramatic reduction in Foreclosures
Stability of consumer credit
Flexibility of employment opportunities
Stability of education opportunities
GROWTH IN PROPERTY VALUES
Growth in local government revenue
Increase in consumer confidence
Preservation of private savings
Stable management of vacant units
Financial ability to maintain homes
Stability of property values
Stable family finances

WHO WOULD BENEFIT FROM PRINCIPAL REDUCTION??

REO LISTING BROKERS???  If you are a real estate broker who has a significant market share of the short sale and/or REO listing market, you're probably asking:  WHAT WOULD PRINCIPAL REDUCTION DO FOR THE REAL ESTATE INDUSTRY (for me)? 

MOVE-UP MARKET.  Listing agents and brokers would again enjoy the MOVE-UP market.  Without the heavy boot of negative equity on their necks, home owners would be free to sell their homes based on their personal need and decisions.  Home owners could once again follow job opportunities without being faced with the agony of letting a home go to forecActive Adultslosure or attempting a short sale. 

RETIREES.  That famous "baby boomer" market and other retirees would again be able to sell their existing home and relocate to retirement communities across the country. 

FIRST TIME HOME BUYERS.  This important segment of home buyers would enjoy a wider variety of homes to consider without the necessity of buying foreclosures in disrepair or short sales without the security of knowing that their contract will close. 

CONSUMERS.  Consumers who have lost their homes due to short sales or foreclosure have seen their credit rating reduced by significant percentages.  Loss of credit rating means higher interest rates for future mortgages, auto loans and credit cards. 

THE UNITED STATES ECONOMY.  "As the housing industry goes, so goes the U.S. economy", Lenn Harley.  Anyone who doesn't understand that statement has no memory, no understanding of the dynamics of the the housing industry to the U.S. economy. 

LOSS OF CREDIT RATING MAY ALSO MEAN:
Loss of job opportunities. 
Inability to obtain competitive rates for auto and property hazard insurance.

WHAT ARE THE BENEFITS TO THE CONSUMER, REAL ESTATE AGENTS AND BROKERS, LOAN OFFICERS AND THE UNITED STATES ECONOMY FOR SHORT SALES AND FORECLOSURES????

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988. 


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Rainer
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Jen Giraud
American Home Shield - Dallas, TX

Great post Pat, thanks for sharing! Definitely gives you perspective and makes you wonder why banks aren't doing more to prevent short sales and foreclosures!

Aug 18, 2011 02:42 PM #1
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Thank YOU Pat.

Aug 18, 2011 04:25 PM #2
Rainmaker
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Pat Laracy Baker
Key Advantage Realty - Needham, MA
Realtor, Green, ABR, Needham, Massachusetts

You are my heroine Lenn.  It is I that should thank you.  You are a gifted woman.

Aug 18, 2011 04:50 PM #3
Rainmaker
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Pat Laracy Baker
Key Advantage Realty - Needham, MA
Realtor, Green, ABR, Needham, Massachusetts

Thank you Jen.  If I live to be 150 years old I will never understand banks.

Aug 18, 2011 04:56 PM #4
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Pat Laracy Baker

Realtor, Green, ABR, Needham, Massachusetts
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