Seven years ago this morning over three thousand of our fellow citizens were murdered in the worst foreign attack ever on our soil.  These people were fathers, mothers, sons, daughters, brothers, sisters, uncles, aunts, cousins, grandparents, and friends to untold others.  Their passing seems forgotten amid high gas prices and election year politics.

Remember.

Remember where you were that morning.  Remember how it felt to watch the towers fall knowing they were full of brave and frightened people.  Remember the Pentagon where protectors of our freedom were slain at their desks.  Remember a cratered and scorched field in Pennsylvania where bold passengers made a defiant final stand.  Remember also the other two plane loads of men, women, and children used as guided missiles against each one of us.

Remember.

Remember the men and women at home and overseas toiling to protect us from an elusive enemy sworn to destroy us all.  Remember them, whether you agree with the policies of the government that sent them there or not because whether you agree or not these men and women are undeniably sacrificing their time, bodies, and lives for us.

Remember.

Remember and work tirelessly to bring peace to your corner of the world and forever extinguish a hatred, an inconceivable loathing spanning generations that leaves our world and all of us at war.

Remember.

Many people believe businesses are by their very nature corrupt and seek only to dominate their markets and dupe their customers, suppliers, employees, and any other stake holders out of their money.  This view is fueled by the class warfare mentality fostered by our "leaders", fanned by popular culture and the media, and thereby widely accepted as the truth by the masses.

Sure, there are employees, leaders and owners of business that rip people off, exploit the ignorance of their employees and customers, and make gobs of money doing so.  They should, and must, be rooted out, taken to task, and removed from positions where they can carry out such plans.  My twenty years experience in the business world has shown me something different, though. 

By far the vast majority of the people in business I've encountered- from the line employees to their managers, to the CEOs I worked with in my accounting career- were hard working, decent people who had a vision they strove to create in the world through their work whether they owned the business or worked it for someone else. 

I firmly, resolutely believe the idea of "win-win" business transactions is not merely a Donald Trump-esque slogan, nor is it a myth; it is a fact.  I've conducted myself and my businesses on that premise my entire working career and know I am not alone in this view.  This is true of real estate and mortgage professionals, certainly, and much, much more.  Auto repair shops, restaurants, grocery stores, any where we buy any thing or receive any service.  These businesses are all around us right now.  It isn't hard to find them, one need only look around, ask their family and friends where they have received fair treatment, and go there to do business.

As consumers we owe it to ouselves to seek out business such as these and become their loyal patrons.  We must also consistently, almost religiously introduce these businesses to our families, our friends, our co-workers, and anyone else in our lives who are important to us.  In doing so, we can bring tremendous, world-changing power to bear.  The power of the free market.

When businesses that insist on the "win-win" mindset of ethical dealing and an oustanding experience for customers, employees, and other stake holders become more successful we all benefit.  We punish those who do not share these values where it hurts them the most- the pocketbook.  Refuse to reward businesses you know act unethically, or those that treat their employees and/or customers unfairly.  A cheap price is nice, but at what cost?  You can find great value in other, better run businesses. 

It's been said you can change your thoughts and change the world.  The same is true of changing your buying habits.

Consider this:

Your neighbor, a heavy smoker, falls asleep while holding a lit cigarette and his house catches fire.  He smells the smoke, realizes his life and property are in danger and calls the fire department.  You hear the commotion outside, walk down your driveway and learn what's going on.

Do you get angry at the fire department for responding to an obvious crisis caused completely by your neighbor's carelessness?  Do you insist that the firefighters leave immediately and let your neighbor's home burn to the ground?  Do you insist the tobacco company that made the cigarettes, the truck driver who delivered them to the convenience store where your neighbor bought the cigarettes, or the clerk there who took his money come put out the fire instead?

No, of course not.  You may be upset with your neighbor for his carelessness, but you realize that allowing his house to burn puts yours at risk from burning embers.  Doing nothing could well lead to your own home burning down, too.

Metaphorically speaking, thousands of U.S. taxpayers are enraged today that the federal government is stepping in to put their neighbor's house fire out.

Over the weekend, the government announced that it is placing Fannie Mae and Freddie Mack into receivership- in effect, taking them over.  Already TV news commentators are fanning angry taxpayer's flames by saying it will ultimately cost them untold billions and billions of dollars.  Taxpayers are angry, they say, because they will have to bear the cost of other people's greed and poor decision making that led to the housing and credit slump we currently are experiencing.

While they may rightfully be enraged about the causes of the current problems, to vent their anger at the government for this and other recent actions makes about as much sense as yelling at the fire department for responding to a fire.  Ultimately, doing nothing will cost taxpayers far more than "putting out the fire" will.  I understand their frustration at having to foot the bill (hey, I'm a taxpayer, too!).  However, I also understand how the market works. Without some assurance to investors in these securities that they will get paid, interest rates will rise, mortgage financing will become harder and harder to obtain, and the housing market will continue to languish.  Home values would drop or stagnate for an even longer period of time which ultimately could cost taxpayers more.  Most people don't see that though because the talking heads on TV will play up the fact that taxpayers are footing the bill for (fill in the blank- buyers, realtors, mortgage lenders, whomever your favorite villain du jour is) greed and bad decision making. 

This fire was caused by poor decision making on the part of a lot of people- buyers, realtors, mortgage lenders, investment houses and investors on Wall Street, just to name a few.  Just as with a house fire, the first and immediate action is to put the fire out.  Then investigate the cause and take corrective (and preventative) action.  Don't tell the fire department to pack up and leave.

Everywhere you look there are signs about "bank owned" homes, and "foreclosed" homes.  What's the big deal?  Aren't these houses in a bad part of town, and in really awful condition?  What does "bank owned" or "foreclosed" even mean?

Well, bank owned and foreclosed mean essentially the same thing: the person who last bought the home and financed it with a mortgage for whatever reason was unable to make the payments.  It may be that they simply bought more house than they could realistically afford, selected a loan program that led to payments they were unable to make, suffered a set back in their career, some combination of the above, or for some other reason simply could no longer make the payments.  When the payments stopped flowing to the lender (the "bank"), the lender exercised their right to foreclose, or take, the house away from the person who used the lender's money to buy it.  It's a sad outcome to an unfortunate situation. 

Does this mean the homes are in rough shape or in bad neighborhoods?  No, not at all.  While some of the homes that have been foreclosed on and are now bank owned may need some work, in most cases it is cosmetic in nature- nothing that a good cleaning and a coat of paint could not fix.  In some cases the homes may need a bit more work than that, and the bank lowers the price of the home accordingly.  These homes are in virtually all neighborhoods right now- from poor neighborhoods up to high-end luxury areas.

So again the question:  what's all the hype about buying a foreclosed or bank owned home? 

It's simple- they are for sale at a fraction of their true worth. 

Banks are in the business of loaning money.  Period.  They do not wish to own homes, and look at owning homes as a risk they are unable and unwilling to bear.  The home could burn down.  Vandals could damage it while it sits empty (even in nice neighborhoods).  Someone could become injured on the property exposing the bank to a lawsuit.  The list goes on.  The last thing the bank wants to do is kick someone out of their home when they cannot make the payments because the bank now absorbs all these risks they do not want.

So what do they do?  They offer the homes for sale at low prices to get rid of them as quickly as they can.  In most cases, they would rather take a small loss to sell the house quickly than hold onto it for months waiting for a full-value sale.

That is why buying a bank owned/foreclosed home is such a good opportunity for you. 

If you are considering buying your first home, you can buy a larger home in a great neighborhood than what you could get a small home for just a few years ago.  If you are considering buying a larger home than your current home for your growing family, you may be able to do so without substantially increasing your monthly housing payment.

Like a "going out of business" sale, or even sales the day after Thanksgiving or Christmas, the time to act is right now.  These deals will not last long, the homes will be snapped up by savvy buyers who recognize a great opportunity when they see it, and housing prices will once again move up. 

Don't be left behind!