ONE WAY TO CURE THE ECONOMY.....TAKE THE LOSS AND MOVE ON....
The prudent thing to do is to suck it up and move forward. I am concerned that some under water home owners who are averse to going the Short Sale route may regret that decision when they are finally forced to do so after the end of 2012 and find that they owe Uncle Sam taxes on the forgiven difference.
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
PEOPLE FIRST...THEN BUSINESS
Richie Alan Naggar Ran Right Realty Riverside, Ca
Richie@RanRightRealty.com
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