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Why The Mortgage Ship Sank and The Realtor Ship Sailed On

A few years ago, the sun was bright and the wind was strong. And while we were never the perfect partners, we still understood that both the Reator Ship (the SS CrazyMarket) and the mortgage ship (the SS LooseLending) needed to make it to shore for a real estate transaction to close.

Passengers were plentiful in those days. Some lost their focus with the sun so bright, and became sunburned in their quest to get out there. Realtor sailors were way too busy to think of handing out sunglasses or sunscreen.

Besides, that wasn't their job.

Any old mortgage broker on the SS LooseLending could get a client to shore, so Realtors did not need to be very discriminating with their mortgage partners. Just put 'em on the SS Looselending, and clients would get to shore (somehow, some way, NEXT buyer, please).

Those mortgage sailors had so many different routes to get to shore that they had a tendency to pick the one that was the most profitable (and most dangerous) instead of the shortest and safest. Often, they didn't bother to learn every route, and just stuck with the ones they knew and understood, regardless of the danger it presented to the passenger.

By the time the passenger boarded the SS LooseLending, they were tired, seasick, AND sunburned from their trip on the SS CrazyMarket. They didn't take time to understand the best route that would take them home. They wearily nodded their heads, they signed, and they stepped off the ship, the proud owners of a piece of real estate.

Would it be safe to say that beyond the horizon a storm was brewing that no one could see? YES.

Would it be safe to say that sailing was so much fun that everyone forgot that there are times of smooth sailing, AND times when the skies turn black and the wind howls? YES.

When the storms finally came, the two ships rocked violently. Gusts of wind like they had never seen threw sailors overboard, never to be seen again. Passengers were non-existent for obvious reasons.

The SS CrazyMarket pulled in its sails, and those left on the ship went below deck to ride out the storm. The SS Looselending was not so lucky. It sank to the bottom of the ocean.

Maybe it just had too many holes in it.

All the mortgage sailors that could swam to shore, some drowning along the way. Unlike the Realtor sailors who were still hunkered down, they had to abandon ship, and learn to sail a whole new ship.

It wasn't easy.

The storm had left most routes closed. So much debris was in the waters that just getting any passenger to shore would take great navigational skills. Many more mortgage sailors walked away, deciding sailing this new ship was just too hard to learn.

So a new ship was launched with the hardiest, strongest, and most skilled of the mortgage sailors aboard. And although there were far fewer routes, and far fewer sailors, passengers would finally make it home safely.

Maybe, just maybe, it wasn't the sailors that caused the SS Looselending to go down. The ship was hopelessly flawed from the start.

When waters are smooth and the wind is gentle, no one thinks to look out to the horizon in search of the next storm. Even ships that are flawed can make it through when the sun is shining so brightly and the waters are so calm and inviting.

Smooth waters cover a multitude of sins.

But when the seas are rough, only the sturdiest of ships and sailors are destined to survive. Flaws are easy to see, and without the balmy days to distract you, your mission is seen with much more clarity. You look towards the horizon each day, searching for a ray of sun.

And hoping for doc(k)s.

Written by Janet Guilbault, Mortgage Lending Expert Based Out of the San Francisco Bay Area.

Posted by Janet Guilbault California Mortgage Banker/Broker on 07/17/2008 12:42 PM

Comments (75)

mortgage crisis, real estate commentary, housing crisis, credit crunch

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75 Comments on Why The Mortgage Ship Sank and The Realtor Ship Sailed On

JUL

2008

Kind of reminds me of that old children's story where one of the animals wants the other to climb on it's back to get across the river and then one of them eats the other. Predatory lenders were like that.

“A ship is safe in harbor, but that's not what ships are for.”

This quote by William Shedd reminds me of the current situation in the mortgage world. With the tightening of guild lines and lenders not venturing very far from shore, the lenders will be safe, but if you're not going to make loans, can you really call yourself a lender?

Bob Mitchell

ValueList Real Estate Services, Inc.

Good post and well written, even though I can't see now because of that blinding sun! : )

Interesting analogy Janet and beautifully written. I know some of the best mortgage people in the industry that have left during this storm. It didn't just take out the bad guys, it took out some really good people and the industry as a whole is hurt by it. There will come a time when this storm will not be remembered by the majority of the people working in the industry.

I remember a time when many an agent would say - if you can't close in 30 days we don't even want to work with a client. I think that everything and everyone contributed.

How about calling it SS Transistion?

Barbara: I know what you mean. I keep looking at the picture of that sun and it seems to actually be glowing. What is up with that? Who needs sunglasses just to read a blog?

Hi Kate:

I don't know. I think that this decade will always be remembered for this real estate upheaval. That this is history in the making. And that they will continue to talk about this as long as there are mortgages.

Nice to have you stop by and I love your idea for a name.

I was thinking the SSHindsightIsAlways20/20

Hi Janet: I always love your analogies! Personally the mortgage ship sinking or lsting wasn't such a terrible thing. It got rid of a lot of the pretenders who weren't working in the clients best interest. Regarding realtors, it appears their ship is sinking too for much the same reason. Take care.

Paul

An absolute classic. Worthy of a Pulitzer. The key is communication and working together.

Wow, Lenn, thank you so much. Was inspired by your post and also Mike's.

Trying to illustrate the simple fact that we are all in this together, and had little control over the storm that changed our industry forever.

Now it is about how we choose to move forward and to survive.

Paul: the reason I do not think the Realtor ship has sunk is because there will be a crazymarket again.

There will never be looselending again. That one is at the bottom of the ocean and it is not sunken treasure.

Bob: Great quote, thank you for that.

Can we fault our lenders for pulling out of the mortgage business considering the losses they are taking?

Wouldn't you change your business model if you were losing your ass on one segment of your business?

Bill: Well, maybe some of those mortgage brokers threw passengers overboard and a shark ate them.

A loan shark?

Excellent analogy. Thank you, Janet.

Very good analogy Janet. I would say the bottom of the sea is a ship graveyard at this point. It's just flat out brutal out there. Somehow my little dinghy survived the storm thus far. It's tattered but it's still maneuverable.

Jannet - I only recently subscribed to your blog and I have to say that THIS IS A GREAT STORY. I enjoyed it very much. Thank you for sharing your thoughts. I have bookmarked it for later reading or passing it on to others.

Thank you and have a great day!

John Cannata - Reliant Mortgage

Hi janet, Now that was a fun read ! You write really well. Points well taken !

Janet that is an interesting analogy but not so sure it really depicts the events in an accurate light. While there was/are a lot of "loan sharks" out there, there were/are also plenty of real estate agents taking those long detours to the bigger more profitable house to sell their clients with dollar signs in their eyes the whole way. Sell them on the more expensive house then have the loan officer show them how they can afford it with an option arm and see that much bigger profit!

I also think with how slow the real estate market is, how much depreciation there has been, and the number of realtors who have jumped ship the SS CrazyMarket is having just as many troubles as the SS LooseLending. I don't think the lenders are going to ever get as loose as they were in the past but they will loosen up from where they are once they know where they stand. They are still in the soft sand trying to find the solid rock to stand on and once they do I think they will loosen up quite a bit. The real estate market will be crazy again as well but without the loose lending supplying a huge pool of buyers I don't think it will ever be as crazy as it was in the past either.

Hey Janet, I thought of another name -- how about SS Wheretheh***arewegoing?

I do think that there will be loose lending at some point in the future, maybe not in our careers, but it will happen again. Much of what happened here is a repeat of what happened with the S&L Crisis, with a twist. Fraud is Fraud and even with new regulations, someone will find a way to circumvent the safeguards - all in the name of capitalism.

OK - off my soapbox now.

on another note, just watched Airforce 1 land in the redding airport. What a beautiful plane!!

I am confused. The realty ship sails on? I suspect the many folks who would sell their homes, if they could, but find themselves upside down in their RE market, might not feel like RE was "sailing on" very well.

Or are we speaking of the agents who survive, in this market.

In my mind, the difference between sailing on or sinking has to do, not with agents or lenders, but with the people they "serve".

If we (realtors or lenders) have put our clients in a bad situation, then we should be ashamed to be ok about "sailing on".

But maybe I missed the point, somehow...

Bob: Post is to illustrate the difference between how the mortgage crisis impacted Realtors vs mortgage brokers.

Realtors saw a huge drop off in business, but mortgage brokers had to compeltely change the way they did business.

Sinking refers to the demise of stated income loans, 100% loans, equitylines and the like. Without those products, a whole new way of doing business had to be learned.

Do not think you missed the point, just have a little different interpretation. Thank you for your input.

Your analogy forgot mention the powerful god of the sea, Poseidon (a.k.a. NAR.)

A great and powerful deity such as Poseidon would never allow his actively worshipping sailors to be pulled down in the whirlpool caused by the sinking LooseLending ship...even if some of his worshippers were responsible for tossing unsuspecting passengers onto LooseLending's decks.

Geoff: I know when I write a post like this it isn't stratighforward. For that I apologize. When I say that Realtors did not provide sunscreen or sunglasses to borrowers, what I am saying is that they sometimes did not protect their clients from the crazy market, their hyped up expectations, and their desire to get in at all costs.

This is the same thing you are saying, I think.

Now having said that, I, for one, do not believe that real estate agents "steered" clients into houses that they could not afford.

Option arms? Won't comment other than to say when I first understood exactly WHAT an option ARM was, I said this: "wait, why would we do this loan? It makes no sense". I was definately considered out of it for this attitude. But then, I operate based on what is best for client, is always the best for me.

Janet: Absolutely fantastic analogy and extremely well-written! As for your descriptions to Bob, I got it!! I wish all lenders saw through (and PAST) the blame-game and re-set their sails to move on as you have. Your REALTORS are very lucky to have you in their corner!

Debe in Charlotte

I am a Realtor and Mortgage Broker. I hope my ship has not stopped sailing. The Titanic sank but in our mind she lives Forever.

Great & entertaining post! Love the analogy of the smooth waters. It's tough to know exactly when the change is coming, but we all know it eventually does. Plan ahead!

Janet...great "take" on a true story! Altho, I am proud to say that during this hype, I NEVER, NEVER let any of my clients take an adjustable rate loan.....I told them it was not worth it, and in 3 or 5 years you have no idea what the market or economy could be like.....was I smart, or what? Did I sell homes to people with no doc, stated income loans? Heck yea....even bought myself that way. But, I knew my finances and what I had to do so I'm not in trouble. Not everyone is that disciplined.

Thanks for a great post on a hard subject!

Janet, Excellent overview and thanks so much for your insight. We are all a party to the current situation. We will all hang in there too! Thanks.

Janet I think you are keeping your blinders on if you don't think agents didn't try to make an extra buck on selling a more expensive house. Not saying all did but it happened.

The thing about the "creative" loans such as the option arm is they are all VERY good loans for the right people. An option arm is an excellent loan for an invester who isn't going to be in a house for very long. I looked into that option when purchasing my condo. Done at the right time with the appreciation that was going on and my plan to have it for 5 years part of which as a rental had I paid the full payment of a 30 year fixed loan yes the loan amount would go down so that when I sold the condo I'd have more money in pocket. However the cost of that money would have been at a much lower return for the money spent. I would have spent much less money with the option arm and had more to spend on other investments. I think the problem is most agents and clients only think that everyone is actually going to be in their house for the 30 years the loan is being paid. Many of these creative loans are very beneficial in the right application. However they were abused by LOs and borrowers which is what makes them bad.

Thom and Ray I'd have to say or what. Always going with a 30 year fixed loan is a good way to spend a lot more money than you have to. Depending on what rates are doing and what the buyers goals are they will be paying a higher rate for that 30 year fixed. When they are most likely not going to be in that loan for more than 5 years that money wasted. Statistically loans don't last more than about 5 years before someone sells or refinances. It all depends on the clients needs and goals. What's good for you isn't always good for them. That is why you need to sit down with the clients and see what their goals are and what they plan to do. Not every sale is someone's life long residence. And not every sale is someone's primary residence and not an investment. There is way more to it than most agents seem to realize and so much more to gain investment wise if you are smart with your money.

you need to be a novel writer -- on the side, because our business needs to hang on to people like you! You forgot one thing though, some of the passengers should never have been on that boat! Maybe they didn't know how to swim, maybe they didn't have a passport, maybe they weren't mature enough to travel??

Blinders are on, I am giving the Realtors the benefit of the doubt on that one. Having been a Realtor myself, it is just beyond my imagination to think of trying to make more commisssion by selling a more expensive house than client wanted/needed/asked for.

The option arms I did were to investors who were sophisticated enough to understand how they worked. So I do agree with what you have written. There is a place for this loan.

My pet peeve is stated income. Abused? Absolutley. But by eliminating this loan we threw out the baby with the bath water.

Dawn: What an excellent point, I wish I would have said that in the post. There were definately passengers who were on the boat that should have just stayed right in their rented houses and saved money. Maybe then, we would not have a foreclosure epidemic.

Janet

Maybe I've been doing this too long.....Lol. 38 years is a long time.

While I respect you and our Realtor community; I've had published articles on the importance of Realtors in representing both buyers and sellers for a myriad of reasons. Yet, I really don't know of One segment that doesn't hold responsibility for this one in one way or form.

Starting with HUD and RESPA section 8, where both Congress and the Senate approved of the arrangements that were made within all aspects of Real Estate.

We ALL had a finger in it, while some like you and I are more ethical, there are and unfortunately may always be those few that make it hard for the rest.

As for me, I plan on capitalizing on my results to my clients to stand out as my testimonial.

I think we are all here trying to accomplish the same........unfortunately those few are always with us...regardless of segment.

Best Regards

Thom and Ray: Please do not continue to shun adjustable rate mortgages. With so much money at stake, and each person's goals different, exploring more than one option makes sense.

If you are a new reader to my blog, you probably have never heard my take on the lethal formula for mortgages:

100% financing + Stated income loan + adjustable rate mortgage + declining market.

It wasn't JUST the adjustable that caused people to get in trouble. It was a mix of things.

Why Wayne, were you doing mortgages in your diapers or something? You don't look that old.

This post really is saying that no one segment of the market was to blame, in the most gentle way possible. The storm represents things that were beyond our control, including the hand our government had in the crisis.

I completely agree with you that there was mutiny on those ships. Some, much worse than others.

Broker Bryant: I feel for you, BB. I often feel as if I have been in a shipwreck myself, somehow survived while watching others drown, and the ship as I knew it, slowly sink into the ocean.

Stay hunkered down, my friend. Things will get better. I cannot get this out of my head: the storm clouds have some kind of silver lining.

wow, the more I get into activerain the more I realize that there is much naitivity amongst many people in this group...... maybe I am the one that is naive..... and I should just shut up... but this downward market... this is NOT the first time that this storm has happened????? why is everyone making such a big deal out of what is obviously what goes up must come down?????? I don't really like the story at all because it is really just what any news reporter would do..... sensasionalize a problem that is not new.... looselending????? dear god in heaven, where have you folks been all my life?? I'm only 47... raise your hand if you ever heard of 125% financing...... if you ever heard of negative amortization prior to 1995? If you ever heard of stated income or easy qualifier or no red tape loans.... lending on future equity..... the looselending ship will sail again and soon..... focus people!! FHA was encouraged to exceed their usual loan limits and are up to 700,000 plus.... FHA approves almost everyone with no money down...... and not even good credit and most folks are sailing that ship right into the dock... right now..... I don't get what all the fuss is about.... consumers are doing what they always do right now.. waiting for it to get cheaper, acting scared, unsure, not settled.... and lazy.... .... as soon as the prices or the rates start to go up and they feel they are going to lose the deal, they will buy..... why do people buy high and sell low.... that is NOT what the books say to do.... the frenzy was created by over inflated property values if you ask me, not loose lending.... I have done the same loans as I've always done..... the new loans that were invented were to help people buy houses when they were expensive..... what would the real estate ship have done if no one had gone on board..... I guess everyone would be boohooing like they are now..... get over it.... it is a cycle... like every cycle, it will come back.... market yourself heavily during the down times.... hopefully with money that you saved as a little ant would in the summer for the winter.... I really am sorta sick of how this is called a mortgage mess...... prices went down and people are walking away from their properties.... when they signed a 30 year contract and now they are changing their minds..... if the prices were going up, do you think they would give a care if their payment went up??? heck no, they'd get creative and figure it out.... it's a good thing... it had to shake out... how in the world was anyone going to get into the market with the prices the way they were going?????? it was a unrealistic boat when it was sailing and the fact that the ship got to the other side at all..... is really a miracle... now everyone go find your new first time buyers... in a few months we will have some new programs that are invented to get the economy going, and as soon as we are no longer in a declining market, the market will come around... I really think loose lending is getting blamed when false home prices is really the culprit.. in other words, comeon.. how expensive can a house really be??? now that the values are going the other way, let's coin a phrase to keep in theme, obviously the passengers will jump ship.. it's human nature that got us into this mess, good old human nature.. it is what it is.. and it will go on over and over for the history of time. One of the lonliest times in business was when rates were 5% and no one wanted to do anything till they were at 4... can't give it away when it's cheap..... I plan on buying lots of stuff in the next year or so....

Whoa, Jennifer - welcome to the post. Your points are well taken and accurate I think, the presentation however could be honed just a tee bit!

Great Article! You're very creative! This is a very true story,

Jennifer - it frustrates me when people equote FHA to subprime loans. You do need 3% down payment, although it can be a gift; alwas full doc (never stated); 45% debt ratios (not 55-60%; and your credit history is a big factor even if there is no minium score; and not everybody gets approved (at least in California). And subprime is NOT coming back like it was.

People need to stop saying 'it's not my fault' - 'we didn't do it' - 'they screwed up' We're bickering like kids on a schoolyard. At this point, it doesn't matter. We all, Realtor and lender alike, need to look after the best interests of the famlies involved in a real estate transaction.

Joe Patterson

Jennifer: I admire your passion and you have made so many points that are important and right on. I am only sorry you did not like this post, and consider it sensationalism.

I made the point in this post that during the sunny days, we forgot there are also stormy days. The point is the same as yours: never forget that the nature of things is that there are storms as well as sunny days. I agree that we have been through storms before. Not quite like this one, but storms just the same.

Jennifer, loose lending very clearly had a part in driving home prices up, in my opinion. Prices going up so fast then caused a frenzy to get in before prices got any higher. I do not agree that inflated prices caused loose lending practices so that people could afford homes. Maybe this is a chicken and egg thing and we are both right.

You are correct to say that people "jumped ship" once prices headed back down. Boy, have they ever.

Janet, great post.

Jennifer, I hear ya. I was around in the late 90s with the 125 craze and the late 80s, early 90s with the crazy rates. This is much worse than the 125 crisis in the late 90s.... However, the late 80s and early 90s, it was just as slow... This is the third down turn I have been through, and you are right...it is just a cycle and it will come back. However, Janet is addressing this downturn, and I think its a great post.

For a few others in this post, let's stop pointing fingers in future posts...

Wow Janet great analogy but I am most impressed by your writing. You are very talented in your writing.

Janet, Fantastic analogies - I love the way you wrote this.

Janet, loved the analogies. Now, what kind of ships are sailing those oceans? What kind of ships have to be built? AJ

Although I LOVE the post, I think the jury is still out as to whether the SS Crazy Market will founder...we haven't come into shore just yet.......

JUL

2008

I enjoyed the imagery. This is definitely another cycle in the ongoing real estate saga which we see every so many years.

Janet,

This is one of the best analogies I have read in a long time. I am going to share this post with my entire office.

When people ask me how I survived I always share how I adapted and actually get up every morning, go to the office and put in some effort.

Great Post.

Janet, if I may continue, after a little more reflection, my comment on your analogy:

Getting the passengers to shore (closing a deal) is not the end of the voyage. The voyage continues - for every homeowner who was helped to buy by agent and lender when the RE market was bubbling. Now they (too many) own and owe on a home more than they can sell it for. And as life moves on, on average everybody who owns moves on every 5-7 years... Except now they cannot.

If we who sail the ships do not see the longer view, the continuing voyage, instead of a "getting to shore" end, we will continue to put the passengers, those we serve, in untenable positions. When we focus on the deal, instead of the long view of the buyer's needs, we are going to shipwreck THEM, even if we are able to go on with our voyage.

Janet, what a stunningly great analogy- and, CLEAR. Thank you!

Bob: beautifully stated and I agree. We should think of our client's voyage as one that takes place over their life, not just deal by deal.

I don't think we necessarily shipwreck them by focusing on the deal. But certainly always focusing on what is best to meet both short and long term goals of the client trumps thinking of how much money this one deal will net you, the agent.

You have a very good analogy there and a very worthwhile comment. Thank you, Bob.

Laurie@Options: Thank you..glad you enjoyed.

Gary: We all did need to adapt, or we would drown. I am thankful everyday I have survived this business because I look around and see so many who did not. Thank you, and I hope it somehow inspires your office.

Christine: I agree with you. There have been storms in the past. But the younger mortgage brokers in my office were the first to go. It is nice to have perspective, and to understand storms always pass.

Bob L: Finger pointing is what inspired this post. I am trying to illustrate how we are all in this together, how no one thing or person is to blame...and how some things far bigger and greater than us (the storm) were at work.

And also, that there is hope.

I have to take issue with one of the premises of this post: Would it be safe to say that beyond the horizon a storm was brewing that no one could see? YES.

Would it be safe to say that sailing was so much fun that everyone forgot that there are times of smooth sailing, AND times when the skies turn black and the wind howls? YES.

I dont think anyone forgot, and I dont think no one could see the storm brewing... we are all professionals, so to speak, and if we are, then we would have no problem seeing that the brewhaha could not continue, and that in fact the fun and games were bound to unwind... it was not only highly visible like a hurricane on the horizon, to keep with your metaphore, but also it was inevitable, and if there was anything about that market that was beating us over the heads it was the inevitability of the end of the boom, and the rise of the nightmare that follows always on the heels of speculation... the financial markets were heated up by specualtion in the mortgage markets, the real estate market was heated up by speculation in the housing markets, and it was inevitable that it would end and losses would acrue.

We just never thought it would be this bad, or at least we hoped it would not, but most likely, the vast majority of "us" simply wanted to get in on the action... witness the huge increase in the number of realtors, number of LOs, etc. during those few years. HUGE... and now, when some were caught holding the bag, we all say we never expected it... nonsense. We just wanted to get our share...

So again, we are all to blame for this... and that is something we need to learn, if we are to prevent it from happening again...

Love the post and your creativity. I have to say though that many of us did see the storm brewing. Unfortunately, many people (lenders, realtors, buyers alike) ignored the signs in the effort to capitalize while the getting was good. Thus the mess we are all in now.

Powerful blog, great parody there. Controversial, but powerful.

Paul in RI:Maybe forgot is the wrong word. I should have said that our selective and collective memories did not want to admit that it would end. That is speaking about those of us in the business.

However, there were definately those...mostly those that were younger...including clients and those in the business...that were blindsided and never saw it coming. While it is easy for you, many were caught off guard. Those that knew it would come did not see a hurricane, they saw an afternoon storm that would pass over quickly.

Of course we wanted to get in on the action. That is one of the themes of this post....that there were too many sailors. Did you notice how many were killed off in the story?

You comments are very thoughtful, and I agree with almost everything you have stated. Thank you, and please remember this is a coastal California view. We had quite the frenzy here and good sense was often thrown overboard in the quest to get to shore.

Sheila: And what is so funny is that I certainly did not predict anything about this little story would be controversial.

Kathy: Exactly! Many "forgot", or ignored the signs. Meaning, if they would have been thinking, they might have remembered. Thank you for an excellent clarification. Sometimes these analogies are confusing to my readers.

Janet, maybe you misread my comments. I congratulated you on your blog and agreed 100%.

I said "the few others in the post".....others means, not you... but I did not want to mention specific folks.

Still a great post.

I am not disagreeing that FHA is not the same as subprime..... it is just interesting that the loan amount has been increased as a way to help non savers buy homes..... that's all I mean... in other words, the loosest loan to get right now, is a FHA as far as low down, low credit and seller contributions.... even letting the seller contribute towards the down payment.... that is kind of risky in itself right there... I just really do find that no doc loans are necessary for many many self employed buyers..... and no way they are going to get an FHA loan, you are right about that.....

Beatifully written, Janet! Maybe we need a ship like the concrete one a wee bit South of you... still standing after all these years ;->

Check this news about the mortgage industry.

http://www.bloomberg.com/apps/news?pid=20601087&sid=atT33eYNaO8s&refer=home

Nicely done! The analogy couldn't be more accurate. Thankfully, we here at the home of the BIG deal were in another ship, the SS DoWhatsRight4Clients and are continuing on our mission to accommodate mortgage applicants that we attract. I guess we were somewhat insubordinate ship mates, since we failed to listen to the commanding officers on the SS LooseLending, and built our own from pieces of that ship. The waters continue to be rough. Yet those of us who are sea worthy will continue on the journey. Kinda makes us pirates.......

This is for comments right? Not blogs.....Just checking.

Janet, you have crafted quite an allegory. The picture of the blazing sun is hard to look at even on a computer monitor!

Wonderfully well put. Your prose is beyond reproach. However, I know of several Realtor sailors that have been lost at sea and a few admirals too.

Well written and I like the story. That being said, I am seeing a fair number of Realtor ships that are in distress. The big companies are doing ok, but in our market we are seeing some Realtors move onto other fields. We had a huge Realtor population for what at what time was a big volme of transactions. As volume has decreased, it is harder for a lot of Realtors to make a living. We are seeing fall out in other places as title companies have lay offs, national home builders are getting hammered and other associated industries are feeling the pinch.

JUL

2008

Good points. I guess the old adage will always apply. If it seems too good to be true, then it probably is.

JUL

2008

Hi Janet, Thanks for the great post - done beautifully! Keep up the good work!

JUL

2008

I think agents have had to change their way of doing business too to go on. Maybe get into doing BPO's so you can pick up some REO listings, try to work with first time home buyers that could not have purchased if the market hadn't adjusted. Right now as an agent you have to be very positive with your clients, especially Sellers. Sellers need to realize that if they have to buy something else they will most likely get a good deal and therefore; they will have low taxes, which taxes go on forever. They can purchase a nicer home for less money. The market had to adjust so let's all make the best of it.

Roxanne Schilling, Realtor at Lake Tulloch

JUL

2008

That is the best way I have seen it put so far!

JUL

2008

Janet:

You are a very clever gal! One of my favorite quotes is by Maya Angelou, and that is, "You did then what you knew how to do, and when you knew better, you did better."

So much of what we DO is based on the current circumstances. Hopefully everyone from loan officers to Wall Street will do better to ensure the best outcome for all involved in the future.