Real Estate Blog - If the housing market had as much attention as the auto industry, wouldn't everything else fall into place?

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If the housing market had as much attention as the auto industry, wouldn't everything else fall into place?

If the housing market had as much attention as the auto industry, wouldn't everything else fall into place?

I'm just curious to YOUR OPINION on how the government prioritizes.

People need a place to call home. They need job security. Then they need their own vehicle. After all there are buses and taxi's and other means of transportation.

Everyone is looking for a "bail out," however, the root cause of the debacle we are experiencing stems from the real estate frenzie and the ability to get mortgages whether one could afford a home or not. There were loans for everyone, and people took advantage of them...Did most people understand what would occur once their mortgage "ballooned" into a payment that was probably going to be double of what their current income could maintain? Probably not. After all, if the standard 3% raise was calculated into the equation, that 3% for most people was not going to compensate for a mortgage payment that was possibly going to double. C'est la vie...the past is over, so how to deal with it? I'm not even going to attempt, however, I do have a few thoughts.

1. People need homes and a place to live. It's unbelievable to me that banks would rather place people in a foreclosure situation and lose millions of dollars letting all the people that were duped into a situation where they were going to default in their payments than to work with them and at least try and adjust their rates so that they could continue to live in their homes and the banks would still get paid. Let's see, cost the banks money or continue to get revenue [the banks]. After all, most of the homes that the banks took over instead of working with the owners are without most of the contents.

2. If families don't have a home, have lost their jobs due to this sad state of Economy...need I say more?

3. The auto industry. If people don't have jobs as a result of this sad state of affairs, why do they need a NEW vehicle? There are plenty of used cars around. Never the less, how can they afford one. No job, no home, no need for a car. We're bailing out the auto industry, how about mandating the banks to work with the home owners? Wouldn't that make more sense?

Where do the priorities lie for American citizens. Why not go back to the root cause? Why not make an educated change to help not only families and home owners, keep the banks in some semblance of maintaining mortgages, alleviate the plethora of homes that are no longer with electric or maintenance, than to allow the consumers to end up living in this utter American debacle?

Where is the common sense? Right. Those that run this country are making tons of money and they personally (for the most part) are not affected.

Without all walks of education and all types of skills, the USA as we know it will sink into a big hole (or perhaps its close to being there). It's a shame that those we voted into office to protect our best interests have lost site on the various individuals who make our "world go round".

In my opinion, we have lost the site that makes us proud to be United States citizens. We have lost site on making America a place for the working family. We have lost site on what is important in America which is those of us who live here, pay taxes here, raise families here, the troops who fight to save us and keep us free.

WHAT SAY YOU?

http://www.KarenMonsour.com, 954-464-4194 cell

Posted by Karen Monsour,REALTOR® Broward,Palm Beach,Miami/Dade! 954-464-4194 anytime! on 01/06/2009 02:05 AM

Comments (37)

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Originally posted at: Karen@ www.KarenMonsour.com: If the housing market had as much attention as the auto industry, wouldn't everything else fall into place?

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37 Comments on If the housing market had as much attention as the auto industry, wouldn't everything else fall into place?

JAN

First priority would be the politicians. Second politicians family and friends. Third politicians largest contributor. Fourth lobbyist.

I think that sums it up.

Denise,

The politicians have allowed this mess to occur...then again, will any of them take credit for this debacle? I think not. Thanks for posting.

No spines here...just weak promises.

JAN

No one should have gotten bailed out in the first place... now every one is running around with a hand out asking for money... If lending practices wouldn't have been toyed with by politicians in the first place... none of this would have happened.

All that being said... the onus is still on the borrower when it comes to lending. They shouldn't borrow more than they can afford. Where has "responsibility" gone in this world?

I am as appalled as you are about bailouts Karen and you are positively correct about the complete idiocy and cronyism being displayed by politicians in giving away our money to a select few who really dont deserve it. I am in the business of saving homes and it disgusts and confuses me every time a lender wont modify a loan for a decent borrower who has the intent to repay, kicks them out on the street then turns around and takes a $200000 loss when they sell it as REO. Staggering ignorance.

It's kind of like what came first? The chicken or the egg?

If people don't have jobs, they can't make their mortgage payments. Hence, they can't keep their homes.

Saving American jobs (I won't touch on outsourcing as that is another post in itself) should be Priority #1 for the new administration.

Karen, I did not agree with the bail outs to begin with because there were no guidelines set for the companies to be financially responsible and be good stuarts. The millions spent on the full page "Thank You" ads by Chrysler is a classic example. Before it is over, our government will have spent trillions with the bill being left to our children and grandchildren. All the while, the fat cats in DC just keep getting fatter...

~~Michael

The scariest thing in the world is a politiciansaying he/she is going to fix this. Every single time government (Federal or State) interferes with our Free Market system hold on to your hat and checkbook. One day the citizens of this country are going to have to wake up (I will not hold my breath) and kick this idiots in the backside.

"When the people find that they can vote themselves money, that will herald the end of the republic." - Ben Franklin

Our founding forefathers and drafters of the consitution never intended politics to be a "career", it was intended to be a "service the voters", then go back to work.

Congress has no business bailing out anyone. Congress caused this whole mess by MAKING lenders make loans for everyone.

I truly could not believe we sent so many of the people who actually voted to "bail out" any private industry back to Washington to continue to vote themselves and their fat cat doners more money.

If we truly want "change" in this country the working Americans have got to show it at the polls. Politicians got us in the big mess, we've got to get all those politians out of Washington and let anyone we elect know they are one term unless they vote NO to taxing our grandchildren to death with bailouts.

Tammy has a superb point about politics not being a career. We are fortunate to have this form of government however, that has some checks and balances and at least does try to help people in trouble.

Karen. I can't begin to understand how the government sees their priority. But A guess you said it your self..people need a place to live so eventually consumers will buy or rent a residence and if they plan to continue to be U.S. citizens it will be here. On the other hand they can buy or travel in many alternative ways including buying foreign made vehicles..so the rational is promote the made in the US industry over the the options. Not saying this is right just that this maybe the mind set.

I am just hoping that whatever they due increases consumer confidence. Until the American public feel everything is moving in the right direction and increase in spending will not occur.

Karen: It just makes so much sense. If a great amount of attention was paid to the real estate mess, and it gradually cleared up, as the market for real estate improved, everything else would also gradually improve. What do they say... a rising tide raises all boats... or something similar. Why don't the folks in Washington realize that ? Thanks for a great post. Take care...

I couldn't agree more. This will be quite a discussion. We have some real issues ahead. Ben was right, legislating handouts is absurd. But, Karen, I believed from the beginning...over three years ago that this mess started with the housing industry and we need to go back to the beginning and fix those problems first. Without a house, you don't need as much consumer goods, i.e,. jobs, cars, etc. Great Post!!!!! You'll get lots of comments on this one. Thanks.

One thing for sure. If the American consumer or the government looks to the banking industry for help, they're going to be sorely disappointed.

Hmmmm....Now Karen listen to yourself...common sense and government used in the same sentence...probably not. Tooo much misunderstanding in both areas I think....people look at the auto industry with "short eyes"....it isn't just the Ford, GM and the dealerships....it is also dozens of other companies that supply the seats, locks and all kinds of parts that compose a car.....Congress can "punish" the chartered plane executives with big bonuses....and they are the minority of the folks that take the brunt of this mess.....stay tuned...we'll see !

The first housing bailout was a fund raising party for the big investment corps and banks. There was no impact. At least the car makers aren't firing workers.

I have a hard time understanding why the people that WE VOTE into office, will vote COMPLETLY AGAINST what the people who PUT THEM IN OFFICE wants. 99.9% of Americans were against the bailouts for the mortgage industry, and 99.99% the auto industry. But aparently, we have no SAY in the matter.

I hope people holding offices enjoy their career, as it is sure to be short lived upon the NEXT election day!

Car dealers are crying for money yet one a good customer comes through their door they aren't looking to help the consumer...I finally found one after going to five other dealers.

The housing market lead us into the mess through failure of the government to regulated. Now they are trying to cover the b&tts with bailouts. So we spend money on failed government programs and hopefully some that are working (remains to be seen). Where does it end. What I do know is..... We will have to have a bottom in the market before any economy recovery can happen, no matter what ever the government does right or wrong.

Great Ben Franklin quote above.

I turned off the news a long time ago, but I do keep up with the policies to see how it will effect my immediate area. It's so hard to generalize what's going on. An hour West of me in Mobile Al they are actually seeing properties hold value and new industry with new hirings in the forcast. I think we get in trouble and add more stress when we talk in general about the situation and not focus on our immediate area.

Nice gold star. I think that if we had the same attention, then we'd be having the economy all zipping along. The housing market drives our economy. That's a fact!!!!!!

I agree completely. Excellent points being made.

Karen,

Washington's policies are a reflection of various lobbying efforts - this is why the car makers got a bailout and had Congressional hearings.

In the absence of a grass roots lobbying effort, nothing meaningful will get accomplished.

Hi Karen...We kept hearing how the housing industry was the backbone of our economy. Then, along came the financial banks and then the auto industry and it appears we have lost our significance.

I do not understand.

Kate

First, I want to make a point of noting that common sense is NOT common. I think that you're giving politicians too much credit by giving them the benefit of being knowledgeable about anything more than their own self-serving needs. I was and still am appalled by the way the media and some politicians blamed homeowners for the result of the deplorable acts of deception by the banks and some mortgage brokers. The housing situation did NOT have to be this bad. The complete lack of responsibility and denial which government regulators and banks operated under for the past year and then some caused this to spin out of control. And still the automotive industry gets more help than mainstreet even with the record number of foreclosures month after month. I find a little comfort in the fact that some pork for mental health was attached to the "stimulus package", so now the politicians can seek help for their INSANITY.

A lot of the loans that are getting us into trouble are not your typical home loan where the bank lends their money. They are loans that are chopped up, securitized and sold on Wall Street. So it is not the bank that has the ability to stop the forclosure, they may have made the loan but because of securitization, they are just the servicer and the loan could be owned by hundreds of different investors. I have been in the industry for 32 years and every decade we have had a correction in the housing market. This one is the biggest, badest and longest I have ever seen. Like any injury there is always pain before cure. Politicians are like Dr's, they do not know what the illness is and they will try different medications before they find a cure. The only difference, is that in this case the Dr's created the illness.

Joe

I watched the swearing in ceremony today and could help but think it was like letting the robbers into the banks. How did we get to the point that we trust Lawyers clothed as politicians into running our everyday lives. It would be funny if it didn't hurt so much. We are now to the point in my lifetime where 67% of the population is either retired, too young to work or too sorry.

When I first heard that in the year 2015 we would see these numbers I was 22 years old and I laughed and made fun of the person that was making that speech, that was 26 years ago. I went to hear that same person 5 years ago and he said by the year 2015 the America would be detroyed, not by a military giant but by the shear weight of the unemployed and people not willing to works. Lets see he was six years too late on the first perdiction, so by that standard and since he made this statement 5 years ago then you do the math.

I would love to reply to your comments, however, I'm having trouble logging in... :-(

OK, Another new AR look - I like it! Finally figured out how to log into my site :-0 LOL!

Well, there have been some absolutely fantastic opinions and comments on here and I will get back to here soon to reply to some that I think are fantastic! Although I'm usually up late...thankfully our office has been on overload (yeah!) and I'm exhausted...and that's a good thing.

Keep up the comments, perhaps we can forward this to our government officials...sans names of course.

ANYONE ELSE HAVING PROBLEMS USING THEIR TOOL BAR AT THE TOP?

Karen,

It sure looks like our priorities are a bunch off the target. Housing is a major segment in the whole economy and now it seems to get less than needed attention.

JAN

Esko,

I agree. Has it been given any attention. I'm shocked at the stupidity of the elected officials...Why don't they get it. Fix the root cause and the rest will fall into place. Thanks for posting.

JAN

Okay, so I'm leaving a comment. What exactly is disabled???

Localism

I just heard that the PORN industry is seeking a bailout! I think I heard it today on XM radio. They also said that there unique visits are up from last year, but they feel they deserve a check too! How crazy is that. And I agree if they would have spent as much time and effort on the real estate market we probably would be out of this mess that we are in by now...

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