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My Rant, Will you get yours while the rich get richer? It's time to buy.

By
Real Estate Agent with Mountain View Properties

Now for my rant,  everyone I know has been hit hard by this real estate and stock market collapse.  If you look around, almost everyone you know took some money out of their home and spent it,  no wonder the economy went crazy the last couple of years. There is no way government spending is going to match what Americans spent out of their house piggy banks.   I remember numerous conversation with speculators who called themselves investors telling me you had to calculate in the 20% appreciation their home would be going up,  Meanwhile I'm telling them the market was over due for a slow down and I expected values to flat line for awhile.   Oh if I would have just sold...   Anyway.    A year ago I was saying I thought we had reached the bottom.  Wow,  wrong again.  The warning signs have been everywhere and I had my head in the sand.  I remember  builders that told me they were selling all of their raw land back in 2006 because their buyers should not be able to buy the homes they were building.  They knew their buyers couldn't afford the houses and it was obvious something was going to break.  How about that general feeling the Real Estate market felt like the Dot Com Boom/bust.  But I was thinking Real Estate couldn't  drop 20% even when a couple of noted economist came out and said it would.  My point in rehashing all of this is it's easy to look back and see the writing on the wall NOW.  

 ostrich-head-In-Sand

The thing is, where do we go from here?  I became a short sale expert to buy properties for myself,  only to take that expertise back to Real Estate sales and the market we find ourselves in. My company RealMitigation.comis giving me valuable incite.  I can tell you the banks are all screwed up.  It is to their advantage to do short sales, as they lose more money when they take the properties back.    Instead they are under-staffing their departments screwing up short sales taking these homes back in groves.  The government push to keep people in their homes, only is screwing the lenders up even more.  Now the government is trying this one size fits all loan modification programs that already seems like a disaster.  As much as we all dislike underwriters, there is no human element to this loan modification program.  The way it's rolled out it's not going to work.   So what does this all mean?    We are all hurt and a lot of us have lost our homes.   But when you look at history,  now is the time to figure this thing out and buy.   I think market values have dropped too low.  I can tell you the next 3 months will be tough getting short sales approved.  But do not give up on short sales, the problems will have to be worked out as short sales will have to be around for longer than we would all like.  We are getting short sales approved, just not as easy as it should be and lenders are taking too long.  These loan Modificationprograms are only delaying the problems.   The billions that have been lost will end up back in the pockets of the true investors.  This problems are not going away and REO's and Short Sales will be around for quite awhile. There is a reason the Rich get Richer while the rest of us have our heads in the sand.  There are gigantic so called vulture funds ready to swoop in and buy Real Estate. From what I hear they are starting to buy.  Real Estate is on Sale.  Banks are in such need of cash, I have heard of them selling good performing A paper loans for 50 cents on the dollar.  I will end this rant going back to an old TV show Dynasty   I remember John Forsythe as Blake Carrington, telling Linda Evans as Krystle Jennings, if I lose everything today,  I will make it back tomorrow.    I just don't want to lose everything before I'm forced to make it back.  This is not the time to run scared,  a lot of money has been lost, the only question is who's pocket will it be in tomorrow? Yours?     

I pay 25% referral fee's for any short sale listing.

Comments (1)

Cameron Novak
The Homefinding Center - 1000 Palms, CA
Real Estate Broker since 2008

I am all about collecting properties for my portfolio during this time.  I'll be able to retire after the next runup.

Cameron Novak, Corona Real Estate Agent
Cameron Novak

Corona & Riverside Short Sale Agent
The Homefinding Center
TM
Corona, California
951-212-7479

Mar 20, 2009 08:25 PM