Mr. President, stop throwing money at the housing industry, that isn’t the problem

Real Estate Agent with RE/MAX Realty 100

Awesome article reflecting the true problem with the Short Sale process. Owners want to either refi or sell... most dont want to squat! Giving a Lender an extra thousand to forgive 20k+ debt isn't going to make any sense to them. So all this will do is complicate the problem since the Seller will then be even more pissed off since they wont get the $1500!!!

Original content by Todd Clark - Retired 200311024

By Todd Clark (Broker/Sales Coach) 503-524-9494

This morning I read a report that the President says the problem with the housing industry is short sales and he wants to fix it. I thought GREAT, ABOUT TIME! But then I read the article and quickly I realized that our President has no clue about what is going on with the housing industry. As with most politicians he thinks if we throw money at a problem, he thinks it will go away.

You see, the President says the problem with short sales is that the sellers don’t want to move out and that he is willing to offer $1500 to home owners to move out, so they can have money to move. WHAT? Since when do we have a problem with sellers not wanting to move out? Does he not realize what a short sale is? A short sale is where a seller puts his home on the market because he knows he is in trouble and wants to move. Now, I think this is going to be a huge chance for fraud!

White House

You see, the real problem with short sales is the banks are taking so long to respond that the home ends up going in to foreclosure and that is when the sellers are refusing to move out. They tried to do a loan modification, they tried the short sale… the banks are the problem, not the sellers.

I think we are going to see a lot of sellers take advantage of your $1500 program and actually create the problem of sellers not moving out until they get their $1500 a real thing. Mr. President, if you want to fix the problem, make it so the banks have to respond to short sale offers submitted to them within 30 days of being submitted. (The reason I say 30 days, is so that gives them time to do a BPO or an appraisal) If they don’t respond within the 30 days, they have to give a $500 a day credit to the home owner that will go toward back payments and principle.

I promise, if you do this, as soon as the banks realize that they are getting people out of default with their delays, the short sale problem will go away.


Todd Clark - Broker / Sales Coach
All Brokers Real Estate
Phone: (503)524-9494
Fax: (503)622-8739

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©2010 Todd Clark - Mr. President, stop throwing money at the housing industry, that isn’t the problem

Comments (5)

Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!


Short sales are such a mess these days; typical government making a mess out of something that needs to be simplified.

Mar 09, 2010 02:41 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Thanks for the re-blog. But, As long as the banks have their hands out and keep telling the government what the problem is, (Not the truth, but what will get them more money) the problem will never stop.

Mar 09, 2010 10:14 AM
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

Yes, I had similar thoughts when I first read both the HAFA & HAMP program outlines.   Government intervention is rarely a good or efficient way to handle an issue.  We will see soon I guess

Michael Collins - Broker
Rock Realty


May 04, 2010 10:13 AM
Dan Statlander

Nice post.


Dan Statlander
(Real estate experts in Boca Raton Florida)

Jun 06, 2011 02:15 PM
Pat Fenn
Marketing Specialist for CJ Realty Group/Cindy Jones Broker - Springfield, VA

Looks like you left AR and the spambots moved in to take over.

Oct 03, 2012 10:33 AM