It's TIME! (to turn short sellers into buyers)

By
Mortgage and Lending with Christensen Financial Mortgage 385907

I'm known to be the master of the obvious.

We're missing a traditional part of our market.

that being

those sellers who became buyers, either buying up, or often here in Southwest Florida, downsizing.

What happened? well you know. They're stuck with properties they can't sell, or have chosen alternative solutions.

Right now I want to address the short sellers, and I'll try to do it in more of a business related, rather than emotional fashion.

Why the "short sellers," because as far as I'm concerned they have attempted to act responsibly, to a bad situation.

Back to the obvious.

Both the current homeowners and their mortgage holders see the same thing; a bad asset.

To the current homeowner they have the fear of the unknown; ie when will their asset rebound, if at all. They also have a lack of mobility, in that for now, they're stuck where they are at.

The mortgage lender sees an asset which no longer supports the loan.

In these regards there's not much here for either side to hang their hats on.

My solution here is simple, to the mortgage holders I say start acting like capitalists.

Stop punishing the sellers, turn them into buyers, generate additional income to cover the loses, help spur the economy.

and

charge them a premium

and don't get carried away here, I'm not suggesting another go at subprime loans, something much more passive, is what I have in mind. Try this;

add a 1/2 point to the rate (okay maybe a point), charge them an additional fee, a fresh start fee so to speak, let's say $500, but no waiting period.

I'm thoroughly convinced that if lenders threw all the short sellers in a barrel, and considered new loans for the top 25%, without any consideration for their previous mortgage history (on the short). That these loans would

Perform

and be

Profitable

How about this

Despite what Sarah Palin says it's possible, I've just learned over the last couple of days, that our President does have some cajones. Since creating a system that would allow "short sellers" back into the market as buyers, would aide in economic growth accross the board, why don't we give it a try with the government loans.

You know

VA, FHA, and USDA

Okay I know some of you are thinking that this guy (me) has finally lost it, fallen of the deep end, too bad, I use to like him,

But it's time for some new ideas, it's time for some positive actions, it's time to be proactive.

For the short sellers it's time to let them back into the game. 

Frankly, we need them.

and aside from that, well

It's (just) Time!

 

 

 

 

Comments (6)

Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Another great idea that could go a long way getting the industry back in the game. 

May 04, 2011 04:28 AM
Sandi Davidson
Florida's Realty LLC - Lehigh Acres, FL

Thanks for the blog post Jay.  Are you saying that as a lender YOU will be offering loans to sellers who have gone through the short-sale process?  If so, I am sure this will make you a valuable reference for many agents in Lee County, myself included.

May 04, 2011 04:32 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Mike,

thanks,

we need to do something.

Sandi,

at this time i am not. there are some options for those who have gone through short sales, but they are limited. what i am suggesting is for the marketplace to step up and address the issue with specific programs and guidelines.

thanks

jay

May 04, 2011 04:44 AM
Sandi Davidson
Florida's Realty LLC - Lehigh Acres, FL

@ Jay...then you are right..it's a no brainer.  Your lips to God's ears.

May 04, 2011 04:49 AM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
RealtorĀ®, Springfield Mo Real Estate

Jay, great idea.  Maybe more short sale sellers would step up and save their homes instead of walking away.  25% of our sales are foreclosures and 25% are short sales.  That means half of our market will be gone for the next 2 - 7 years.

May 05, 2011 01:02 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Kay,

i'm right there with you. in most cases the sellers you mention, a combined 50%, are not buyers after the closing. we need to adjust our systems to address this.

When the lenders identify profitability here, it will happen, i believe.

thanks,

jay

May 05, 2011 02:48 AM