I'm known to be the master of the obvious.
We're missing a traditional part of our market.
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.
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
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.
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!