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THE THIRD WAVE: Look Who's Going Into Foreclosure NOW!!!

Reblogger
Real Estate Broker/Owner with Anson Properties 3086504

You are correct, I am seeing it everyday.  Even with all of the information available I am still seeing people who need help not reach out for advice and guidance and find themselves in foreclosure. 

Original content by Paula Hathaway, REALTOR, LBA 30HA0800896

THE THIRD WAVE: Look who is going into foreclosure NOW!!!

TARP WAS A LIFELINE TO A DROWNING FINANCIAL WORLDThere is going to be a Congressional hearing in the next day or so to evaluate the results of TARP on financial institutions and on the housing market...wonder what they will find out?---and what they will tell us???

I have heard rumors that some of the banks used their funds that were designated to help out the homeowners, to pay off their "bailout" money. One of the contingencies of the bailout was that the banks would remain under the microscope of the government as long as they owed the Tarp money. Some financial institutions paid off the "loans" in order to escape the scrutiny of the government!

Meanwhile, the next wave of foreclosures is starting--this time it's the homeowner who has never had financial problems during theTHE THIRD WAVE OF FORECLOSURES Great Recession....Until now!

 

 

 

FIRST WAVE: The homeowner who put nothing down on their home, had no job but was the "protected" class who the government insisted become homeowners at all costs. Below, I have included the NY Times article from 1999 regarding the Clinton administration taking the idea of home ownership for the poor: 

http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

SECOND WAVE: The homeowner who was caught off guard, trades people who lost their jobs/businesses because of the crash, the "pink slipped" financial workers,  the real estate agents who were left with no income because of the housing bust. 

THE THIRD WAVE: The middle class and upper-middle class small business owners who lost revenue from the recession. This would include restaurants, shops, specialty manufacturing,

The housing recession (or depression, depending upon from where you are looking at it!) has not abated--it has not ended and it has in fact become worse.

This time, the people who are being foreclosed upon are those who had no problem in the past with their finances; even in the recession, these homeowners were able to go forward without much harm from the downturn. They still had their jobs,  were paying their bills on time and the possible loss of their home was so far out of the realm of reality that it never came to mind for them.

Now, the middle class and the upper middle class are under duress---they are suffering from the long drawn out financial messes caused by the initial crash of the real estate market. The Third Wave is made up of the Baby Boomers trying to retire and can't; the new level of financial or Wall Street worker who is considered "excess baggage", and all the businesses associated with a thriving real estate market. This next wave of foreclosures is sure to be the final nail in the coffin of the real estate market as we know it.

Today, Congress is meeting to hear the bad news about the failed attempts to rescue the housing market and ultimately the whole financial system of the US. The hearing is a review of the results of TARP, the $872 Billion bailout of the banks and the financial institutions that started the whole problem in the first place though their packaging of the bad loans with good in order to sell them as "Good" investments!!

TARP Failed ( What we know of as the "big bank bailout' that was put into effect after the failure of Lehman Bros)

HAMP Failed (Instituted in 2009, It helped fewer than 200,000 homeowners stay in their homes through mortgage modifications).

WILL WE HEAR WHAT THE TRUTH IS ABOUT WHAT THE EFFECTS OF "TARP" HAS HAD ON HOUSING IN THIS HEARING?. WILL THERE BE ANOTHER ATTEMPT TO MANIPULATE THE HOUSING MARKET OR WILL THERE BE A CAPITULATION  OF THE GOVERNMENT TO LET THE HOUSING MARKET JUST REPAIR ON IT'S OWN???

 

 

 

 

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                                     **ALL INFORMATION AND CONTENT IN THIS BLOG IS ORIGINAL TO PAULA I. HATHAWAY

 

Paula I. Hathaway, Senior Vice President, Prudential Douglas Elliman

Southamtpon Village Real Estate Specialist since 1995;  Also Specializes in North Sea, Noyac, Water Mill and Bridgehampton, New York

Diamond , Gold and Chairman's Circle Awards; Top Producer since 2005

 

Click here to see my Hampton's website to see all my listings; please email me or call me for all your real estate needs in Southampton, Bridgehampton and Watermill:

http://www.prudentialelliman.com/paulahathaway

http://www.hathawayhamptonhomes.com

http://www.realestateshows.com/576624

http://www.realestateshows.com/576620

Comments (6)

Teral McDowell
Referral Patners LLC - Murphy, TX

The cold, hard truth would be nice; good one to reblog.

Oct 09, 2011 10:12 AM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Stephanie: Thank you for re-blogging this one...I have been so preoccupied with the folks here who are running into trouble that my business has really fallen off..that is not good. I can only hope that next week we see a start to the end of the slowdown and that we begin to get buyers back out here from the city to buy!

Oct 09, 2011 10:26 AM
Diane Grady
Endless Summer Realty - Saint Augustine, FL

Very true. A good look at what is to come. So many people are not prepared. Life is changing dramatically and our business is right in the path of what is going to change the most!

Oct 09, 2011 11:27 AM
Linda Urbick
RealtyOne Group - San Ramon, CA
Selling San Ramon Valley - 925-786-5132

Perhaps it is time that the Government stepped aside and let this market correct itself. It can't be any worse that their failed attempts.

Oct 09, 2011 11:34 AM
Stephanie Anson
Anson Properties - Gainesville, FL
Estates | Homes | Land | Investments

Teral, Yes I find that many people do not really know where the blame lies.  There were so many factors to this housing market that included enough blame to spread around including national builders, large banks and everyone's favorite, the federal government who threatened big banks to provide subprime loans.  As much as the government wants to say the blame lies on the banks it would have never happened if the Fannie/Freddie Agenda pushed by Frank/Dodd did not happen.  What I want to know is how those to corrupt politicians escaped unscathed?!!

Oct 09, 2011 12:17 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Great post to reblog Stephanie. As Gainesville Short Sale Agents, your posts shares important information that sellers in your area must read. Thanks for sharing.

Nov 08, 2011 02:43 PM