Big Bank Bonuses!

Let me start by role playing the part of John McEnroe on the National Car Rental commercial "The 6 largest banks are expected to payout over $150 Billion in Bonuses this Year? YOU CANNOT BE SERIOUS!!!" The same 6 largest banks that hold the majority of mortgages on the 16 million homes whose borrowers are underwater!! Don't these Pompous A-Holes Get it. The American people are pissed off and well we should be. The Banking Association complains that the Government is trying to overregulate thier industry and they should let free market enterprise take care of its own. Trust me, I am all about free markets and the competitive environment that it produces but you people need to wake up! How about paying bonuses to the homeowners who truly want to stay in thier homes and be responsible for payments they can afford to make based on what thier home is actually worth. But wait,this program already exist. It's called H.A.M.P., Home Affordable Modification Program, and the Treasury Dept. allocated $75 Billion in funds to be intiated by lenders for this program to work. So far, .02 percent of the money has been paid out. That's 116,000 homeowners out of the 16 million that actually need the help. Note to Bakers: Stop Hurting and Start Helping the American Homeowner and maybe we will begin to trust you again. MAYBE!

Dave Liniger is Right!

At a recent Five Star Government Forum in Washington D.C.,Dave Lininger,ReMax International Chairman and Co-Founder,urged government and economic leaders to push lenders to release foreclosures to help speed the economic recvory. Dave pointed out that with the Homebuyer Tax credit, still avaialble thru April, driving buyers to the market you have a limited window of opportunity to get these homes sold. He's right and I would add that getting these homes on the market now and getting them sold will help get rid of these distissed properites so that the maket can begin to stabilze and eventually see appreciation again. Of course,this would be the right thing to do. That's the problem: lenders have demonstrated they have no clue on what the right thing to do is, only on what puts more money into thier pockets (ie-bonuses)and takes it out of ours.Great idea Dave! To bad to won't happen.!!!

Government is Brilliant-NOT!!!

The Obama Administration and our Treasury Department have figured it out. I know it's hard to beleive but its true. In an article titled "Mortgage help plan requries proof" it says in order to participate in the loan modification program now under way the borrower "ACTUALLY" has to prove they have documented income!!!Can you imagine. You can no longer just make up whatever income figure you want to qualify for a loan, you now have to have it verified. The article also states that Phyllis Caldwell,cheif of Treasurys homeownership preservation office,defended the decision to allow people to qualify based on verbal statements of income(of course she did)."We needed to provide immediate relief to more homeowners faster." I guess that didn't work as many of the loan modifcations are falling delinquent now as well. Maybe the question on income went something like this: Lender-Mr/Mrs. Borrower how much montly income do you make? Borrower--A Lot!--Lender-Great your approved. How stupid can these instituitons be. Isn't that what got us into this mess in the first place. I'll bet, next they are going to tell people who buy things on credit is that they actually have to make a payment when they get thier monthly bill. No I'm only kidding,as long as the creditor promises to pay,you know "checks in the mail" The Government should be OK with that.

Real Estate Update

Finally someone in Government gets it. In an article about The Florida Senate President Jeff Atwater advising budget writers not to raise taxes or fees this year on us Floridians,Amy Baker, a legislative economist,tells the budget writers the following: "do nothing that adds any more houses to Florida's inventory until it can work itself down some" . In other words no more land use approvals or changes for Subdivisions. Makes sense to me! Our problem starts to go away when we get rid of exisitng inventory. Don't just sit there,go sell something

When will the Real Estate Market Recover?

That's a question I get asked alot. There are lots of opinions out there (literally hourly it seems) but the answer is really quite simple: Employment and Inventory. With a national unemployment rate at least double what it should or normally be and a bloated nationwide unsold home inventory (doesn't count the dreaded "Shadow " Inventory,more on that in a later blog) how can it recover? On the employment side, I don't have the answer to that one. It's obvious the government doesn't either! However, on the inventory side I have a few suggestions:
1-if you are not in a "must sell" situation and are not willing to take whatever the market decides your home is worth then don't sell. In other words, now is not the time to test the waters because the sharks will bite. Stay put for awhile and you will be ahead in the long run.
2-if you are in a hardship situation make sure you are dealing with a Real Estate Professional that is experienced in these types of sales and is making you aware of all of your options,not just trying to sell(ie-loan mod,deed in lieu, etc)
3-if you are currently for sale, price your home at or below your last comparable sale! We are still in a declining market so why not stay ahead while you can.