May
10

Are Short Sales and Foreclosures The Death Of The Real Estate Market

Filed Under Real Estate Investing, foreclosure 

I could not resist the urge to reply to a real estate agent that thought foreclosures and short sales would be the death of the real estate market and went on to beg everybody to vote for the President that would fix the mortgage mess. Just another example of somebody with a victim mentality wanting somebody else to come to the rescue.

Here’s my unedited response:

You’ve got the wrong approach there my friend. Short sales and foreclosures are not the death of real estate markets they are a result of the current real estate market.

The fact is if buyers must have 100% financing to get a loan then MAYBE they shouldn’t be buying! Here’s a revolutionary idea… how about if people started spending less than they make and saving money so they would have a down payment, rainy day stash, etc.

I get that bank financing is hard to come by for most buyers but where one door closes another opens. I have properties I’d like to sell but it is better to hold them now and be in the buying mode looking for deals.

And one does not need bank financing to buy properties. Alternatives include cash, subject to, private money, hard money, and owner terms.

As an agent a LONG time ago I remember simultaneous note purchases and this is still a possibility for owners and agents if they get creative. Have you ever carried a real estate commission in the form of a note?

Wake up, this is nothing new and some of us have been there before and could tell you some real war stories about 23% interest and banks offering financing like it was “you name your terms.”

Best thing for the market is if the government stays out of it and it is left to correct itself. And PLEASE, what could the President do to fix this mortgage mess? Throw more taxpayer money at it?

Gerald Romine

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