Ron Taylor

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Is Obama Hurting or Helping the Real Estate Industry? Like many of you, I get e-mails and magazines from the National Association of Realtors and from my state association wanting me to write my representatives and endorse many things the Obama administration are proposing to “stimulate” the real estate industry. Now the Obama administration has proposed to pay each lender $1,000 for each successful short sale. In addition, they want to pay the homeowner $1,500 as “moving” money. They will pay the first lender $1 for every $2 the second lender is allowed to receive. While this may loosen up the lenders a little to accept more short sale, now the lenders want to put a stipulation in the closing instructions that a home cannot be resold for 90 days after their closing. How is this going to stimulate the economy? I recently read that 40% of home sold were bought by investors. These investors bought the homes with the idea of reselling for a profit. By adding this stipulation to any closing instructions will only hurt the sale of these homes. I am thankful that many title companies have said they will not issue title insurance with that stipulation. They can’t monitor what happens to a home after closing. Secondly, I even wonder if it is legal. The loan modification program established by the Obama administration just postpones the inevitable, viz., a foreclosure. Even with reduced payments, you still have to have a job to make the payments, plus many homeowners are finding out they don’t qualify for this loan modification program. More foreclosure homes are coming on the market affecting the value of the one next door. Unemployment at a all time high while real estate is at an all time low. Which raise an important question? Where is the money coming from to pay for all this? You got, from you and me in the form of higher taxes. Can anybody tell me what country or individual has ever spent their way into prosperity by going deeper into debt? Why does our government think otherwise? For information on working with realtors through short sales, go to my web-site page at http://www.cansellnow.com/shortsaleinfo.html . Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-5823 (Fax) www.canSellnow.com

Will The Feds Make the Lenders Whole? Recently, I received a few calls from some real estate investor friends of mine here in North Carolina venting their frustration with working out short sales with some lenders. It seems some lenders are stalling in making any decisions as to whether they will release a mortgage for less than what is owed. If you have a buyer waiting for a decision from the lenders, believe me, they will not wait around very long. It seems some lenders may be unwilling to short sale the property thinking that the Federal government will purchase these bad loans at par, thus no need to take a loss by short selling. What has been your experience? In September of 2007, we made an offer on a pristine home in a golf community in Wake Forest, North Carolina. The lender sent out a local real estate agent for a BPO (Broker’s Price Opinion). The BPO figure was way above the current payoff and the lender refused our offer thinking they could sell the property and not take a loss. If I recall right, the BPO was for about $680,000 with a payoff of approximately $600,000. We offered $535,000 and I was turned down. I don’t need to tell you what has happened to the price of real estate since September 2007. I drove by the home last week and guess what? The home has not sold. It has been vacant since April of 2007. I sometimes wonder if the lender wished they had accepted my offer. I am beginning to see this scenario more and more, especially in the economic environment we are in. I don’t know who coined the phrase, “Cash is King”, but it is certainly true in the real estate market we are currently experiencing. I have been talking with other investors who are waiting for the market to bottom out. The problem is that no one knows when that will happened. I told them that if they can buy today and make a reasonable profit, then by all means buy today. But the greed factor is too great for most of them. They want to wait a little longer. I would prefer inventory and keep cash at a minimum because there are so many uncertainties in our economy today that can affect the value of our dollar. I am also hearing rumors about the possibility of a Real Estate Resolution Trust. If that happens, I hope the Feds turn to professional auctioneers to help liquidate these properties. No doubt the Feds will suffer a loss but not as much of a loss if they use bank employees or attorneys to auction these properties. For more information about real estate auctions, go to my web-site http://www.cansellnow.com Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com

As I write this, I realize that much can change with regards to the Feds final plans and Congressional approval to rescue the banking industry. So what I am about to say is based upon what is currently being proposed. My disclaimer is that I am not an economist but someone who grew up under a constitutional form of government. What is being proposed by the Federal government is socialism, spelled with a big S. Webster New World Dictionary defines socialism as following: 1. any of various theories or systems of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products; 2. the stage of society, in Marxist doctrine, coming between the capitalist stage and the communist stage, in which private ownership of the means of production and distribution has been eliminated. Our federal government is about to “nationalize” the mortgage market, the insurance, the financial institutions, and soon, the big 3 automakers, to the tune of $700 billion dollars, and as one economist said, the true cost is closer to one trillion dollars. What does $700 billion or one trillion really look like? I was listening to Chuck Swindoll on the radio in my car this past week when he had another businessman explain to him the difference between one million dollars and one billion dollars. The businessman said if you had a single three foot stack of tightly bound one hundred dollar bills that would be what a million dollars look like. On the other hand, a double stack of one hundred dollar bills tightly bound as tall as the Empire State Building would equal one billion. If this is true representation, we can say that $700 billion is doubled stacked one dollar bills 700 times taller than the Empire State Building. Now where does all this money come from? It will come through increased taxes or by monetizing the economy, viz., start up the printing presses, which will produce inflation. If the current proposal passes Congress, it creates a “Czar” position for Henry Paulson which gives him power that, according to the language in this proposal, is” non-reviewable by any court or any administrative agency.” Paulson will have more power than our president that no one can challenge. I keep asking the question but I cannot get an answer, “Where in our constitution does the government have the authority to do what is about to happen?” There is talk about the Fed forming a Resolution Trust to liquidate all the bad loans these banks have accumulate. I suppose as a real estate auctioneer, I should be excited about this but I can’t, not at the expense it will have on our country. And now, we are hearing talk about our government bailing out foreign banks as well because these banks have lent money to Americans. When will all this insanity end? Not until you and I speak out and say enough is enough and kick all the bums out, yet come November, 95% of these bums will be re-elected. How sad. Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com