Ron Taylor

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Why Are Lenders Making It Hard To Stimulate The Economy? I don’t know about you, but as a real estate broker and professional auctioneer, I have to wear many hats. One of the hats we have to wear is that of working short sales for a client that is upside down financially, viz., owing more on their home than what it is worth in today’s market. I don’t recall the exact source, I want to say it was NAR, [National Association of Realtors] but back in May-June etc., almost 30% of the homes sold were purchased by investor’s via short sales or REO. The investor bought the property with the idea of re-selling it for a profit. Now that is stimulating the economy by way of moving money around, providing liquidity, etc. However, have you tried to work a short sale lately? Many lenders want the current owner of the property to have been on title for 30 to 90 days before they will approve a loan by a new buyer. It is called seasoning. Most investors hold property for a short period of time. They may make improvements on the property, if needed, or may sell it in an “as is” condition. This whole process of seasoning has slowed down investor’s purchasing and stimulating the economy because they want to keep turning their money over. Having to hold onto a property for 30 to 90 days adds additional cost and cuts into the investor’s profit. The negotiating process normally takes three to six months to go full cycle. And now the investor is told he or she must hold the property for an additional 30 to 90 days after purchase. I think you are beginning to see the picture. Less homes being purchased means more “toxic assets,” less money if available to the banks to lend out. In looking at our records, here are some of the related industries who make money off of a successful short sale: • Foreclosing Lender (they make far more in a short sale then when they foreclose) • Listing Agents and Buying Agents • Attorneys and Title Companies • Mortgage Broker/Direct Lender • Fannie Mae, Freddie Mac, FHA or whomever buys this loan in the secondary market • The Appraiser • The Home Inspector • Plumbers • Contractors • Electricians • Cities and Towns • Insurance Company • The IRS • Accountants • Marketing Companies (Direct Mail and Signs) • Printing Shops What’s the best way to stimulate the economy? The lender’s can start by making the short sale process a lot easier. For more information on how we work with homeowners and realtors with short sales and pre-foreclosures, go to our website at 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

We do not need more federally funded programs. We need the Feds to keep out of our lives. Just where is this new "funding money" to come from? Yes, pay more taxes! Our nation is bankrupt. The official notice has not been declared publicly by the current draconian administration. Just look at our current deficit and then look at what has been proposed to extend TARP and have socialized medicine. It’s unconscionable. Most lenders will tell you that the majority of loan modifications end up in default. People that file bankruptcy are just delaying the inevitable. With unemployment hovering at the 10%, more and more homes are being defaulted. We haven’t seen the worst yet to come. We get calls weekly from home owners that are upside down with their mortgage, viz., owing more that what the home is worth. In order to auction them, we have to work out a short sale with the lenders that takes three to six months to go full cycle. Then the Obama administration keeps changing the rules further delaying a successful short sale. Government is our problem, not the solution and spending more money is not the solution either. Let the free market work. The Honduras government shipped out their president on the next plane for violating its sovereign constitution and basically said, “You’re out of here!” Maybe we can learn a few things from them. 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

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