Let's get the system moving again
Letter to the Editor
By Inman News, Friday, June 12, 2009.Re: 'Helping borrowers who don't deserve it' (June 8)
Dear Editor:
I read the letter referenced in Jack Guttentag's column and I had to read it twice to see if it was my letter. I feel like the writer hit the nail on the head.
I live in the Sacramento area, which has been devastated by foreclosures. I owned 30 or so rentals in the early 2000s, and by 2004 I was warning everyone about what was coming. I sold my rentals and moved the equity to Boise, Idaho, where the economics seemed more in line.
No matter how hard I tried to get people to understand that the values could not continue to rise as they were, the lure of money would override good judgment.
Now 80 percent of my business is in REOs (bank-owned properties). Every foreclosed property is touched by nearly 20 people (jobs)! There is not much left of the building industry, but many in the construction trades are now surviving on the bones of REO work. The moratoriums that have been on and off have left these people at risk of foreclosure themselves.
The people who are not making payments on their homes are impacting our communities, far beyond just their banks. They are not engaged in our economy. They aren't paying property taxes and aren't spending on home improvement.
They're not hiring contractors or other service providers, either. The budget deficits seen by municipalities throughout California are a direct reflection of our tolerance for this behavior. Is foreclosure fair? I don't know, but I do think the sooner we get the system moving, the sooner there will be work for the people who want to be part of our economy.
Ron Leis
Broker-owner
Prudential NorCal Realty
Carmichael, Calif.
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Submitted by Vickie Flowe on June 14, 2009 - 4:40am.
Amen, I wrote the op-ed below and have had thoughtful feedback from many agent/broker/sellers in the Southeast...
We need to grieve the loss of a market that has had a slow, lingering death. The market as we knew it is gone. Builders, brokers, consumers, vendors and investors would benefit by understanding/remembering the grief process...
Are we still in Denial? The comparables and appraisals are showing huge differences between 2009 and 2005-2007 numbers. At first, we tend to deny the loss has taken place, “this can’t be happening” and we withdraw from the realities...
Anger. Angry at the banks. Angry at the buyers who should have known better. Angry at the agents and brokers who should have known better. Angry at the government who should have known better. Angry at ourselves for thinking we knew better. Even if, realistically, we know that anger resolves nothing and impedes progress.
Then the Bargaining begins.. "If you will take the listing at a reduced rate, I can get my price." "If you cut out print advertising, what can you do to make up the difference?" "If I do this, will you take away the loss?" "I'll handle it all for 1%..the buyers' agents can figure it out on their end"
Depression sets in. Bills are piling up, the end of the month comes more and more quickly with no closings and upkeep of overpriced listings more and more demanding.
Anger turns inward; numb and number. Frustrated. Bitter. Keep guns out of your house.
Fiinally....sadly...Acceptance...the anger, sadness and mourning have finally tapered off. It is what it is; accepting the reality of the loss is the final step. True acceptance. Not resignation. Accepting that what was is what was. That what is is something entirely different and will continuie to be.
As we say, "All markets are different"; but I'm pretty sure sure accepting change is all the same.
Vickie Flowe
Owner/Broker
Gibson Flowe Properties
Charlotte NC