The Cash Team of Clarksville Blog

Good evening all.  I pose a question to my Real Estate friends as well as my friends and subscribers to our blog:  What will it take to bring us out of the Foreclosure Nightmare?

Does anyone know?  Perhaps the answer is there, but it certainly has not been acted upon.  With the billions that have been poured out to the various banking institutions one would certainly think by now that we would be seeing a downturn in the amount of foreclosed properties on the market but this is not the case.

Our government (and us) will most likely never see a return on the money doled out in the past year (by both administrations) nor will we see a return on the auto industry bailout (unless you count the cash for clunkers as a return - I like my clunker and figure on keeping it a while).  So, what else can be done?  The $8000 First Time Home Buyer Tax Incentive has helped a little in moving properties around the country, but not to the extent that we need to see.

Banks are not letting go of properties as a severe loss as we recently saw first hand in a foreclosure transaction with Freddie Mac.  Our client's 'verbal offer' (yes, Freddie Mac did not want a written offer until an agreement was met) was approved by the asset manager and Vice President of Sales for Home Steps only to be rejected a week later because the bank that previously held the note 'had too much invested in the property'.  I can tell you that there was a $30,000 dollar loss had the transaction taken place but I am almost sure that this bank (and others) have been given protection.

I am sure that many Real Estate Professionals such as myself keep track of foreclosed properties in their area.  I check Foreclosed Properties in Clarksville every day to see what the trend is.  There are many that move, but there is also many that are batted back and forth between banks prior to an actual individual being able to make an offer on the home.  I am working on gathering some information over a year span to hopefully share with all, but it is time consuming and not easily queried.

In an effort to avoid a foreclosure one would think that the primary lender would be willing to work with a distressed homeowner in order see some return on their loan.  Again, sometimes this is not the case.  Recently we were working to assist a Military Family who has orders away from Fort Campbell to list their home as a short sale.  The comps most certainly would not support near the amount owed on the residence and yet the lender refused to review the short sale application until the home was marketed for at least 60 days.  As with many Realtors, Pam and I do not want to put an overpriced listing on the market as it serves no purpose.  We found out today that this lender has started 'preforeclosure proceedings' against this Family.

Certainly there are those who simply took a risk and lost, or those who simply do not or did not care.  But those are the few in my opinion.  There are far more homeowners who for one reason or another are in a bad spot and need assistance.  These are simple folks like you and I who go out every morning and try in earnest to make an honest living.  Whether they have been laid off, have received PCS orders, or have had a life changing Family event - they need assistance.

It is my opinion we have been going about this all wrong.  Instead of worrying about the CEO's and executives of the banking and auto industry's well being we should be looking out for the American people.  Certainly all that has been done thus far cannot be undone and it was all spun to 'benefit all Americans' but is it really?  Have you benefited from GM receiving billions?  How about the money given to Chase?  Has any of us? 

I think I know the answer to the above questions.  Unless you are a shareholder or executive in any of those companies, chances are you have not benefited.  Conversely, you have been slapped with a debt that will be transferred to your children and quite possibly their children.  But, wait a minute!  The stock market is up!!  Got to love that right? 

I don't know what the answer is folks and this is not a slap at either of the parties as I believe both have done a poor job to this point of standing up for what is RIGHT.  Possibly it is too late to find the right answer, but one can always hope.

I posted a while back in one of my blogs that the best thing our government could have done would have been to lower the interest rate to an incredible level for a period.  This was actually batted around sometime after by some of our elected leaders along with a $10,000 tax incentivefor any buyer whether first time, second property, etc.  I still think this would have went a lot further in helping everyday Americans than to pour out Billions with no accountability or paper trail.

To say that it frustrates me to read the articles or to watch the news would be putting it mildly.  I still hold hope that this great country and our great people will wake up and vote their conscience with no thought to the party affiliation.  We have got to get this train back on track and this won't happen until we hold those who are making the decisions accountable for their actions - actions that again effect everyday Americans and their children.

Rant Off!