Let's look at some of the activities in the residential real estate industry:

• There are many  short sales and lender owned property sales.
• The home owners can "walk" their properties ( in many cases) without any responsibility for the loan they didn't pay. ( credit goes bad for a time)
  
• Some of these home owners don't want to continuing paying, even though they can afford it. "Why throw good money after bad".
• Homes are being sold at 30 to 70 percent of their original value.
• The high powered economist in our nation's capital say that we need to get rid of all these short sale and lender owned homes at any price.
• A whole new subsection has been created within the real estate industry; real estate agents and companies that just specialize in short sales and bank owned properties. In my opinion, their goal is to list as many properties as possible, do as little marketing as possible, price then as low as possible and create as much sales volume as possible and thus make a lot of commission dollars.

Now, let me share what, in my opinion, really happens, ( this is an actual example)

• owner takes second on home during market appreciation
• Spends the money on  personal items
• Home is now worth less than he owns on it
• Let's home go back to the bank.
• Real estate agent lists home at least $75,000 below current market value including other short sales.
• Home sells quickly and Agent get fast commission with little or no effort.
• Appraisers use that sale as a comparable when appraising other neighborhood properties.
  
• Neighbors find out that their homes have again declined in value
• They decide to do the same thing and let their homes go back to the bank. They can avoid payment for many months, save the money and then rent a better home for less money. In some cases they buy a better home for less than the value of their current home and then the let the bank have their old home.

What just happened? The downward spiral is fed by banks and real estate agents. The banks, for the most part, have nothing to lose by participating in a short sale. The agent makes an easy commission. And the Real Estate Market keeps going down...

Do the major banks have a lot of money? Are they paying bigger bonuses than every before? I wonder who is looking out for the average American homeowner? It can't be the banks, the agents, or the government. Only our votes can change the outcome before it gets a lot worst.

Maybe we should look at the subsidy that the government pays large "land owners" not to grow crops as our food prices go up....

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Someone has to  speak up and we all have to take action!

Have a great day!

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