Some Other Thoughts On The Financial Crisis

 Thanks to Anya, Steve Randy and Missy who all emailed me links to the USA TODAY story where I’m quoted – “Foreclosure Guilt Haunts Homebuyers”, by Steve Friess. We were at dinner a few months ago when I mentioned to Steve that the topic comes up all the time. Where did the people go who lost this house? Are they living in their car? On the Street? At relatives?  Yesterday, we learned that some of them may have bought another home first and then dumped the old home.

In any case, there’s always a human face to every house. I’d like to think that as we go forward and clean up this mess that we can actually start writing a new book full of happy new homeowner faces. Remember, however that the vast MAJORITY of homeowners did not buy during the bubble, and didn’t take out the artificial bubble equity. As long as they don’t HAVE to sell right now, they didn’t get hurt at all by the real estate melt down. That’s not saying anything about their 401k’s or IRA’s but they still have their roof over their head a monthly cost that they can afford.

Speaking of yesterday’s post on the whole Times article, Vegas Lee wrote this morning to ask:

The lady that was mentioned in the article you had on your web site yesterday, Brooke Boemio is an agent here in Vegas.Seems to me that what she is doing is not legal.  She is also hurting the industry.  Seems to me also that the banks, or the state could come after her. What is your opinion? 

I realized that I tried to defend the biggest bulk of us real estate agents, but I never did give my opinion per se. First, as someone who’s been misquoted, taken out of context or edited to meaningless in the past I’ll always give someone some benefit of the doubt when they’re interviewed in the media.

The actual practice of encouraging people to NOT PAY THEIR mortgage and to cheat the system is despicable, illegal and not recommended. Helping people figure out how to BEST COPE with true hardship is NOBLE. I do that all the time. You wouldn’t believe the calls and emails I get. Short Selling, Loan Modification, get a roommate,  get off your depressed butt and find another job, are all valid solutions. Criminal loan fraud is not on the list of recommended activities.

The FBI has a major task force here in Las Vegas. They’re still working thru all the mortgage fraud that was perpetrated during the bubble. I guess there will be new scams to be investigated that are derived from the “Anti-Bubble” (which is what we’re in now). The Sun Article says that it’s all being investigated. I hope this is true, and doesn’t just get lost in the shuffle.

AND REMEMBER THIS….. The statistics, the stories, the inventory, the very game itself is very different in the suburbs that it is in Vintage Vegas (lots of similarity, but lots of differences) and it’s different in each price catagory as well. Every headline  or story in not a blanket truth that applies everywhere.