Saturday, August 25, 2007

So, who were the real winners in the real estate boom?

The way I see it, no one in the United States has had any long term gain from the craziness that was the real estate bubble of the last five years or so.

The big lenders that issued the "liar's loans" and sold them to foreign investors are now being forced to buy back some of those loans, and are therefore in financial trouble and are either closing their doors or laying off their staff.

So, if the lenders didn't gain, what about the loan officers and brokers? Well, if they were human like the rest of us, they all went and bought new homes and new toys when business was good, and now have no jobs and are going to be in the same foreclosure boat as the rest of the Joe Schmoes out there rather quickly. Or, worse yet, some of them are going to face prosecution for predatory lending - and do you think the big lenders that they were working for are going to pay for their defense? I think not...

So, if the lenders, loan officers, and brokers didn't gain, how about the appraisers? Well, the appraisers that played along with the game are sitting on the hot seat now, and some may well face criminal prosecution for mortgage fraud. And do you think the lenders that they were playing the game with are going to defend them? Not a chance! And the appraisers that refused to play the game are hurting, too, as orders slow down to a small trickle......it would help us reputable appraisal companies if lenders would remember that we have been on the up and up all along.

So, if the lenders, loan officers, brokers, and appraisers didn't gain, how about the homeowners? Sure, they got their homes with little or no money down, with forged documentation, or with a little fudging of the numbers here and there, but where are they now? Many have lost their homes completely and all of the hard earned cash they have paid into their mortgages. There are nine vacant homes just on the two sides of my block here - do you think that helps the market value of my home? (Not to mention, it breaks my heart to look at them every day!)

So, if the lenders, loan officers, brokers, appraisers, and homeowners didn't gain, how about the investors that are "snapping" up these bargain bank owned homes? Well, I just looked at roughly 200 listings of foreclosed homes in my city, and only about 20 of those listings were below the estimated market value of the property. Most were listed at MUCH higher prices than the real value of the property (just my opinion - but I have lived here all of my life and have a pretty good idea what a home is worth, right here and right now). So, I see a minimal number of "bargains" out there and so what if an investor does buy a "bargain"? Who is he going to sell it to? No one can get a mortgage now unless you are a "Rockefeller"! And, let's not even talk about renting it! To whom? The only jobs available in our area don't pay enough to afford to live in your parents basement, let alone a home!

So, in all of this big mess, guess who the only winners were? The foreign investors - who not only made big dividends on the risky loans when business was good, but can now force many of our big financial companies to their financial knees by forcing them to buy back a majority of the defaulted loans......way to go, America! But, I have faith that Americans are smart and compassionate enough to figure out how to fix this mess now....and I rack my brain daily for some answer. I just hope we can remember this the next time we are tempted to take a ride on Easy Street....

Tuesday, August 14, 2007

This is a sad blog for me to post...

August 14th, 2007 5:36 PM

If you have tried to contact us in the last couple of weeks and things seemed a little crazy here, it is because half of the office had to rush to Arizona. On July 25, 2007, my adored little grandson passed away in Casa Grande, apparently of SIDS.

I have yet to come to terms with this tragedy, but working helps me from losing my mind. He was a remarkable child and my heart is forever broken.



The following is his eulogy.




July 30, 2007
Deborah A. Seivers
A Letter To My Grandson










Dear Oliver, my precious little man,


From the very moment that I looked into your eyes, though I was thousands of miles away from you, I knew that you were an extraordinary baby. You were far more awake and alert than any other newborn that I had ever seen. When I finally got to hold you in my arms, you quietly studied my face for the longest time, like you were trying to memorize every detail.
I pulled Mama’s rocking chair up to the side of your crib that first night and held your little hand. I would doze off now and then, and every time I awoke, you were watching me; shining a light on my heart and looking right into my soul.


We are all here because you touched us all. We all carry a special memory of a special moment with you. And, so, in return for all that you gave to us, we all make these promises to you today, Oliver – our precious little man.
  • We will not become splintered with sorrow – we will honor your happiness by welcoming joy into our hearts.
    And, then, we will pass it on.


  • We will not descend into despair – we will honor your exuberance by rocking to the music of our lives.
    And, then, we will pass it on.


  • We will not become worn with weariness – we will honor your endless energy by stepping eagerly into each new day.
    And, then, we will pass it on.


  • We will not deaden our hurt to dullness – we will honor your curiosity by exploring that which is new and different to us.
    And, then, we will pass it on.


  • We will not be broken by bitterness – we will honor your sweetness with a smile for a stranger.
    And, then, we will pass it on.


  • We will not succumb to stupidity – we will honor your intelligence by seeking wisdom and growth.
    And, then, we will pass it on.


  • We will not infix ourselves in isolation – we will honor your friendliness by reaching out to each other.
    And, then, we will pass it on.


  • We will not become fractured by fear – we will honor your sense of daring by attempting that which daunts us.
    And, then, we will pass it on.


  • We will not anchor ourselves with anger – we will honor that twinkle in your eye with the acceptance that dark days will sometimes come into all of our lives.
    And, then, we will pass it on.


  • We will not harden ourselves with hate – we will honor your love by holding each other close.
    And, then, we will pass it on.
So, you see, my dear Oliver, my precious little man, by all of us keeping these promises that we make to you here today, your little life will change the world.
And, now, I understand, my sweet little Ollie Boo, why it was so important to you that I listen to what your bright little eyes were saying to my soul.



Love always – until we meet again.
Grandma D