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....