In many areas the housing market and all real estate in general is hurting with so many short sales, foreclosures and lack of new building starts at an all time low it makes one wonder when if ever will the real estate market ever recover.
As a full time, season realtor in one of the toughest markets in the country it is difficult to be optimistic on whether or not the real estate market will ever recover. More and more it is looking like it will be many years before homeowners will be at a break even or begin to have a little equity in their homes. The more we allow people to short sale their homes without really scrutinizing if they actually qualify then we are simply giving homeowners every reason to walk from their responsibilities and hurt the ones that are doing the right thing and continuing to pay their mortgages.
A short sale is supposed to be for the ones that truly have a financial hardship but more and more I am seeing sellers hiding money and income to “show” that they qualify for a short sale simply because their homes are not worth what they originally paid. Lenders are approving them without doing real in-depth research. You might ask why would they take this loss if the borrower can make the payments? Why not, they get the entire amount paid, in part by the new buyer and their loan or cash and the rest you and I are paying through our taxes, that is right, our taxes are paying for those homes that people are walking from their responsibilities.
Where is the help for those of us that continue to do the right thing and pay our mortgages? Good question! Why is no one lowering what we owe or giving us cash for keeping up our payments? We give homebuyers tax credits, we pay for foreclosures and short sales, we even give a short sale owner a little cash to move out of the home! Really? What about you and I and assisting us when we are owning up to our debts and paying them off although we are hurting as well?
As far as I can see, the entire real estate market in in jeopardy until some real tough guidelines are put in place and we stop enabling homeowners and encouraging them to walk away from their responsibilities.
Each day gets harder and harder to watch our real estate continue to struggle and to see and hear people simply walking away from the right thing and owning up to their financial obligations.