In the latest numbers released by the National Association Of Realtors, nearly half (45%) of all homes sold were either short sales or bank owned properties.
Do you think that there is any chance that 45% of licensed Realtors have the requisite training and experience necessary to expertly execute short sales?
Scary thought isn’t it. Scarier when you look at the economic forecast for the housing industry. Economists believe that we may not even be halfway through this foreclosure crisis and even worse…they think we haven’t seen nothing yet!
Predictions show that Alt-A loans and Option Arms will bring about a veritable tsunami of additional foreclosures that will cause millions more to lose their homes.
Check out the video below from 60 Minutes. If you haven’t seen it yet, be warned…it’s chilling!
[flv:http://www.realestateradiousa.com/videos/60.flv 480 360]
So, now that you have watched it, I have a question. Are you a real estate “professional”? Are you prepared to seize the unbelievable opportunity for profit that is being put before you in unprecedented fashion? Are you going to educate yourself and train yourself to have one of your best years in real estate ever? Or will 2009 spell much of the same for you?
Well if you want to learn how to service the market that is taking over the real estate industry, you owe it to yourself to take a look at the # 1 Short Sale training course on the market.
It’s up to you. I know a ton of Realtors who are sitting on the sidelines lamenting about how good the good old days were. That ship has sailed and a new, even more profitable one has taken its place. It’s called the distressed property market and there is a veritable fortune of profits waiting for you.
Step up to the plate and adapt to today’s and tomorrow’s real estate market. The choice is most assuredly yours, as it has been for a while. Are you finally ready to be a short sale expert and learn how you are going to make the good old days seem insignificant?
Check out the #1 Short Sale training course on the market and change your life …because you don’t want a repeat of 2008 and more importantly because YOU deserve it!
60 Minutes video courtesy of CBS News
I would like to bring a very important NASE survey finding to the attention of all. I have been trying to bring this to the attention of Washington because they must address the following topic as quickly as possible.
This relates to the upcoming wave of Foreclosures in 2009 that are due to the resetting of the “Toxic†mortgages.
Many fail to realize that there are millions of self-employed smaller businesses, who employ from 1-10 employees, that are holding these risky mortgages. So, here we have a major problem… Not only will these small business owners lose their homes, but there will be the resulting JOB LOSSES on their business failure. Note, although President-Elect Obama is stressing the need to create 3 million new jobs, we must understand that “JOB RETENTION IS AS IMPORTANT AS JOB CREATIONâ€.
Our priority should be to be PROACTIVE in addressing these small business owners’ need to avoid defaulting on their mortgages. They require “Immediate and Specific Financial Guidance†to weather this storm.
The 2nd Wave of Foreclosures has made it to the mainstream Media. CBS’s 60 Minutes had a segment on 12/14/08, but they missed a very important point. Here is a post which may have merit for your blog…….
I would like to bring a very important bit of information to your attention that relates to this economic crisis that was overlooked until now.
On Sunday, 12/14/08, CBS 60 Minutes aired a segment “The Mortgage Meltdownâ€.
Scott Pelley’s piece on the 2nd Wave of Foreclosures overlooked a critical fact.
The segment missed the fact that this next wave of Foreclosures in 2009 Will Take Self-Employed and Smaller Businesses who have these TOXIC mortgages. In fact, ALT-A, Option ARMS, Interest-Only, the TOXIC Mortgages that are considered the “Troubled†assets in TARP were specifically marketed to the self-employed who fell prey to them.
The upcoming defaults on these risky “Toxic Mortgages†will result in an increase in foreclosures. But worse, once these small businesses fail, the resulting loss of jobs will cause millions to add to the ranks of the unemployed. Note that self-employed business owners (16.2 million according to the SBA) employ between 1-10 employees.
An NASE survey at http://www.nase.org , was the first to provide compelling evidence of small business involvement in the upcoming toxic mortgage crisis. The survey was created by Prof. Samuel D. Bornstein and Jung I. Song, CPA of BornsteinSong Consultants in Oakhurst,NJ,and was conducted by the National Association for the Self-Employed (NASE) which issued a Press Release on November 21, 2008.
According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other toxic mortgages, and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected Resets that are scheduled to begin in 4th Quarter 2008 through 2012.
These small business owners will be at-risk of payment shock and default as their monthly mortgage payments skyrocket. Small business owners were especially targeted for these Alt-A loans which required little or no documentation of income which appealed to many small business owners who previously were unable to qualify.
The resulting defaults will be the cause of the upcoming second tsunami wave of foreclosures that will dwarf the subprime crisis and will take many homeowners, small business owners, and their employees at this critical time when our economy can ill afford it.
Thank you,
Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ
Professor Bornstein this is absolutely stunning data. I will use it to frame another story around. Would love to speak with you next week for more data on this developing nightmare.
Barry,
It would be my pleasure to speak on this upcomimg nightmare that few see. There is an expression that I always present to my classes… “You only see what you know”.
I agree with the above comments and add two more concerns that are unmeasureable. We have no data for the number of homeowners that have money in the bank and excellent FICO scores but are frustrated by seeing home values in their neighborhood plummeting. There will be scores of these owners that buy something for less (possibly smaller, more manageable properties since I think there’s a greater consciousness towards living below our means again), and let their property go. There’s also the “small business owners” or business owners in general that will consider their home an investment and wake up one day and ask themselves, “why am I throwing good money at bad?” As one of my colleagues in the industry says, “Would you go to work everyday and not get paid?” I’m not saying I agree or condone this belief, but I would guarantee there’s people that think and act this way right now.