Short Sale Pricing Discussion

[traderx]

... so, in other words, the baby boomers aren't all going to flood into Florida and buy up all these beach homes and condos???

Bummer.

.

Interesting word choice.

 

[Joe Mammy]

Let us face a harsh reality. We, myself included, are reaping what we have sown. The entire real estate industry and consumers alike got drunk on a witch's brew of easy money, corrupt lenders and appraisers, lax regulatory oversight, ratings agencies with conflict of interests, brokers with only commissions in mind, and the bigger fool theory. It was the perfect storm!
It was in fact the Bermuda triangle for ethics and honest dealings. Good people with good intentions entered but soon lost their way. Their moral compass became disoriented and they allowed the intoxication of money to override good judgment.
Ultimately, their money went to money heaven. Millions of people have been hurt, many destroyed. It will take many years to heal but the toothpaste will never be put back in the tube. The lucky people are those that are able to blame others, justly or unjustly, for their misfortune. For it is those that realize their prostitution of their values has self inflicted monetary and self esteem consequences, that will bear the ongoing burden----and rightly so.

WoW! I've reread your post 6 times, and still absorbing.

Lucky for blaming others for their misfortune? I'm either spellbound or stymied...

The prostitution of their values has really aided in the correction of the market, that was dearly needed.

Once this shortie situation is cleared up things will get better quickly. Obama's possible bad bank is probably playing a big role in the timeliness of banking decisions. Why write down a loan if by waiting the gov will take it off my hands as a toxic debt?

 

[ClintClint]

Joe, I agree with you 100% about the short sale situation being slowed down by the uncertainty of the whole bank bailout resolution.
I think you misunderstood a couple of my phrases. Clumsy literary license on my part---let me explain. When I said the lucky ones were able to blame others, I meant that by blaming others you are "lucky" not to face the consequences of accepting responsibility yourself for your situation. When I said the prostitution of your values, I meant selling out of your core inner values in pursuit of money------not related to real estate "values".
I didn't mean my post to be a condemnation of the real estate industry or mankind in general. I do think the words"greed" and "corruption" would be aptly applied in some situations, but they have connotations that I rather not apply with a broad brush. I think temptation and the adrenaline rush ( the juice if you will ) are the more likely motivational demons. Hell, temptation and the fight against it goes back the Garden of Eden. Man is not perfect and who am I to judge your soul. No one needs to redeem themselves to me or anyone else. The healing emanates from within and begins with forgiving yourself and then making a vow to yourself to realign your priorities and do better next time the excesses and lures of money and the juice of the whole game arise. Fortunately, the new paradigm ahead will afford everyone willing to accept it, the opportunity to rehabilitate themselves. For the terminal crooks, no indictment or impuning of your reputation could ever be enough.

 

[AAbsolute]

I guess you can see how following the 10 commandments would have helped avoid all this. It's not easy but it is simple.

 

[fisher]

Once this shortie situation is cleared up things will get better quickly. Obama's possible bad bank is probably playing a big role in the timeliness of banking decisions. Why write down a loan if by waiting the gov will take it off my hands as a toxic debt?

Unfortunately, it's gonna take a lot more than clearing up the shorty situation to make things better. It goes way, way beyond bad mortgage loans at this point in time.

 

[AAbsolute]

Unfortunately, it's gonna take a lot more than clearing up the shorty situation to make things better. It goes way, way beyond bad mortgage loans at this point in time.

If migration rates to the 30A Corridor increase over the next 4 years there could be a balance in inventory. The 30A corridor is very small in relation to other major Florida markets. That's the micro side of it as I see it. Do you think there is a macro condition that is going to counter this?

 

[fisher]

If migration rates to the 30A Corridor increase over the next 4 years there could be a balance in inventory. The 30A corridor is very small in relation to other major Florida markets. That's the micro side of it as I see it. Do you think there is a macro condition that is going to counter this?

Yes. Look at the headlines. Look at GDP. Look at job losses. Look at bankruptcy filings. Look at corporate profits. And on and on and on. The micro 30A corridor is not immune from the larger problems in this world.

What makes you think migration rates to the 30A corridor will increase? Where are the jobs that would create such an influx?

The only thing that made this and other real estate hot in this country was rampant speculation. The only thing that can turn this market around is a major influx by wealthy folks back into the second home market place to stay (not to flip), and that isn't going to happen anytime in the foreseeable future.

 

[traderx]

If migration rates to the 30A Corridor increase over the next 4 years there could be a balance in inventory. The 30A corridor is very small in relation to other major Florida markets. That's the micro side of it as I see it. Do you think there is a macro condition that is going to counter this?

I know a few folks who had planned to retire to SoWal but their stocks have been decimated. When stocks come back, and assuming that they can sell their homes in Atlanta, they will move down. I think we are looking at least two years out.

 

[Smiling JOe]

clintclint, I really don't understand your statement about people giving up their moral compasses in pursuit of money. I know that some people maybe never had morals before all of this, but many people are capable of acting with morals while trying to put their money in the place for the best return. Many people didn't lie, cheat, or steal when they purchased or sold property. To give another example, if a person with strong morals and ethics has worked hard and managed to accumulate $500,000, they need to determine a place to invest that money so that it works best for them, within their tolerance of risk. Some people, like my Dad, would place it in 5 CDs, while others may put it all in one penny stock which they read about on an online stock bulletin board, and others may put it into real estate. The desire for the best return doesn't make one immoral.

EDIT: I just read your follow up post, #33, which I do understand, and it is well stated.

 

[AAbsolute]

Yes. Look at the headlines. Look at GDP. Look at job losses. Look at bankruptcy filings. Look at corporate profits. And on and on and on. The micro 30A corridor is not immune from the larger problems in this world.

What makes you think migration rates to the 30A corridor will increase? Where are the jobs that would create such an influx?

The only thing that made this and other real estate hot in this country was rampant speculation. The only thing that can turn this market around is a major influx by wealthy folks back into the second home market place to stay (not to flip), and that isn't going to happen anytime in the foreseeable future.

There aren't that many thousands of homes on the 30A corridor. I still talk to people who are entering retirement and are doing the property search now. There is a regular influx of people buying and I think the vacation market continues to develop. Permits are way, way, way off as well.