Market Update for September 12 2011

By chrisking • September 12th, 2011

“We’ve all seen the man at the liquor store begging for your change,” begins the Everlast song “What It’s Like.”  It continues, “God forbid you ever had to walk in my Lenny’s shoes; because then you might really know what it’s like to sing the blues.”

The Blame Game is an easy one to play.  With an election coming up, both sides of the isle blame the other for either doing too much, too little or nothing at all.  The truth, I think, often lays somewhere in the middle.  And yet, how often is it that we resort to criticism?  This tendency is especially easy when we look at the current state of the real estate industry (and don’t get me wrong, I have had plenty of “blame” for banks in my newsletters).  But I found a recent CNNMoney article a particularly striking example of this: “How to Rescue the Housing Market: Foreclosures!” 

In this article, Tami Luhby writes, “If the Obama administration really wants to save the housing market, it should speed up the foreclosure process.”  Ironically after citing numerous experts, she eventually adds, “accelerating foreclosures is tricky. . . since it is largely the purview of the states.”  So blame Obama, then admit that states have the majority of control over foreclosure regulations: interesting.  Her article later admits (as I have often written about) that “a first step could be to sell off the foreclosed properties owned by Fannie Mae.”  Fascinating that Luhby does not discuss the fact that Fannie already has a tremendous program to do this: HomePath.  It’s often the banks that are holding onto the “shadow inventory;” but how easy it is to blame the government and the current administration’s actions in a difficult situation.

Frequently, seeing beyond the rhetoric is difficult.  As your trusted mortgage professionals, those of us at CPK Mortgage help bring clarity in tumultuous times. 


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