Florida Home Buyers and Investors Blog

Well the FBI is finally doing something with all the money we pay them in taxes.  Going after the Bear Sterns brokers is a good first step.   Although they are innocent until proven guilty, their actions speak louder than any trial. 

Here is food for thought;  regardless of whether the brokers told the investors to continue buying or sell, the fund was doomed.  Where is their fiduciary duty?  to the client or the company?

How many times have people told you everything is great, don't worry, keep doing this or that, only to find out the advise was not helpful or even harmful.  Did the delivery of the information constitute fraud? or was the person only trying to mitigate the concern until an alternative method of handling the situation could be found so as not to cause a panic.  Our government does it all the time!  It's called "SPIN"

I am of the mindset that everyone should make their own decisions, and if I have information that effects my clients, they have a right to know and choose their course of action that meets their needs. 

Going back to the other people who have been arrested for mortgage fraud.  Their actions have yet to be detailed, so it's hard to comment on those transactions but regardless of whether there was organized groups committing mortgage fraud, I know plenty of average everyday homeowners who used their homes as person piggy banks, refinanced every 6 months, and now call me to do a Short-Sale.  They basically robbed the bank without a gun, and will not be charged with any crime. 

Think of all the people who falsely stated their income, job, assets, in order to obtain a loan they would not qualify for traditionally.  Only to have those homes fall into foreclosure.  Well there is certainly a lot of blame to go around. 

Many people will want to pass that blame to others without looking in the mirror.  It's easy to say the Realtor made me buy that $500,000 home, or the mortgage broker said don't worry, you can refinance later.  At the end of the day, it's the consumer and investor in real estate funds that must take responsibility for feeding on the frenzy of speculation and greed.

I hope we have all learned a lesson, and now that prices are back to 2003 levels, we can begin to look toward the future.

Prices are down, and lenders are willing to finance.  It's a good time to buy. 

For those who think I'll wait for the prices to bottom out, what happens when interest rates go to 7% or more.  The time they wasted waiting for prices to come down was lost to higher mortgage payments.

In the immortal words of Tim Russert, "go get'm"