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Posts tagged “Barney Frank

Is the misery index only getting worse?

The Colonial Revival headquarters of Fannie Ma...

Fannie Mae headquarters

I am saddened to report that the real estate market nationwide is in deep trouble. Still. Florida is one of those states that leads the nation in its troubled real estate market. Is it any better in the Shoals?

In today’s local paper there was a two section printing of the Tax Certificate sales. Two sections of the paper today, equivalent to a good Sunday paper on a busy holiday sale weekend back home, were listings of those properties where the owners have not paid the 2010 property taxes.

The print was about a size 4 font, four columns wide per page and in two sections. There were 99 pages of these delinquencies. 99 pages for just one Florida county! Other tax delinquencies were reported in last week’s paper. Holy smokes!

Since Florida has no personal income tax, the state relies heavily on property taxes being paid in a timely fashion. There is a system, however, to protect the state by others being able to ‘buy’ tax certificates on those properties that are delinquent on taxes through a bidding system.There is a system in place where after about five years, if the property owner has not paid up the taxes and the interest to the certificate holder, that a forced sale can be prompted.

Having been a real estate agent, and a successful one; I know that the real estate market is a keystone for the health of our national economy. And I can report first hand that there were some mighty unhealthy strategies a few years ago that were shady at best and treacherous at worst, i.e. no interest loans, no documentation loans, loans for up to 125% of the appraised value, and delayed interest loans. Mortgage brokers were crawling out of the woodwork like termites. And we all know that what goes up must come down. But who would have thunk that it would stay down? Logic tells me that the market can not even spell the first two letters of recovery until the delinquent inventory is disposed of; that is just plain ol common sense. And there are reports that the foreclosure rate has doubled in the last two years (see related article below).

Fannie Mae and Freddie Mac steered the real estate market, and still does. In my humble opinion, the purveyors of these government agencies steered our country right into the ground. Was it on purpose for other than financial gain?

Funny, but no one at the top even got as much as a slap on the hand, not even Chris Dodd or Barney Frank.  It had to be pretty miserable for those people who bought homes they could not afford to hold their breath while they waited for the inevitable tax man who would cometh. It must be miserable for those who found themselves upside on their mortgages and for all the rest of us whose value on our biggest asset has plunged. But the ones who profited off the backs of America have never seemed miserable. I bet they laughed all the way to the bank.

So, hold on good people for the worst is yet to be. Be like a good Boy Scout and ‘Be Prepared.” 

As I am keying this article in my husband comes to me and says that more tornadic activity is headed toward Joplin. I guess the twenty-five percent left standing in Joplin may be gone by nightfall. Is God trying to tell us something? How is the misery index where you live?