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I'm excited to be part of a round table discussion this evening with Attorney General Bill McCollum to discuss the current economic climate and its impact on the housing market in Tallahassee.
We are going to be talking about Mortgage Fraud, Home values, appraisals, the tax credit - all that good stuff.

I know you are all an opinionated bunch...Any experiences you want me to share with him?

I'd appreciate helpful / thoughtful comments

On the way to work this morning, my route took me through Southwood off of Tram. I noticed as I turned past the School that they were pour'n concrete on the corner for another unit. There hasn't been much going on in that area (that I've noticed) for a while. I remember thinking that was an indicator that things were coming back for some of the construction folks.

For myself, one of the things that troubles me is that most all of the incentives that are available seem to be for "first time" home buyers. Well, I have to tell you that my wife and I may not be in a majority but we were trying to position our selves to make one more move before we settled into what we considered the last move. Then the prices went crazy both up and down. It was difficult, at least for me, to feel comfortable that we could determine if the time was right or wrong to move into the market. It's my opinion that there are a lot of "non first time" prospective buyers out there who typically have GOOD credit, who have the "means" to make a purchase, but are penalized because they are not "first timers" . If these buyers, were to be enticed (through financing and tax incentives) into the market there would be a significant influx of good credit, good purchases, into the housing market. (imo). I know my first home purchase was certainly not a brand new build. Current home owners moving into the market would also open up an inventory of previously owned homes to "first timers". I'm not a Realestate expert but you have some of my thoughts for what they are worth.

You have to remember Bud, many first time buyers are young and liberal and therefore mostly Dem. voters. Those with good credit and a job to pay for a home are mostly older conservative and vote Rep. Now just who do you think is going to get the money? Those that can pay or those that vote for the current administration next year will see another round of foreclosures on homes that where bought with no way to pay the mortgage

next year will see another round of foreclosures on homes that where bought with no way to pay the mortgage

Not from mortgages written this year- Lending guidelines have tightened.

I had a client with an 800 credit score and big reserves in the bank almost get turned down for a loan because of a quarter sized piece of wood rot on an eave.

That is not to say the foreclosure wave is over- I'm working several short sales right now. I just know the quality of loans being written right now are better than we have seen in years.

Well Barry, only a couple posts from the masses; what did the roundtable participants have to say?

I will add from my perspective that I feel Tallahassee has been widely (not entirely) insulated from housing market woes. You don't see near the fluxuations here that you did in Naples and throughout south Florida. I would guess that is the result of most being employed in the government or education sectors, and while raises may not be forthcoming, tragedy hasn't struck in large numbers like it has elsewhere. This helps keep prices somewhat stable, except in the uper-echolon where prices were probally over inflated to start since they aren't water front or in a densley populated regions. I am also swayed by an economist who constantly reminds this period will be referred to as the "great panic" by future generations though.

How about the experts? What were their thoughts?

SHOWBOAT.... If your as sharp as I give you credit for.... you will continue to allow your self to be swayed by the economist you referred to!!

future generations

Ummm, didn't ya get the news release. The world will end in 2012 and there will be no "future generations "

wevans wrote:...The world will end in 2012 ...

you gotta be kidding me! I just booked a hunting trip for 2013

wevans wrote:Ummm, didn't ya get the news release. The world will end in 2012 and there will be no "future generations "

Wevans, I believe that would be saracasim from a man of your philosphies. Someone with that signature wouldn't allow the "doom and gloom fodder" the media feeds upon toget them down, would they?

So how about it BMan; what do the authorities say? Did you guys share a beer and agree to disagree....seems to be the trendy means of addressing public concern.

WELL TAKE IT FROM THE OLD MAN THAT HAS BEEN THRU THE FIRST BOOM AND DEPRESSION, AND THE LATEST (DEPRESSION),THE FAT LADY HAS NOT SUNG YET. ONE WAY TO KEEP FROM GETTING BACK INTO THE SAME FIX WE ARE IN NOW IS VERY SIMPLE. DO NOT SELL ANYONE ANYTHING UNLESS THEY CAN PAY 15 % DOWN AND HAVE HAD A JOB IN 18 OF THE LAST 24 MONTHS. IF YOU DO NOT HAVE A JOB, YOU DO NOT GET THE CREDIT. BEST WAY TO OPERATE IS TO PAY CASH, THAT WAY IT DOES NOT MATTER WHAT THE IDIOTS IN WASHINGTON DO ABOUT ISSUING CREDIT. I HAVE BEEN FORTUNATE ENOUGH TO PAY CASH FOR EVERYTHING WE HAVE BOUGHT SINCE 1948. IF WE DO NOT HAVE CASH TO BUY WHAT WE WANT WE JUST KEEP SAVING UNTIL WE DO. MY .02C
PA THE OLD MAN OF THE SEA

I don't have enough time to list a smidgen of what I've seen, but suffice it to say that a lot of our present problems stem from mortgage fraud from unscrupulous mortgage brokers and lenders.

I don't think bailing out the rich was the way to go! Instead of giving the trillion dollars to the wealthy ( banks, wallstreet etc. )they should have given the American tax payers the money who would have paid down on their homes morgages and not defalted and paid taxes on this money and the banks would have been secured from the "bad loans ". (We will be paying for it any way)

The middle class taxpayer who pays their bills on time and puts this ahead of frivolous spending has not received any help from the government. The working class carpenters self employed have not been helped by any spending bailout. The numbers of unemployed in the trades in Florida is overwhelming and many are not eligible for any assistance or unemployment due to self employment status and broken jobs for the last 2 years in this industry.

Now he wants to fix the health industry.... God help us as this is my field for the last 40 years.

Ive got 4 closings in the next 48 Hours so not a lot of time to debrief.
It was a very interesting time- but not near enough of it. It was like we only scratched the surface.
That was really the purpose- to let Attorney General Bill McCollum hear what was happening on the street.

There was a Builder, Appraiser, Bank Fraud investigator, Lender, Affordable housing advocate, Rental Property owner and a Dumb Realtor.

Everyone had very different perspectives and priorities.
The system is bent right now- Over Regulation has followed under regulation in lending and appraising.
Yet appraisal service companies- required by FHA are not regulated at all.
Appraisers are coming in from outside our area and have no idea about our market.
Lenders are being very cautious but are overwhelmed with volume combined with cutbacks in staff.
Builders are struggling to put out competitive products when the market is saturated with resales
Bank Fraud is becoming a concern but not that prevalent in our area
Houses are more affordable than ever but low income buyers are finding it hard to get financing
Rental properties are worth less than they were when purchased 4 years ago- so its hard to refinance or sell.

The Attorney General asked great questions and really listened.
That's the first step!

bman wrote:Ive got 4 closings in the next 48 Hours so not a lot of time to debrief.

That's good news all in itself.

From the recreational/raw land side I see the terms of loans as being very tight. The lenders are looking very closely at the tax returns of borrowers and requiring even more money down, 35% at a min. Even people with strong income, little debt and good cash on hand are having to come in with hat in hand to get the loan. In the past 3 months we have closed on a little over 3,000 acres in both Georgia and Florida and have contracts on about 800 more. The main concern, as always, is to be sure the buyers are qualified for what they are looking to buy before you even start looking. The issue has and will continue to be whether or not the banks will commit to lending money on raw land tracts. What many dont know is that unlike residential mortgages that are sold off from the local bank to secondary mortgage companies ( under writers), while large and most small tracts are kept "in house" at the local bank. A local bank can't sell the mortgage on a tract of land off to the secondary market because it is set up for the residential buyer.
I guess the long and the short of it is that when the local banks begin to feel more comfortable about lending the banks money on "in house" land sales that that will be a good indicator of when the market as a whole is on a rebound.