Greer, SC - New York is creating a 90-day stalling period before foreclosure to give homeowners in trouble time to research their options. Fairfax, Virginia is using tax dollars to buy up foreclosed homes with the hope of stabilizing neighbors crashing property values. $180 million in tax dollars have already been allocated to the National Foreclosure Mitigation Counseling program, meant to talk homeowners through the process of fighting to keep their homes.
"There is no doubt we have a mortgage mess and a whole lot of different ideas of how to clean it up," admits Craig Rozema, real estate investment specialist, leading portfolio manager, and author of the new book "The Next Hot Real Estate Market."
Two of the men most outspoken about their ideas of cleaning up the sub-prime mortgage mess are presidential candidates Barack Obama and John McCain. The democrat nominee for president suggests offering $10 billion in tax dollars to help cities buy foreclosed properties. The republican nominee for Commander and Chief suggests ordering banks to end existing subprime loans and write off the losses.
"Everyone has their plans on how to bail out of this burst bubble. Anyone’s plan – anyone’s action – is better than no plan and no action," says Rozema. "Sadly, the damage is done. Property value is headed down. Even the best ideas can only cushion the landing."
Not all areas of the United States are facing record foreclosures. Parts of Utah, Arizona and Colorado have consistently seen real estate sales rise. But while parts of areas like Georgia may have hit rock bottom already, sections of California, Nevada and Florida appear to still be in a property value free-fall drop.
"Look, in some areas of this country speculators went crazy. They bought up houses intending to flip them, and some got stuck. Others sold those houses for far more than they’re worth, and the new homeowners got stuck. Banks loaned more than they should have to risky people, and the banks got stuck. To some extent, the market is just correcting itself. It is sad that some good people are getting hurt along the way, but it is also a great opportunity for other good people to snatch up real bargains."
Rozema compares this mortgage mess to a long stock market slump. "We are having a black Monday in the real estate industry," he says, "It’s just lasting a heck of a lot longer than a day."
When stocks are at their lowest, savvy investors buy and hold. When real estate crashes, savvy people invest for the long haul.
"The days of buying a property with the intention of selling it for a large profit six months down the line are over," says Rozema. "All the great bail out ideas can only cushion this massive economic blow. The real answer for those areas of the country that still haven’t seen the bottom of this housing crisis is for individuals to buy at bargain prices and stay with the house for the long haul."
About Craig Rozema
Craig Rozema is the Managing Member and national spokesperson for Craig Martin Investments. He has been firmly ensconced in the real estate world for over two decades, during which time he has developed subdivisions, built new homes and commercial properties, and currently maintains a sizeable portfolio of income properties. Craig is a graduate of Georgia Tech and he lives in South Carolina with his wife Janae and their three children. Craig Rozema’s website can be found at www.craigmartininvestments.com
