{"id":5485,"date":"2008-11-10T11:24:13","date_gmt":"2008-11-10T18:24:13","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5485"},"modified":"2008-11-10T11:25:42","modified_gmt":"2008-11-10T18:25:42","slug":"how-the-new-president-is-going-to-prolong-the-housing-bust","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5485\/how-the-new-president-is-going-to-prolong-the-housing-bust\/","title":{"rendered":"How the new president is going to prolong the housing bust"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
How the new president is going to prolong the housing bust<\/strong><\/p>\n

I’m writing this before the election, so I don’t know who will have won by the time you read this. But here’s something I do know: The forty-fourth president of the United States, whomever is chosen, will prolong the housing bust.<\/p>\n

How do I know this? Because both candidates have promised to implement programs that will artificially buttress home prices above their market value. John McCain wants to refinance failing mortgages. Barack Obama wants a freeze on foreclosures. Congress and the fifty state legislatures have ideas of their own.<\/p>\n

To make matters worse, lenders are putting a friendlier spin on the foreclosure process with elaborate workout schemes. If you qualify for a loan workout, instead of liquidating the home as a non-performing asset, some lenders will roll your existing loans into a new interest-only loan. You would make small payments for the next two or three years, and only then resume your full obligation.<\/p>\n

What’s wrong with all these ideas? They’re simply delaying the inevitable. If you’re not making your payment now, you probably won’t make it after a refinance, after a foreclosure moratorium or after a three-year workout. Some people may find their salvation in these programs, but most of the affected homes are going to end up in the lender-owned inventory — later rather than sooner.<\/p>\n

And that’s the problem. Our only way out of this mess is to clear the resale homes pipeline of foreclosure inventory. By delaying eventual foreclosures, we are preventing the real estate market from finding its bottom-dollar price. But we will see renewed appreciation only after the market has absorbed this glut of foreclosed homes.<\/p>\n

The good news — for buyers: Homes are going to be selling very near their bottom-dollar price for the next few years. The bad news — for sellers: Homes are going to be selling very near their bottom-dollar price for the next few years.<\/p>\n

The alternative is to let markets operate freely — a short, sharp pain followed by a robust recovery. But Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  How the new president is going to prolong the housing bust I’m writing this before the election, so I don’t know who will have won by the time you read this. But here’s something I do know: The forty-fourth president of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,6,5],"tags":[],"class_list":{"0":"post-5485","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2375,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2375\/government-interference-will-prolong-housing-woes\/","url_meta":{"origin":5485,"position":0},"title":"Government interference will prolong housing woes","author":"Greg Swann","date":"December 15, 2007","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0Government interference will prolong housing woes Want to make an economic problem worse? Interfere with it. As I write this, the Federal Reserve Bank just cut the Federal Funds Rate by another quarter-point. Why? To try to\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13255,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13255\/love-these-10-reasons-to-buy-a-home\/","url_meta":{"origin":5485,"position":1},"title":"Love these “10 Reasons to Buy a Home”","author":"Al Lorenz","date":"September 15, 2010","format":false,"excerpt":"From the Wall Street Journal, complete with video, is Brett Arends take on why now might be a great time to buy a home.\u00a0 This is the action item to follow Greg's last post on Why Housing will come back.\u00a0 I'm in a very seasonal, resort type of market.\u00a0 A\u2026","rel":"","context":"In "Carnival of Real Estate"","block_context":{"text":"Carnival of Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/carnival-of-real-estate\/"},"img":{"alt_text":"[roiA0915]","src":"https:\/\/i0.wp.com\/si.wsj.net\/public\/resources\/images\/OB-JZ603_roiA09_DV_20100914164033.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5705,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5705\/you-dont-hear-many-msm-analysts-making-this-obvious-connection\/","url_meta":{"origin":5485,"position":2},"title":"“…you don’t hear many MSM analysts making this obvious connection”","author":"Richard Riccelli","date":"November 19, 2008","format":false,"excerpt":"Interesting piece at kausfiles.com.\u00a0 Excerpt: Real estate prices started to plummet just as expectations of imminent semi-amnesty were turning into the reality of harsher enforcement. Schools in immigrant heavy areas of L.A. for example,\u00a0reported declining enrollments in 2006.\u00a0 The\u00a0nationwide character of the Gran Salida\u00a0became apparent,\u00a0even to the press\u00a0by early 2008.\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14382,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14382\/what-does-it-mean-that-the-nar-wont-defend-itself-from-the-charge-that-it-was-the-sine-qua-non-cause-of-the-great-recession\/","url_meta":{"origin":5485,"position":3},"title":"What does it mean that the NAR won’t defend itself from the charge that it was the sine qua non cause of the Great Recession?","author":"Greg Swann","date":"April 1, 2011","format":false,"excerpt":"I threw down the gauntlet -- and not for the first time:It was the NAR that lobbied for each law and rule change that resulted in the housing boom, the sub-prime lending catastrophe, the wanton bundling of fraudulent loans, the on-going subsidization of the secondary mortgage market, etc. The villain\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17444,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17444\/overnight-news-trump-won-a-rigged-election-so-democrats-double-rigged-the-next-one\/","url_meta":{"origin":5485,"position":4},"title":"Overnight News: Trump won a rigged election so Democrats double-rigged the next\u00a0one.","author":"Greg Swann","date":"November 7, 2020","format":false,"excerpt":"I can't tell if it's a lucky break or an exquisitely-executed long con, but the Dominion software is what will keep China Joe out of the White House \u2013 and may even put him in the big house. The plan, I'm guessing, was to move all races leftward by a\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":18273,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18273\/overnight-news-pompous-cowards-is-drab-dresses-supreme-court-abolishes-property-rights-to-avoid-controversy\/","url_meta":{"origin":5485,"position":5},"title":"Overnight News: Pompous cowards is drab dresses: Supreme Court abolishes property rights to avoid\u00a0controversy.","author":"Greg Swann","date":"June 30, 2021","format":false,"excerpt":"The Supreme Court handed down a very important decision yesterday: Property rights in the United States emerge from popular opinion and have no basis in the United States Constitution, federal or state laws or the common law of property going back to the Roman Forum. That's what they bellowed \u2013\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=5485"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5485\/revisions"}],"predecessor-version":[{"id":5486,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5485\/revisions\/5486"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=5485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=5485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=5485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}