Monday, March 15, 2010

taking it out on everyone else

One of my mother's closest friends is a very very very successful real estate agent in north dallas. In the last 2 months, she's sold 3 homes that had been repossessed by the bank. In each of these cases she warned the buyer 'understand - you're buying this home 'as is'... it might have foundation problems... it might have other issues that you have no idea are wrong with it'... but in each case the buyers, convinced they were getting a great deal, purchased the homes.

In each case, the former owners had done awful things to the homes. Golfballs down the toilet... cement down the sinks... wiring cut with scissors... dead animals in the attic... no joke.

There is some serious anger out there - people are upset that they've spent so long working and trying and felt they were 'owed' their nice little north dallas zero-lot-line mansions... and now that their subprime and ARM ponzi scheming has come to naught - they've decided to take it out on the next guy. The banks dont care - remember - they're offloading 10 billion dollars of these toxic assets to the feds every week. They dont have to balance their books - and they really dont care about the poor sap that gets stuck with the house someone has turned into a death trap.

More of this is coming... no one's factoring the 2nd mortgages and home equity loans into the equation so long as the banks are allowed to avoid mark to market...

anectdotal? yes... but imagine for a moment how a tea-party friendly north dallas will react when the impending commercial realestate bubble collapse breaks the backs of the rest of the underwater homeowners.

If I were smart - i'd be in north dallas starting a company that repairs these houses... but i dont think i could handle all the sobbing new homeowners i'd be taking tens of thousands of dollars from.

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