Thursday, July 23, 2009


MY DARLING DEBT, YES, WE KNEW YOU THEN, and we know you now. Texas Congressman Ron Paul delivers a striking blow to what I see in the real estate game as the continuation of the same monetary irrationalities that put us into the fiscal trouble we now find ourselves.

Just yesterday I had a conversation with a MetLife loan officer. He told me that his firm is currently offering 105s to select clients, but he hears that 125s are coming. What that means is that another round of secondary mortgage loans for 125% of current home values will be floated to a certain stratum of financial clients. All it would take is another Islamic attack or a continued dollar plunge or any number of current pressures upon the American and global economies to push back in shocking the system at an unregulated moment, and oops, there goes all that risky lending again right down the drain. Pessimistic? Not empathetic enough for the 21st century debt-oblivious consumer?

Maybe. But risk is always a capitalistic concern. One would think that the government and the banks would have learned something from all this freewheeling market manipulation, and move to modify the business models to help send a solid message to consumers that a slower, more conservative approach to borrowing and spending is not only recommended but of necessity required. For the sake of honesty, I admit that I got caught up in it myself, and am now paying the price for my own irrational exuberance. Congressman Paul is warning that we ALL must snap out of this debt-driven nightmare and learn to live within our means as individuals, communities, states, and nations, or else simply prepare for whatever version of the worse case scenario finds us in its path of destruction.

Would I assume a 125 loan, if it would help me out of a current crisis? I don't know, but I would think about it long and hard with some tough questions answered along the way before I would jeopardize myself, or my lender in such a scheme which is based on an optimism that may or may not be warranted or rational.

As I prepare to enter the real estate industry myself, as a very green rookie agent fresh of the state and national exams, I know there is much to learn, and I intend to wrestle and deconstruct every nuance of the business. I plan to master what I, in good conscience, can stand and deliver in honest representation of those persons who wish a serious and dedicated advocate during what is a very strategic and personal transaction—buying or selling real property.

Owning real estate carries with it a traditional "bundle of legal rights" transferred with the property from seller to buyer. These are the recognized rights of the holder of title to the property and include:

  • the right of possession - the property is owned by whomever holds title;
  • the right of control - within the laws, the owner controls the use of the property;
  • the right of exclusion - others can be excluded from using or entering the property;
  • the right of enjoyment - the owner can enjoy the use of the property in any legal manner; and
  • the right of disposition - the title holder can sell, rent or transfer ownership or use of the property at will

    This bundle of rights offering strong compulsions toward private ownership should not be taken lightly. Private ownership is the backbone of the American system. Our financial networks must continue to rise to the occasion, but we as owners and potential owners must also redeem our responsibilities if we wish to be considered as carriers of the promise that ownership bestows. The unfortunate fact that far too many of this nation's foreclosure properties from the least to the greatest have been found in a sorry physical state due to departure vandalism is disappointing, and of course criminal. Egregious vandalism like this does not speak well of us as honest and forthright people who deserve to own property.

    Life is risky, but the glory of our efforts as buyers and sellers, agents and brokers, is that we can each work to minimize that risk, for ourselves and for others, and in the spirit of goodwill, peace, and liberty we can change the world for the better, one satisfied property owner at a time.

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