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WalletPop:

Filed under: Real Estate

WIth the way that Congress is taking “emergency” action to try to prop up the housing market, you’d think that tanking home values were all bad.

Surprise, they aren’t. The USA Today sums it up well: “… what’s bad for sellers is good for buyers - at least those blessed with excellent credit and enough money for a sizable down payment. They can enjoy lots of homes to choose among, time to browse, and typically, the advantage in negotiations.”

Translation: the housing bubble has as many winners as losers, given that for every house that’s sold, another house is bought.

All of this raises a question: What exactly is the point of using taxpayer money to tip the scales in favor of one group of people in a zero-sum game. And then there’s the moral hazard argument: people who have excellent credit and enough saved for a sizable down payment are being forced to pay higher prices because home prices are being artificially propped up.

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WalletPop:

Filed under: Real Estate

First a quick confession: I’m a big fan of home shows on TLC and HGTV, and even Barvo and A&E. I like the decorating shows too (especially Color Splash!) but my favorites are the shows that have a real estate market angles: House Hunters, Designed to Sell, Property Virgins, Flip This House, My House is Worth What? etc.

So I was interested to see this article in the USA Today showing that, deflating housing bubble be darned, it’s still a bull market for real estate television.

What’s behind the trend? I think that the housing market’s troubles have made these shows more compelling. A couple years ago, speculators were making money flipping a house just by holding it for a few months in an up-market. Now that things aren’t so rosy, perfection is more important. A tougher market makes for more compelling entertainment.

I was also excited to learn that Million Dollar Listing will be coming back to Bravo this summer. If you missed the first season, it might be worth downloading it on Amazon Unbox.

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WalletPop:

Filed under: Real Estate, Recession

The USA Today is looking for interviews with struggling homeowners facing foreclosure victims:

Victim of foreclosure?

We want to hear from you. USA TODAY is looking for people who have gone through foreclosure or who are facing foreclosure, who would be willing to share their stories during the current housing crisis.

I certainly have sympathy for many people who are on the brink of losing their homes, but there is another, perhaps less tear-worthy, side to this. Consider:

Many of these wonderful people facing foreclosure are trashing their homes before they leave: knocking holes in walls, dumping paint on carpets, etc. All because they couldn’t make the payments they contractually agreed to make.
Some are even leaving their pets behind, not even having the decency to take Fluffy to a shelter.
A large chunk of the subprime loans in foreclosure are the result of mortgage fraud. Speaking on CNBC, Larry Kudlow suggested that 70% of subprime borrowers in foreclosure lied on their loan applications.

So here’s who I’d like to hear from: people who lied on their loan applications, are facing foreclosure, and acting like 4-year olds about it. If you have taken no responsibility for the plight that you yourself created but are ready to fess up, we’d love to talk to you.

If we use your story, I’ll send you a free package of Kashi Mountain Medley granola.

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