Comments on: Miami Real Estate Speculator: “I Didn’t Ask Too Many Questions!”

By: APOINTOFVIEW

APOINTOFVIEW — Tue, 27 Jan 2009 22:09:19 +0000

Great you nailed it. Regrettably peter at Condo Vultures does the market a disservice, he shows the same properties all the time and claims massive discounts. Reality is that they were overpriced to begin with, and are resales. The condo market has not seen the massive drop, except perhaps in the condo conversion area. The drops displayed were as you put a result in most cases of mortgage fraud.

By: Jack LeVine

Jack LeVine — Thu, 01 Jan 2009 22:52:55 +0000

They do the same thing to us here in Las Vegas. Our foreclosure crisis was caused by speculation. That wave has passed already. Today’s foreclosures are working class families that honestly believed (and were told repeatedly by the same press) that if they didn’t get a house in ’05 or ’06 that there would be shut out FOREVER!

There’s plenty of fault to spread around, but the PRESS made it worse in both direction of the bubble.

By: Jamey Prezzi

Jamey Prezzi — Sun, 28 Dec 2008 00:40:49 +0000

Kevin-

This is a really great post. You are definitely a leader in our market and it’s awesome to hear your views on these reports. Keep up the good work!

By: Samir Patel

Samir Patel — Mon, 22 Dec 2008 16:25:44 +0000

Kevin thanks for posting this – I missed this on television. But of course the media has been slanted. What did we expect?

By: Kevin Sandridge

Kevin Sandridge — Sat, 20 Dec 2008 21:45:07 +0000

Kevin, thanks for the update and clarification. Came across your blog via Chris Myers up here in Orlando. Will be adding you into my Google Reader for sure!

By: Bryan Sereny

Bryan Sereny — Thu, 18 Dec 2008 17:19:30 +0000

I spoke with CBS last week and told them the roughly the same things you mentioned in your post. Apparently they were on a mission to “tell a story”, and not report one.

By: Mr Mogul

Mr Mogul — Wed, 17 Dec 2008 12:56:20 +0000

It is easy to jump to conclusions, it pays to get the facts. Good sorting out of the situation.

By: Claudia Riva

Claudia Riva — Tue, 16 Dec 2008 18:25:03 +0000

Kevin -

Great Post! I really think this was a quick piece with little or no thought.

By: monica

monica — Tue, 16 Dec 2008 12:26:13 +0000

Could not have said it better myself! The Scott Pelley piece was the work of lazy journalism, did not do enough research and did not find knowledgeable sources.

By: Prof. Samuel D. Bornstein

Prof. Samuel D. Bornstein — Tue, 16 Dec 2008 01:55:27 +0000

Re: CBS 60 Minutes “The Mortgage Meltown” aired on Sunday 12/14/08.

Scott Pelley’s piece on the 2nd Wave of Foreclosures overlooked a critical fact. The next wave of Foreclosures in 2009 Will Take Self-Employed and Smaller Businesses who have these TOXIC mortgages. In fact, ALT-A, Option ARMS, Interest-Only, the TOXIC Mortgages that are considered the “Troubled” assets in TARP were marketed to the self-employed who fell prey to them.

An NASE survey,www.nase.org, was the first to provide compelling evidence of small business involvement in the upcoming toxic mortgage crisis. The survey was created by Prof. Samuel D. Bornstein and Jung I. Song, CPA of BornsteinSong Consultants in Oakhurst,NJ,and was conducted by the National Association for the Self-Employed (NASE) which issued a Press Release on November 21, 2008. According to this survey, it is estimated that 3,709,800 small business owners hold Alt-A and other toxic mortgages, and 1,279,800 are already delinquent as they have missed one to three or more monthly mortgage payments at mid-November, before the expected Resets that are scheduled to begin in 4th Quarter 2008 through 2012. These small business owners will be at-risk of payment shock and default as their monthly mortgage payments skyrocket. Small business owners were especially targeted for these Alt-A loans which required little or no documentation of income which appealed to many small business owners who previously were unable to qualify.
The resulting defaults will be the cause of the upcoming second tsunami wave of foreclosures that will dwarf the subprime crisis and will take many homeowners and small business owners.