Greg Saunders

Hey Peachtree City & AR....has anyone noticed that a number of foreclosed homes seem to be just sitting for months on end with no visible effort going on by the banks to actually resell them? It really did not hit me until a client expressed interest in a foreclosed home in my own neighborhood. When I approached the sales broker for the neighborhood he informed me that the builder had gone bankrupt and the house was going into foreclosure in a few days. "Call me back", he said. "The house will probably a better buy once it comes out of receivership and is back on the market."

Okay, that made sense to me. So I kept making calls to the broker who kept informing me that the home was not available yet. Well, a period of about 3 or 4 months has gone by and the house is still just sitting....vacant! Then OMG it hit me like I was suppose to have a V-8 or something....lenders gotta just be sitting on thousands of foreclosed homes!

Why would I come to that conclusion you say? Okay, normally, foreclosures go on the market about a month or two after the banks take title. Most foreclosures are also priced to sell pretty quickly. Some properties even sell within days of the listing. The bottom line is that the process from listing to offer to closing is easily no more than 90 day. So what's really going on?

My research should provide some insight regarding this issue. These properties know in the industry as "shadow inventory" may be a proverbial time bomb for the real estate market. For example, what would happen if all of a sudden these inventories flooded the marketplace. The disaster would result in further depreciation sparked by the existing glut of foreclosures in the marketplace. So what is the real logic for the banks holding on to all these distressed properties?

First, and probably the most obvious is that the banks are slow to move this inventory because they would have to reflect the losses on their books. Having to reflect these loses on their balance sheets would put further stress on the banks. In a previous post, Bank of Georgia Receives "Cease & Desist" from FDIC! I brought an awareness to the fact that Georgia already has a huge problem with the amount and rate of bank failures with more expected.

Secondarily, banks may be holding inventory to allow for a slower free-fall of prices. Market recovery may also bring about increasing assets! Still another variable may be that it just takes a good deal of time and money to get a foreclosure cleaned up and ready to be marketed. Folks, Georgia now ranks sixth for total number of foreclosures for the first half of the year with 56,391 as identified by RealtyTrac's Midyear US Foreclosure Market Report. That's a staggering one foreclosure for every 70 households!

The real problem I foresee could correlate to the timing of dumping these inventory on the market place. If banks are forced to bring these distressed properties to market before an assumed bottom is reached it will undoubtedly push housing prices even lower. Should banks wait until the feel they see recovery then it could actually stall real recovery. Further, there has been serious discussions regarding what could be another wave of foreclosures as the Alt-A and Option ARMs reset.

Is this really a problem that should make Georgians catch a case of insomnia? I'm sure that depends on who you ask. However, the only way to keep folks in their homes is to keep them employed!! Right now unemployment is over 10% in Georgia! Georgia has lost 251,000 over the past two years and in June paid out $167.2 million in unemployment benefits. With that being said, if the recession is nearing an end, Georgia must not only find a way to cope with increasing unemployment numbers but we must also deal with the over 67,000 folks that have already lost their jobs, hope, and maybe their homes.

Lastly, let just be honest......Most folks are not looking for a hand out......but a hand up!!!

The Bank of Georgia is under some major scrutiny as the FDIC served a "cease and desist" to the Peachtree City-based bank. The order basically states that the Bank of Georgia has been cited for a number of banking practices that could represent unsound and unsafe banking practices.

Specifically, the bank was cited for operating with inadequate capitalization for its risk profile. Additionally, the bank was operating with inadequate management citing that those practices are detrimental to the bank and further jeopardize its deposits.

Bank of Georgia execs have commented on the situation stating that the dozen complaints had already been address in subsequent bank examinations during 2008 and are considered resolved. Bank of Georgia also contends that most of their loans are tied to the construction industry and the bank has made no sub-prime housing loans.

Bank of Georgia is one of 18 banks in Georgia that have received "cease and desist" order this year. Add that folks to the 16 banks that have failed in Georgia for 2009. The total banks failed nationally this year has reached 64. The 16 here in Georgia have cost of a whopping $807 million! The tab for all failures in 2009 so far is $13.5 billion nationally!

So why is a state like Georgia home to only 4% of the nation's banks......account for 20% of the failures? It seems that the main cause for bank failure here in Georgia is tied to builders, developers and construction loans. Not only that, Georgia was a state that experienced pretty rapid banking expansion. Psst...just so you folks know.....it's not over yet!! Even as you read this....a number of Georgia banks still have a daunting amount of delinquent loan looming on the horizon and more failures are imminent. In fact approximately another 30 banks are in jeopardy of failing!

As you might have guess, the future viability of Georgia banking community is now being fought out by bankers, regulators and politicians. Some banks have even gone as far to complain that Georgia banks have not had adequate access to TARP monies. Sen. Johnny Issacson has interceded and met privately with regulators to discuss the strict oversight and the future of Georgia banks. Needless to say, the FDIC and other regulators have still been very assertive although efforts have been made to send real estate specialist to scrutinize these loans.

It should be noted that the Bank of Georgia opened in 2000, operates 9 locations and employes about 2800 people.

Hello Peachtree City and AR! You know unless you are living in a bubble or related to Mork from Ork (remember Mork & Mindy) we are obliterated daily by the news and views on the current status of the economy. For many families this constant deluge of data on the economy coupled with the reality of our own personal financial problems provides the perfect scenario for a guest appearance by an unwanted visitor.....S-T-R-E-S-S!!!

If staying in your home has become the main source of your stress....have you at least talked to a professional or looked at your options? Are you facing mounting credit card debt, car payments, insurance, gas, and other financial challenges? Have you taken any action or just waiting on divine intervention? Panic, worry and stress have some folks on the verge of......well doing something drastic. That normally means something reactionary. The result...more stress!

What to do? Well worrying about situations never really seems to help. It sure hasn't worked for me. What's worse is that I'd probably be sporting a fuller head of hair. But seriously, what about the results? Okay, let's examine the results of stress. Folks in these times of economic uncertanity many of us need to get a handle on how to deal with stress so we can continue to lead happy and normal lives. But you must first realize that dealing with stress is a process and not an outcome.

No I'm not a physician but think about it for a moment. Our attitudes influenced by rushed lifestyles and expectations of instant gratification reflect the need to just eradicate stress rather than to reduce, manage or control it! The result has been what is becoming known as "lifestyle diseases." These diseases are commonly known as heart attacks, strokes, and cancer. So anyway that you look at it stress either real or imagined is the inability to cope with a perceived threat to your mental, physical, emotional and spiritual well-being. Yep...when is the last time you checked your blood pressure or had a physical?

That's right folks....stress is no joke but a pretty complex phenomenon affecting your whole person, not just your body. Let's be rational here. As the stress mounts from financial worries....stress adds up to more than just a physical arousal and soon your body is literally a battleground for the war games of your mind.

Just as a note, I am no exception to succumbing to worry. I can even attest to the fact that some of my "worry wortness" has caused some depression in the past. Why? Well, if you break down worry it has a immense impact on you. Worry can immobilize your cognitive skills, cloud your rational thinking and therefore become the perfect breeding ground for.....stress!

What is so ironic is that most of us worry about crap that we have no control over. In fact, if you go back and think about it.....those things we worry about are actually quite menial and/or trivial in the grand scheme of things. Yes, we all have had the tendency to make the proverbial mountain out of a molehill....right?

So folks instead of worrying and stressing, how about attempting to use those same energies to plan, develop strategies, set goals and work on things that will potential enrich and empower us. Further, while you are permanently removing those distractions...guilt, worry, and doubt, your perception of life and what is really important will help to move you forward. Trust me...you will see thing in a whole different light!

Just remember, Yesterday's the Past, Tomorrow's the future but Today is a Gift! That's why it's called "The Present!"

Kudos to you Peachtree City...Again! Money magazine has graciously awarded the city the recognition as being one of the best small towns to live in the US. That's some awesome bragging rights baby!

Coming in at #8, Peachtree City and it 34,000 plus residents will all tell you that there is no better place to live and raise a family on this planet! Personally, it would be pretty hard to disagree and not acknowledge their strong sense of community. Besides...what's not to love?

All you have to do is take a drive via your personal vehicle or on a golf cart down the beautiful tree-lined street, roads, and avenues or cruise the 90 miles of golf cart paths to recognize that this is a unique and beautiful sanctuary. Not to mention the miles of friendly smiles you will see on the faces of all that call Peachtree City....home!!

So what is there to do in Peachtree City you might ask? How about let's start with recreation! Peachtree City has swimming pools; a soccer complex; baseball, softball & football fields; a BMX track; numerous parks & playgrounds; the Alta-approved tennis center; and the Kendron Fieldhouse and Aquatic Center. Oh yeah did I mention the Fred (Frederick Brown Jr. Amphitheater)...a 2,000 seat facility?

Additionally, for all of those that consider shopping a viable sport. Stroll the promenades of the Avenues at Peachtree City. Its a breath of air for the traditional mall routine offering an upscale "open air" shopping experience. There are also some great restaurants to check out before or after shopping.

Okay....So what were the factors that were used to determine where were the best places to live? Well, Money magazine considered the economy, job growth, incomes, housing affordability, education, and crime statistics. As I mentioned earlier, Peachtree City has been distinguished before by the magazine. In 2005 the city was ranked #8 and back in 2007 #67.

Finally, I wanted to also recognize both Suwanee (#35) and Martinez (#63) for making the Top 100 list. So for all you city folk from the east, midwest, northwest and other parts of our great country....if you are looking for a great place to raise your family or even retire, maybe Georgia should be on your mind.

Greetings Peachtree City & AR! Is it just me or does it seem like the foreclosure situation mirrors an unwanted fever blister on your lip. You know what I mean...it started kinda small then when you notice it you try and put everything on it to stop it from getting bigger and more noticeable. Much to your chagrin, it seems like the more you do to it the bigger and more noticeable it seems to become until you just decide to ignore it and hope that it will eventually just go away! Then in the meantime, you go about your business trying to pretend that it's not there or at least just not that bad looking! But the truth be told....it's festering, unattractive, and more than likely nobody is gonna kiss you until it goes away....right!

Alright, maybe that is an overblown example but you get the point and most of us have been through it. Unfortunately the foreclosure problem has also created issues for unsuspecting renters. The problem has become so enormous that the media picked up a story awhile back in Chicago where the Sheriff defied court ordered evictions because many of these folks had been paying their rents and now with only a few days notice were having their belonging (not to mention their bodies) physically removed from the properties.

On May 20, 2009, President Obama signed into law the "Helping Families Save Their Homes Act of 2009." This law include Title VII, "Protecting Tenants At Foreclosure Act." The Act provides that in the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property, the party taking title to the property pursuant to the foreclosure, ("Foreclosing Party") assumes the property subject to the rights of the tenant. If the owner decides to evict the tenant, the tenant must be given a 90 day notice to vacate the premises.

However, it should be noted that if the tenant executed a lease prior to the date of the foreclosure, the tenant has the rights to stay in the property until the end of the lease period. Of course, the exception being if the new owners will be the occupants of the home. Then the 90 day notice would apply.

The act still raises numerous questions and is vague about related issues as they severely impact the rights of foreclosing lenders. But, the primary purpose of preventing individuals and families from being evicted without due notice or consideration is paramount. Now let's hope we can find additional workable ways to help homeowners stay in their homes.