Ty Brown

While surfing the Internet today, I though I had finally found something positive, something promising regarding the economy and the recovery we are all hoping for to come soon. But like all "news" today that would have been too positive, too optimistic, too realistic???? Realistic?? Either this guy is living on a different planet, or the author of this article pulled some really old quotes from old Rich Hughes...maybe from late 2007?

COPIED FROM YAHOO!

Bernanke: Recession may end in '09; Stocks climb

By TIM PARADIS, AP Business Writer Tim Paradis, Ap Business Writer - 15 mins ago

AP - Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington, Tuesday, Feb. 24, ...

NEW YORK - Federal Reserve Chairman Ben Bernanke has reassured Wall Street by telling Congress the recession might end this year.

In his semiannual report to the Senate Banking Committee, Bernanke predicted the economy is likely to keep contracting in the first six months of 2009. But he also said "there is a reasonable prospect" the recession will end this year. He warned that a recovery will require getting credit and financial markets to operate normally. - good and pretty much "duh!"....

While Bernanke's assessment of the economy helped ease some pressure on the market, it also came after days of heavy selling that left the Dow Jones industrial averageand the Standard & Poor's 500 index near 12-year lows, so a bounce in stocks wasn't a surprise. Stocks made cheaper by the selloff attracted bargain-hunting traders. Also, some, better-than-expected quarterly numbers from Home Depot Inc. helped cool some anxiety about the economy. - note 12 year low.....

.....then, where did this come from? What world is this guy living in anyway?

From the same article above....Rich Hughes, co-president of Portfolio Management Consultants in Los Angeles, said the stock market's rallies are likely to be based on hope or on rebounds from selloffs. He contends Wall Street still hasn't seen the wrenching decline that is often needed to scare investors from the market and set the ground for a lasting recovery. "The underlying fundamentals just aren't there to support anything that's sustainable right now," he said. "We haven't seen the capitulation that you'd want to see before you'd get thoroughly enthused."

WHAT!!? Decline, what the hell has the last 6 months been? The last 2 years? Is this guy for real? Capitulation? Where are the investors then if they are not scared off? Who knows what to think anymore....with articles like this no one ever will.

OK back on track today. But first I must make one quick rambling thought about foreclosures. I can't figure out these lenders. They don't want these properties, right? They have quit foreclosing in many cases, which in effect allows a person to live for free in the home with NO incentive to maintain it, or they allow them to sit empty and deteriorate which costs them money. They buy them back at the court sale 95% of the time, bidding against all other purchasers, (there are many reasons I know and that is for a later post), they will not sell them to investors for the price they are willing to pay, owner occupied buyers can't get financing on them or they will not qualify, they will not lend to non-owner occupied buyers, what is the deal. Are they waiting for some miracle? At what point do they just cut their losses and go on? I know it's a huge problem, and the solutions are overwhelming, but pick a solution or a plan and go with it.

Here is my solution, free of charge. Allow investors to either assume the old mortgages, for a set number of years like 10, up to say a set number of properties like 5, or loan them the money to purchase them at a good rate, with the option to lock them in for a set rate for a set time period. Then they can rent the property out to cover their payments, fix it up and sell it, or wait until the market turns around and do whatever they want. ( I will volunteer to br the first to take my 5). The government could even offer tax credits and or rent subsidies to help cover any negative cash flow or guarantee rent for qualified renters. Either way it accomplishes several things. 1. It gets it off the bad loan books, and in theory will reduce inventory 2. It allows the investor to maintain, repair, improve the property which keeps the long term value of it more stable, and to grow their wealth in a business they are already in anyway 3. It gives the old owners and people who can't afford or qualify to buy a home a chance to have a place to live, 4. It will cost us, make no mistake we are paying the price for it anyway, a lot less than the alternatives. Sure it's not perfect, some will cry it is making the rich richer, and there will no doubt be some problems with it, but I think it makes sense. If anyone has a better idea let me know.....

Foreclosure

OK the time is here is the much anticipated, highly sought after Ty's Foreclosure BLOG Extravaganza. Can you sense the sarcasm? Just in time for Turkey Day, and you should add this to your items to give thanks for Thursday, a BLOG that is a total but entertaining waste of time, unless you are serious about capitalizing on investment opportunities, or helping people capitalize on them in this market. As the preacher at my church said Sunday keep in mind it could always be worse, and we should remember what we still have to be thankful for... After a weekend to think about it, and a sick day yesterday, I have decided to make this extravaganza a little more specific the Lexington, KY market, and slant it heavily to my opinion and experiences. I also plan to highlight the most common scenarios, and add a few not so common points to consider. Keep in mind I do not claim to know everything, and I did very little research, I do not have time or the attention span to do so. So there is no telling where this will go but it will be beneficial and fun I hope, if not just don't read it I will not cry, nor will I know. If you disagree with me on any topic let me know, and I will tell you why I am right. If you're right I will also admit it, and I encourage all comments. Also just when I have it figured out well there goes another $800 Billion dollars.......................

Tomorrow you will get.....

Four main parties in any foreclosure - Homeowner, Lender, Buyer/Investor, Professionals (Mortgage, Realtor, Banker, Asset Manager, Lawyers, etc)

...to Ty's BIG Foreclosure BLOG Event

It is amazing to me (there goes my Freudian Keith Whitley fascination again) that by simply placing the word or words "foreclosure", or" short sale, REO, Bank Owned, etc.", into a property description gets so much attention these days. Of my listings the only properties that get any action lately have been the ones that are, or are on the way to being foreclosures, or for rent. Who has conditioned the buying public to look for these words? But is this really good or bad? I say both depending on who it is in relation to in the transaction, as there are 4 key stakeholders in every foreclosure type transaction. (Five if you count the American taxpayer who may ultimately be the one left holding the bag, which may be good or bad but that is an entire different series in and of itself.)

But to really explore the question and give an answer I think your must look at both sides of the issue, and what are the real underlying issues. So for the next week or two I am going to focus on the following series of questions and answers, and offer my famous theory on each of them, and I may even get into my favorite topic the psychology behind the current market. In the next several posts I will outline the parties involved and the process, identify the good and bad for all four parties, offer my theory on the whole mess, show why buying a foreclosure can be good but not always, show whey there are opportunities with listings that are not foreclosures out there, and most importantly offer strategies for each party to capitalize in the market today and how to find the real deals. Plus anything else I think of along the way I feel is worth rambling about.

The one catch is this, you only get the strategy to capitalize one by email so you either have to subscribe to my BLOG, its FREE, or email me directly, as it is not something I want to give to just anyone, as it really is my strategy moving forward. Fair enough? See you Monday for the first installment of Ty's BIG Foreclosure BLOG event, if not sooner....