Donna Lee Laue

Wells Fargo Bank conducted their 20th two day mortgage modification event since September of 2009 in Portland, Oregon yesterday, reports Diana Olick of CNBC.

Interestingly, Wells also announced that some borrowers will walk out of the convention center with a modification, a payment reduction or finally, a principal reduction.

It appears that after almost three years of foreclosing and dumping foreclosed properties at auction for a fraction of the mortgage, a light bulb flicked on with the ah ha moment. They would be better served by reducing the principal and modifying the mortgage to keep someone in the house actually paying them. We're currently at 11% vacancy.

No one likes this bitter pill. The homeowner who has seen the value of his investment decrease by 30-50% certianly does not. Fears of the "moral hazard' of reducing for some but not others is a wail. I think that if a homeowner, even with a principal reduction is still underwater and agrees to pay the modified mortgage which turns out is still an investment gone bad, let's all take some of the medicine and get well... and get on with it.

It occurred to me that if we let homeowners re-finance or borrow directly from the Fed even at a slightly higher rate than the banks (.25 basis points!), and thereby bypass the banks and their take of the "middle," demand would go crazy and this "wound" would run it's course much more quickly. AND we could start getting people back to work in the housing industry. Chicken and egg. The housing problem won't heal until we have jobs, and jobs will be created when the housing problem heals which will allow people to purchase houses...and so it goes.

It is good that the banks are seeing the inevitable...and taking action.

Respectfully,

Donna Lee LauePresident/CEO
www.UniqueGlobalEstates.com
DLL@UniqueGlobalEstates.com

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I caught the tail end of an interview with Whitney Tilson, T2 Partners hedge fund manager yesterday on CNBC. As one industry expert told me, "He's sometimes wrong, but he's more usually right". Regarded as an oracle by some, Tilson addressed the current and future status of the real estate industry, our economy and our society.

He made some very interesting points. He believes that we are in the "7^th inning" of the fiasco and his belief concerning the next steps the administration and the banks must take just...make good sense. The crisis started in real estate and we cannot heal as a country until the real estate confusion is cured.

I'm not certain that I agree with him regarding the homebuilders - he's short the homebuilders -   as the information I continue to receive indicates that consumers still want "new" homes and most of the foreclosed homes are not "new". However, I believe that he is accurate in observing that our society is severely negatively impacted when we continue to foreclose on these millions of homes that are underwater etc.  It rots the infrastructure. No one wins. And that will go on much longer.

I'm encouraged to know that the "big boys" are aware of and are making some noise about the obvious results this is having on our economy and society.

I'm not suggesting that they would do anything that is not in their best interest, only that their best interest would be better served finding alternative measures to deal with the new re-set valuations of real estate other than the procedures they are currently using. Whitney Tilson clearly states this in the video portion of the link. I give it thumbs up.

Cindy Perman of CNBC just posted an article “11 Signs the Job market is improving in 2011”. We are all a bit gun shy after the length and breath of this recession…but after I drilled for information and wrote the 12 “good news” blogs during the Holidays, I began feeling even more optimistic about our overall condition. This article does make some good points and good sense – and I have personally witnessed the return of the tourist, healthy shopping and ‘self gifting”, restaurants busy at lunch and dinner, and luxury goods selling with luxury retailers once again positioned as market leaders.

The health of real estate is dependent on jobs, jobs, jobs, and once the job spigot is turned on, I believe we will begin to quicken the pace toward recovery.

Luxury real estate sales, above $4M, in New York are up 15% from last year. The overall sales numbers are up 4.3%, but the high end is driving the market and the numbers. Also, days on market last year was 204, this year it is almost halved at 125, reports Diana Olick of CNBC.

This will be the year of the smart buyer and we foresee the best luxury properties in the most desirable locations being gobbled up by savvy, wealthy investors who are not in need of financing for both personal use and also to grow their portfolio.

Great news for The Big Apple!

Thank you all for your kind words regarding my twelve Good News Blogs in honor of the 12 days of Christmas poem.

I came up with the idea of totally focusing on only Good News for 12 straight days and sending it out to the world. What I did not expect were all the great responses (Thank you!) and the elevated state of hope and excitement it brought to me. There really is good news out there in our world today and I believe that....it appears when you look for it.

My "digging for good news" also inspired me to root thru all of my things, my family's things, and my doggy's things and help my friends root through their things to find warm clothes, shoes, bedding and blankets to recycle. People are in need.

One of the happiest moments of this holiday for me was when I found a shop that recycles women's business suits to women trying to get back in the workforce and need a confidence building suit for an interview etc. I found a few that I don't wear and happily bundled them up (with the shoes) and delivered them to the shop. It felt so good. Next, I attacked the cupboard, the garage.... and it goes on from there. Skinny down. Recycle.

A check is always gratefully appreciated by the good charities, but in addition, this was really good for my soul. Good energy begets good energy. If you can, please do. Help each other ‘do". We all need to help each other, and as we are beginning to heal, your gift might just make the difference to an adult, a child or a little critter.

It begins with the first step....

Happy Holidays and Happy New Year!

Donna Lee Laue

P.S.

By the way, in case you missed some of the 12 Days of Christmas Good News blogs, the headers, links and sources are below. Hope it revs your motor for 2011!

Day 1 - Wealth & Power - http://uniqueglobalestatesblog.com/12-days-of-christmas-day-1-wealth-and-power/

Day 2 - Double Digit Growth - http://uniqueglobalestatesblog.com/12-days-of-christmas-day-2-double-digit-growth/

Day 3 - Great Retail News - http://uniqueglobalestatesblog.com/day-3-great-retail-news/

Day 4 - Go, GM, Go - http://uniqueglobalestatesblog.com/day-4-go-gm-go/

Day 5 - Job Market Improving - http://uniqueglobalestatesblog.com/day-5-job-market-improving/

Day 6 - Construction spending Rise - http://uniqueglobalestatesblog.com/day-6-construction-spending-rises/

Day 7 - Growth Is Good = http://uniqueglobalestatesblog.com/day-7-growth-is-good/

Day 8 - Resort Real Estate Is Selling - http://uniqueglobalestatesblog.com/day-8-%e2%80%93-resort-real-estate-selling/

Days 9 - Tourists Are Everywhere - http://uniqueglobalestatesblog.com/day-9-tourists-are-everywhere/

Day 10 - CEO's Optimistic - http://uniqueglobalestatesblog.com/day-10-ceo-optimistic/

Day 11 - Luxury Housing Market Gaining Momentum - http://uniqueglobalestatesblog.com/day-11--luxury-housing-market-gaining-momentum/

Day 12 - Pent Up Demand = http://uniqueglobalestatesblog.com/day-12-pent-up-demand/