Here in St. Petersburg Florida the number of short sale listings have gone up so much over the last year. Everybody is asking, How did this happen? Who is to blame? A lot of people, government, the press, they all point the fingers at the banks and lenders and mortgage brokers, and last but not least, they blame the owners of the property for the short sale situation.
Pointing fingers will not change the situation and it sure will not make it better.
But, to set the record straight, let’s think about it
Sure, the banks offered some “very creative financing” so, yes it is partially their fault
But what about the appraisers? They appraised properties higher and higher by the day, so I think they should also take some of the blame. What about Realtors? (and I am one)
If we worked as a single agent for the seller, of course we tried to get the highest possible price for the owner. What about builders and developers? Well, they saw the opportunity to make money and unfortunately they flooded with market with new construction units.
And my list could go on and on, BUT let me make my point.
I mostly blame the county property appraisers (guess I am not making friends with this statement) and the economy.
I am usually not a “what if” person, but today with the short sale, let’s go there.
I believe that we would not have this whole short sale foreclosure mess on our hands if the taxes had stayed reasonable (they doubled or tripped in some cases) and if our gas prices and cost of living hadn’t gone up so much. If you did not have to pay $200 more per month to feed your family and another additional $200 per month on gas and another additional $300 per month on property taxes and another additional $100 for increased insurance rates, than you might still be able to make your mortgage payment.
So, you decide who is to blame.
I hope everybody agrees that
nobody bought a home or condo with the mindset, oh if it doesn’t work out I will just negotiate a short sale.