Domestic Terrorism?

I have been in the real estate industry, specifically in the 1031 exchange industry as a Qualified Intermediary, for almost 24 years. This is my third major real estate market cycle that I have gone through.

You Will Success If You Keep Your Cool

The one thing that I have always noticed is that those who keep their cool make out really well during the real estate market cycle's progress and always end up surviving and coming out in a better position than they were before and those that panic usually make mistakes and come out much worse at the end of the day.

This Market Cycle Is Different! We Now Have Domestic Terrorism

I have noticed one very distinct difference during this particular real estate market cycle. We are running up again "Domestic Terrorism!" Property owners are intentionally walking away from properties because it is profitable to do so, or it is convenient to do so, or it relieves their stress to do so.

Short sales, foreclosures, deeds-in-lieu of foreclosure and the like were supposed to be for those property owners that really are in financial trouble or distress. It was to be used when all else fails. It was not designed to help the property owner get ahead financially.

Where and when and why did property owners lose sight this? I'm not addressing those that truly do deserve to take advantage of the short sale or foreclosure process. I'm addressing those that have the financial ability to do the right thing and choose not to.

Has The Moral Majority Lost Its Majority?

They have absolutely no regard for what is right versus what is wrong. They have no ethics or morals what-so-ever. It is simply a business decision for them. The fact that they think it is O.K. to "stick" it to the lender because they can and because it is profitable to do so absolutely amazes me.

Is The UnMoral Now The Majority?

We have moved so far away from the era where a person's word was their bond and a hand shake was as good as gold. What does this say about our society? What does this mean for us down the road?

What Should We Expect? Far Reaching Consequences!

There will be far reaching consequences that we will all have to pay for because of this inappropriate behavior. Lenders are certainly not stupid. Lenders will learn from this experience and will adjust their underwriting guidelines as needed.

Lenders certainly did not expect or anticipate this "change in moral attitude" that they are now confronted with. It was not part of their "risk analysis" and was not part of their business plan, but it will be in the future.

Property owners who just walk away do not fully realize what a short sighted position it is. It is certainly having a significant impact on the over all real estate market by increasing and magnifying the problems that the industry is facing. They may "reap the benefits" as they see it now, but they will pay for it in the long run. The sad part is that so will we.

Real Estate Professionals Unite!

We as real estate professionals should and must be part of the solution. We must take the high road to higher ground. We must set a good example by promoting good ethical and moral business practices and shunning unethical and unmoral business practices.

It is what will set each and everyone of us apart from the rest and will have a huge long-term impact on our businesses for years to come. It will also help promote a healthier real estate market.