Necessity is a Mother (and other interesting midweek tidbits)

2008 has been incredibly interesting, challenging, and down right frustrating in many rhelms. We are on the verge of a historical presidential election. The 8 year sentence is almost up. And, well, the economy, is…well sputtering along even if you didn’t use your stimulus check to go buy a big flat screen TV. 

But all of these challenges, might actually be a blessing in disguise for those in real estate–especially for those in affordable housing development, advocacy, or policy. It’s requires a moment of pause, reflection, and an evaluation of the direction the real estate boom/bust has taken all of us–market rate or not. 

And it seems between scrambling to save face, averting another financial “crisis”, or trying to figure out how to get deals done in one of the most challenging environments ever–well the actions have been interesting to save the least. 

Let’s take a looksee, shall we? 

 

• The DC Metro area had one of the highest appreciation rates in the country–and now has one of the highest depreciation area. That goes for the rapidly expanding (to the point of massive congestion) and rapidly unaffordable Prince William County, VA. In response? The county government has enacted a loan program to address the rate of foreclosure as well as to address homeownership affordability–at least for one group. 

           They get an A for effort–but its not that original. Many places have been there, done that, and failed to accomplish the end goal. Let’s hope they look at other programs to identify successes and failures…then again this is government.

• Regardless of whether you agree with some sort of assistance for homeowners who have been “caught out there” with the sub-prime/Alt-A mortgage mess, I would hope we all agree that there is a significant procedural issue in identifying who actually holds the note–especially if you are a homeowner who wishes to contact you lender to negotiate some sort of repayment option if you are behind. That’s why I think, on face value, this works. And could be a model for other states. 

Now, if only this Governor guy could get it.

• While not innovative, its about time. Baltimore gets it together to create a land bank for all those vacants they talked about on The Wire. 

Guess the new mayor has the political will to do something about it–rather than use B’more as a stepping stone to the Governor’s mansion (watch the last season of the wire–uncannily true about a former mayor I will not mention.) Of course, the proof will be in the figgy pudding. 

• And lastly, as homebuilders scramble to get rid of inventory, keep building, and keep their stock from taking that long walk off the short pier to bankruptcy, the incentives just keep a coming

1. Bozzutto Homes has a “make us an offer” sale
2. Get a free mortgage payment in Florida.    

Isn’t this how some of them got into trouble in the first place??

What responses to the “real estate” decline have you read about or implemented that is interesting, innovative, or just down right dumb? Please share.