NAR - Behind the 8-Ball

Today I received an email from Charles McMillan, 2009 NAR President.  I'm sure you did to.

He led out by describing two "exciting" updates on NAR's efforts to reach out to more consumers and bring them back into the market.  Specifcially, he mentioned a radio show in New York City and a new ad, "Housewarming", that reinforces the value of the temporary $8,000 tax credit.

The $8,000 tax credit is old news.  You would have to be dead not to have heard about it by now.  My 9 yr. old son even wants to buy a house. 

On second thought NAR is not behind the 8-ball, their off the table.

I strongly believe that if you criticize something, you should offer an alternative plan.  NAR didn't ask me, but this is what I wish they would focus their time and our money on:

1. REO's

• a. Since taxpayers are bailing out banks, NAR should lobby for an equitable distribution of REO listings.  Too few brokers are getting the lion's share.  They are starting to dominate both the listing and buying side.
• NAR should insist that REO's be closed by title companies in the county of the property.  Again, this is being aggregated and centralized.  Do it locally so those folks can support the local economy.
• NAR should insist that banks clear their inventories quickly.  The majority of REO inventory is not even being marketed right now for a variety of reasons but most likely because they are hoping the Federal Government gives them a better price than current market value.

2. Short Sales

• NAR should lobby for a standard process for dealing with these.  Buyers have come back to the market.  They just can't close anything.  The pending sales index has been improving on paper but in reality, most of these are short sales that will never close.  This takes good buyers off the market and hurts us all.
• NAR should lobby for protection of sellers taking on short sales.  Several banks, including BOA, are trying to hold sellers more accountable.  In theory, this sounds ok, but it costs the banks money and clogs up the pipeline.  This is a National crisis and the process needs streamlined.

3. Investors

• Nobody wants to bail out investors but that's exactly what we've done to this point. Keep in mind, the money provided for mortgages, comes from investors.  These investors are being made whole while the buyer investors are holding the bag.
• CA,FL,AZ,NV are at the heart of the housing crisis.  We have to stabilize these states to stabilize the country.  That will require bailing out investors in some shape or fashion.

The real estate industry is facing serious challenges.  We need NAR to step up and lead.

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