Robert Shemin - The Way Out of The Real Estate Crisis

1. The way out of the Real Estate Crisis
CNN/Fox news wealth expert Robert Shemin presents creative solution to Real
estate crash that no one has talked about!
A year before the real estate crises I called it! No one would listen to me and here
we are. Well, no use crying over spilled milk. Big problems demand creative
solutions.
Neither the banks nor the government have been very creative. Their programs
have been dismal failures. Just talk to anyone who has tried to do a loan
modiBication or a short sale.
The banks are sitting on tons of bad notes and foreclosed property while
people have spent one to three years in houses without making payments.
Until this housing crisis has been resolved the US economy will just limp, crawl
and stumble along without really ever getting up and going again.
The question and the solution are the same: Who should take the biggest hit and who
should proBit the most from any gain?
Why would someone who has been making payments on their upside down homes be
penalized when someone who is not making payments gets a reduction in principle?
Moral Hazard gets you by, while people who are not making it into the “ Binancial distress”
category are just dangling along until they Binally get there too.
Foreclosure is a “loose” for everybody and a few short sales just don’t cut it.
I believe the best solution is a hybrid. The government announced that they are going to
turn a lot of distressed properties into rentals and sell to investors. As an investor this is
great news, because now investors can take advantage of homeowners and the bank’s
distress and perhaps make great proBits. Good for us but a lot of people are left behind. The
answer again would be lease with an option.
Let the banks work out an affordable lease with an option to the current homeowners. Let
the bank and the homeowner participate in any potential future gains. Who knows if or
when the markets will come back. If it does, the home owner has an option price and
therefore any potential gains or losses could be shared by the home owner and the note
holder.
Let me give you an example:
Lets say Jill and Bill have a house they bought 6 year ago for $400 000.
They borrowed $400 000 and got a $400 000 dollar note with “country slide mortgage
company”. Now the house is worth $275 000 but the note is still
$395 000. The payments are $4000, which Jill and bill cannot afford.
The choices are to do a short sale of $275 000 and the bank looses. The bank could
foreclose at a cost of about $18 000 and now have a vacant house on their books where no
one wins. The homeowner’s credit is destroyed and the bank now has a bigger vacant
foreclosed inventory, which is what caused a lot of our economic woes in the Birst place.

2. I recommend here comes the creative solution:
The homeowner and bank can work out a lease with an option. They work out an
affordable payment, perhaps $2800 a month, with a portion going towards the purchase
price. The home owner agrees to do some or most repairs and they get an option for 3, 5, 7
or 10 years, depending on when the experts think the markets will come back at perhaps
$350 000. Therefore the bank would only loose $50 000, not have a foreclosure and not
have a vacant home. The homeowner has an incentive to pay and stay, hoping that the
market goes up. These numbers are just examples and the bank and homeowner and
government could negotiate to divide the winning or loosing pie however they like. This
would save money, time and deBinitely stabilize a lot of the housing market.
How come the banks or the government are not doing it?
That is a mystery that I cannot solve. However lease purchase or lease option would solve a
lot of problems and save a lot of money for a lot of homeowners, banks and the
government.
Just call me if you need me to help with the details, the banks, government and homeowner
or we can just continue to throw away billions of everyone’s dollars…
For more information on Robert Shemin and his Success Systems visit
www.robertshemin.com
Robert Shemin is booked for over 100 speeches in the next year and is constantly in
the international press. To inquire an interview or speaking possibility contact.
To inquire about an interview or speaking possibility please contact:
Viva Public Relations
Verena Girodano
Cell: (305) 323-1615
Email:vivabooking@gmail.com