The MN REALTOR® Resource Update distributed by e-mail today to subscribed REALTORS® had a great article by Chris Galler, MN REALTORS® Senior Vice President. Chris' conservative reputation and outspoken opinions have become legend among Minnesota REALTORS®. Never afraid to forecast doom and gloom, Chris was shouting warnings of a market turn before it ever happened.
Today, Chris published an article geared to help Minnesota REALTORS® understand the current economic turbulence. Excellent in its entirety, the article gave a basic explanation of the current situation without inflammatory and hair raising scare tactics. It helped me to understand another aspect of what is happening in the market today without panicking.
Quotes from Chris' article include the following:
- "The vast majority of people are not in trouble. About 3% of total households
are behind on mortgage payments (33% of households have no mortgage) and about
1% eventually go through foreclosure.
- Most homes are not mortgaged over their true value. The national number is
that home owners have a 71% LTV mortgage on the property (2006).
- The foreclosure level of today is very similar to the foreclosure level in 1986 from a national perspective. MN did better that time around."
Doesn't that sound reassuring?
Ah, well, never fear. Panic can be restored by the third article in the same publication. Don Smith, Esq., legal counsel for Minnesota REALTORS®, introduced an article on short sale strategies with this sentence:
Here I was feeling a bit relieved reading from Chris Galler that only 1% of mortgages will default, and since only 2/3 of the population even have mortgages, our nation might survive, only to have that hope poppped with Don Smith's frightening words aligning short sales with THE PLAGUE!
Our words are so powerful and can be so loaded with emotional meaning. No wonder published works have so much impact!