“Plunder!” is a wonderful new book by Steven Greenhut that I am currently reading. He describes how public employee unions have corrupted politicians, who in turn are bankrupting states (especially California) and cities. It is a well-written book that can only make readers loathe politicians even more than they already do.
Being a mortgage note buyer, I naturally wonder how these political decisions driven by special interests affect real estate notes and the real estate business in general. Since I live in the highly government-unionized state of California, I think about how high taxes, an unfriendliness toward business, and a pro-government-meddling orientation affect mortgage buyers like me. Certainly, none of these approaches help private enterprise in the least. California has been expensive place to live for several decades, and not just due to the high demand for a great climate.
If I am called by someone wanting to sell a real estate note, would I rather that the individual and the property are in California or in another state? Personally, I would prefer that the mortgage note and everything with it be in a more stable state like Missouri or Texas. As a mortgage note buyer, I can have more confidence that regulations will be reasonable and that I’ll get a fair shake in the legal system if the payer ever defaults. Both the person selling a real estate note and the mortgage buyer need to have a reasonable expectation that laws won’t change on the political whims of some crooked official only wanting to appease their major donors.
Now, I am not a member of any Tea Party organization, but feel that the real estate market would be more fair and stable without government intervention. We should gradually ease out Fannie Mae and Freddie Mac and make FHA guidelines much more stringent. In addition, let’s keep Wall Street securitizations either completely out of the mix or highly regulated, as in the past that caused greed-driven unnatural processes to occur.
The private real estate note business works like an industry should. After a property has been sold, the party selling the real estate note and the mortgage note buyer operate in a way that is beneficial for them, with the mortgage note buyer taking an ongoing responsibility to make sure that the real estate note is good (which the person who wants to sell the real estate note would have previously done). When all parties act responsibly to protect their company’s assets while taking commensurate risk, the system works more effectively and efficiently, whether it be in real estate notes or the economy in general.
Alan Noblitt is the owner of Seascape Capital Inc., which buys real estate notes. He may be reached at (858) 672-4678 or toll-free at 1-800-634-4697. If you would like to learn more about real estate notes and read informational articles, visit www.seascapecapital.com.
For more information about Mortgage Note Buyer please visit http://www.seascapecapital.com/mortgage-note-buyer.asp
PLUNDERING THE ECONOMY!