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Monday, March 19, 2012

Honorable Borrowers Pay for Housing Market Collapse

By Stephen Sharpiro, Westside Estate Agency
I can finally say it: Things are getting better in the L.A. residential market.
But not for everyone. In fact, in many cases, not even for those who are fiscally responsible.
It’s true that compared with a few years ago there are less foreclosures on high-end luxury homes on the Westside. Most troubled sellers have sold or otherwise restructured their mortgages, making troubled homes scarce as foreclosures reach their bottom.
But today, after spending 35 years in L.A. residential real estate, – I’ve learned that numbers don’t tell the whole story. Unfortunately, in an election year, numbers are also motivating poorly conceived public policy that rewards the bubble’s most irresponsible borrowers while honest homeowners suffer the consequences.
In fact, one example of a fiscally responsible person who is bearing the brunt of the market with no way out is my son, a successful Realtor who understands the complex local market, who is being strangled by a high-interest loan on an underwater condo.


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