Guilt by Association

When I have a free weekend, I like to go out and visit open houses in my area.

No, I don't wear a hood and over sized sun glasses.

I like to use www.homesopentoday.com to find the homes local to me.
It's one way I can get into the trenches and learn what is going on out there.

I was discussing with an Agent this weekend the topic of Foreclosures.
Bill Clemente of Security Pacific in Walnut Creek.
Bill is a smart, heads up kind of Agent.

I was impressed with his knowledge and understanding of the driving forces behind the market.
Bill is currently working on a Short Sale in Antioch - trying to help a client out of a tough spot.
Short sales are going to become more prevalent as we move forward into this market correction.

One of the issues we discussed is the fact that in this area where the short sale property is located, there have been a number of Notice of Defaults and Foreclosures. These properties have either sold at the public auction for less than market value, or have been returned to the lender and are going to be sold as REO.

Either way, we were discussing how this effects the regular homeowner.
Because the properties are sold or moved at below market prices, the comparable values in the neighborhood drop. Clearly a case of Guilt by Association.

In the instance of his Short Sale, the homeowner is still current in his payments.
Surprised? I was too.

The main reason, and perhaps the only reason, he has to walk away from his home is a lack of value. That is a direct result of factors outside his control having a dramatic effect on his personal life.

I ask, if you were the brother of Ted Kaczynski how would your life have changed?
Would people judge you (unfairly) not because of what or who you are, but because of who you know or who knows you.

Guilt by Association.
It may not be fair but it happens in many different forms, and it's coming to a neighborhood near you!