Ron Taylor

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As I write this, I realize that much can change with regards to the Feds final plans and Congressional approval to rescue the banking industry. So what I am about to say is based upon what is currently being proposed. My disclaimer is that I am not an economist but someone who grew up under a constitutional form of government. What is being proposed by the Federal government is socialism, spelled with a big S. Webster New World Dictionary defines socialism as following: 1. any of various theories or systems of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products; 2. the stage of society, in Marxist doctrine, coming between the capitalist stage and the communist stage, in which private ownership of the means of production and distribution has been eliminated. Our federal government is about to “nationalize” the mortgage market, the insurance, the financial institutions, and soon, the big 3 automakers, to the tune of $700 billion dollars, and as one economist said, the true cost is closer to one trillion dollars. What does $700 billion or one trillion really look like? I was listening to Chuck Swindoll on the radio in my car this past week when he had another businessman explain to him the difference between one million dollars and one billion dollars. The businessman said if you had a single three foot stack of tightly bound one hundred dollar bills that would be what a million dollars look like. On the other hand, a double stack of one hundred dollar bills tightly bound as tall as the Empire State Building would equal one billion. If this is true representation, we can say that $700 billion is doubled stacked one dollar bills 700 times taller than the Empire State Building. Now where does all this money come from? It will come through increased taxes or by monetizing the economy, viz., start up the printing presses, which will produce inflation. If the current proposal passes Congress, it creates a “Czar” position for Henry Paulson which gives him power that, according to the language in this proposal, is” non-reviewable by any court or any administrative agency.” Paulson will have more power than our president that no one can challenge. I keep asking the question but I cannot get an answer, “Where in our constitution does the government have the authority to do what is about to happen?” There is talk about the Fed forming a Resolution Trust to liquidate all the bad loans these banks have accumulate. I suppose as a real estate auctioneer, I should be excited about this but I can’t, not at the expense it will have on our country. And now, we are hearing talk about our government bailing out foreign banks as well because these banks have lent money to Americans. When will all this insanity end? Not until you and I speak out and say enough is enough and kick all the bums out, yet come November, 95% of these bums will be re-elected. How sad. Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com

In an effort to turn around the depressing attitude of many realtors across the country because of the market we are in, some local North Carolina real estate publications are trying to put a positive spin on the market by stating that 2009 will be good year and that preparation needs to be made now to take advantage of the 2009 "turnaround." Yet, several of the major on-line networks reported this morning that foreclosures doubled during the first half of this year and that 2009 doesn't look any better. As a North Carolina auctioneer, I have tried and tried to approach lenders in North Carolina to let us auction some of their REO properties. With very few exceptions, the answer has been a resounding no. Reality has not set in with many of these lenders and banks. Surely they understand that these "non-income producing assets", as they call them, will affect their book value. If they get too many, the Feds will step in. The BPO agent (Brokers Price Opinion) seems to hold the key to the lender's decision. In hopes of "getting a listing", what we in the auctioneering business call the "list and wait" method of selling, the BPO agent gives a range of unrealistic values to the lender/bank. Why pull comps that are three to six months old or older, to determine a range of values, when we are in a declining market? Hello! The home sits on the market for many months, some over a year. The home deteriorates, some are broken in, not to mention the holding cost and the loss value of money while it sits on the market. An auction determines "market value." When you have a group of people in a room bidding on a home, when the bidding stops, market value is established, viz., what a buyer is willing to pay for the home. "Market value" is not what sold next door three months ago or three streets over six months ago but what someone is willing to pay today. I have a real difficult getting my realtor friends to understand this. If more homes were auctioned here in North Carolina, inventory would be reduced,stimulate the economy, and stablize prices. For more information on auctions, go to my website www.canSellnow.com. Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com

"It is a myth that bank-owned properties are a bargain" is true in most cases. That is why we work in the pre-foreclosure market and not the REO market. By working with the homeowner who is in a pending foreclosure situation, we are able to inspect the home while the utilities are still on and ask questions about the condition of the home. As a North Carolina Auctioneering and Real Estate firm, we try and offer a unique approach to the homeowner and the lender but yet, as already mentioned, the lenders are still not willing to face reality. We have approached the lenders to let us auction the North Carolina property after a shortsale has been agreed upon but in most cases, they refuse the offer and want the payoff plus legal fees, disregarding the fact that the property is upside down financially, viz., the debt is higher than the value of the property. CBS ran a story last week about the squatters that were living in these vacant homes without the utilities or water on. What a mess! How long will it take the banks to face the reality they are not going to get what they want from these properties? Ron Taylor<>< President/Broker/Auctioneer The Restorer, Inc. D/B/A Taylor and Sons Real Estate & Auctioneers 252-257-4822 (Office) 252-257-1302 (Fax) www.canSellnow.com