Mortgage Crisis?

By
Real Estate Agent with Long & Foster Real Estate, Inc

I would love to hear from lenders in the network who are willing to talk about the current mortgage crisis.  I know when the market was HOT, subprime lenders were fat and happy handing out loans to barely qualified, and sometimes unqualified clients.  Real estate agents participated in this as well, this is not an attempt to blame lenders.  For the most part, Lenders (and real estate agents) are honest and ethical people trying to make a living.  But we all can admit, there are/were "slugs" in the business who prayed on people and their desire for the american dream.

People are in trouble now.  People are in mortgages that are resetting to points where they are stuggling to pay their mortgage, some who are one paycheck away from default and some who are already in default and will be losing their home and their dream.

We all know that this affects all of us.  The market is slow, people are afraid and we aren't selling as much as we would like.  I think we can all agree that foreclosures are not a good thing.  Banks and lenders don't really want to own these homes.  They, hopefully, would be more interested in finding ways to help these people keep their homes.

How about some creative ideas for restructuring loans that would help people keep their homes.  Yes, there will be risk and undoubtedly some will still default.  But look at the bigger picture, most will continue owning (and paying for) their homes.  This seems to me to be better for the economy overall than massive numbers of foreclosures that will drag our economy down further and further, eventually affecting all segments of society.

Am I being naive?  I hope not!  Can we think ouside the box and find ways to fix this?

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Tags:
real estate
mortgage
foreclosure
crisis
helping people

Comments 6 New Comment

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Rainer
153,479
Tom Brannigan
Long & Foster Real Estate, Inc
Thanks for the comment Karl.  I look forward to hearing more about the solutions you see coming.  There is so many negative comments and press these days, it would great to be able to publish positive comments and feelings.
April 21, 2007 01:37 PM
Rainer
150,001
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bob Mitchell (NMLS#1046286)
Bank of England (NMLS#418481)

I think that before a loan is restructured that the lender should requalify the people as they should have been qualified when they got the mortgage.  Their current job and income situation with the credit report that they had then.  If they qualify for a REAL mortgage, then give it to them... let them start over with real terms that are doable.  If they don't qualify, foreclose on them and learn from your mistakes...both the lender and the borrower.

R.B. "Bob" Mitchell

ValueList Real Estate Services, inc. 

April 21, 2007 01:51 PM
Rainmaker
396,818
Eric Bouler
Listening to your Needs
Gardner Realtors, Licensed in La.
We have seen very few foreclosures form subprime lending in this area. I have not heard about one yet in the segment of the market that I cover. I hear about it from the web but from no agents here.
April 21, 2007 06:55 PM
Rainmaker
219,526
John MacArthur
Licensed Maryland/DC Realtor, Metro DC Homes
Century 21 New Millennium

Well, I have read the comments. What planet are you folks living on? Since April, the lending industry has begun unraveling. It is now August and the only new product is the result of exclusing old products. If you want a non-conforming loan.....you will have to be qualified for about 2 points higher than the rate you will pay.

That wasn't any light at the end of the tunnel. That was a damn freight train full of full closures that has steamrolled over all the brokers that had their head in the sand when margins were called.

jmac

August 06, 2007 05:11 PM
Anonymous #6
Anonymous
Anonymous
Let's hope we see some light soon. This picture looks pretty grim folks!
August 15, 2007 08:32 PM
Anonymous
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Rainer
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Tom Brannigan

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