What is happening?
There is so much going on in the real estate world today, it's hard to know what to blog about. It seems most of the articles I read each day focus on the negative aspect of this business. . . .most notably the fast nosedive of the lending business, and how that seems to be affecting consumer confidence and spending.
Yesterday one of our local lenders forwarded us a web site that's keeping tabs on what's going on in the lending industry. http://www.thetruthaboutmortgages.com/ gives daily information on who's going under, who's staying afloat and offers a list of each and every lender that has experienced hard times as of these last few months. If you click on the list, it's overwhelming to see how many lenders have closed their doors for good. In fact this article even states that recent statistics show that 2.33% of all US mortgages are currently delinquent. That's incredible. No wonder so many lenders are closing their doors.
With "the world of money" spinning in a seemingly out of control downward spiral, we're seeing some of the effects in the real estate market. With each lender that closes their doors goes another batch of buyers who were trying to obtain a loan. Some of them will go on to be successful in their endeavors, others will be told continuing to rent is their best option.
The scary thing is, not all of these lenders going under cater to the "monetarily challenged". There are a number of lenders who deal with "A" buyers as well. . . .buyers with good or great credit, buyers WITHOUT credit issues.
Perhaps this is just the mortgage world balancing itself out. . . . .just like when we hit "hard times" and all the ineffective real estate agents fall by the wayside. Perhaps what we'll be left with when this is all said and done is good, quality lenders, and good, quality real estate agents. . . . . .instead of everybody and their brother doing what they THINK is an "easy" job. We can only hope.
Yesterday one of our local lenders forwarded us a web site that's keeping tabs on what's going on in the lending industry. http://www.thetruthaboutmortgages.com/ gives daily information on who's going under, who's staying afloat and offers a list of each and every lender that has experienced hard times as of these last few months. If you click on the list, it's overwhelming to see how many lenders have closed their doors for good. In fact this article even states that recent statistics show that 2.33% of all US mortgages are currently delinquent. That's incredible. No wonder so many lenders are closing their doors.
With "the world of money" spinning in a seemingly out of control downward spiral, we're seeing some of the effects in the real estate market. With each lender that closes their doors goes another batch of buyers who were trying to obtain a loan. Some of them will go on to be successful in their endeavors, others will be told continuing to rent is their best option.
The scary thing is, not all of these lenders going under cater to the "monetarily challenged". There are a number of lenders who deal with "A" buyers as well. . . .buyers with good or great credit, buyers WITHOUT credit issues.
Perhaps this is just the mortgage world balancing itself out. . . . .just like when we hit "hard times" and all the ineffective real estate agents fall by the wayside. Perhaps what we'll be left with when this is all said and done is good, quality lenders, and good, quality real estate agents. . . . . .instead of everybody and their brother doing what they THINK is an "easy" job. We can only hope.
posted by Brittany Nigh at 6:11 AM
1 Comments:
Brittany--Did you see that homeownership is at its lowest levels since 2003 according to the latest statistics? Borrowers who qualify for Fannie Mae underwritten loans are just fine--so long as they have a down payment. Second mortgage companies have been curtailing programs or shutting down as well, which means that private mortgage insurance will once again become common, and since 1/1/07 PMI is tax deductible for most people as well. Sub prime borrowers have all but left the purchase market which will once again make residential rentals a good option for investors. The lending landscape has certainly changed, but not all is lost!
Post a Comment
<< Home