What A Mess

Unless you have just not been looking or listening you no doubt realize what a mess the Real Estate and Mortgage Businesses are in today. There are some good reasons we are in the mess we are in. At least a partial list is as follows:

1. Predatory Lenders and those Lenders who create and use loan fraud as a tool have created many loans to borrowers who now can’t pay them back and who can’t sell their homes for what they owe against them.

2. The mortgage lending industry created products that made loans available to people who should not have gotten the loans at all, and now for the most part those loan products are gone for everyone, even those who should have gotten them.

3. Pending sales are down because a huge number of people can’t qualify to buy the homes that are on the market, and the market is flooded with foreclosures that need to be purchased by the people who now have no access to mortgage funds.

4. Politicians are now trying to fix something that up until now they had no interest in and that they don’t understand. The result will not help but only create laws that no one has time to enforce and penalize the honest people in the business.

5. HUD, in using the FHA loan, is trying to reform an agency that is outdated and stuck in the past. HUD and the politicians are not going to get together for any fix that helps the people who want to buy homes buy homes.

Because there is so much going on in the mortgage lending and real estate industry that is relevant to the health and well being of the economy many of the daily Blogs you will be seeing over the next few days and weeks will be breaking it down as I see it. These are and will be my opinions and if nothing else hopefully will be interesting to you.

You know what they say about opinions?

Please post your comments, your feedback is appreciated.

More to come

Lonny