Think of all these added individuals who will be losing their jobs, and thus, not be able to afford their homes, meaning more foreclosed homes, meaning more mortgage companies will close, and things will only get worse and worse. What do you think the solution to this crisis is?
Well that is the question. For this reason the fed is pumping ungodly amounts of money into the market for liquidity purposes so that way our economy won’t grind to a stop. I guess you can say they are taking evasive actions so that we are not all together screwed. But the reason for all this is the free for all attitude that sub prime backs had for 5 years writing loans for any one who had a social security number, well guess what? All those loans are now going into default and we are talking about Billions of dollars. So the market has to correct it self. Lots of people are going to feel the pain. But its not the end of the world it is a cyclical market. But one thing is for sure lending guideline will never be that lenient again. If you are in the market to buy a home hold on because the value of property is going to take a nose dive in the next 6 moths + (when money is cheap prices are high, when money is expencive prices are low)
Hope that helps,
Yes, it will…. As for the solution, that’s simple, the sub-prime mortgage market got out of control, now, it has to be corrected in the market. So, real estate prices will drop, new home construction will slow, and the best news out of this whole mess, the consumer will have to start managing their debt a whole lot better
From someone whose FICA Score is 783 and has a 8% debt to income level. In simple english, I can get a loan anywhere.
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you would think so…
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Well that is the question. For this reason the fed is pumping ungodly amounts of money into the market for liquidity purposes so that way our economy won’t grind to a stop. I guess you can say they are taking evasive actions so that we are not all together screwed. But the reason for all this is the free for all attitude that sub prime backs had for 5 years writing loans for any one who had a social security number, well guess what? All those loans are now going into default and we are talking about Billions of dollars. So the market has to correct it self. Lots of people are going to feel the pain. But its not the end of the world it is a cyclical market. But one thing is for sure lending guideline will never be that lenient again. If you are in the market to buy a home hold on because the value of property is going to take a nose dive in the next 6 moths + (when money is cheap prices are high, when money is expencive prices are low)
Hope that helps,
References :