A grove of aspen trees share a common root system. If the root system is weakened, how long can the 
tree community survive, much less begin to grow again? I just heard about the massive assistance being given to huge banking companies like AIG, Fannie Mae and Freddie Mac. I just heard the news of how banks worldwide are now pumping money back into the economy like a huge wave--- of over 200 billion. Evidently, the fear in the economy is contagious and has now spread throughout the world. But, what about mortgages? What about this infrastructure close to the root system that supports the bigger branches of the economy? Is this a right move in the wrong direction? If HOMEOWNERS can't be helped, how can the system strengthen its roots and restore balance overall? Is this a right answer for the wrong problem?? It seems that, until home sales can begin to turn around, the branches of banks, insurance companies and brokerage firms will not find any leverage or begin to recover. If the root system is weakening and dissolving, how will anything that stems from it remain in place or GROW again?
Where have all the mortgages gone? Long time Passing. Where have all the mortgages gone? So long ago... Where have all the mortgages gone? Gone to Foreclosure, Every One. When will they ever learn? When will they ever learn?
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HI, Mara,
The bailouts are supposedly going to keep underwriting guidelines from getting even more conservative than they already are. I hope this proves true.
In the meantime, FHA is the best bet for buyers who have a couple 'dings.'
Mara; you are so right on target! I agree with you 1000% So what can our community do about it? We can complain... Or we can take massive action. We can teach our client's how to sell their homes in two weeks. Since the melt down and subsequent death of Sub Prime the economy has taken a nose dive. Realtors and Loan officers alike are taking alternative employment, just when the need for professional help is at it's greatest. I urge you, if you are a professional in any in area of the Real Estate field, to look at this. http://tinyurl.com/5xb4bz The financial events of each day are knocking 60 to 79% of the buyers out of the market. Your sellers can not sell their homes, because buyers can't get qualified. Using ezFinancial-ezMoney you can help get buyers and sellers back in the game. How? We go down to 585 FICO and we overlook derogatory medical remarks. In other words if your buyers have suffered a long hospital stay or medical emergency, we will overlook that and get them qualified to buy the house. If they can come up with a reasonable LOX "Letter of Explanation" for other derogatory remarks, we may be able to overlook them as well, in other words. I challenge you to go back to your dead file and mine your acres of diamonds. Do this instead of watching the news and see how many people you can help. The key to your success is helping people get what they want. Are you up for the challenge?
To reach me to tell me that you are up for the challenge, please contact me at BeDebtFREE2@Gmail.com
508 377-4057
And this is a common thought! Bad news for banks, Bad news for home buyers. If nobody buys the home it just becomes another foreclosure.
Mara, I love the metaphor. So true! We definitely need to get to the root of this problem. Band-aids only do so much...
No, No, No Deanna. It becomes an REO. But wait I can teach you how to teach your clients to sell their homes in two weeks. I can teach you how to get your buyers qualified in 24 hours. Why let it all go down the drain? We can help. Together we can turn this thing around. If you do your part and everyone in your office does their part. You can make a difference. http://tinyurl.com/5xb4bz
ezFinancial-ezMoney
BeDebtFREE2@Gmail.com
Mara, with ever tightening credit, even borrowers with pretty decent credit ratings and good incomes are finding it tough to get mortgages. The pendulum will swing back to moderate credit approval here soon or nothing will get done.
Mara, I bought this house several years ago when you had to come up with 20% and your mortgage payment could not be any more than 25% of your income. Banks had a policy about loaning money and you had to fall within their guidelines. Today, I must say that I am one of the few who no longer has a bank note...
Mara - right now everything in the world seems upside down. You can't open the paper or turn on the tv without hearing about the latest financial catastrophe or bailout. When will the madness end???
Hey Mara, Last year and the end of 2007, I was wondering just this question. As a SEASONED mortgage professional since 1996, I am really disappointed in what has unfolded over the past 18 months. I am so upset that at all these sludge loans we are now all literally paying for.
What makes me really mad is that these CEO's MUST be held accountable! I don't see how you can run BILLION DOLLAR companies and not have a clue on what's "REALLY" going on...
The real problem now is going to be, as these bank continue to fall (WAMU is next) it will be harder and harder to find financing for good loans and as you can see rates are not going down even though the fall in the 10 year treasury would suggest that. We have a bit of a crisis here, it sort of feels like the crisis they had in Japan in the early 1990's and that took a decade to wash out. Oh well, that's why they say to save your money for a rainy day I guess.... I hope the sun comes out SOON!
Mara, Honestly, the more news I hear the more I don't want to hear anymore. It's going to be a very rough winter for many, many people.
My lender buddy told me that each week he gets to learn about another funding source that no longer exists.
Ditto to Greg above, re the CEO's not having a clue as to what was going on. There is something called the "Rico Act" whereby people in charge are held accountable for what goes on unde them...Should be applied here.
On a different note, are those cookies on your blog? Subliminal messages...I am getting hungry..
This song ... I tellsya... it's playing at volume 11 this week.
Mara...
It's tough out there, no doubt. When you need a credit score of around 750 to get a loan. I made it through the late 80's early 90's in the Houston market when rates went to 20%, and we lost 50% of value...so keep working and thinking positive, we will get through this too.
Hey thanks for the spell check on my udderly delicious Cowl slaw...but we need to figure out how to do it before I post :-).
Tom Plant flew in again and brought his sweetheart, so if they can come all the way from CA, then you can, "Come on down" too! I would so like to meet you in person, I know we have a connection.
Take care, stay healthy & happy, Liz
Hi there Mara, some pretty scary times for the common folk. Loved how you wrote :where have all the Mortgages gone........
Hi Mara...Mortgage's are a very necessary tool in our industry. when lenders cut back on how they will lend, such as a percentage of the value they will lend, it all adds up to slowing down borrowing and home purchases. As long it is not for too long of a term, it's healthy. We went to 60% of sale price in the 80's, which meant first time home buyers needed to save up their downpayment. Can Sellers with equity carry mortgage there, that maybe an option, then they can find a lender to buy their mortgage at closing, I did that here in the 80's( I had Household Finance buy the sellers second take back mortgage at face value at closing, we just wrote the mortgage at the term and interest Household wanted...guess what... they lent at 1st mortgage rates).
Great Post! thanks for sharing
Cool Post Mara - haunting refrain - beautiful photo!