Read this story about Joe Sixpack and the Subprime Crisis. Then come back here and tell me who is to blame in that story.
Was it Joe...who by the end of the story becomes "Joe Sixpack"? Was it the Realtor? Was it the Lender? Was it the diappearance of the lenders who were supposed to do the re-fi in two years? Maybe it was the purchase of the puppy that broke the camel's back.
I'm sure you can all relate to this story and how it just crept along to where we are now...hard to find the villains in it. But we're all experienced professionals, so let's give it a try.
I look forward to reading your comments.
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What a story. I've read it twice and I change my mind on who should be smacked around, Ardell.
I am sure the story is worthy of a Pulitzer. Excellent writing.
Ardell,
I'm sure it was a mix of everyone...remember when everyone wanted to jump on the bandwagon? I bet if you asked that question 5 yrs ago it would just be brushed off.
Neal...did you read the story? No cheating.
Even in the heat of multiple offers I advised my potential buyers not to remove the inspection clause or the financing clause.
The Realtor calculated the 33%, they should have never let him go higher, the lender should have not let him go higher and promised a re-fi. The Realtor should not have waived all those inspections. Ok you didn't mention how old the children were, but in my area, many couples without children or smaller children start off in Districts not as high as Ann Arbor, build equity and them move into Ann Arbor for their 2nd home.
So everyone had a hand in it. Including the buyer who got all excited being in a competitive bidding situation. So I think all three over extended. Realtor, Lender and Joe Sixpack.
Missy,
$350,000 in Kenmore was about the cheapest home you could get at the time. Most 3 bedroom houses were at least $500,000 at the time, and still are. I did mention the ages of the children. One was in the belly and the son was 2 years old. A townhome in Seattle was $400,000 to $500,000. $350,000 was the bottom price range for a home most anywhere.
Sharon,
I never took out Finance Contingencies either, but do you have a rate cap in yours? We don't. Everyplace ele I've worked the Finance Contingency had a rate cap so that if it flipped into sub-prime the buyer had an out.
Very depressing story, Ardell, but I'm sure it reflects the experience of many. The agent and the lender should be shot. Really sad.
Ardell,
Yes I did...well most of it until I started to get that same sharp pain in my stomach I get after being poisoned by spoiled food:) I couldn't finish it.... Disgusting isn't it?
Mary,
I've had journalists call me to help them write a story on sub-prime looking for the right "angle". I decline to help them because they simply do not "get it".
I'm just sad. Who cares who is at fault? People need help, and they arent getting any!
Ardell,
I really like how you can write such a poignant post, but don't like the scenario and it has happened all to much for anyone's liking.I personally like to sleep at night.