Back in March of 2009 I wrote " Credit Challenged Society", with all the foreclosures and shortsales and the like who would be left to buy. It is said that 25% of the houses are in some stage of foreclosure or not being paid as intended. The economy can not get traction with 25% of the people not viable consumers who can borrow.

The mortgage guidelines have to changed to take in account the foreclosures and shortsales that were market driven. I have been getting people who assets have been destroyed in the decline, however they are gainfully employed and have good income. At current prices they could afford to re-buy but are held out of the markets, by guidelines that stop them from borrowing by restriction. The credit scores should heal faster when a person works and pays all their other debts on time.

Fannie and Freddie should not restrict them from taking a new mortgage, if they qualify under regular income ratios. There would be many more homes and condos sold. The rental market is getting hit with high income tenants who have had their lives torn up by a bad real estate deal, not nescessarily there fault, but the fault of a failed financial experiment.

If the economy is going to get fix we must address things on a real time basis, considering the difference that have been imposed by the financial upheval created by the Clinton Administration starting back in 1999. See NY Times Sept 1999 article, President Bill Clinton insisting on lowering the credit standards for home ownership.   Barney Frank who pushed lowering credit standards and caused this mess. 

It takes as much effort and talent as it did to put us here to get us back!

Richard

  

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4 Comments on Credit Challenge Society, lets fix it!

OCT
19
2010
157,270 Points 1 Featured Post Outside Blog Called Shot Master

Richard, thanks for sharing the 1999 article on the Clintons.  I think history teaches us a lot when you follow the administrations and how one has paved the way for disaster for the next one and how, each administration, we are digging a deeper whole for ourselves thanks to the leaderships.  Another reminder why the people have to unit and express a singular voice or reason to start the process of recovery.  Thanks for sharing the post.  Jark.
4:30am • #1
878,327 Points 75 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

One of the reasons why it will take the RE market a lot longer to recover this time is a lack of buyers who can qualify to buy a home!
8:14am • #2
OCT
28
2010
1,371,339 Points 151 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

It takes as much effort and talent as it did to put us here to get us back!

Great closing sentence Richard!  Not only are buyers not qualifying but the standards of underwriting are getting harder and harder as we chug along.  Every time that leaves more buyers out of the pool.
8:33pm • #3
JUL
25
It is always befaiicnel to have a proper estate plan (no matter how lavish or humble your estate may be) if for no other reason than so your surviving family will be able to enjoy the property you have left them. If you don't have a will and you leave it up to the process of intestate succession, then things move rather slowly and it might take years for your relatives to realize the gifts you've left for them. But if you have a plan then the distribution is much easier. Even though anyone could have an Anna Nicole Smith kind of relative who slows own the process for everyone with frivolous legal tactics, you shouldn't resign yourself to that eventuality and think that estate plans are useless. Fact is, they're incredibly useful and if everyone had one there would be far fewer needs for probate courts.
Josh
3:38pm • #4


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Richard Stabile Bergen County New Homes Builder Realtor

Woodcliff Lake, NJ

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