Even though there is enough blame to go around for the current mess the Real Estate market is in, one of the most popular theories is that it was caused by greedy, unscrupulous lenders with sub-prime and option arm loans. The professionals in our business know that in many cases the upsurge in the business in previous years brought everyone and their brother into this business. Most were not trained or properly supervised. Unfortunatley in most cases the people they hurt first and most were their friends and family members. Now that these victims are loosing their homes and dreams, we are seeing a new type of situation emerge. Mnay of the people who steered people into "bad loans" are now the same people who are, for a fee making themselves available to do a loan modifications. There are non-profit community based organizations who can provide the needed counseling and negotiations for free. When faced with the choice of passing on that type of information or making a few dollars. The choice really comes down to helping people already in trouble or doing the Right thing. The community agencies not have trained staff, they also have other resources that could prove invaluable to a family in trouble.
Charles, I would put all the blame on the lenders. I think the buyers and Realtors had a lot to do with the mess. Buyers wanting to push the limit on how big a house they could get or speculating on quick equity gains. Realtors wanting that higher commission or tkaing a buyer to several lenders until they found one that would do the deal. It amazes me how many Realtors are wanting to talk to me now when a year ago all I heard was "I got my guy." Now that guy can't get it done, Realtors are looking for someone to replace him. Even though those loans are no longer available. While some lenders played a part I just hate it we get the brunt of the blame when it wasn't all our fault.
I agree that a large part of the responsibility falls on the lenders. Or shouls I say the lending communith, since the products and easing of guidelines was stimulated by investor greed. I too am getting calls from Realtors who just last year either had a guy or were using or saying they were using thei in-house lender. What is really scary is that some of the Realtors who are calling just like you said are looking for those same types of products. Thei really lets you know they really have not been keepiing up with the dramatic changes in the industry. By the way I noticed you are from Clarksville TN. If memory serve me correctly, you are near Covington and Mason TN Is that right. The maternal side of my family is from Mason.
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