One group that has been completely ignored in the last year with all the mortgage restructuring are those self employed borrowers, of which I am one.  Many of the programs that are being demonized today were developed with the purpose other than to create massive foreclosures.  Stated-income and no documentation loans were great for buyers who were either had a commission-based income or were self-employed and made more than their tax returns reflected.  Unfortunately, the flexible guidelines afforded by these programs meant that some irresponsible lenders were placing unqualified borrowers in homes they very well could not afford.  But for the rest of us, what's next?

I can only see two outcomes.  First is that self-employed buyers will remain out of the market for the next year or more until their businesses are profitable.  Many will actually show the profit they are making while others may choose to just deduct less. The only winner here is the federal and state governments.  The only other solution that I can think of is that the banks will slowly reintroduce programs for small business owners but will it be too late?

Who knows what's next for self employed buyers but I sure hope something is done soon.