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The good old days are gone!

By
Mortgage and Lending with Carolina Home Mortgage

Helping borrowers with their financing has always been my career.  I love to help people get into homes.  However, lately, everyone is trying to get something for nothing.  Rates have gone up, values have gone down.  If they wanted to buy and get 100% financing, they should have months ago.  You tell a prospect that times have changed and they think you are trying to put something over on them.  They don't want to give you any information, they did it before.....now we need all types of documentation.  I did not make the rules, I did not raise the rates and I did not lower the house values.  But of course, I am to blame.  Well now I have changed. I told a customer yesterday they need x,y and z and they said they could not get it and I said you can't get a loan. 2 hours later, they sent me the information.

 

Borrowers had been pamered to the point if they looked concerned about anything you said the mortgage company would change programs. That is what got us in this mess. Borrowers who could not afford the house but "loved" the house.

We all have been the beneficiaries of a prosperous market, but now it is time to tell the borrowers the real deal. If they have high DTI let them know they cannot afford that property.  Our markets will get better, we will be a strong piece of the economy, but until that time, we all need to be in the present and not the past . The good old days are gone. Let's look to the future.

Jared Pomranky ~ Detroit Foreclosures
Urban Detroit Wholesalers - Detroit, MI

Those days are gone and good for them.  We will be a stronger market for it in the long run and it has created unprecedented opportunities for those that are willing to capitalize on them.

Jared

Detroit Investment Properties - Our website for wholesale deals and information
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Jul 24, 2008 05:03 AM
Stanley Barsch
Realty Executives Premier - Silver Spring, MD
Realtor, GRI - 240.882.8512

Kate - Excellent post.  You are correct, times are changing.  I think it is all your fault though, shame on you for changing the rates and lowering the home values! :)  All joking aside, you have to put your foot down and give them your rules if they want to work with you.

Stan Barsch

Jul 24, 2008 05:04 AM
Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058

Kate!  Spot on!  Someone said recently that "It's not the NUMBER of deals we are dong now as compared to last year - it's the degree of difficulty that's making me want to don straight jacket attire!"  How true. You and I just need to go "old School."  If it worked when my dad was loaning money in the 70's - it might work now.  (thanks for your help yesterday!)

Jul 29, 2008 01:23 AM