What's in it for me? This is a question we all ask ourselves. Anyone who owns a home or thinking about purchasing a home in this market is asking themselves what this market means to them. Here's some perspective for you in the questions below. Each question get harder as we go. Please watch 60 Minutes' Mortgage Crisis Video then continue to read and share your thoughts.
What's in it for Buyers? Although you may never buy at the very bottom, you can buy right and do well over time. There's an opportunity in every market and this one goes to the buyers. We have been in a buyer's market and will continue to be in a buyers market according to the chart in the video. Nobody can perectly time the market. We know what market we're in when we're in it. Buying at any point in a buyer's market is better than missing the chance on the curve back into a seller's market. More often than not, when you ask yourself, "Have prices dropped enough for me to make a sensible purchase?", you're already in the safe zone where the answer is yes. Not everyone can qualify for a loan right now and as the banks take on more foreclosures, do you think they will be tightening their lending standards making it harder to qualify for a loan? Although you aren't going to know how quick the curve to a seller's market will be, it is a buyers market now. Interest rates are low and lenders have more sensible loans to offer now. Are you willing to risk waiting to see what the future holds?
What's in it for sellers? Unfortunately, some sellers were taken advantage of when they were buyers in a seller's market where mortgages were easy to qualify for and handed out sporadically. Many could qualify for more than one home whereas, those same people would not have qualified for as much under the current lending standards. Fortunately, the overabundance of homeowner's foreclosing on those loans are being offered help. There are many options for homeowners in fear of defaulting on their loan(s) or worse yet, losing their home. Of course, consulting with your lender(s) is the first step. You may even want to check with a loan negotiater to help you. Be aware that these types of "professionals" are coming out of the woodworks due to the demand for them. Be sure to do some research first. With any luck, you'll be on your way to modifying your loan so you can keep your home. If you find yourself in need of selling your home short of what you owe on your mortgage(s), consult a realtor with a designation as a (CDPE) Certified Distressed Property Expert. Do not try to buy another home and walk away from your current property. That is called a "buy and bail" and you may be pursued for committing fraud.
What's in it for the mortgage companies? The mortgage companies contributed to this mess by offering such unrealistic loans to begin with. Loan officers are not required to be licensed in many states. I never understood this in a business where consumers hand over their personal information such as their social security number. Realtors don't take such information and we're required to be licensed as we should be. I personally think this is the mortgage companies' opportunity to take a good look at how they contributed to this crisis and make some changes to how their business is operated. The strong are going to survive in this market, thus, gaining such the reputation. This is their chance to make things right.
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