There are a lot of things that could go wrong in any Real Estate transaction. Most of the obvious can be avoided with proper planning and organization. Then there are the unforeseen events.
Most of you already know, the face of Real Estate has changed over the years and continues to change. Eight or nine years ago the two biggest problems were finding a home to buy and getting the offer accepted. Loans would go through rather easily. Most people qualified for a loan and most Lenders put together conventional loans. We very seldom saw FHA, VA, or other types of loans associated with certain restrictions, standards and contingencies the proper had to meet. The most well know was the dreaded peeling paint on homes built before 1978.
Then came the crash. Stocks feel like a rock. Major banks went to the government for a bail out and everything changed. For years major banks have been fighting a law forbidding them from entering the Real Estate market as Brokers. The law still forbids banks from buying and selling Real Estate, but have they found a way around this law? At the very least, banks have been granted a form of control they are not easily going to let go.
Since 2006 and 2007 we have seen a drastic rise in short sales and foreclosures, along with a whole new set of laws, rules, forms, and a general way of doing business. A good question to ponder is, who really makes the decisions in all of these transactions?
Along with changes in the available units on the market came a drastic reduction in property values. This alone may have solved a lot of the problems caused in the wild markets from 2000 to 2005 when Buyers were over bidding on properties, driving prices up. The government along with major lenders began to set higher standards on home mortgages. On the surface this was a long over due and required change, but have some of these changes gone too far? Did they create new problems?
As changes were initiated they created al whole new set of bumps in the road to recovery. This series of posts record some of the problems I have experienced and the solutions to the problems, or the result of the changes. I hope this helps buyers to prepare for what could be and should be a pleasant experience in buying a new home, or moving onto the next. Your questions, comments and suggestions are well appreciated. This is why I set his section up as what is known as a Blog. Wonder where they got that name from??
I work in the Menomonee Falls market and most of these transactions were in the Milwaukee area. But the same problems seem to exist throughout the nation.
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