Hud chief on the outs?

Real Estate Sales Representative with Precision REO


Interesting Times in Real Estate.  While we sit on the bring of some really great rates and programs it sure is sad that noone needing those programs can qualify for them!  What sweet irony.  I personally am working a deal right now with a great buyer.  He is seeking FHA lending and because of the guidelines they have his condo will not qualify for the program.  (the condo needs to be larger then 700 sq feet to meet the guidelines,  it is 694.15 sq feet)

While one would normally be feeling great with rates this low.  it is hard to get excited for me as an investor and broker.  As an investor i have tried to take advantage of these great new programs only to be turned down as they no longer will look at stated income loans.  Although i have paid on time for the last 4 years i guess that is not good enough to earn an exception.  While i have been able to weather this storm I don't think all are so lucky.  The cause of many of these foreclosures according to the powers that be are the exploding adjustable arm loans.  However by tighting the guidelines for loans so much are we not about to see more foreclosures come from those who can not refinance?

I am sure there are many schools of thought on this one.  I am lucky to be in a semi-stable market.  I can't imagine how this must be in a market that is going backwards like AZ. 

Comments (3)

Matthew Zgonc
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
In my part of the country stated income is a four letter word and lenders will not touch you with a ten million foot pole, possibly longer. People with excellent credit are trying to get loans, but because of the lenders tightening stuff, either don't qualify or make too much for their programs.
Mar 31, 2008 03:20 AM
David Saks
Memphis, TN
Broker / Industry Analyst

Credit is the thing and I believe the most noticeable reason for the slowdown is because of new laws, such as House Resolution 3915, protecting lenders and buyers, which is a good thing. Disclosures are required. There's a great deal of speculation that the current meltdown will last seven to ten years, or roughly the same amount of time it takes to repair a bad credit history. Many hybrids reset in 2011, just three years away. Check out


Mar 31, 2008 08:42 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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