I just got done reading an article on sub prime lenders and they are having a very big problem. this is not good. For those of us that have been doing real estate for a few years or more know how the market used to be. I was mainly focusing on ADJ mortgages. The boom was good but now with falling house prices there is a problem a big one. People are now being required to prove and verify their income unless their credit score is higher now. underwriting guide lines are getting harder to get people approved now. witch in turn is making more people loose control of their money their mortgage payment is going up and they are defaulting. I was reading over the next 12-18 month that there is going to be a problem. Most of the arms written a few years ago are coming due to adjust. creating defaults, Some sub prime lenders have already closed down and more are going to. There is an estimated 20-30 realestatepros that are looking for new lines of work. That is not what i want to hear but the time is coming. I read that real estate is referred to like the titanic and we are just seeing the tip of the ice berg. What is your outlook like, do you all think things are going to slow more than they already are or do you think since the stock market took a big fall that interest rates are going to come down. I am interest to hear what everyone has to say
i look forward to everyones response
Thanks
Thomas Quick
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