I am worried about home buyers overextending themselves over the last few years
I have seen many industry changes over the past 30 days. This would be in the subprime market . People with less than perfect credit. If they purchased a home 2 - 3 years ago, they most likely were on an adjustable mortgage that is about to adjust. The adjustment will be quite high where they may not be able to afford the new payment. With many new tighter underwriting guidelines , they may not qualify for a refinance. Therefore they won't be able to make the mortgage payment that could be 5% higher or more than they paid for the first few years. I smell foreclosures, and we are already seeing a record number of them. I personally feel because of these adjustments , times will get worse. Many lenders have closed their doors over the past 2 months because of foreclosures. I predict that the almighty goverment steps in to help our homebuyers and (more important than the little homebuyer)..the lenders to keep them from going under. I am thinking a goverment refi program to lower payments for the homebuyer...maybe a longer term amortization or interest only position on their current loan without refinancing so buyers don't lose their dream homes , and subprime lenders stay in business. Tony Felbab
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