During the late 90's and into the 2000's when most thought Alt-A was some type of college course, we saw homeownership spike to record levels. I must confess I received a handsome amount of compensation (earned of course), so I'm not complaining. Of course we know the meltdown that started in 2004 and reached full steam in 2005 and 2006 uncovered basic flaws that has governed our role as real estate professionals - that is making sure your clients understand the tenets of home ownership as well as being financially responsible to participate in such a transaction. I'm all for promoting home ownership but when we recognize that people with credit scores in the low 6's or high 5's were provided 100% financing - wow!!!!!! Or the notion clients and real estate practitioners (noticed I didn't say real estate professionals) agreed to fabricate whatever numbers were necessary just to nab "the dream house." I want to be careful in this blog not to indict a certain section like I have heard and read in various media. It's like oh!!!!! "that group over there did it!!!!!" as if to uncover a blanket blame that appears acceptable or to exonerate all who were snakebitten as it was more than just a few who were living above their means. Even high rollers with credit scores in the 700's and above went from high hundred thousand dollar homes to 1, 2 and up million dollar homes.
Here's my point, now that we have all been exposed and are still riding what some thought was a meltdown but for many is a STORM that continues, the bottom line there are still homes to be sold and purchased at affordable (or lower than they used to be) prices as well as solid financing to complete the purchase, although down payment or homeowner investment or equity is now a key consideration...........as it should be, we conclude there are still more programs out there to choke a horse!!!!! That is for those who meet the criteria.........which only protects the integrity of the marketplace. The trick is for me and you to retool our representation, which includes staying on top of the education curve so we are aware of the many programs which are available as well as the technical nuances of the financing and other components of transactions, which meet the homeowers need to purchase a home and our need to earn fee income from being a solid professional.
Your 2 cents????
Fred Thomas, III VP, CB
Vice President - Chief Bloggeroligist
Omega Capital Financial, Inc.