I thought about posting this as a comment but knew many people would never see it. Yes I rant and rave a bit about the banks taking advantage of unknowing and naive buyers. I feel strongly about the buyers who were too intimidated to ask questions or didn't understand all the ramifications of the loan they were getting and the so called solution of a refi (namely an appraisal and value). Although I feel for these people and want to help them I also realize that many many people knew exactly what they were getting into when they took out these loans. These people I have no sympathy for. They got what they deserved. However, that does not eliminate the honest hard working people who got the shaft from a lender.
Many of you question a Realtors part in this fiasco. There is no denying we make our living helping people buy and sell homes. But there is no way we can create the kind of market we just experienced. The only reason that market came about was because of the easy money available. Anyone could get a loan and everyone did. Some got bad loans while others got good loans with down payments and fixed rates. But now even these people are suffering the consequences of falling prices and an abundance of foreclosures littering the streets. Everyone one is a victim both good and bad.
I would like to point out one very big factor that no one has hit upon yet. That is the role of the new home builder and their lender. Here in Southern California, the crux of the situation started with new home builders offering these loans along with just about every incentive imaginable to entice buyers to buy with as one person wrote "exploding ARMS" and interest only loans; No money down, a bad loan and here are your keys. New housing communities are the hardest hit here is Southern California simply because the builders and their lenders ( Countrywide) ruled the roost...everyone wanted to buy. They didn't co op with agents so we had no part of new homes, their profits and their rising prices and convenient lack of inventory...another reason home prices soared.
There is no one person to blame nor is there any one institution that can except the brunt of the responsibility. This market is the natural progression of real estate made worse by easy money. Now that the financial sector has corrected the way in which it lends, people once again must qualify, proving income and providing documentation. Anyone who buys a home now will truly be able to afford it.
Should some people get a second chance? In my opinion yes. I respect everyone's opinion and I expect respect in return. Thank you for taking the time to comment and hopefully these comments will make a difficult decision easier for many borrows facing todays very real foreclosure problems.
