Current foreclosure crisis does not affect your ability to get a loan!

Posted under Credit / Your Fico Score, Foreclosures / Bank Owned / REOs, How to buy a house, Mortgage Purchase Loans, Mortgage Refinance

Can’t get a loan to buy a house? Whose fault is it?

There seems to be an epidemic of misunderstanding with the foreclosure market and mortgage loans. That being, today’s buyers are unable to qualify for mortgage loans like the ‘good old days’. Now there are so many rules and regulations, apparently buyers feel that they are getting the short end of the stick. With the number of homes in foreclosure flying off the shelf at ridiculously low values, it’s amazing that more buyers are not getting approved for loans in droves.

The rumor going around is that the people to blame for the ‘rules and regulations’ to get a loan are those who have gone into foreclosure, hence why banks and mortgage lenders are giving everyone a ‘hard time’.

Oddly enough I thrive on such idiosyncrasies of society’s current mortgage dilemma. It gives me a forum to spout my brand of wisdom about this situation and divulge an amazing secret to all who choose to listen.

The secret is - There have always been rules and regulations!

So what or who shall I say is to blame for why buyers are finding it harder to qualify for a mortgage loan today.

Owning a home is the American dream. But in actuality it is not for everyone. Buying a home is the largest financial purchase you will make in your life. It is not a purchase that you can turn around the next day and return the keys and walk away. There are consequences.

The solution to the foreclosure epidemic lies in being accountable. Anyone can qualify for a mortgage loan. How you apply for a loan and what you or your loan officer provides to suffice the rules and regulations of the lender is key to the final outcome of whether you’ll still be making mortgage payments in six months or bailing ship into the murky foreclosure market.

Remember the old adage ‘rules are meant to be broken’? Herein lays the answer to the question of who is to blame. Rules and regulations are broken in one way or another on a daily basis; take jay walking for example. Whether one chooses to accept responsibility for these actions is an ethical issue that few will acknowledge.

So we are all left to face this problem together as homes go into foreclosure and existing home owners watch their equity drop lower and lower each week. My best advice to you my avid blog readers, the next time any of you wish for lower interest rates and a carrot worth 1% is offered to you, stop and read the fine print!

Written by Holly Leano - REALTOR and Sr Mortgage Consultant

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