Government incompetence in lending guidelines fuel foreclosure crisis

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No end in sight for housing foreclosure crisis

Link above goes to an interesting article on “The Hill”.  The Alt-A and Option ARM mortgage defaults are starting to happen

Troy Deierling, REO Network Agent

now.  Predictions are that this will be bigger than the sub-prime fiasco we are just now emerging from.

One thing that is apparent, this new wave of REO property will be on higher end homes.  It’s not fair but maybe this will get the government to finally do something substantive about the mortgage problem.  I can tell you from experience that the bailout money going to the banks is not flowing out again in any meaningful way for buyers.

The Feds have done the usual over reaction as well and tightened down lending guidelines so hard that it is VERY difficult to get buyers qualified.  Ask any mortgage officer or Realtor.  Deals are falling apart all the time due to overzealous underwriting guidelines.

So, to sum up…. We have banks being given money by the government, the government issuing lender guidelines that make it difficult to lend the money and a housing market that continues to sink with growing foreclosures.

If buyers can’t get mortgages, this mortgage meltdown will not be over anytime soon.

Regards,

Troy Deierling, RDCPro, ABRM, Realtor
REO – BPO Division
EXIT Realty Deierling & Assoc.
Williamsburg, VA
|email| troy@ExitRealtyDA.com
|mobile| (757) 715-4793
|web| www.REOHamptonVA.com
|web| www.RealEstateWilliamsburg.com
|web| www.WilliamsburgBroker.com

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©2009 Troy Deierling

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