Yes, we are in a huge mess of short sales and foreclosures, FHA loans, appraisal issues, loan remodifications, etc.
And there is talk of a second wave coming due to adjustable rate loans resetting soon.
Think it's impossible for one small thing to correct and/or prohibit this kind of thing?
Of course!!
YOU'RE EITHER FINANCIALLY QUALIFIED OR YOUR NOT!!
The minute people start messing with that undeniable truth by attempting to tweak the system, be it buyer OR lender, that's when the mess begins!!!
YOU CAN EITHER AFFORD IT, OR YOU CAN'T!!
DON'T GET ALL CREATIVE AND START RATIONALIZING WITH FUNKY LOANS AND THINK THAT CHANGES A BUYER'S BOTTOM LINE, BECAUSE IT DOESN'T!!
BUYERS - don't start pushing debt into the future and think "life will be rosy in a few years so this teaser rate loan will be no problem after I earn my boatload of equity"
LENDERS - don't tweak the numbers on an application and start pushing the buyer's debt into the future and think life will be rosy when they earn their boatload of equity!!!!!!
It's very simple.
PS I enjoyed your comment on Sally's blog.
Well, I really love this. I just wanted to say:
YOU'RE EITHER FREAKING FINANCIALLY QUALIFIED OR YOUR NOT!!
OMG! LOL!!
Maybe I should have added an adverb or two into the title?................
How true and what a simple, logical concept. Unfortunately, there's always someone out there to mess it up for us.
I love Lenn's comment.
Pretty simple, huh. You are either qualified ... or your not. Hmmm. quite the concept.