Who’s fault is it anyway?
Posted by Mary Reynolds | Visited 12 times, 1 so far today |
With the Real Estate Mortgage Crisis, many homes in San Diego have gone into short sales. Short Sale does not mean that the house is being sold for under market value. This has confused many buyers who think they are getting a “deal” looking for short sales and foreclosures.
I am in the process of finishing an escrow on a short sale. It has been an emotional roller coaster for all involved; the sellers, the buyers and the agents. We have been working on the sale for 3 months. The sellers are not only losing their home, they are having to negotiate with their mortgage company to accept less than they owe on the home. The buyers have agreed to buy the home “as is” which as we found out includes a bad roof, a bad heater and much termite work. The agents have worked many hours keeping the transaction alive and now wonder if the bank will allow them any commission at all. In a short sale, no one wins!
Who’s fault is this m
ortgage crisis? I think we are all to blame. In the height of the home buying frenzy, everyone in the transaction became greedy. The mortgage companies looking at adjustable rate mortgages, luring young buyers in with low interest rates but high early payment penalties. Agents wanting to make the sale. Sellers thinking that they should get 22% increases on their homes and buyers who wanted to get a “deal”. What we all forgot is that we were talking about peoples’ lives. Instead of the process being about finding a perfect home, it became a financial transaction. Now, families are finding that they are losing their homes because the financial transaction fell apart.
What is the answer? Well, if I knew that life would be great. Hopefully, the lesson we learned is that in the real estate process it is much more than financial, even for investors, and that peoples’ lives are at stake.
In my Real Estate business I try to make the transaction as easy for possible for my clients. It can be hard it some situations, but I pride myself on keeping the buyers’ or sellers’ interests at heart. Let me know if I can help you. 858 361-9726
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Mary, I agree with you. Somewhere along the line buying a home became more of an investment decision than an emotional one. With all the wealth that was created during the real estate boom, I think buyers, sellers, lenders, and agents got a little too comfortable and forgot that investments by nature are speculative and have inherent risk. I see a lot of similarities between the boom and bust of the dot com era and what we are experiencing today in real estate. The stock market eventually recovered and so will real estate.