With news that IndyMac is being absorbed by the government, Freddy Mac and Fannie Mae are in trouble and the bailout of Bear Stearnes, it just makes me realize that the last 8 years of lending practices has been the worst thing for our industry.
Sure, the last 8 years have been great for business. From lenders, title companies, Realtors, home warranty providers and anyone else that benefits from real estate....the business was great.
I often time found myself wondering, "how are these lenders able to give people that can't verify their income a loan for 105% of the homes worth?". But of course, I like so many others just figured that the banking industry knew what they were doing.
I am proud to say, that only one of the couples that I have sold a house to have been foreclosed on. That foreclosure had more to do with health than a bad loan product. I always make sure that my clients are NOT getting into a situation where I wouldn't place myself in. That's what a good agent does. They are your fiduciary. They act in your best interst.
Now, the "mortgage meltdown", as it has been named, is affecting everyone. The home that forecloses down the street affects my property value just as much as anyone else. To top it off? These bailouts will be paid by us, the taxpayers. The last 8 years were to good to be true. Now, it seems, the house of cards has come crashing down.
