Who hasn't been reading the news wondering - what is going to happen next. First it seems the bailout is a done deal, then breaks apart, then back on and then the vote comes up short. I am not an economist and have no idea what this means for the future of the country.
As my previous post stated the Denver Metro area has been deemed one of the few areas that may have an increase in housing in the next few months. It seemed like we were the first ones to be hit with the foreclosure mess and hopefully we are the first ones to come out.
Does this mean that if the $700B bail-out doesn't happen that we could see a reduction in price. Once again, an unknown and I am sure not one to speculate. It will be interesting to see how this all plays out in the next couple of weeks and months (years??).
Lately I have noticed that my appraisals are being scruntizied much harder than they ever have been in the past. I am now adding more comparables than what is required to help "support my value opinion". While I understand that banks and lenders are at a critical point and must make good decisions... they do still need to loan money. Most of the appraisals I do these days are FHA - Gov't insured loans. Now even if you have great credit and money to put down on your home that it is tough to find lenders that will give you a loan. I think if the bail-out continues to fail this becomes even harder.
Personally I am between 2 schools of thought; My husband and I purchased our home 7 years ago. We haven't taken any money out, we have updated and remodeled it as we had time and resources to do it. We bought less than what we could afford so that if one of us lost our job we could still make the mortgage. Do I want to give $700B to investment companies and bank that made bad decisions. NO, I shouldn't be penalized for making good decisions.
HOWEVER, as a business owner I have personally seen how lending is getting harder and harder and the frustration that it causes the buyer, realtor and mortgage broker. Bad choices that people made prior are hurting those that are trying to buy a house and that is frustrating as well. If people stop buying houses or banks stop giving loans I think we see an even bigger mess than the one we are in today.
I wish I had the answer and I hope that people much smarter than me can come up with something that feels right for both me as a business owner and me as a consumer..... it just seems like something needs to happen soon.
Thank you, we'll be in touch!