It is going to effect us in some way.

Today at our weekly meeting a local bank lender came in and announced new changes that already have taken effect. Changes in how they will be making home loans. And this was all official before the big news yesterday that the bail out was not gonna happen. We expect more changes to come. So the lenders are tightening up. More fraud is happening because of the big financial mess our market is now in. We were told of how a home buyer was trying to buy a $60,000 home as investment locally. The lender said NOPE because they did not meet requirements to buy investment property. The buyer than told the agent and lender he would be moving into the home. It seemed fishy since the buyer is living in a $350,000 home as we speak. The lender again refused because the deal seemed fishy,and it probably was. Why would some one do this?Why would they buy a very cheap house to move into when they own a nicer home? Because homeowners are bailing! They can not afford their pricey home any longer. People have been securing loans and buying cheaper homes just to then let their previous home go into foreclosure! You see once someone lets their home go into foreclosure they can not secure a loan to buy another home. So while their credit looks good on paper they are buying dirt cheap housing knowing they will bail on their other home once they have closed on the smaller less $$ home, just letting us ,the tax payer get stuck with their homes now ( the way things seem to be heading). This happened because people bought homes they could NOT afford and the lenders were lending them the money even though the numbers were not showing they could afford this home. It is only gonna get worse. I guess we could say we should have seen something coming. Homes sitting vacant for months and months,homes eventually going into foreclosure,Sellers lowering the price and even losing huge dollars just for a buyer to buy their home over the one down the road. Makes you glad if you have been in your home a few years with some equity. Makes you glad if you are not planning to move in the next few years. Will make you happier if you have a home that is paid for! Those days of homes going up 6% and up a year are gone. Now I think the price will start adjusting to something more realistic. Don't be in shock if the home you bought in the past 2 years is now worth less then what you paid. It is happening. If you are like me you are wondering how this happened. Why we were not warned? I guess we probably know why,GREED AT THE TOP and people using credit to live on. Now everyone is gonna have to face reality,cut up those cards,pay as you go and live on what you have. Be real!!