Housing Crisis

These days obtaining a mortgage or loan from a lending institution is like hoping for a snow day in summer. After submitting the initial application a month may pass and still the loan specialist keeps asking questions, without any clearcut assurance about even the pre-approval of the loan.

The whole crisis seems mired in a clouded maze. Requirements to qualify for a loan range from having at least two years credit history to as far off as having at least twenty percent of the cost of the property being negotiated. What makes matter worst is some schools are teaching for AP classes that during this housing crisis, it is easier to get a mortgage.

What is really noticeable during this period however is that houses are not selling as much as in the past. Many real estate agents are going under. The only business that seems to doing really good now are the debt collecting agencies. The housing market therefore need a quick infusion of cash to facilitate all categories of buyers.

The prices for many houses has been inflated to make a killing in many areas. The crisis has has led a to a deflation of these balloon prices. And that is a positive thing for the poor. Hopefully the laws will be rewritten to manage the lending institutions to simplify the lending process and protect the borrower.

AP