Real Estate Bergen County New Jersey | Homes For Sale

Back in March of 2009 I wrote " Credit Challenged Society", with all the foreclosures and shortsales and the like who would be left to buy. It is said that 25% of the houses are in some stage of foreclosure or not being paid as intended. The economy can not get traction with 25% of the people not viable consumers who can borrow.

The mortgage guidelines have to changed to take in account the foreclosures and shortsales that were market driven. I have been getting people who assets have been destroyed in the decline, however they are gainfully employed and have good income. At current prices they could afford to re-buy but are held out of the markets, by guidelines that stop them from borrowing by restriction. The credit scores should heal faster when a person works and pays all their other debts on time.

Fannie and Freddie should not restrict them from taking a new mortgage, if they qualify under regular income ratios. There would be many more homes and condos sold. The rental market is getting hit with high income tenants who have had their lives torn up by a bad real estate deal, not nescessarily there fault, but the fault of a failed financial experiment.

If the economy is going to get fix we must address things on a real time basis, considering the difference that have been imposed by the financial upheval created by the Clinton Administration starting back in 1999. See NY Times Sept 1999 article, President Bill Clinton insisting on lowering the credit standards for home ownership.   Barney Frank who pushed lowering credit standards and caused this mess. 

It takes as much effort and talent as it did to put us here to get us back!

Richard

Number one in new home listings in Bergen County! Fine your new home at-

Bergen County Real Estate.

Need to sell your home or real estate, your in the right place!

Richard

REMAX Real Estate Associates-Richard Stabile- Realtor-Builder-Developer 201 573 8811 ext 331 Northern New Jersey's Number 1 new home seller !

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With all the foreclosures, short sales, write offs, job losses. Who will be left to get this economy going? I have said many times the government must key this crisis recovery at the strong. They must make guarantees and funding available to investor that can and will buy the distressed assets. They have since spoke about and worked on various programs to start it up. They must focus more on each niche.

Niche 1, Recycling Our Population

What is to happen with all the people who went under water, many of which were not financially stuck but there asset went under water. This was not their fault but the fault of government policy makers, banks and financial institution that over pumped the market. Should they be left out of the market for a long period because of this?

For example:

Home buyers Jack & Jill bought a house for $1,000,000 in southern California. Jack & Jill put 10% down and got a 90% mortgage. Jack & Jill's home came down in price and is worth $500,000 now. Jack & Jill chooses to walk, they were under water $500,000 and had no hope of getting back to where they started.

Home Owner Jack & Jill had a job and were financially ok, but their credit is damaged now from the foreclosure. What should happen now? Should Jack & Jill's credit stay bad for sometime until he could participate again or should Jack & Jill be forgiven.

I say, individually underwrite Jack & Jill a new load so they could buy a house in the current market. Adjust the credit score to compensate for the foreclosure or don't use a credit score at all. Look at the ability to pay. It was not Jack & Jill‘s fault that all the rules were broken and government policies and overzealous financial institution cause a bubble. We need Jack & Jill back into the normal market.

Recycling is what we do with everything else; we must do it here also. Would you have stayed? 

Richard

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