I got this story from https://www.bankrate.com and it really describes some very good points.
1. Liar loans are not around anymore. I remember when the lending was so loose that you did not even need credit. All you needed was a utility bill and paying rent. That would allow you to get a 30 year mortgage.
Fast forward till today and there is no way those types of loans are being made. The mortgage requirements are strict and everything must be verified. That will keep foreclosures down and more people paying their mortgage.
There are also a lot of home buyers paying cash and using their IRA to mortgage a property. This is very common in today's home purchasing.
My investors purchase 50-60 homes a year and they pay cash 100% of the time. This means that there is no bank involved at all. So foreclosing on those homes are impossible to do.
2 Mortgage lending practices have also changed a lot. Lenders and mortgage brokers are much more regulated. Subprime loans are also a thing of the past.
The paperwork that lenders have to get to prove someone's ability to get a loan is amazing.
I personally got a mortgage on a new home and my CPA to redo my taxes that cost me a few bucks to do to qualify. Being self employed adds a lot of hurdles to getting a mortgage.
There you have a few items of why there will probably not be another mortgage or real estate breakdown.
The only deterrent is higher interest rates, the economy, and inventory.
Need to sell your home and save money doing it? Call me I'm Brett 216-703-5740 Fathom Realty or text "sell" to +12164555264
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Thank you