In this whole “Mortgage Meltdown,” and “Sub prime Crisis” I am getting a little tired of Americans playing the victims. Right off the bat, I don’t want to offend anyone, but when are we as adults going to start taking responsibilities for our actions? Every time I open a newspaper or magazine I read an article about how someone was tricked by their loan officer or how some Countywide Rep forced me into this loan program. And although I am sure that there was some deceit out there, I do not think it’s as bad as the media makes it out to be. What I mean is that homebuyers were doing some lying on their end too. These Real Estate Speculators were all trying to get rich quick. And who can blame them; it appeared to be the going trend for a year or two. I live in Arizona and I can recall home auctions that you needed to pay $1000 just to get in the drawing.

Over the past week I have listened in to what I call, “the interrogation of Ben Bernanke.” For two days Congress “peppered” the FED Chairman with questions of inflation, banking laws and recession. It seemed as a large number of those questions referenced that homeowners were the victims in all this. If you are someone who is not familiar with the home buying process the media would have you thinking that loan officers nationwide were lying and cheating to make money. Whenever you are dealing with an individual and their services rendered is how they earn a living; you are always going to come across people who lack integrity and may not be looking out for your best interest. It’s our job as Americans to raise our awareness and educate ourselves; so that we know exactly what we are signing and what the terms are. That is also why you should be referred to a loan officer. Or one comes highly recommended and someone vouches for their character.

What are the other opinions out there?
Does everyone really think that all these homeowners were tricked and lied too?
Does everyone think that these Adjustable Rate Mortgages are really the problem?

I would love to know some other opinions, because I think it’s a classic case of people stripping equity from their home and the cash pot ran out. Another thing to keep in mind is two-three years ago 30 year fixed interest rates did not look that appealing. 2/28 and 3/27 loan programs just made sense at the time and people needed band aid loans or they were already being suffocated with debt.

So it’s officially a buyers market!!!!!!!! Anyone care to argue the point; I encourage you to step forth. The reason for my passion is clear; buyers have everything going for them. Let me rephrase that; Qualified Buyers have everything going for them. Here’s the list:

1. Interest rates are historically low. This week already I had a client 20% down 2nd home, I gave them a 5.5%.... 30 year fixed!
2. Sellers are more motivated than ever. With the average days on market in the valley creeping towards triple digits and some sellers forced to carry two mortgages, they are settling for lower purchase prices and have been increasing the incentives. Buyers, if you are paying your closing costs……..get a new agent!
3. President Bush has implemented his stimulus package, which would toss more money into circulation in hopes to raise consumer spending. The most dramatic change in the plan is a new provision raising the limits for loans that may be purchased by Fannie and Freddie. This means people, who in the past, were over $417,000 loan amount were hit with a higher interest rate can know refinance and get a significantly lower rate and payment.

What do I suggest you do to capitalize on this market? Contact your mortgage planner and your realtor and get a plan together. Even if you are 6-12 months out. Get a plan together!