The Cure For The Foreclosure Epidemic: Part 5–What Happened to Pluto?
For seventy-six years we were taught that we have 9 planets in our solar system. Pluto, 
that planet way, way out there, and the last to be discovered, was the ninth. Then, in 2006, we woke up one day to learn that Pluto was no longer. It was recategorized as a dwarf planet, and so everything that we knew about our 9 planets had changed.
Not too long ago our mortgage world as we knew it also changed. Everyone thought that anyone could get a loan. No reason to meet with a loan officer. “I can get a loan. No problem,” was the attitude. And for the most part people were right. Then the epidemic hit and the world changed.
Many lending institutions have gone out of business and many are barely hanging on. Many borrowers have lost their homes. Some are hanging on. Currently, the real estate market is tough, and many programs that once existed have either been eliminated or have been revised considerably. Real estate agents do not know who to trust. Are the pre-approval letters worth the paper that they are written on? Developers are eager, if not, in some cases, desperate to move units. Many loan officers have had to look for jobs, and some just do not have the kinds of programs that they need for many of the same kinds of client loans that they had in the past.
And so, to end my little series, here are my thoughts:
- Be very, very careful and deliberate in deciding whom you will work with: realtor, loan officer, attorney, etc.
- Do some research and ask a lot of questions.
- Use common sense about the programs that are offered.
- Make sure you understand everything.
- Before signing any documents, have everything in writing.
We are all responsible. This epidemic may get worse. But it will get better. Still, you, a homebuyer who controls your own destiny, can still get caught up in a bad situation.
Control your destiny. Don’t be controlled by others.
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