There are many reasons for the current housing crisis we’re in, and there are unscrupulous people in the real estate industry who have contributed to these problems, but as the adage goes, if it looks to good to be true it probably is. Many buyers bought into loan programs that were not suited well for them.

For example, an adjustable mortgage with a future balloon payment is a good option for some people out there, but for a lot of home buyers this was not a good choice.

Many problems can arise that may lead to not being able to refinance when the balloon payment comes due, or simply being no longer able to afford your monthly payment as interest rates adjust upward. Illness, hospitalization, loss of job and others have wreaked havoc on folks with these types of loans leading us into this whole mess.

It is terrible to see so many folks losing their dreams to foreclosure, but the consolation is after a few years and working on getting their finances and credit back in order, they should be able to qualify for a mortgage again.

And there are also some unscrupulous builders out there. You may be interested to read this Charlottesville REALTORS® take on builders sales contracts (and also my comments).

Everybody wants a piece of real estate. The sector has been growing at 25-30 per cent a year since 2003, fired primarily by low interest on housing loans and the rising affluence of home buyers. Those who had bought stocks of real estate companies, whose valuations have gone through the roof, are a happy lot. However, the same cannot necessarily be said of scores of financially and emotionally bleeding home buyers. The developers play lord and master to middle-income individuals, who often live like monks to fulfill their dream of owning a house. Most sale agreements are heavily loaded in favour of builders in the currently unregulated market.

Love the new look of your blog. Lots of great information here.

Lead onward and upward!

Merrill