Yet Another Real Estate Woe
August 10, 2007 3:20 pmFiled in Real Estate
After posting my account of the sub prime mortgage market and how I feel lenders are partially to blame, I went home and found a new Business Week waiting for me in my mailbox. On the front cover was “Bonfire of the Builders.”
The article talks about builders who got into the mortgage business have fueled the fire in the real estate market meltdown. I could not agree more. What is concerning is that these builders mentioned in the article were inflating potential homeowners earnings to make the loans work. Builders were out in the market pushing interest only and adjustable rate mortgages to get their homes sold.
The result is many empty homes in what was supposed to be the next up-and-coming neighborhood. Many families have either had to move and let their house go into foreclosure or many people dropped out of contracts before the homes were built.
My prediction is that although this mortgage crisis is going to be tough and probably affect many jobs, it is a necessary step in the housing market correction.
