With all this talk about the stimulus plan and how it should stimulate the housing market, I got a rude awakening not too long ago.
It seems lenders are reluctant to deal in mortgages and are using every trick in the book to discourage buyers. I know of three buyers with perfect credit and income who, after being jerked around for over five months, finally gave up and decided to rent instead. One in particular offered a hefty down payment but that didn't work.
The bottom line is the U.S. real estate market is going to be overwhelmed by renters, i.e. home owners renting due to lack of buyers and buyers renting due to lack of mortgages. What a way to morph the industry. Anybody snickering at the thought of this should try and buy a home, good luck!
Update 3/16/09:
Just learned huge rental developments are also suffering from foreclosure and tenants are being hung out to dry. Unbelievable, what next?
