Do you think it will be different in the future?

[chloe0724]

In regards to getting credit for mortgages. Do you think that lenders will have to change their expectations because of the large amount of forclosures and BK's that are happening and will continue to happen over the next few years?

[keepmine]

I think for quite awhile, lenders of all stripes will be tightening lending standards.

[chloe0724]

That truly scares me. I hope that it doesn;t turn into a situation where only those with perfect histories can obtain credit.

[AngelinaCatHub]

On the plus side, there will be some bargains in housing. The lenders were too greedy and made lending too easy to those who really over purchased. Now we are in a leveling out situation if we can survive this credit mess. The government cannot keep bailing out businesses. WE can't afford it as it is tax dollars to private concerns. 'Hub

[Flamingo]

Right now this is an investor's dream market. If you have the money to invest, it is right now. The market and real estate will come back but it will take a while. One has to think long-term as to anything right now. With the big increase in BK filings, foreclosures, job losses, etc., lenders will be very picky as to borrowers for quite some time as to mortgages or large amounts of credit. However, houses have to move for the market to come back...who knows what deals lenders may come up with to get that push moving....

[Never_Again]

I think that you will find that they have already done this. Mortgage "products" that were readily available two or even one year ago are no longer available.

In auto loans, you are already seeing lenders that just a year ago would allow $10K in negative equity to be rolled into a new deal, and today, just like the past, they are looking for down payments.

And it is going to trickle down to the credit card industry as well...

The easy availability of credit certainly does drive prices up as well. Just think of how much less things cost if you needed to pay cash for everything.

Subprime credit will still be available, at much higher fees and rates. This is normal, as you need to account for the risk of increased bankruptcy and default.

[AngelinaCatHub]

Flamingo, if it gets bad enough the banks do not want to be realtors. Taxes still have to be paid on those empty houses. I'll wager that soon, there will be some Contract for Deed deals (like rent to own) that will give the banks some relief without encumbering the purchaser. Half of something is better that all of nothing. 'Hub

[chloe0724]

I wonder what percentage of the population once all this mess is over in years to come, will have been affected by a BK or forclosire.

[Fazeloss]

[FloridaGuy]

it won't be any easier

I am guessing the mortgage market will go back to the "Old days" of lending after everything gets leveled out.

Meaning no more $0 down or interest only loans, no more low/no doc mortgages, etc. At least for a long time to come. It will be like our parents generation where is you didn't have 10-20% or more cash for a down payment you couldn't get the house.

Banks have been lending out first & second mortgages for people to get something with no down payment and now due to all the forclosures they have already tightened the lending belt.

HOWEVER... some home builders are still offering some shakey credit deals to get people into their homes, because they built to many and are sitting on inventory.

Only time will tell.

[JRScott]

I think FloridaGuy is correct.

We will have to live within our means, and that is a good thing

[Cali]

I am not trying to be judgmental but why would anyone buy a house or car without paying a down payment.

And I think it is good that they go back to the way of the "old days".

[HHM]

I dunno, when you got a bank/investment house that has been around for 158 years go belly up because of this...I agree with the others, the days of zero down, interst only, etc, are probably gone except for those with the right income and credit histories.

The memories of this decade (yes decade, because that is probably how long we will see real estate prices inch down), will be with us through the next generation. If banks aren't willing to lend, then people can't buy, real estate prices can only go down in that environment, and keep going down. I am so thankful I sold in 2005 right before the bubble burst ...I rent now

[banca rotta]

All this turmoil makes for a better future for our children. They can use the break of buying an affordable home with all the problems we are leaving them to cope with.

As for those that bought homes in the last 5 years, 0 down it's not going to be easy.