A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Is insanity starting to raise its ugly head?
I won’t repeat the definition of insanity, we all have heard it many
times, but are we ready to see it happen in the Mortgage industry again. Fanny and
Freddy are ready to lower the down payments for getting a home loan to 3%. I
think we have seen this act before and also we have seen the results.
I have a question; do we need to create a bubble in this Country every
few years in order for certain businesses to make money? What seems to happen
is we create these bubbles, the people in these certain businesses make a boat
load of money, the bubble breaks, those people who got rich, walk away from the
problem with their suit cases full of money and the rest of us pick up the tab.
We seem to be in this circle and every few years we continue the same activity.
In my business of Property Management in Anaheim Ca. and being in the
Real Estate business, I understand that my industry is salivating at this news.
I know so many Realtors who made a fortune, because of the bad loans that were given
a few years ago, and I’m sure those same people are ready to pounce on these
new/old rates. I know many lenders who also made a fortune and they are also
getting ready to get the word out to the masses. But it’s the masses that will
again get hurt when this new bubble breaks, but the masses have no say in the
matter. The people who pay the bills get shut out of this process, because the
powers at bee say they know best.
The other part of the puzzle that is changing is that the credit score
minimums are also changing. Wells Fargo had a 660 minimum now has no hard and
fast minimum. I am not a fan of credit scores being such a big part of getting a
loan, so this in my opinion is not such a bad thing. Too many people are held
hostage by a credit score. So many people go through bad financial times and
even when they correct their situation, they are still saddled with a bad
credit score and are really hurt when trying to get a loan. The credit score
industry makes a huge amount of money due to the fact that people are so scared
that their score will hurt them they pay to keep track of their score.
The bottom line is. Giving people an opportunity to buy a home sounds
great, but we really do no favors to people when we give them something and
then take it away a year or so later, as what happened a few years ago.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County Ca.