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It really Is This easy

If you're like most folks you understand the concept of supply and demand. And much of the housing crisis is based on to much supply(houses) and too little demand(buyers). So we can see that there is a potential solution in just reversing the numbers...like less supply(houses)=more demand( buyers), will cause prices to increase. That's the way it was up till the last year or so. And it's where we have to get to make the teetering go away. So what would that mean?

Well we hear of all the noble things the government is saying they are going to do to clean up the mess: punish the lenders, bail out the struggling homeowners. And most of that is pure crap. It's typical political feel good talk to make you think they know what they are doing. And in the end it's all a blame game so someone takes a fall for the mess. After all, in todays' society isn't the most important thing to have someone to blame for our problems?

Here's what is really happening. Right now is the hardest time I have ever seen to get a loan closed. Whether it's a refinance or a purchase. It is very, very difficult. And the reason is that lenders have taken huge loses and the government has stepped in with their mighty club foot and scared everyone into inerta. And the result is nothing is getting done.

Want to solve the problem?

Then make ways for people to buy homes. Of course they need to be qualified, but make it easier rather than harder. Make it easier for the loan officer, the realtor, the title company, the appraiser...easier for all. For when you do, it's then easier for the borrower, and that means more is accomplished and the cycle is turned around.

Everyone is soft peddling waiting for the other shoe to drop. Why not pick up the shoes and start a new dance. Maybe the "Homeowner Waltz",... that would be better than the "Poor Poor Pitiful Me" that's now being sung.

Really folks it's that easy. This isn't rocket science. Give people a chance to buy in this market and they will do it.

Think about it. This is one of the best markets ever. Prices are the lowest in several years and interest rates are just super. That's a perfect buyers combo.

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I listen to the news and they talk about home sales being down and buyers not returning to the market. That's not true. The buyers are ready, I talk to them everyday. There just isn't adequate financing available. And when a contract is started there's a good chance it will fall through because of how amazing difficulty it is securing financing. And it is the stupidity of this dilemma that is causing the mess to continue.

Sometimes the best way for the train to go forward is for everyone to get off the tracks.