It’s The Ice Cream People To Blame

The reason so many people are losing their homes cannot be more clear. The ice cream manufacturers have caused all the problems.

Well, not exactly. Though individual loan officers, who have had a seemingly unlimited availability of programs for just about any buyer’s qualifications and have presented these enticing programs with chocolate and cherries and placed buyers in higher risk loans, I think everyone has to look in the mirror.

To me, in some ways it would be like saying that the obesity problems (and some would say epidemic) in this country stem from the ice cream manufacturers putting an unlimited assortment of huge, creamy, delightfully colored and generously sprinkled mountains of ice cream right in front of us and daring us not to taste. And, of course, we can’t resist, and once we try one spoonful, we can’t stop. Just can’t help ourselves. Twelve weeks, several dozen gallons of ice cream, and twenty pounds later….But, we say, if they just didn’t make the darn stuff.

I agree that there is plenty of blame to go around. The stories of families losing their dreams and finding themselves in heart-wrenching situations are truly sad. There have been several very thoughtful blogs about the recent history of mortgage lending as well as potential remedies to create better standards and practices.

I agree that it would be a great thing to “clean up” the industry. We do need to remember, though, that every buyer does have the freedom to choose. To say no. To question. It is not an easy decision to buy a home. It is perhaps even more difficult to decide how to choose a loan officer. In part we have a combination of shady loan officers pushing programs and inexperienced buyers who are not making the right decision. Real estate agents push their clients to move forward, that it will be “a great investment.” Appraisers make sure that the values “work.” Everyone is saying that it’s all great and will work out.  You’d be crazy not to do it. In fact, don’t do 10% down payment. Save your money and do a 100% LTV loan. And why not do interest only. It will lower your payment even more. Just like those luscious mounds of ice cream. It’s just too tempting.

For me, all the news and stories that we are hearing about point to ourselves. Even after people have gone through the loan process and purchased a home, they don’t remember the programs that they chose. Getting a loan is a serious decision. Those “what if” questions (like being out of work for 4-6 weeks) seem to be pushed aside. There are many terrific loan officers out there who will take the time to discuss your qualifications and answer every, single question that you want to ask. In the end, the buyer decides. We, as husbands and wives, mothers and fathers, decide to choose. To decide. And sometimes, no matter how much we want to buy that beautiful single family or new construction condo that has been placed in front of us on a glass bowl with chocolate syrup and nuts and cherries, we should say, “No thanks.”

It’s ok to think about things. In fact, it’s ok to follow your instincts. It’s just fine to make sure, in your head and in your heart, that everything is right for you today, for tomorrow, and for the next several years or so.

 

 

27 March 2007 | First Time Homebuyers, Loan Officers, Programs, Foreclosure | Comments

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