I didn’t forget about the investors, but I don’t think people who have received orders to move, had medical or life issues, etc… should suffer because some investors weren’t very good at it.

Perhaps a different set of rules for primary residence versus investment and second homes?

I know investors probably hate for those comments, but taking a whole picture view of their financial and investment plans would keep them from being in that situation in the first place. Investing is not for amatuers unless you are willing to take a “spanking” and are seeking porper advice.

The rest were people whose eyeballs were bigger than their wallets. I just don’t have a lot of sympathy for people that don’t know how to live within a budget. Sorry, I don’t.

I like the idea of the stagger because there would be some incentive to try and negotiate the sale for a seller vs. sticking their head in the sand. The problem, as someone else posted, is that trying to negotiate a short sale is so painful for all parties involved.

What I hope comes out of this mess is 1) a return to common sense budgeting, and 2) better trained agents and mortgage brokers that can help buyers understand some of that fine print. The fact is that this is what we do day in and day out. People really do rely on us for guidance, and I know I am work hard with my buyers to understand the budgetary constraints of a home purchase.

“The only person you have to blame for your mistakes is yourself.”

and

“Don’t sign anything before you’ve read it and understand it fully”

With Freddie Mac now limiting investors from owning more than 4 properties before they’re limited to portfolio loans, it seems like Washington doesn’t want ANYONE to own homes but the lenders?!

And of course, the numerous foreclosure scam laws that have been pressed into place are a mess of legal confusion, which has scared off most ethical investors who had been acting respectably and buying houses before the courthouse steps… (I asked three attorneys in my state about a confusing part of the new FC law, and got three different answers!)

There is so many knee-jerk reactions and hasty policies being made in government halls all over the country these days, my sense is that a good many of these actions are bound to make the situation worse, before it gets better. At some point, preventing supply and demand from acting only delays the inevitable pain…

I belive that the numbers of months that the person canot buy for should be based on the on their credit situation beofer the short sale or foreclosure. Many clients have good credit but have to dispose of their home in some manner due to job transfer or needing more space. It is not completely thier fault that the home is worth significantly less than wht they paid for it. Yes they should not get off scott free but they should also not be punished to the fullest extent.

The key factor regardless of the time limit is credit management post-foreclosure and post-short sale. Underwriters will be very interested in seeing how the applicant has managed their finances after such a dramatic financial collapse.

As far as the whole mess, I think Fannie Mae and others need to put tight reigns on income verification and holding the DTI limit with no exceptions. That will pretty much ensure that the borrower is able to afford the mortgage. I haven’t looked at the numbers recently, but a lot of the foreclosures are occurring due to those stated income loans. Which allowed ANYONE to over extend themselves. I think if you go back to properly documenting income and holding to a tight DTI then I don’t see any problem in giving mortgages to those who have reasonable credit even after a foreclosure or short sale.

I think the few people who potentially set out to deceive or “play” the market are so minimal that it doesn’t justify punishing everyone.

Many people (including some agents) didn’t read the fine print that even some attorneys can’t easily decipher. I think that there should be some restrictions to give one time to get their life back on track and learn to control their finances, but not a blanket life long scarlet letter….

Sorry – you can not buy another home – heck, we won’t even rent to you.

Sure, there are plenty of people who didn’t read the fine print or sincerely believed they could refinance out of their current loan, except the market changed. Some just made bad choices. Certainly, there were many who should not have been given a loan – but they were buying their piece of the American Dream. they had hopes and dreams, which have been shattered.

There are even a percentage who obtained property unethically through liar loans and deceit. I have not seen this to be the case for the majority here in Indiana. At least not the people who call me.

I have seen many cases which break my heart and all I can say is:

Except for the Grace of God…………