I find the constant chatter about the need to increase the credit score requirements and down payment requirements to prevent a future meltdown in the US and the Jacksonville real estate market small thinking. Really??? Do you think it's that simple?
Subprime?
Sure subprime was part of it. Based on my observations, this is where it started in the Jacksonville real estate market. That was the first round of Jacksonville foreclosures and Jacksonville short sales that we saw back in 2007/2008. But it was a small part of it.
When Banks Cutoff Lending The Crash Began...
We argue that this has not been the main problem we have been seeing for the past couple of years. High credit scores did not make sellers a low credit risk during the current housing meltdown. High down payments did not make sellers a low credit risk during the current housing meltdown. The US and Jacksonville housing market statistics, for anyone who wants to delve in and pay attention, shows that it simply is not about higher down payments and higher credit scores.
Can You Please Open Your Eyes and Look at the Big Picture?
Many people who have lost their homes through foreclosure or filed bankruptcy had higher credit scores and higher down payments than current requirements or what has been discussed. Do you realize the game the banks were playing with butchering and selling off mortages? Creating funds to buy the funds? Tampering with ratings on the securities? Creating a secondary market that kind of never really existed but was a carefully orchestrated illusion?
When a person's home equity erodes, so does his confidence. When a person loses his or her job, it doesn't matter how much of a down payment they put in or how high their credit score is.
Is the Equity Created By Your Higher Down payment Still There?
Does no one who is blaming it on credit scores and down payments realize that the higher down payments people made were quickly eaten up with the rapid erosion of Jacksonville real estate values? What difference did it make when someone put down a high down payment for their Jacksonville home purchase? We would argue, not much difference at all, if any.
We have been working Jacksonville short sales for years. What we are seeing is not people who had low credit scores or a low down payment. We are seeing hardworking people who had their world turned upside down when their income decreased significantly and they could no longer pay their bills.
What about the person with a 750 credit score that put 20% down?
They are not immune to what is going on right now! Do you really think they still have that 20% equity? They are underwater too. Do you think the 750 credit score will guarantee that they keep their job?
You really think higher down payments or higher credit scores are going to significantly change anything? We think not. It all comes down to the economy. Do people have jobs? Do they have security? Please stop with the simplistic views and judgmental language. Do you really think anyone wants to be in that position?
Jacksonville Short Sales - Sellers Are Not at Fault!
We see such horrible situations in Jacksonville short sales. We do not blame anybody who is in the situation where they now have to short sale their home. They did not crash the housing market. Today's seller who can no longer keep their home has no choice but to sell it today for what the market can bear. For what banks will give buyers a loan for which is all based on what houses are selling for today.
It's so much more complicated than a credit score and a down payment. By increasing the criteria now, we are just going to see the Jacksonville real estate market, and other markets across the country continue to decrease since it will further limit the pool of available buyers.
ksonville new home buyers.
$200,000 and Below priced homes for sale
