15 Jul We’ll just push ARMs and distressed sales!
Photo credit to: https://unsplash.com/@ashkfor121.
Boilerplate here: I am not a professional financial planner or advisor. I don’t sit on the WEF. I’m not a real estate agent or mortgage broker. I’m not an all-seeing oracle. This is not advice. It is for your entertainment only.
A week or so ago, I watched Scott Walters’ video (who is a realtor) where he talks about real estate agents dropping out and others being trained on how to sell distressed properties. Before I chose to strategically quit my own real estate search, my broker told me that the ratio of realtors to listed properties in my area was 10 to 1. In other words: 10 realtors to every 1 listed property. I knew then, “Oh 💩. This cannot be good.”
I saw the same thing play out in the staffing world during the last oil boom. Even people who were mediocre recruiters at best could make a living. When the bust came, it separated the real ones from the johnny-come-latelys looking for a fast buck. I imagine we’ll see the same thing in the real estate market.
If banks are preparing for distressed homes and realtors are being trained on how to handle distressed sales, then, “Oh 💩. This cannot be good.”
I’m also skeptical of ARMs. See, here’s the thing: I was an adult during the last housing bubble. I was there and I remember it. So whenever some BS artist would tell me, “This is noooootttthhhhhiiiinnngg like 2008. Everything is so much different now,” I knew it was hot air and nonsense. I feel sorry for people who didn’t know better and who got taken for a ride. Likewise, I recall what happened to people who got ARMs thinking they made a great decision… until disaster hit:
“Among the most potentially lethal of the mortgages offered to subprime borrowers were the interest-only ARM and the payment option ARM, both adjustable-rate mortgages (ARMs). Both of these mortgage types have the borrower making much lower initial payments than would be due under a fixed-rate mortgage. After a period of time, often only two or three years, these ARMs reset. The payments then fluctuate as frequently as monthly, often becoming much larger than the initial payments.”
Caveat emptor. Let the buyer beware. Stay alert. Stay aware. Do your own research and due diligence. Seek professional advice when needed. Take a hard look at what is best for yourself and your family.
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