It’s a bad time for home sellers and mortgage lenders. The current state of the market is bad and only getting worse. Potential homebuyers are getting all kinds of conflicting advice but the most predominant is the advice to stay out of the market and stick to apartment or home renting. This is causing an even more terrible lag on the market and mortgage lenders are backing out of lending programs and some like Wells Fargo are just completely dropping loan banking products like reverse mortgages.
The wait and see mentality that most potential homebuyers have fallen into is going to continue to cause problems for the market. As lenders no longer see the market as profitable, they will begin to liquidate to cover losses and either offer home mortgage at higher rates or not at all.
The only way to get out of the slump is for mortgage lenders to re-establish credibility and value in the market. Homebuyers do stand to do well with so many houses on the market, but many feel that it would be an investment that would lose value immediately and may not be fruitful for even the next ten years.
One way that banks can avoid liquidating properties is to rent the houses through a rental property management branch.