The big real estate splurge is over and the bust is here. Some folks still believe, hope and pray that the good old days of reckless real estate deals will return.
The real estate fiasco of the past several years almost destroyed the country's economy and part of the world's economy. We were brought to the very edge.
This was due in part to the every greedy Wall Street guru's , governmental reluctant regulators and crafty conniving consumers! No one is immune from criticism.
Now that the party-hats have been thrown away, the empty champagne bottles no longer rattle in the vacant desks of the vacant offices in the vacant building and a malaise has settled over realty-land we are just beginning to see what webs congress and the bureaucrats have sprung for us.
A new mortgage application form, known as IRS FORM 4506-T, is now a requirement for those making a new mortgage or refinancing a loan.This form allows the "lenders" to pull electronic copies of the applicant's tax returns for the stated years.
The days of the famed "liar loans" are history. While right now this does NOT apply to all expect to see much more scrutiny of loan applications of all types in the not so distant future.
And what did you expect? A return to the Disney World of lending?
Bill McInerney
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