Real Estate Nationwide

The frightening amount of real estate foreclosures in recent month is somewhat shocking but can be explained by examining a variety of factors. In essence, the mortgage meltdown was not a single party’s fault but rather the coincidental failure on many different parties’ part. On a high-level, the meltdown was caused by greed and foolishness. Everyone involved in the industry wanted more than their fair share of the pie. Mortgage brokers were perceived to find their customers the lowest interest rates. However, they started to give their customers the perceived going rate rather than the lowest possible one. This greed for more money was just part of the problem.

Some real estate appraisers began to appraise homes for the list price so that the sale would go forward and the buyers’ and sellers’ real estate brokers will not lose a commission, even though the appraiser’s client is the homebuyer. Hedge fund managers became riskier and tried to increase their portfolios on greedy basis by trying to play significant odds. Credit card companies raised their rates. Buyers felt that they had no responsibility. All of these players failed in one aspect of their function or another, leaving the world economy in the biggest predicament it has faced in years.