No, it's still a pain in the ass to get approved.

That was called The Bubble.

In my experience lenders (and maybe agents) tend to push people to their limits (and beyond).  I once had a lender tell me I qualify for more and I told her that didn't mean I wanted to spend more.   I didn't want to be a slave to my mortgage... and never was.   Agents and lenders should NEVER encourage people beyond their comfort level, regardless of what they "qualify" for.

I don't do either of those. The majority of my clients have for year been buying well below of what they are qualified for. I'm working with a couple right now who will spend about $250K, but are qualified for $400K. I don't know about what other agents do, but I had not one single issue with any clients who purchased homes with me during the market meltdown. Yes, their homes maybe didn't appreciate as much as they were expected to, but no one experienced a financial disaster.

"Trying?" --- I don't see that happening with me or in my market.   

I think that it is irresponsible to encourage people to be irresponsible.

Not me! We talk about a house payment fitting into life as a whole and learn on the lender to fully educate buyers on the fiscal side of things.  I know that I had hardly a clue about taking care of a house when we purchased one... Everyone learns and grows. 

With prices back at peak peak levels I am concerned about this. -Kasey

The government does that cyclically and we know how that turns out - I don't do it in my business. 

My observation has been the practice of which you speak is directly linked to Bank of America's (and the other big banks) reallocation of HAFA funds towards first time buyer purposes.

This borders on fake money.

When fakery is involved the house of cards must eventually tumble down.

Fortunately, these funds are limited UNTIL those in DC do another back room deal.

William Feela Lenders should learn from their mistakes. they might not get bailed out a second time.

I am not seeing a trend yet. It still seems like underwriting is tough and buyers have to go through the ringer and present their first child.

William Feela - I sure hope we are not putting people into homes they cannot afford. This would be Deja Vu again and another crash. In our market, buyers with loans still have to prove they can afford the property and sometimes are turned down on their loans.

Yes & that is my job. I've done it for 30+ years & I'm going to keep going. There is no 'test' for homeownership. There are no 'trades' test like do you know the working end of a hammer?

It is what it is.

Oh yeah. We haven't learned from our mistakes, so we'll repeat them. Sell sell sell

I think most real estate agents will take a shot at working with most borderline buyers.... I say leave it alone.... 

we are listing agents and not every homeowner should be selling.... I can remember convincing many to NOT list at the time....or to refinance to hang in there....

Just like we did in 2003 - 2007 ????????

Not if I can help it. I want those customers to come back again and again and again.

Don't you think it's all ebb & Flow?  I think it should be  left up to the consumer to decide what they can afford (within reason)

I am a strong believer in self reliance and accountability; I do not believe we have the power to force people to do anything they, themselves, do not really want to do, even if they know it is a bad decision.

They say the lending industry is easing the rules, but have not seen it yet.

You make an excellent point. The big problem however is lack of inventory so reducing restrictions may not even cause another bubble.

I'm still on the fence about this one but I think we're headed towards a correction. The market can't stay this competitive for long.

Unfortunately, we the people have not learned our mistakes.  "Fog a mirror" loans are gone, but their close cousin is here to stay.  Mortgage backed securities are gone, but their kissin' cousin the rental backed security is here to fill the void.  Same shit, different name.  Securities that rely on people paying a monthly payment, which in California, is higher than a mortgage would have been.

I don't see that happening in my market..still tough to get a loan.

I hope we do not have a problem down the road with lots of short sales the way prices keep going up.

I hope not, though I don't think the criteria has eased that much.

Not this Realtor®!

William Feela if it is a stretch, I tell my buyers to buy something smaller. 

I'm experiencing that the lenders are exercising tight restrictions and are vetting buyers thoroughly. Buyers have to prove they can afford the property.

No, so far i have seen common sense adjustments, but lenders are still pretty tight from what i see. No one is being thrown money like 2005

That's what short sales and foreclosures are for - so many bought distressed properties then as the values began to come back to norms, are realizing that $400k house they bought for $90 has a new insurance and tax bill over $10k a year!!!!

You are welcome to handle those prospects.

  The Big Banks, the Government, and people who get in over their heads are responsible.  Not me.

They are back

Yes, the process is quite in motion.

It is all part of the endless cycle of life and mortgage lending. 

William,

I agree with Corinne Guest, Managing Broker 

Joe Pryor nailed this one!

Investing Real Estate is good for everyone...