Run on Houses Contributed to Current Home Sale Difficulty

The monthly payment on your mortgage shouldn’t exceed ¼ of your income for best results.

We Buy Houses - Bellbrook  OH: The housing market is, undoubtedly, in a position that makes it hard to sell a house. A few years ago there was a new day in home mortgage lending practices. Everyone wants to be a homeowner. It’s the American way, after all. No credit? No problem. No job? No problem. We won’t check. Everyone deserves to have a house, right?

In the past, the American way included growing up to get a good job or going to college or trade school so you can get a great job. Couples saved for their first house, drove modest vehicles until they could afford better ones, and lived in such a way that they could someday afford those nicer things. What happened to that time and those common practices of young couples? The raising of kids turned a corner and the new generations didn’t want to wait until they could afford what they wanted.

“Many people are over their heads in credit debt due to such basics as groceries and household needs. It’s an ‘instant gratification’ solution that is only very temporary. “

Credit companies lavished card after card on those students who were still in college and if you spent your limit on a credit card? Just ask for a higher limit! In fact, it became almost standard for credit companies to issue higher limits without you even asking. This has done harm to our financial systems and has created a generation of overwhelmed consumers that don’t know how to live without using credit to buy what they want. Many people are over their heads in credit debt due to such basics as groceries and household needs. It’s an ‘instant gratification’ solution that is only very temporary. Feel like pizza for dinner but don’t have money until payday? Charge it!

The housing market went the same way. Loans for mortgages were given out like candy to those who couldn’t afford them or who took them on at too large of a percentage of their income to make the payments. The monthly payment on your mortgage shouldn’t exceed ¼ of your income for best results. Otherwise, when the jobless rate climbed dramatically, these same people lost their homes. Foreclosures are at record numbers and most of the time the reason is clear. Credit was extended to those who might not have been truly able to afford what they were borrowing. Want the 4 bedroom house when you can only afford a 3 bedroom? No problem. Well, at this point it has become a big problem and has created a huge number of houses for sale. If you’re trying to sell this will make it more difficult to do so.

Greg Greenwald LLC is a company that specializes in buying and selling houses throughout the Dayton, Ohio area including Troy, Piqua, Tipp City, West Milton, Vandalia, Huber Heights, Englewood, Brookville, Clayton, Riverside, Oakwood, Kettering, Belmont, Centerville, Miamisburg, Fairborn, Greenville, Beavercreek, Bellbrook and more. If you have a home to sell in Dayton Ohio we can help!

Filed under: House Selling

Like this post? Subscribe to my RSS feed and get loads more!