{"id":5883,"date":"2008-11-29T12:54:07","date_gmt":"2008-11-29T19:54:07","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5883"},"modified":"2008-12-07T10:46:12","modified_gmt":"2008-12-07T17:46:12","slug":"someday-soon-we-may-have-to-turn-back-the-clock-on-home-lending","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5883\/someday-soon-we-may-have-to-turn-back-the-clock-on-home-lending\/","title":{"rendered":"Someday\u00a0soon we may have to turn back the clock on home lending"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
Someday soon we may have to turn back the clock on home lending<\/strong><\/p>\n

Furniture stores are offering weekly payments. Department stores and jewelry stores are making Christmas easier with layaway plans.<\/p>\n

Check the calendar. Did someone dial the clock back to 1968?<\/p>\n

Not quite, but the credit crunch has got us looking backwards in time to try to remember how we used to do business, back before easy credit made things so easy.<\/p>\n

Here’s the dirty little secret no one shared with you: For many, many years, the business of America has been credit.<\/p>\n

Car dealerships don’t sell cars, they sell financing, selling your loan at a discount as soon as your tires hit the pavement.<\/p>\n

Furniture stores don’t sell furniture, they use your desire for new furniture to get you to sign a promissory note.<\/p>\n

One of the best protections of your financial interests is called Regulation Z. The Z reportedly stands for Zales, the easy credit jewelry store.<\/p>\n

New home builders are in the same game. That’s why the incentives are so much better if you use the builders’ lender.<\/p>\n

And that’s why there’s no interest for the first six months. Or no payments at all for the first two years. And all it takes is one quick signature…<\/p>\n

But those days are done. Consumers — and corporations — are defaulting on debt like never before in history. The buyers of promissory notes aren’t buying any longer. Instead, they’re in Washington begging for bailouts.<\/p>\n

And that leaves the furniture stores and the jewelry stores back in the merchandise business. They need to come up with ways to get people with no money to part with what little they have — a little at a time — in order to have any sort of cash flow at all.<\/p>\n

And all this will come to real estate, too. We still have easy credit, but when interest rates start to climb, we’ll see our own kinds of “old fashioned” financing arrangements: Seller carrybacks, land contracts, wraps, lease purchases, etc.<\/p>\n

We may be headed into tough times, but we still have a roadmap from Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  Someday soon we may have to turn back the clock on home lending Furniture stores are offering weekly payments. Department stores and jewelry stores are making Christmas easier with layaway plans. Check the calendar. Did someone dial the clock back to 1968? […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,6,5],"tags":[],"class_list":{"0":"post-5883","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":18259,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18259\/overnight-news-the-so-called-ibuyers-are-actually-eflippers-and-someday-soon-theyll-learn-what-its-like-to-work-in-real-estate\/","url_meta":{"origin":5883,"position":0},"title":"Overnight News: The so-called iBuyers are actually eFlippers \u2013 and someday soon they\u2019ll learn what it\u2019s like to work in real\u00a0estate.","author":"Greg Swann","date":"June 25, 2021","format":false,"excerpt":"The secret to flipping houses is suckering the seller. True fact. If you do rehab or upgrades, you may recoup about double your outlay. That's a profit margin, but not much of one. There are no more sucker-bait buyers, so you can't sell high. So the big bucks come from\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5965,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5965\/seriously-whos-a-better-risk-for-a-mortgage-than-someone-who-has-already-lost-a-home-to-foreclosure\/","url_meta":{"origin":5883,"position":1},"title":"Seriously,\u00a0who’s a better risk for a mortgage than someone who has already lost a home to foreclosure?","author":"Greg Swann","date":"December 6, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Seriously, who's a better risk for a mortgage than someone who has already lost a home to foreclosure? We talked last week about credit flexibility among merchants as they try to find ways around the banking crunch.\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10856,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10856\/2010-mortgage-broker-renaissance\/","url_meta":{"origin":5883,"position":2},"title":"2010 Mortgage Broker Renaissance","author":"Brian Brady","date":"January 14, 2010","format":false,"excerpt":"Is the business of broking mortgage loans dead?\u00a0 About two years ago, Morgan Brown predicted our demise on Blown Mortgage.\u00a0 His conclusion was that the industry would need a scapegoat for the poor lending practices and that \"blaming\" mortgage brokers was convenient (and not necessarily fair).\u00a0 His conclusion suggested that\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18162,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18162\/overnight-news-why-are-hedge-funds-still-buying-rental-properties-at-the-top-of-the-market\/","url_meta":{"origin":5883,"position":3},"title":"Overnight News: Why are hedge funds still buying rental properties at the top of the\u00a0market?","author":"Greg Swann","date":"May 22, 2021","format":false,"excerpt":"As noted below, hedge funds are still buy-and-hold buyers. Do not ask me why. We have not worked on the buyer side of an investment deal in six or seven years. My style of single-family property has been upside down for a long time. But we sell to them, happily,\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2700,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2700\/the-all-spin-zone-the-big-news-from-the-inman-news-relaunch-is-that-much-of-the-renet-is-now-in-bed-with-brad-inman\/","url_meta":{"origin":5883,"position":4},"title":"The All-Spin Zone: The big news from the Inman News relaunch is that much of the RE.net is now in bed with Brad Inman","author":"Greg Swann","date":"March 4, 2008","format":false,"excerpt":"I had mail from a vendor just lately asking me if I might be interested in a forthcoming story. This was my reply:Just so as not to disappoint, this is the way we work: Good for consumers, agents or lenders, we eat it up. Good for the vendor, we ignore\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4872,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4872\/should-walmart-sell-real-estate\/","url_meta":{"origin":5883,"position":5},"title":"Should Walmart Sell Real Estate?","author":"Thomas Hall","date":"October 9, 2008","format":false,"excerpt":"It appears that Coldwell Banker may be following the Walmart approach to real estate pricing - recommending that sellers cut their home prices 10% across the board - not locally, but nationwide.\u00a0 I can't help but find the similarity to the McCain approach to cut government spending - simply freeze\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=5883"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5883\/revisions"}],"predecessor-version":[{"id":5971,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5883\/revisions\/5971"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=5883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=5883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=5883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}