Page 12 - December 2022 Issue.indd

DOLLARS AND SENSE by Tolbert Rowe

Real estate market is different than in the past

Now that the election of 2022 is behind to former President Trump, we are bankruptcy of Lehman Brothers due to
us with the only “dangling chads” being assured that there will be gridlock in defaults on mortgage-backed securities.

the runoff election for Senate in Georgia Washington, DC. President Biden will This was the first domino that took down

we can focus on the election of 2024. We find it difficult if not impossible to move most Wall Street investment banks and
can thank previous President Trump for forward with his progressive legislative the beginning of the end of what was
keeping the pot stirred so to speak. agenda and could find that his eff orts to called “easy money” mortgages.

reach his hand across the aisle is met by
Two years is an eternity in politics, rabid Republicans anxious to chew it off . Easy money mortgages were loan
especially when the assumed candidates products that did not require a lender

for both parties will be at or near 80 The result of the election of 2022 will to validate information provided by
years old in 2024 and one of them must allow our capitalist economy to recover borrowers, such as income or assets.
survive a barrage of legal problems and naturally without further government No Income and No Asset loan programs
the other will more than likely have intervention and stimulus that has did not require borrowers to disclose
his own soon to be unleashed legal served as the foundation of runaway any information about their income or
problems. Congressional Republicans inflation. Inflation has forced the assets.
are foaming at the mouth with the Federal Reserve to raise rates by levels
prospect of “investigating” President not seen in decades so quickly that it If you needed or wanted a lower interest

Biden and his son Hunter’s business has practically stopped the real estate rate than a fixed rate mortgage and you
practices. market in its tracks and put the brakes were willing to accept some payment
on vehicle sales. risk, you could get an adjustable-

The “red wave” projected to break and rate mortgage. If the payment on the
flood the country with an abundance In my 40-year career in real estate, 37 of adjustable-rate mortgage was too
of Republican office holders failed to which have been in residential lending, high, you could pay interest only or a
materialize. Many election deniers I have never seen a market like we are minimum payment that did not cover
who relied on Trump endorsements currently experiencing, and I am not the the interest owed so the shortfall was
to win their primaries discovered that only one making the same observation. added to your principal.
a Trump endorsement is a liability in High interest rates with high prices have No down payment loans, loans for
a general election, especially Dan Cox. everyone wondering when real estate people with low credit scores were

It is extremely difficult to get elected in prices and interest rates will start to available for owner occupied properties

a state where Democrats outnumber tumble. and investors. Basically, if you could fog
Republicans by a margin of two to one.
The biggest decline in real estate prices a mirror when breathing on it you could

Now that it is decided that the began in 2008 and by 2010 values had get a loan.
Republicans control the House and the decreased by as much as 40%-50%. Th e

Democrats control the Senate, thanks “mortgage meltdown” began with the There were billions of dollars of these
types of loans and when the market
tanked, and real estate values dropped,
the dam broke, people defaulted on their
loans and foreclosures were the result.
“Your Mortgage Consultant Since 1985”
Purchase or Refinance Hundreds of thousands of families lost
their homes because they could not
afford to make the payments, nor did

they want to as they owed more than
their houses were worth. Ultimately
these homes came back onto the

115 E Dover St. Ste 3 - Easton, MD market after lenders acquired title and
ownership through the foreclosure
tolbert@baycapitalmortgage.com C. Tolbert Rowe, process.
www.baycapitalmortgage.com NMLS Vice President/Lending But during this devastating time for the
182844

real estate market fixed rate mortgages
410-819-3005 / cell 410-310-3520
12