Ascent Home Loans

From the beginning of the housing crisis to now, there have been numerous mortgage companies that have gone bust and closed according to the latest addition of the site. The number of closings is currently standing at 99.  Major banks are purchasing all the loans from these defunct companies,  and with the foreclosure rate increasing each month, what will the major banks do with the inventory of houses (and mortgages)  they will own? Will we see them hold on until home prices start to rise again, or will we be seeing the ‘For Sale’ signs in the  neighborhoods slashing prices to get these homes off their already beaten down books?

In the most recent report ending in March of this year, commercial banks now own $2.3 billion worth of homes, as opposed to $1.5 billion at the same time in 2006. As the default numbers rise. so does the number of homes owned by banks.  Has this strategy been successful? Ask one of Bear Stearn’s hedge fund managers who rolled the dice and lost on the bet.

The thing that irks me the most about this situation is that those of us who have made a career out this business and enjoy what we do, (both on the Realtor side and lender side) are left with the mess to clean up. The only good thing to come out of the housing crisis is that those that came into the business to make a quick buck, and who didn’t have an ounce of common sense in their heads,  are already back where they belong, mowing lawns or spraying disinfectant into bowling shoes.

Will it get worse before it gets better? Yes, I think so. In the long run, we professionals who are in the business because we enjoy it and because it is a part of us, will still be here plugging away. The one thing I do sincerely hope for after the dust clears, is that the corporations we have all worked for in the real estate and mortgage industries will have learned from the crisis.