Ah, it seems with the Fed's latest announcement that interest rates will be kept where they are, the pursuit of a home sale by me and the Digihusband seems to have stalled.
Our house still remains on the market with a "sale pending" sign on top, but our buyer's lender shut its doors and loan programs are harder to come by now than a prayer at the DNC. We would have closed escrow last Monday, and had hoped that today a large moving van would have been pulling away with our worldly possessions contained therein. But that ain't gonna happen.
Although the lending crunch disappoints me, I am not surprised. In my line of business, I get to see the bloody aftermath of poor financial decisions and some of the home loans sitting on my clients' residences defy credulity. Piggyback loans, interest-only loans, neg-am mortgages, balloon payments - it is amazing the depth to which people have gone to purchase a home with little or no regard for fiscal sanity.
I see the hue and cry in the media about the "dishonesty" of mortgage brokers and the whines from foreclosed homeowners about how such "greedy" lenders had them sign loans that were too "complex" to understand. Hogwash. While the "creative financing" offered by some lenders was highly suspect in its solidity, the fact remains that many borrowers gave more weight to whether they could get the loan than whether they could afford the loan. That's a big difference and woe be unto them that figured, "They [the bank] wouldn't give me the loan if I couldn't manage it." Or they who thought, "The house will appreciate and I'll sell it for a profit before the balloon comes due/varaiable interest rate goes up." Amazing - there are people who go to a job they hate day in and day out because it is a steady paycheck and they do not want to take the risk of exploring new opportunities to enhance their lives, but will risk their homestead on the acquisition of debt without a thought. Simply amazing.
Well, then, my family and I will wait. We have not signed any purchase contracts for a home in Tennessee and we still have our jobs here. St. Joseph School has a seat for both kids (sorry, Sacred Heart Cathedral School in Knoxville, but hold on to our registration package). And we have a house that we like (if we could physically move it to Tennessee, we would) and a mortgage payment far below that of rents in the area. Eventually, a buyer who can secure lending will come along - we're not going to "fire sale" the house to move from California. And in the meantime:
Memorare to St. Joseph:
Remember, O most chaste Spouse of the Virgin Mary, that never was it known that anyone who implored your help and sought your intercession was left unassisted. Full of confidence in your power, I fly unto you, and beg your protection. Despise not, O foster-father of the Redeemer, my humble supplication, but in your bounty, hear and answer me. Amen.