Escrow on the sale of our house closed today 16 days late. While we will never know the complete reasons why, it was at least in part to vastly increased checking by mortgage companies. The days of the NINJA (No Income, No Job or Assets) loan are long gone and will probably never return. Today, mortgage companies check and re-check everything, multiple times too probably.
Yes, there are still areas where real estate prices are going up. We sold our house in CT for more than we paid it for 16 months previously. Whether such price rises will continue there is uncertain. My guess is, no.
The house we sold in Los Angeles 16 months ago has dropped at least 30% in value. The particular area we lived in has gotten clobbered, with foreclosures now common.
So, we dodged the subprime bullet. Many, including friends have not. There’s a lot of pain out there now. Let’s hope it starts to lessen.
(We live near SF now and are renting…)