I'm trying to fix the real estate market, but the banks won't let me!
I rent my apartment. I want to own a house. I found a vacant foreclosure that I want to buy. By purchasing this house, I can reduce the supply overhang in this country from 14.5415516 months to 14.5415516 months.
The seller's broker says, "No offers with contingencies. If you want a mortgage, we want a mortgage commitment. No approval, no pre-qual, no doctor's note." My lending bank says, "We don't give mortgage commitments until the house is under contract. Here's your approval letter again."
So as the public tries to sop up the best-priced houses--the ones that the banks want off their books--and prop up the housing market, it's not even a matter of whether you can get a mortgage due to your credit... it's whether you can use that mortgage due to some catch 22. And the saddest part is that the banks probably don't even know what's going on; they hire some asset management company that handles it, and they in turn go to these large-volume low-commission brokers and just say, "serious buyers only." The brokers in turn don't want to waste any of their own time since they're getting paid squat and their agents are salary based and bottom-tier, so they decide to interpret "serious" to mean "all cash offers only." Right, because nobody purchasing a home with a mortgage contingency has ever been serious.
So I tried to fix your housing crisis. I failed. Here's to 5 more years!