Letters to the Editor

Re: 'Congress reluctant to act on mortgage lending issues' (Dec. 28)

Dear Editor:

Oh thank God! My big fear has been the government trying to "fix" what is largely the result of a substantial amount of greed from all sides of the housing market -- investors, lenders, real estate agents, buyers and sellers!

As usual, we have plenty of rules and regulations. What we need is to enforce them. The consumer has no idea how much of the cost is going directly to the loan agent's bottom line even when it's called a "processing fee" or some other idiotic name. Throw in the fact that the lender is also the real estate agent and that buyer has no opportunity to "shop" the loan. (That can be fixed.)

The only sure cure is educating the consumer, who not only doesn't understand "subprime" but has likely never heard the term in relation to their own loan. Do you know how many people are in "subprime" loans that could have qualified for a conforming 30-year fixed loan, or a normal adjustable-rate loan? Neither do I, but I will bet it is a substantial number. But why go to all the trouble of qualifying a buyer with all that pesky paperwork when you can just slip them into a "subprime" loan with no paperwork. Don't worry that they can't actually afford the payments.

Real estate is a cyclical business, we all know that, but what is overlooked is that there are only two cycles: "greed" and "fear." We are now officially in the "fear" cycle.

Joellen Chappell
Century 21 M & M and Associates
Stockton, Calif.

Re: 'Sellers list right to avoid price reductions' (Dec. 31)

Dear Editor:

This article is right on! And a great help to us "listing" agents. Our job is to price the home right so it will sell quickly, saving stress for the sellers. I have found this last year that those who listen find themselves with offers immediately. Others want to try the "slow torture" method (as I call it), by starting high to give buyers room to negotiate, and then slowly reducing the price. No seller wants to "leave money on the table" by listing too low. However, they end up at the suggested price anyway; it just takes longer to get there.

Madeline Walker
Intero Real Estate
Livermore, Calif.

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