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Letter to the editor

How have you been affected by problems in the mortgage market?

Here's what readers had to say:

By Helen Huntley, Times Personal Finance Editor
Published September 2, 2007

Here's what readers had to say:

I have been victimized by real estate speculators - twice.

Two years ago my granddaughter and I found ourselves in the market for a home. Week after week, houses were selling so fast that open houses were cancelled because the house had sold. Shacks were selling like palaces, courtesy of real estate speculators. I settled for a modestly priced under $150,000, well-maintained home in Pasco County.

As my personal and financial picture cleared, I decided that my best long-term option was to stay in my house and refinance my mortgage. Middle-age professional, stable employment, good income, good credit, qualifying FICO scores. Even the VA in my hip pocket in case I need them. No problem, right?

Wrong. Speculators are dumping properties in my neighborhood - selling at prices as absurdly low as they had formerly been absurdly high. My house appraised at $2,000 less than I paid for it. I can refinance, but I have to pony up cash. A lot of it. So much cash that it prevents refinancing from being my best option.

I'm one of the lucky ones. I won't lose my house and I'm only seeing a loss on paper. I still don't like the house very much, but I'm lucky.

I have no problem with a bailout for younger people who got in over their heads, especially first-time buyers. Bail out the speculators? NO! A million times NO! Let them see some of the downside they mercilessly inflicted on others. Even to suggest using my tax dollars to clean up their mess just adds insult to injury.

Tim Young, Holiday

I've been in the mortgage lending industry in the Tampa Bay area since 1986. It is true that I have never in all those years witnessed what we are experiencing, to this magnitude. However, this is not the first time the real estate market and taken a hit and lending guidelines have changed.

The industry will adjust, things will calm down and hopefully soon, the media will start to advertise that fact, and subsequently, help speed the recovery up.

It's a great time to buy a house! You don't have to be perfect to qualify. And, even if someone can't qualify for a good mortgage, with some education and financial planning, they could qualify in as little as one year! In the meantime, they might get into something like a lease with option to purchase, which could have them building equity while they plan and get prepared!

Traci Walters, Palm Harbor

Next week's question

How are you managing your income in retirement? Do you have any tips to share with others? Leave a comment on the MoneyTalk blog (blogs.tampabay.com/money) or send it to Helen Huntley at hhuntley@sptimes.com or PO Box 1121, St. Petersburg, FL 33731.

[Last modified August 31, 2007, 12:39:43]