Wednesday, September 17, 2008

Is Real Estate to Blame for Financial Gloom?

Read about it anywhere and it seems that the real estate business is a key reason that you will see on why we are in the economic crisis we are in today. With tons of receivables and people drowning in debt for failure to settle their monthly amortization, who can blame these big companies for filing bankruptcy or Chapter 11 due to inappropriate funds to continue operations?

Well, in the end, we only have ourselves to blame. How do we get approved loans if we are truly incapable of settling them on a monthly basis? People are witty. They forge required documents such as their gross annual income or other proof of billing and/or proof of actual income generated. This practice is done worldwide and unless there are good credit investigators commissioned to do the usual background check, chances are they will get away with it.

But most of that is in the past and now we are all in a big mess. The financial problems continue to compound our economic outlook. Will it be remedied? Well hopefully so. If not, only God knows what the future will hold for us and I am not only talking about the real estate business!