Rumors keep circulating about stiffer mortgage lending requirements. They simply aren’t true, according to real estate expert Fabian Calvo, who says,

“If you can fog up a mirror or you have a pulse, they will give you a home loan. That’s what they have done with the car loans, and that’s what they are doing with housing loans.”

Easier home lending requirements means the housing market isn’t in that great of shape, still – despite those who claim everything is on the rise. A closer look at the nitty-gritty shows that the market for short sales is still very much alive – lenders being so lenient with new buyers means we are still in a still depressed market, and plenty of homeowners are still staggering under upside down loans.

According to Calvo, “After the mid-term election, you’re going to see no-money-down loans just really roar back. It’s all part of the pump and dump I’ve been telling you about for well over a year.” Calvo, whose company buys and sells $100 million in distressed real estate debt annually, says, “Bottom line is we are still in a situation where half of every mortgaged home in America is completely underwater.”

Bad news for the real estate market means short sales are still a viable option for homeowners! Any time the real estate market is in crisis, as Calvo says it still is, lenders have to make accommodations for homeowners to avoid a mass of foreclosures. Since the banking and real estate industries are so intertwined, the only hope for a more stable economy is to provide outs for people in over their heads. Short sales provide that out.

Many look at the rental real estate market as an indicator of how the housing market will react – and right now the rental market is booming. That means more and more people are unable to afford to buy, another indicator that short sales are still a very realistic option. With new homes deemed “unaffordable”, a short sale gives buyers the opportunity to come in and get a 10-30 year old home at a bargain, while the current homeowner can downsize without having to face overwhelming debt.

Calvo says, “There’s going to be spectacular sales, spectacular deals, way more than you saw back in 2008.” Whether you are looking for a great deal on a home or are simply trying to unload a house you over invested in, now is the best time to call a short sale specialist and find out what your options really are!