In the wake of this week’s suicide of a Massachusetts woman who lost her home to foreclosure, one real estate expert says only education can stem the fear that has gripped Americans caught in the housing crisis.
The silver lining in the economic downturn is the increased awareness of making better financial and mortgage decisions, according to real estate author, attorney and broker Tara-Nicholle Nelson.
Speaking recently from her home in California, Nelson, who also hosts the “Savvy Woman Homebuyer” video series on HGTV’s new online real estate listing site, , shared tips on what to do if one is facing foreclosure or thinking about buying a foreclosed property.
Q: What circumstances do you think spurred the current housing crisis?
A: Real estate decision-making has always been critical to household finances and well- being, but over the last decade people were making those decisions without much deliberation.
In the past, there were more things that kept this kind of thinking from happening. Banks were (more) conservative. If you couldn’t qualify, didn’t have 20 percent down and didn’t have great credit, you couldn’t get the house. But that deteriorated over the last generation. Guidelines were reduced so low that the banks were relying on individual people to decide what they could afford, which is contrary to human nature.
Americans want the biggest house they can get and will not be able to self-police themselves about how much they should spend.
Q: What do you think Americans learned from this housing crisis?
A: The silver lining of the foreclosure crisis is that it has increased the level of consciousness and has changed the way people are making their real estate and mortgage decisions. A house isn’t just a place to live anymore; it’s an important financial decision. People are hungering for information now and they are taking their decisions seriously. They know they need to get educated about the process.
We are moving into a new era of totally enlightened homebuying. Sometimes a nation has to go through fire to get to this kind of enlightenment. It’s about money you spent or lost and learning life lessons. The upside is that even though it’s hard as it is, it won’t kill you. You will come out on the other end empowered to make much better real estate decisions.
Q: How do you think the housing crisis has affected potential homebuyers?
A: I have seen some buyers who are just paralyzed by fear. They already have great credit. It’s a wonderful time for them to buy, but they are stuck. If you are walking around paralyzed by fear of foreclosure, you won’t make as wise decisions as you would if you approached homebuying as a project. Get the knowledge you need to be successful at this project by asking questions and gathering information to make smart choices.
The headlines are all about fear and how awful and terrible everything is. But there is no such thing as a real estate market that’s bad for everyone. If a market is bad for buyers, then it’s good for sellers and vice versa.
Q: What kind of expertise does offer?
A: isn’t real estate alarmism news. Every month we do a top-10 list and vignettes of things you need to know about hot topics from the buyer and the seller’s perspective. We have good mortgage calculators, data to show what the going rates are and original videos. Viewers have trusted HGTV to give them information about how to design and live better in their homes. gives expert advice on how to make decisions and execute transactions related to the home. Putting the two together create a more holistic picture.
Q: How has the housing crisis affected women homebuyers in particular?
A: We don’t have a lot of data on this topic yet, but I can tell you that we will be seeing its effects very soon, and the news is going to be negative. We already know that 40 percent of women that buy homes put less than 5 percent down on their home. And that group of people who put down very low down payments or none at all have been disproportionately represented in the foreclosure issue and will continue to be so in the future.
Sheba R. Wheeler: 303-954-1283 or swheeler@denverpost.com
