Ethics

There is a thin line between right and wrong, moral and immoral, legal and illegal...especially when practicing real estate. The notion of ethics is prevalent in today's real estate marketplace and must not be taken lightly. Predatory lending has turned a healthy marketplace into a subprime nightmare. As a result, buyers who were granted loans by lenders who used creative financing methods have been defaulting on their mortgage payments. If you look around, the effects are everywhere (...seen any For Sale signs recently?!?!). Yet, there are still plenty of investors looking to capitalize on foreclosures and short sales.

So, here's a question: who is to blame?

Lenders: Should lenders have granted loans to buyers whose credit score did not justify the loan amount?
Buyers: Were they misled by lenders or did they borrow beyond their means knowingly and take advantage of lenders who eased up their lending standards?
Real Estate Agents: We benefited by assisting buyers and sellers in the process. Were our commissions justified? After all, aren't we suppose to get our buyers prequalified by lenders prior to showing property?

There is no easy answer to these questions. Often not one action alone causes an epidemic. The subprime epidemic definitely conflicts with ethical behavior. For the mean time, we can hope that we've learned our lesson and that the worst is over with. We will not know the final outcome until years down the road. Nevertheless, it is important for each one of us to act in an ethical manner to avoid more horrific epidemics.

Joseph Silverstein
Coldwell Banker - Chevy Chase
5028 Wisconsin Ave
Washington DC
Website: www.cbmove.com/joseph.silverstein