I apologize wholeheartedly to Beth and fellow Realtors for the tone of my post, which was entirely unintentional, but please bear in mind the following. You don't need to be a real estate pro to know that there has been a huge train wreck on Wall Street. Anyone can turn on the TV and follow a rapidly changing situation. The way I am looking at it is this. The front 10 carriages of the banks' train have derailed, and everyone in the carriages behind cannot go anywhere until those have been cleared away. Carriages behind include first time home buyers like Beth looking for a new mortgage, also people with car loans, student loans and even people going to the ATM to draw out $100 cash to feed their kids. Because there has been a run on the major banks, those banks have no ability to clear away their own carriages, and neither do they have any insurance, so the government has to intervene and do the heavy lifting using tax payer's money, known as the "$700billion bailout". They are hoping that whatever they pay to buy the derailed carriages can be recouped later at a profit, but that is entirely unknown. As well, the exact details of the plan are currently very fluid and unknown. As I write this, government is still thrashing out the details and promises to have this done almost a week ago have not come to fruition. Until the details are agreed in principal, then written up, then voted on and signed into law, which is going to take a while, those 10 carriages are not moving, and neither is Beth in the carriage behind. Again, this is not knowledge exclusive to Realtors, who do not have privileged access to more information than Beth herself has when it comes to evaluating how this is likely to impact the housing market and her own ability to obtain 100% financing.
I'm sure that some Realtors will carry on giving professional advice based on the housing market situation before the train wreck happened, that's their professional judgment call to think it will have no significant impact on the way they do business, the services they can offer, or the hope they can give to first time buyers. My opinion is slightly different from those folks, as it is based on the train wreck being a very significant factor in obtaining a mortgage after the carriages have been cleared, albeit the exact details currently unknown. Since I am not in the business of giving false hope, and I am in the business of sometimes having to tell people things they don't want to hear, I don't think there's anything wrong in saying to Beth or anyone else that they are not being realistic, but again, I apologize for the tone of the original post.