Ben Bernanke Says Current Lending Guidelines Too Strict!

Finally, it's about time that someone with authority admits that it is becoming very hard for individuals to get home financing, causing more home owners to go into foreclosure.   Fed chairman Ben Bernanke announced that lending guidelines are too strict!  Well, we all new that right?  You did if you could not get financed to purchase a home in the last two years for reasons that you could not believe.  An example, an individual looking searching for homes finally finds a great home in which the home owner is in trouble and needs to sell.  The individual puts in an offer and the home owner agrees, both are very happy.  The buyer goes to get home financing and everything looks good, 780 credit score, good income, etc.  Now, during the process he goes and purchases a few small pieces of furniture with his credit card for the new home.... you know, planning.  Now the bank puts a big stop on everything!!  The buyers borrowed credit/debt has increased and they don't like it.  The deal is killed and the process has to start all over again, however this is too late for the seller.  His bank hears the news and moves forward with the foreclosure.  Another property foreclosed on and another buyer who can't believe the bank did that.  This is just one example and it happens everyday, the lending guidelines are so strict that they start to not make any logic sense at all.  Not to mention, the guidelines are becoming stricter every month.  The more foreclosures, the tighter the guidelines become.  The tighter the guidelines become, the more foreclosures.  Aren't we working backwords?  Hopefully we will see some new and positive light shined on our current real estate industry in the next few months so more people can get loand and buy homes, which means more sellers can actually sell their homes to buyers needing financing.