The mortgage market is experiencing a meltdown due to a perfect storm of factors including subprime and Alt-A lending with loose underwriting standards, which has led to high delinquency rates on mortgage-backed securities. As a result, underwriting guidelines are tightening, the number of potential home buyers is decreasing, and foreclosures are increasing. Borrowers with non-conforming, stated income, no-doc, and Alt-A loans are most impacted. Real estate professionals need to partner closely with lenders, educate sellers on realistic pricing, and ensure buyers are well qualified and prepared.