Real Estate Related News

[Frixxxx]

from the original story at the top of the thread:

Yes.. this has come to pass... even buyers with good credit are not assured approval. This makes sell houses even more difficult.

But still, wouldn't the banks be more forthcoming with money if they were actually "RECIEVING" money for the houses that forclosed. It seems to me that there needs to be more incentive for the banks to actually sell their empty properties or turn it over to a mangement company to stop "writing-off" all this debt. Is it me or have the banks forgotten that they NEED customers to operate? Yes the fine line is there but getting some money is better than no money.

 

[luv2read]

But still, wouldn't the banks be more forthcoming with money if they were actually "RECIEVING" money for the houses that forclosed. It seems to me that there needs to be more incentive for the banks to actually sell their empty properties or turn it over to a mangement company to stop "writing-off" all this debt. Is it me or have the banks forgotten that they NEED customers to operate? Yes the fine line is there but getting some money is better than no money.

They obviously don't think so. They've figured out they can make loans, package and sell them to get their money back instead of holding them and collecting monthly payments. If they default or foreclose on the ones they can't sell, they write them off. With all of them doing this with each other, it will take a while for them to need any new customers to make new loans under the new more restrictive standards. Sound like a giant ponzi scheme?

 

[Asylum]

...the bank's main asset is debt... bad bad bad

 

[luv2read]

:nuts::worried:

 

[Silverbird]

Sigh, I assume that is what's making F so volitile? If that was a barometer we'd be riding in 50' waves.

 

[Silverbird]

Big Downpayments Return, Hurting Housing Recovery
As U.S. banks mop up the mess from billions of dollars of bad home loans, buyers are finding the days of cheap money are over and, in many cases, tougher versions of old lending rules now apply.


People of modest means have seen the American dream of home ownership move further out of reach. Even affluent buyers, who took advantage the last decade's low interest rates and looser lending standards to move up to more expensive homes or to buy investment properties, are seeing their options evaporate.
Gone are the days when almost anyone could get a loan with a down payment of less than the traditional 20 percent.
http://www.cnbc.com/id/24770001

 

[Asylum]

Big Downpayments Return, Hurting Housing Recovery
As U.S. banks mop up the mess from billions of dollars of bad home loans, buyers are finding the days of cheap money are over and, in many cases, tougher versions of old lending rules now apply.


People of modest means have seen the American dream of home ownership move further out of reach. Even affluent buyers, who took advantage the last decade's low interest rates and looser lending standards to move up to more expensive homes or to buy investment properties, are seeing their options evaporate.
Gone are the days when almost anyone could get a loan with a down payment of less than the traditional 20 percent.
http://www.cnbc.com/id/24770001

easy money is long gone... even HELOC's are had to get...