I commented on Paul Henderson's blog Paul Henderson (RE/MAX Professionals), the other day and Paul thought this was a great answer.
Banking Bailout
"The banking bailout was a basic handout, it doesn't direct the money to help the general welfare. The banks are using it for their own purposes and could give a care about everything else. They kind of said, I am on the ledge and holding your baby, if I don't get money I will jump. Sometimes we feel we should have grabbed the baby and pushed."
It was basic blackmail, give us money or we are all doomed! I am getting tired of thinking and writing about this dilemma. Unfortunately we need too. We need the money from now on to go to where it will be given to borrowers for mortgages, car loans, business loans.
If there is money they will come. We can sell lots of real estate and solve the banks problems for them even better, if the mortgages that are in trouble get paid off.
Richard
view my new homes for sale
Richard, so true - is an interesting dilemna. I guess time will tell in terms of what will happen. Im keeping my fingers crossed for the credit markets to loosen.
Christopher and Stephanie:
Lets hope that the money gets to where it is needed and we will move on from here.
Richard
Darn straight Richard! If you have to give loan them money, make them accountable for every penny. Jump start the economy by loaning that money byway of consumer loans at competitive rates...
Paul:
I just hope the Fed is able to get the money to where it will do some good. If they start with people who have the where it all to make it happen they will get the job done.
Richard
These 'Bankers' are truly a "piece of work" the fact that they don't have to tell anyone how they are spending the money they were given is a complete travesty.
Richard - being a Mortgage Broker, I have access to money to lend, yet not for everyone as it was two to three years ago. I hear things like "jumbo money is more expensive than conventional" that has always been that way, for the most part.
Conventional rates are hoovering in the low to mid- 5's, jumbos low to mid- 6's (in NJ). What does this mean for homebuilders? It means less spec housing, for now or possibly, building developments in sections. Taking reservations and deposits to show banks there is interest in the development.
For borrowers, better credit histories are in order, debt-to-income ratios adhered to (sic. financially qualify). FHA is 3.5% down with loan limits to $625k in many NJ counties. Fannie Mae and Freddie Mac offer 5% and zero down mortgages still at reasonable rates (between 6.00% - 6.75%). USDA offers zero down mortgages in many areas with rates between 5% - 5.5%.
Alas, for borrowers, it is all about the credit (mainly), some assets and collateral (varies by loan type). I have lenders looking to lend money, without question they are looking to lend to borrowers who can show not only the ability to repay, but the willingness to repay. For homebuilders, it is all about the credit and demand.
Any questions or thoughts are warmly welcomed and accepted.
That's all folks - for now...
Samuel Stovall
IMN
Ewing, NJ
(lending in NJ, NY, PA & FL)
Yeah, I hear Larry Flint and the "girls gone wild" guy are asking for a bailout for the porn industry. Funny but c'mon!
beware of mortgage brokers in this economy check their backgrounds carefully !!! Check the jobs they have been dismissed from. Check out how they treated their parents and their parents business. Check their past and present IRS problems. Check their stability in living accomodations. Do they or have they ever owned their own home ?
CAREFUL CAREFUL CAREFUL
ask who the partners are and their credentials