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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (150198)	9/25/2008 11:47:27 AM
From: GraceZ	Respond to of 306849

the bottom line is banks will lend IF you qualify....the've raised qualifying standards to correct the loose lending standards that got in this mess to begin with As AG said, "History has not dealt kindly with the aftermath of protracted periods of low risk premiums." I think the credit contraction in the early to mid 1990s seemed more severe to small businesses and the average person because they felt it at the point of the car loan, home equity and bank line of credit. That said your local commercial bank branch isn't necessarily such a good place to test whether credit is tight because in the past 15 years they've become less and less important to consumer credit as well as large credit flows. For the large regional banks, most consumer lending is now originated at a central call center. The branch manager has little autonomy. I've called a business 800 number from the lobby of my local branch several times because the reps in the branch had no autonomy to resolve an issue with my business accounts. Before my local bank got swallowed up numerous times I could call and say, "Hi this is Grace, can I talk to X" and get something resolved. People decisions have been replaced with software decision trees. The capital markets have become the principle source of borrowing and credit for mid to large sized businesses as well as the primary place that business stores its retained earnings.

To: MulhollandDrive who wrote (150198)	9/25/2008 12:07:50 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

>>wait till people begin to realize that the banks will continue to have restrictive lending policies until the RE market finishes CORRECTING<< This is it in a nutshell. Remember Box's "Dominoes" post from earlier this year? Domino number one (the inability of incomes to support current home prices) remains in the down and locked position. Until housing prices drop to meet incomes, efforts like the current one to reanimate the corpse of the credit market are futile. This one is particularly egregious because of the expense and the one sided provisions to brokers. Utterly revolting. ANYONE (regardless of ideology) who votes for crapola has been derelict in their duty to the taxpayors and deserves to be voted out of office. It's my litmus test, and I'm standing by it.

To: MulhollandDrive who wrote (150198)	9/25/2008 12:13:28 PM
From: Johnny_Blaze_420	Read Replies (1) \| Respond to of 306849

there is definately fear, but there is also plenty of money available. just depends what you want. If you are still looking for a 90% or 100% LTC loan and have bad credit, yes, that type of loan is gone and will be for a while. If you are 70% LTC, 65% LTV, strong borrower, the dollars are there all day long, even on non recourse loans. the pool has shrunk, and the little guy is definately getting hurt because there are so many deals that do not have a home and have very strong credit behind them.