Which Banks Are going To Go Under?

The following article shows some of the depth of the mortgage problems. The rising FORECLOSURES are adding fuel to the fire for the RECESSION we are in and rising food and fuel costs are adding INFLATION to the mix. We apologize for using 3 BAD words in one sentence. We do see great rates out there this week for buyers. The big issue is: Are you able to get a good price on your new home? We still say look for prices from 2000-2001 and you will be in the right area for making offers on the homes you like. www.rateinformer.com

Home Equity Lines; Here Today and Gone tomorrow

Many banks are now freezing or cutting off the home equity lines of credit THAT THEY HAVE ALREADY MADE, as they finally realize the lines of credit are more than the home is worth. Your line of credit could be gone shortly so be aware that it can happen overnight. The high second mortgages are now worthless on many homes as their values continue to drop. Many banks will not make these lines available any longer until the market settles down. www.rateinformer.com

Many "Soon to Be EX Home Owners" Do Not Want Help

Many of the borrowers are letting their homes go back to the bank on purpose. They do not want any financial help or counseling. They just want to unload a home that is not worth anywhere near what the mortgage is on it. They WANT the bank to take it back. The Feds cannot fix these loans no matter what they do with interest rates. The banks will get these homes back and have to sell them at huge losses. This is not a good time to buy Bank stocks! www.rateinformer.com

Will The New Higher Loan Limits Really Help Our Homebuyers?

The reality of the new loan limits going to $729,750 will not be of much value to most home buyers except in the few states where home prices are in outer space. The fear is Freddie Mac and Fannie Mae will get hung with defaulting Jumbo loans and the taxpayers will bail these homeowners out because the Feds (you and I) are backing up these loans with our tax dollars. This will be a sweet deal for all the jumbo home buyers who will get great rates. Once again the average buyer get zero from this new deal. It kind of reminds you of the saying "The Rich Get Richer and the poor get poorer." www.rateinformer.com

Do the Banks Have Any Clue About How Many Homes They Already Own? (Look For the Tallest Grass)

Many homeowners have not made payments in months and the banks have done little if anything about it. Many owners simply vacated their home and it is sitting empty without the Lenders even being aware of it. Grass grows tall and the home sits empty and will do so until who knows when. If you are house hunting you might consider looking for the tallest grass in the neighborhood and contact the owner or more likely the Lender. It puts a whole new angle on house hunting. www.rateinformer.com

Borrowers are being squeezed into becoming good credit risks

As underwriting guidelines tighten up from Lenders more and more borrowers are being pushed out of the market until or unless they meet the higher guidelines to owning a home. Credit scores need to be higher, money needs to be put down on a home (imagine such a silly thing as that!), appraisals are being more closely looked at, and believe it or not, you actually have to prove your income and assets to get a good rate. This is not anything new about underwriting but a return to standards that existed in the past to prevent financial disasters from taking place. It is interesting that when the borrowers put some of their own hard earned money in the purchase in the form of a down payment they pay a little more attention to making their mortgage payment. It seems to make for a stronger partnership between the lender and the borrower. Maybe this is a start to repairing some of the damage that was done in the mortgage arena. www.rateinformer.com