Comments on: Fed: Banks reluctant to lend http://blownmortgage.com/2008/08/11/fed-banks-reluctant-to-lend/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sun, 08 Nov 2009 16:51:22 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Austin mortgage lenders http://blownmortgage.com/2008/08/11/fed-banks-reluctant-to-lend/comment-page-1/#comment-12785 Austin mortgage lenders Mon, 18 Aug 2008 05:20:51 +0000 http://blownmortgage.com/?p=1223#comment-12785 I completely agree with you Morgan, banks are truly reluctant to lend! and you got all the statistics right about the economy which is faltering big time! I completely agree with you Morgan, banks are truly reluctant to lend! and you got all the statistics right about the economy which is faltering big time!

]]> By: Austin mortgage lenders http://blownmortgage.com/2008/08/11/fed-banks-reluctant-to-lend/comment-page-1/#comment-13004 Austin mortgage lenders Mon, 18 Aug 2008 05:20:51 +0000 http://blownmortgage.com/?p=1223#comment-13004 I completely agree with you Morgan, banks are truly reluctant to lend! and you got all the statistics right about the economy which is faltering big time! I completely agree with you Morgan, banks are truly reluctant to lend! and you got all the statistics right about the economy which is faltering big time!

]]> By: Ann http://blownmortgage.com/2008/08/11/fed-banks-reluctant-to-lend/comment-page-1/#comment-12784 Ann Mon, 11 Aug 2008 23:59:33 +0000 http://blownmortgage.com/?p=1223#comment-12784 I understand banks tightening up..as if they are left with a choice..however that only helps "half" the equation..the other half would be to stop the bleeding from those that will or are about to bleed..<br><br>Leaving someone in a loan that was a bad loan to begin with spells trouble..banks need to start working with people to determine if they are able to be refinanced OUT of the bad loan..by tightening up the credit on a borrower that they freely lended to 24 months ago, that leaves limited options to REFI that borrower out of a time bomb waiting to go off..(example 24 months ago Mr Smith was able to secure a OPTION ARM from Wachovia with little trouble..now 24 months later..Mr. Smith wants to do the right thing and REFI out of it but CAN'T..he hasn't been late but lets say he is self employed and can't PROVE the income the way the bank would like...is it better to just deal with this borrower and keep him in the home or to take back the liability of the property, a write down, the hit to shareholders and on its balance sheet and of course the bank will not be able to sell the home for what it is worth since it is now labeled a "foreclosure" "as is" property...<br><br>Lenders need to take responsibility in both sides of the equation for the future and current health of the economy and the housing market..<br><br>I am seeing to many communities, in especially South Florida(expected to be a declining market for 2 more years) destroyed by lenders lack of responsibility. I understand banks tightening up..as if they are left with a choice..however that only helps “half” the equation..the other half would be to stop the bleeding from those that will or are about to bleed..

Leaving someone in a loan that was a bad loan to begin with spells trouble..banks need to start working with people to determine if they are able to be refinanced OUT of the bad loan..by tightening up the credit on a borrower that they freely lended to 24 months ago, that leaves limited options to REFI that borrower out of a time bomb waiting to go off..(example 24 months ago Mr Smith was able to secure a OPTION ARM from Wachovia with little trouble..now 24 months later..Mr. Smith wants to do the right thing and REFI out of it but CAN'T..he hasn't been late but lets say he is self employed and can't PROVE the income the way the bank would like…is it better to just deal with this borrower and keep him in the home or to take back the liability of the property, a write down, the hit to shareholders and on its balance sheet and of course the bank will not be able to sell the home for what it is worth since it is now labeled a “foreclosure” “as is” property…

Lenders need to take responsibility in both sides of the equation for the future and current health of the economy and the housing market..

I am seeing to many communities, in especially South Florida(expected to be a declining market for 2 more years) destroyed by lenders lack of responsibility.

]]> By: Ann http://blownmortgage.com/2008/08/11/fed-banks-reluctant-to-lend/comment-page-1/#comment-13003 Ann Mon, 11 Aug 2008 23:59:33 +0000 http://blownmortgage.com/?p=1223#comment-13003 I understand banks tightening up..as if they are left with a choice..however that only helps "half" the equation..the other half would be to stop the bleeding from those that will or are about to bleed..<br><br>Leaving someone in a loan that was a bad loan to begin with spells trouble..banks need to start working with people to determine if they are able to be refinanced OUT of the bad loan..by tightening up the credit on a borrower that they freely lended to 24 months ago, that leaves limited options to REFI that borrower out of a time bomb waiting to go off..(example 24 months ago Mr Smith was able to secure a OPTION ARM from Wachovia with little trouble..now 24 months later..Mr. Smith wants to do the right thing and REFI out of it but CAN'T..he hasn't been late but lets say he is self employed and can't PROVE the income the way the bank would like...is it better to just deal with this borrower and keep him in the home or to take back the liability of the property, a write down, the hit to shareholders and on its balance sheet and of course the bank will not be able to sell the home for what it is worth since it is now labeled a "foreclosure" "as is" property...<br><br>Lenders need to take responsibility in both sides of the equation for the future and current health of the economy and the housing market..<br><br>I am seeing to many communities, in especially South Florida(expected to be a declining market for 2 more years) destroyed by lenders lack of responsibility. I understand banks tightening up..as if they are left with a choice..however that only helps “half” the equation..the other half would be to stop the bleeding from those that will or are about to bleed..

Leaving someone in a loan that was a bad loan to begin with spells trouble..banks need to start working with people to determine if they are able to be refinanced OUT of the bad loan..by tightening up the credit on a borrower that they freely lended to 24 months ago, that leaves limited options to REFI that borrower out of a time bomb waiting to go off..(example 24 months ago Mr Smith was able to secure a OPTION ARM from Wachovia with little trouble..now 24 months later..Mr. Smith wants to do the right thing and REFI out of it but CAN'T..he hasn't been late but lets say he is self employed and can't PROVE the income the way the bank would like…is it better to just deal with this borrower and keep him in the home or to take back the liability of the property, a write down, the hit to shareholders and on its balance sheet and of course the bank will not be able to sell the home for what it is worth since it is now labeled a “foreclosure” “as is” property…

Lenders need to take responsibility in both sides of the equation for the future and current health of the economy and the housing market..

I am seeing to many communities, in especially South Florida(expected to be a declining market for 2 more years) destroyed by lenders lack of responsibility.

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