Friday, March 21, 2008

OH NO! Lenders have stanards

Goodness me. I was horrified to read that the meanie bankers actually have standards again. Before you read further, make sure no child under the age of 16 is around as it may be too scary for them

WASHINGTON (AP) -- Just when consumers and the U.S. economy need banks to lend more freely, the mortgage industry is making it harder to borrow -- even for those with good credit. Mortgage insurers, whose backing is required for borrowers who can't afford the traditional 20 percent down payment on a home, have already flagged nearly a quarter of the nation's ZIP codes where they refuse to insure some home loans

The Horror! The Horror! My god somebody please, do something for the sake of the children.

It gets worse:

Banks that have lost billions because of bad bets during the housing boom are now reverting to strict lending standards not seen in nearly 20 years, according to industry data and interviews with lenders.
What is this word they keep mentioning...s-t-a-n-d-a-r-d? I thought since real estate never went down and it was everyone's constitutional right to own the American Dream, there were no standards. Got a pulse? OK here's your $500K loan.

And here is the witty analysis of the MSM peon writing this brilliance:

Lenders' growing leeriness threatens to dampen sellers' already soggy prospects for the spring home-buying season -- and that means more pain for the already battered housing sector and the broader economy
No, no,no. You have it all wrong. I read just this week that many experts are saying the worst is over for housing and now is a great time to buy. I also saw a varierty of talking heads on CNBC say that Benny B saved the day and now is a great time to buy stocks and all this talk of recession is nonsense. How in the world could all that be happening while the spring selling season sees soggy prospects?

But what about those super duper smart guys who think now is the best time ever to buy, will they be hurt? You betcha!

Don Brekke, an equipment operator from Colorado Springs, Colo., tried to buy a bank-owned 1950s ranch home for $113,000. At first he couldn't get a loan because the house was in a potentially declining market, and lenders required a 10 percent down payment, more than he could afford.
Hey Donnie, here's a friendly tip. If you don't have $11,300 available on hand, you have absolutely 0 business being a real estate investor. I mean holy shit people, have you learned nothing from the past 2 years? At least it's good to see lenders have smartened up and no longer throw money around to people like Donnie.

Nope spokse too soon. The government gave him the loan after all with your tax dollars:

Ultimately, he was able to qualify for a 100 percent loan from Colorado's state financing authority, and he plans to close in the coming days. "It was a bunch of headaches -- going around and around to get this done," Brekke said.

Anyone wanna take bets how long before Donnie is crying for bailout #2 because he can't make the payments? Stories like this prove what a mess 50 years of government run schools have created. People can't think critically anymore. They are on auto pilot and their first instinct is I want government shit for free. I want a free house, "FREE" health care, "FREE" retirement, etc. Never mind that you are a worthless deadbeat piece of shit who couldn't make it 3 days on your own without a government lifeline. Never mind that 100 years ago you would have starved to death on the side of a road due to your utter incompetence and lack of intelligence. Forget all that. In the USSA - United Socialist States of America, you qualify for a 100% loan on a house that will be worth 25% less in 2 years, just because you are you, and you are as special as a snowflake, and your self-esteem is the most precious gift out there.


Anonymous said...

Another great line in that article is
Broussard "took advantage" of soaring Southern California property prices three years ago to refinance a loan on a house he had owned since the late 1990s. Today he's still stuck with a $720,000 mortgage and has been renting it out since moving with his family to Texas a year ago. Once appraised for $1.1 million, Broussard's lender now says it's worth about $300,000 less.

In other words, he "took advantage" of the opportunity to load himself up with debt that would crush him and his family for years to come.

Ed said...

Some thing's not right with that story. He is "stuck" with the mortgage. Yet his lender says the house is worth $810,000. I don't see a problem for Broussard. Sell it for $810,000 pay off the mortgage and walk away with $90,000.

In reality the house is worth $610,000 and hence, why he is stuck. If I were his tenant I'd be looking to move before the Sheriff shows up to evict.

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