I have never had a harder time than now… getting loans… (commercial)… even at 40% LTV and 4x cash flow… brings in 4x what the note is…
perfect credit… everything auto deposit and auto deducted… I had a bank i had dealings with for years… tell me not only that they didn’t want my loans… which they knew were good loans… they were under orders to get rid of as many loans as they could with no regard to the quality… godd or bad… they all need to go…
weird…
i’ve been going into the insurance company pool/market… which is weird in itself…
doesn’t matter it it’s a 500k loan on a 3million property with a long term national tenant that pays 3x what it takes to service the debt… if it’s not 85% occupied.. they don’t want it… no matter what…
weird…
i’ll be interested to see what the posted rates are in the morning…
p
Replies
Same experience here, in October applied for loan with my local bank.
More than 60% down. They quoted me a rate and then started jacking us around and around and around.
Finally after the last email telling me they had quoted for something else and were going to have to raise it .75% I sent them a copy of their original offer laying out exactly what they were telling me they had not bid on and told them to stuff it.
Apparently the Subprime affair has carried over to all loans, anything less than 100% down is suspect.
Cost me an additional appraisal for nothing,
Joe H
I was musing today about just how large the FDIC fund is.....
Green in the mattress may have some advantages in the near future.
The FDIC is a huge concern. They, in conjunction with congress, are in large part the reason we are in this mess because it was their juggling of the reserve accounts that unleashed the avalanche of loans. I posted about a book that explained it all about a year or two ago when everything was still climbing. Of course, everyone pooh poohed the idea because they were swamped and prices were soaring. The chickens are coming to roost. Bob's next test date: 12/10/07
I think the reason for the problem is simple... people who had no business or the credit to purchase homes were allowed to...
the bigger the risk they were the higher the interest was to cover that risk... which really didn't matter since... many never had a clue how they'd pay anyway... around here i've heard the that 60% of those in forclosure... never paid the first note...
"why quibble over the terms of a contract you have no intention of honoring"
p
My wife just closed on a deal where the buyer got 100% financing at 5.3% (no points) for a residence.
I think there is still opportunity out there, just fewer people participating.
Bruce
Nice. Which bank? Bob's next test date: 12/10/07
Jim,
I found out is was some kind of VA loan. Don't know much more about it.
Bruce