Interesting Statistics

[Bankermane]

I guess being in the banking business I am probably more interested in what's going on in the world of finance than others. As you know the sub prime lending market and the collapse of the real estate market has a tremendous affect on us. Some bank were affected a whole lot more than other. I believe most Ms banks were not really affected.

Stats I have heard or read in the past couple of days.
1) There are approximately 128 million homes in the U.S.
2) Of that total 1.2 million are currently in foreclosure with that figure expected to double. That's about 1%.
3) Approximately 60 % of all sub prime loans are currently upside down. That meaning the homeowner owes more than what they could sell there home for.
4)10 million home loans are currently underwater and is expected to increase to 15 million by year end as values continue to fall.
5) We (bankers) are seeing people have to write a check at closing to sell their home rather than receive any equity back after paying off their mortgage..

That's whats going on in our business. Hope none of you are affected.

[LawDawg]

I'm ready to buy!

[peewee]

Lawdawg is right, its getting close to being a buyers markey or (investors market) for sure.

[Bankermane]

Its already a buyers market, but there are no buyers around. People think there is more downside. When all the foreclosures hit the market prices should drop further.

[tombstone]

I'm ready to buy!

me too!

The interest on home loans is CLIMBING AT THE MOMENT!!! Bankermane, please explain that.

I have a friend looking to buy now and when he started looking a few months ago it was 5.25 or so, and now it is pushing 6.25.

Also can someone with a great credit score negotiate this interest rate in light of the downard spiral in the market?????

[fireplug]

Goes back to common sense. Don't spend more than you can afford.

Problem is (no offense to you bankermane) banks are crazy enough to take the risk on people that they
know can't afford the house and the buyer is crazy enough to beleive that it will all work out in the end.

If you make 35-40k a year, you should not be going out and buying a $200k house and a bank should never
write that loan for you because they know that the buyer won't be able to afford it when the rate adjusts.

Simple mathmatics and simple common sense. Seems like a lot of people and banks forgot to use both.
But never the less, the Government will bail them out to save the economy.

[Bankermane]

I'm ready to buy!

me too!

The interest on home loans is CLIMBING AT THE MOMENT!!! Bankermane, please explain that.

I have a friend looking to buy now and when he started looking a few months ago it was 5.25 or so, and now it is pushing 6.25.

Also can someone with a great credit score negotiate this interest rate in light of the downard spiral in the market?????

Short term rates are falling. That has nothing to do with long term rate. I expect they are rising due to demand for refinace loans or the market to sell the loans dictate a higher rate.

[cwink]

I am OK, we went in on a 20 year note.. With the plan that if something happen to my job (like they saw how much I posted on here) that I could refinance to a 30 take a big pay cut and not have to move.. In other words we tried to plan ahead..

[LawDawg]

hey bank, how much would you lowball on a house with the market the way it is?

lets say a 250k house. think you could lowball them to 210-220?

[Bankermane]

You know I have a friend that use this approach and he has been successful. He was a realtor/broker at one time. He will make lowball offers on 8 or 10 homes he would be willing to buy. In your example he might offer $200,000. He'll piss of 9 out of 10 but somebody in distress will accept. Just don't fall in love with a house you have to have. You pay too much.

[tombstone]

I plan on insulting several people when it is time to make an offer or two. The bad things is, in this armpit of the world, you know everyone you insult

Oh well, you gotta do what you gotta do

[the doctor]

Buyers market for sure only problem is selling the one your in

first timers and renters in good shape if the credit is there

the doc

[mudsucker]

Bankingdude, Am I in default on the money I owe you?

[Bankermane]

:oops: Bankingdude, Am I in default on the money I owe you?

Charged off as uncollectible.

[mudsucker]

:oops: Bankingdude, Am I in default on the money I owe you?

Charged off as uncollectible.

No! I gots it. PM me where to send it too!