This year is shaping up to be one of the hardest yet in the mortgag business. There's going be many, many more REOs (foreclosed houses that the bank owns) on the banks' books, likely driving prices downward further.
That's not the problem if that increases buying activity, but with double digit unemployment (real unemployment), uncertainty, tightening underwriting standards, destabilizing appraised values and unknowns yet to come, it seems like a good year to hide under the desk if you are a Loan Officer.
Even good Loan Officers are heading for the hills, and here in NYC, they are jumping from bank to bank seeking greener grass that likely doesn't exist. Files are stacking up against the weight of regulations, underwriting that requires over documentation, and audit after audit of every file. Jumbos and High Balance Conforming loans are seeing the worst of it, but conforming loans can be painful too.
This business is tough, 7 days a week tough, but, sick as it may seem, I enjoy it.
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Banks owning foreclosed properties can be a looming scenario in the housing industry. It can be a bit troubling to think that the economy is dwindling and people are having a hard time paying debts amidst the rise unemployment rate.
However, to allow foreclosure would be a total waste of the initial payment that you already gave to the bank. It would be better to opt for a refinancing or to apply for loan modifications to make payment easier. It would be best to consult a broker in these instances, like Alberta mortgage broker actually for one, which assists individuals to re-evaluate assets to come up with better financial options. MMortgage broker in Alberta
couples the lender to the banks that would be amenable to their existing credit capability.
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