18 August 2011

Scared bunch or something else? What the heck are the banks doing with all the money?

According to CNN Money - Home sales take a sharp turn down, home prices are at one of the lowest point since 1970, but due to strict loan requirement, a lot of qualified buyers are prevented from getting a loan.

My questions to the banks are what the hell are you guys doing? When there are too many unqualified borrowers, you lend them carelessly. Now with federal assistance and the truck load of money the government is giving to you, you turn your back to qualified buyers because you are "scared", can you guys do anything right? First your wreck the economy and then you prevent it from recovering!

"While the struggling housing market has made buying a home increasingly affordable for consumers, many can't get financing from lenders to make purchases and therefore help the market recover, said NAR chief economist Lawrence Yun."

"Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers," Yun said".
 Further more

"Contract failures, largely caused by declined mortgage applications or appraisals below the negotiated price, were unchanged in the month. But 9% of realtors said that a contract was delayed in the past three months because of low appraisals, while another 13% reported that contracts were negotiated to a lower sales price because an appraisal came in below the price that had initially been agreed upon."
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