Over th past coup-le of months, I have been actively working with buyers and sellers and would like to inform you it is my opinion that bbanks are actually killing the real estate recovery by their lending "tactics". Yes, that is what I call it these days. And, here is why:

1. a very good friend of mine wants to refinance a property in the value range of $900,000. She only wanted to get out about $300,000 ( a 33% LTV), and she has been receiving the run around at the bank for four months, and she still has not received her loan.

2. A client of mine wants to refinance a duplex, no cash out, at the same 75% LTV, just reducing the expenses. Banks are not willing to refinance as they claim the risk is too high. Well, is that interesting or what. It is OK for my client to pay 7% already since 15 months, but is too risky to pay 5% interest? Where are these people coming from ( Mars?).

3 I had a buyer with an offer on a short sale. Buyers docs were in escrow, and signed, and the downpayment was in scrow as well. The bank STILL foreclosed. Are they NUTS?

I can give you plenty of more horror stories about how bad REO's are being marketed and  advertised and serviced. Buyers looking at REO's always think you can get away with making low ball offers, because the listing agent does not care, and nor does the bank.

I actually was so fed up, I wrote a letter to the CEO of Wells Fargo, and how the bank can make about 400 MIL more by using different practises. The reply came from his secretary: thanks for the letter, we alsways approceiate consumer input.

The industry needs to change, for all of us.

Antoine 

Come join us for a drink and a chat from 7 to 9 pm on Tuesday October 6th. You will have the opportunity to meet with me and other investors. Take a moment to perhaps ask general or specific questions on the real estate market. View a running presentation with all kinds of advice or questions. Integrity and knowledge are the cornerstones of my business. Bring your friends or colleagues who are interested in investing in real estate now.

See you there .

Antoine

We all know it is not easy to get a loan these days, but banks have gone truly crazy. With the Fed pumping money in the banks, the banks are supposed to start lending again. Here is what I got on a refi:

at 60% LTV, 4.975 points and a rate of 6.875%. How is that for a profit? They get the money at 1.5% and give it to me at 6.875% plus almost 5 points?

I guess the CEO needs to make some money too.

Can anyone do much better these days as a stated income refi on investment property?

Thanks

Antoine 

Hello All:

All real estate agents should be very aware of the impact of a bad appraisal on the possibility of getting a loan. This is an actual case. An appraiser from out of town , heck out of area, appraised a four unit building. He did not like it although the building is in great shape. It may not have nice architectural details, but physically it is in good condition. There are tenants in all units. So here is what the appraiser did: his "opinion" is that the rents are too high. Strangely enough, the tenants don't think so. The danger is this: an out of town appraiser has no idea about the rental market in the subject area. The problem is that there is no recourse against the "opinion" of the appraiser.

If anyone is in the Bay Area, and would like to know more, let me know. But this should be a warning to all Realtors. Make sure you get an appraiser from the area of the subject property. At least you have a chance they know what they are doing.

Good luck.