The latest questions, but first the obvious question, what banks will be left standing after they have been re- evaluated post HELOC and sub prime loses???
This has been on the minds of many of my business associates. Who can we depend upon to be there when the dust settles? The FBI is currently investigating Countrywide, and valuation of many other financial institutions is wobbly at best,to say the least. The Fed keeps infusing the economy with big cuts, more so than in the last quarter century; all just in the last three months. Not to mention the latest infusion of $200 billion to financial institutions not on the normal term of 24 hours, but now being lent on a 28 day term. UNBELIEVABLE!
Then there is MARKET VALUE, or rather in some places in this great country, the devastating lack there of.
So what's a Lender to do? How is a Realtor to market and sell? We as well informed professionals will do what we have always done, evolve with this market, see the opportunities for our borrowers in other types of loan products, and types of investment properties and last but certainly not least, how to market in this type of ever changing market place.
With the national market soon to reach 30% inequity on loan to value on existing mortgages over the next 24 months, with 28 thousand foreclosures a WEEK occuring NOW, there will be many more rentals necessary at a certain price point for these folks who will now need alternate housing, think about that market for a moment, it is huge. Any more it might not be so much location, location, location, but rather price point, price point, price point. Affordable rentals are becoming scarce, and in some areas of my neck of the woods just about impossible to find.
SO, am I running down an interesting rabbit trail or what? Hop along, I would love to hear what you think of all this.