As if Real Estate isn't struggling enough, I read an article today on the WSJ Online that states, banks and mortgage companies have a "Black List" (of course they don't refer to the list as that) circulating internally.

The list includes, what they term as slow or soft markets that create a high risk for mortgage providers.

The chances of these tagged markets recovering any time soon will lie in the lenders hands. I understand the mortgage companies concerns, but some where the (hate to say it) government is going to have to step in and come to the rescue. Although, if they are insuring the loans, they may be part of the "Black List" movement.

 I'm reading posts where states are pouring millions of dollars into Foreclosure counseling. That I don't understand, seems like the money would go better towards helping out with payments. I'm sure a few million wouldn't touch the problem, but it could hurt either.

So where does this all bring us, where do the future buyers go from here? Mom, Dad help?

 

 

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Posted by * Rate A Home on 03/06/2008 05:33 PM   Comments (6)   mortgage, black list, buyers, agents, lenders  
Originally posted at: Rate A Home Blog: Black Listed by Mortgage Company

6 Comments on Black Listed by Mortgage Company

MAR
06
2008

Taking it a step further, I've heard stories about the banks asking for completely different loan requirements and terms for these 'markets' or 'areas'.  I've read that certain people are considering this activity red-lining.  Red-lining is illegal; so it will be interesting to see where this goes over the next few years.  Note: I don't have an opinion one way or the other as I'm not qualified to make that kind of judgement - just repeating what I've read and heard.

Tina Faust, GRI
5:47pm • #1
142,488 Points Outside Blog
Tina, excellent point. I agree I'm not in a position to be an expert on this either, but it does seem there could be some legal ramifications that may arise.
6:00pm • #2

Now that is very interesting!  Thanks

Richard

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Comments in this blog posting are the intellectual property of Richard Acree, President, HABITEC Home and Building Inspections, LLC, and contributing members of the Active Rain Real Estate network, and are intended to educate and otherwise assist home owners, sellers and buyers, building owners, sellers and buyers, realtors, real estate investors, property managers, and lenders in the process of owning, buying or selling homes or commercial buildings.  HABITEC is a residential (home) and commercial building inspection company serving Middle Tennessee including Nashville, Brentwood, Franklin, Murfreesboro, Smyrna, Mt. Juliet, Hendersonville, Dickson, Belle Meade, Columbia, Spring Hill and more!  In addition to building inspections HABITEC offers Environmental Services for mold assessments, radon testing and water quality analysis.  Additional information about HABITEC can be found on our website at www.habitecinspections.com, or call 615-376-2753. 

8:56pm • #3
142,488 Points Outside Blog
Richard, at first I found it hard to believe, but then I thought hey why not, what else could possibly be thrown at the housing fiasco.
11:44pm • #4
MAR
07
2008
108,849 Points 11 Featured Posts
Duane, Pretty much all of California has been labeled Declining market and now they are rating them by category with 5 being the worst.
1:53pm • #5
142,488 Points Outside Blog
Cameron,hhmmm, rating the states like a tornado or hurricane, sad,  but at least with those two there's the Red Cross there to help instead of a Red X on the area.
2:13pm • #6

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