Every time you turn on the television or the radio, you hear about people who can't get car loans or can't get financed for mortgages. Doom & gloom all the way! I understand that there is a problem with conventional loans, but government loans are still going thru. I was informed that it was difficult to get investment financing. I just did a cash-out refinance on one of my rental properties. Other than the fact that, because of the declining real estate market, I had to do a 75% LTV instead of the 80% LTV that I wanted, I didn't really have a problem. The appraisal wasn't as high as I would have liked, but that's a declining market.
I have a friend that had several late pays on this car loan. He straightened that out last year and has been on time ever since. Because of gas prices and a growing family, he decided to trade it in. His trade-in was more that what he owed. I still don't understand that. It never happens that way for me. I'm always upside down. He had to be approved by a manager, but he still got his loan. And he got a great deal on his new previously owned vehicle.
With all of this doom & gloom, the people interested in buying vehicles and real estate aren't even trying to buy. They are not calling because they've been told by the media, that it isn't possible to get a loan. A local newspaper ran an article about how bad things were in the real estate and mortgage markets. Several of the mortgage companies quoted had basically gone out of business, but they were the ones doing subprime mortgages. They didn't talk with agents and lenders that were still doing their best for their clients. Who might have been able to inject a little light into this gloom.