Chase recently received $25 billion in federal funding. What effect will that have on the business side and will it change our strategic lending policy?

The money was supposed to buy their "toxic securities" and essentially give them money to start lending again.

That's money for people to buy houses and start clearing the foreclosures in the market.

Did they do that?

No

The dirty little secret of the banking industry is that it has no intention of using the money to make new loans. .they instead are using the money to recapitalize themselves. .

Recapitalize: Meaning, they are using the money to maintain their doors open. Paying their bills, paying their Christmas bonuses

 

That's the real  reason why  Treasury Secretary Henry M. Paulson has decided to STOP given banks FREE MONEY. Instead. they will focus the remainder of the 700 Billion directly on the consumer.

 

What this mean to you if you are losing your home to foreclosure.

Your bank will now have more incentive to negotiate a short sale rather than take your property to foreclosure.

They don't have to wait and see if the Government is going top help them

Banks are now on their own. . .

Short Sales seems the only win-win situation for the bank and the homeowner.

 

We are seeing more and more desire from the banks to work with our short sales.

It helps when you have 7 under contract. . . .

 

If you feel that a short sale maybe an option for you. .

 

Just call us @ 240-426-5754

 

Thanks,