Well, let me tell you this right away: I do not understand politics, therefore, it's not a major preoccupation for me. Nobody's perfect...
So my title can be somewhat confusing. But since what happened with one of my buyer recently, I couldn't stop to think about the 700 billions dollars bailout paid to the banks.
What is it for exactly? I understand, but I might be wrong, that it's a sum of money going from the government to the banks to help their financial difficulties. And let's assume I did get that one correctly. So then again, where is this money going?
My buyer had an eye on a property, and yes, it's a foreclosure. At least, even if this beautiful property is not that attractive, the asking price reflect an instant $65,000 equity. AND my buyer is willing to go up to 25% down or even up to 35% down with a more than average credit, which doesn't seem to be a problem for him. Well, the lender turned the mortgage application down!!...unless the buyer agrees with a 13% interest rate and 4 points at closing!!
Woaw!...Let me tell you this, if we put aside all 25% down payment buyers because they will not qualify anymore, I already see a tremendous decrease of the number of Real Estate agents out there...and mortgage brokers...and inpectors...and...
But then again, I guess (and hope) I really have no clue whatsoever of what can be the famous $700 billions bailout that everybody is talking about on TV...
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