I am reading all kinds of articles about the problems in real estate and why it is not recovering faster than it is. You may have seen the article about the two short sales real estate agents in Phoenix. But here is what I have found just in the last month only.
A short sale appraised for $145K, and the buyer has a 160K offer on it, and the bank refuses to accept. On a refi, the owner wants to refi at about 2% less interest rate, no money out and the bank refuses to refi becuase they think the risk is too high? On a fourplex with a positive cash flow, the bank does not want to "extend" the current loan with a one year ARM, because the owners credit has gone down. If the owner cannot get this loan extended the bank will 'demand" pay off, and the owner will have to foreclose, possibly losing all of the equity as the owner cannot get another loan.
These are just 3 examples of where the bank is working "against" the real estate industry, and the owners. It is my opinion that banks are not helping/assisting owners or buyers to keep or buy real estate, even when there is no increased risk for the bank.
And of course, we all know about the appraisers, who are influenced by banks to appraise low, which leads often to a cancelled sale, as the buyer cannot com up with the difference in cash.
Good luck with your lender.
Antoine
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