Posted by James Strange on November 09, 2002 at 22:32:58:
Have you noticed how big most banks have gotten?
No one will make a desision that is outside of the ruels.
I don’t see why with a 100k down 46%LTV she was not able to get a loan through a broker? Even a subprime lender would loan that a decent rate.
Often when a bank has a bad loan they want to get rid of it and not let someone else take it over.
It doens’t make sense to me!!! - Posted by RR
Posted by RR on November 09, 2002 at 22:03:59:
I am realtor and few months I had a listing(house) available for 174k aprraised valeu reached 158k, the house needed a new roof and kitchen , I had a buyer who put down 100k she was an another realtor,but the the house never appraised and the bank didn’t financing the house is into deep forclosure now , she tried to get tha bank to finance the same bank that was used by the owner.
my question is …
A fact that a property goes into forclosure is good bussinesses for banks?
why the bank(I dont want mention the name) didnt take the 100k and let the new owner fix the house?
and also why banks dont work direct with investors? they should have a departmente only with investors?
Am I missing something here?
My theory is that banks have some kind of insurance and at the end they end up making a lot of money out of this.
Am I correct?
Thanks
everybody
Re: It doens’t make sense to me!!! - Posted by RR
Posted by RR on November 10, 2002 at 11:43:17:
The house was appraised after the offer was done,the owner bougth the house for 153k and had a 2nd mortgage for 15k that’s why I asked 174k.
thanks
Re: It doens’t make sense to me!!! - Posted by BrokerScott (Mich)
Posted by BrokerScott (Mich) on November 10, 2002 at 06:13:14:
James is right, but I’m wondering why you had it listed for 174K? Had the owner taken out a 125% loan or were they one of those who “knows what theirs is worth” No having a bad loan on the books is not a good thing for the bank because they have to reserve a good chunk of money that they could have otherwise be lending. Used to be you could make a personal relationship with your local bank and get a heads up on deals. Now my local branch doesn’t even write mortgages. There is a regional rep just for mortgages, but the headquarters is in Ohio. Which leads me to why banks usually enlist Realtors to market their properties. THEY DONT KNOW HOW. They write mortgages in 17 states, but when it goes bad they have no idea what the RE laws are in that state. for instance, Michigan HUD forclosures are handled by a California law office, who shall remain nameless, and don’t even get me started on those “people”. Banks only insurance other than PMI is the property itself. When a loan goes bad they just fill in the blanks and follow the timetable.