Sub Prime Mortgage tanking

No Freeman is right I owned a mortgage company as a side business to my home building company for over 15 years .

I was able to secure loans for people with no job but excellent credit and 50% down. People on sabbatical who had quit their job and were working on their thesis . ???? Not a risk I would lend to.

I got people loans with no verifiable income as long as the down payment was at about 30%

I borrowed a large sum of money one time well over a 1/2 million dollars by just calling up the bank on the phone , the papers were ready the next day. And they did not have collateral to cover the amount from me. they were holding one house worth about $220,000 .

Exceptions are made in the banking world all the time. believe me if you have a few hundred thousand setting in CD's you can get anything done.

But it does not take a few hundred thousand to get a simple home loan.

If Freeman gets tired of saving but walks into a bank with 40% down and good job time but no credit . they will take his utility bills or anything else as credit and bend over back wards to give him a loan.

But probably not till this sub prime mortgage bubble shakes out in a couple of years or more depending on the economy. Credit normally tightens and relax's . Some years people with excellent credit have to jump through loops to get a loan. Other years banks would call me and ask me to take a look at my turn down for credit lists and see if anybody could be resurrected. The peoples credit often was just the same as when they had been turned down a year before, but now because loan applications were down the bank needed the business and would give them the loan.

But nothing like this sub prime bubble bursting has ever happened in the country before according to economists testifying before congress. And the repercussions to the economy they were talking about as possibilities were scary the other day.

So scary I don't want to think about it today , its giving me a head ache.

owned... past tense.

it MAY have been that way before all this, but now, no one is giving away anything.

I sold the business in Nov 2005 and under the contract I still have to consult. Thankfully that has slowed down as the new owners have gotten better with the cad program.. I was in the office helping to wrangle some mortgages for a day two weeks ago. Normally I can do it by priority mail and fax, but I have to make a appearance once in a while to keep my underwriting banks happy.

Mortgages are also made and lost sometimes by who the mortgage loan officer is. After 15 years in the business I have a couple of underwriting banks that my assertion that the loan is good carries a lot of weight with. That is not to say that the loan is automatically approved on my word, but it receives less scrutiny . A lot of getting a loan approved also has to do with how the loan officer packages it. I am very good at creative packaging. But that is not to say that I abuse the privilege. In 15 years I know of only 2 of my loans that went into repossession. And I did on a average between 60 and 70 a year.

That is just what has me upset about this sub prime loan bubble . The new owners are having a hard time finding customers right now. Some of the loans they have done in the last six months are not my usual clients . I may have to stop helping them with mortgages as I will not intentionally add to the problem . I am only under contract to help with house design through next year. I've been helping with the mortgages only to help them out and get them going. But I owe it to the banks I have dealt with for so long to make sure they are not trading badly on my companies name. ( or what used to be my company)

This sub prime crisis is going to cause a tightening of credit , no doubt about it. Maybe that is a good thing for now. But you can bet the kind of loans I mentioned in my post above will still happen. It depends on who you are and who you know.

What do you know? I'm selling a house with 6 lots back in Indiana for $25,000.00 less than I can get near that price here and get less house in the bargin. If the realtor gets it closed. I make $18,000.00 and it isn't enough to buy a what is required here in the way of land. (Topeka, KS. Shawnee County) And after I sell this house (I own here in Topeka, KS.) and get back my G.I. Bill. I want to build new on that land I over paid for. At 60 this is a big move and to get any advantage is foolish not to grab. What are you a renter? Or a realtor with a heart?