Trouble right now is that there’s this little thing that’s came back into the loan business in the last year…..risk! And it’s looking like the party pooper. Defaults on home loans in CA hit 75,000 last month. And it’s growing. The last top for foreclosures was 1996 at 15,000 in one month. So I’d say lenders are looking at real estate as a pretty darn risky loan right now. Especially when you consider how the prices are going down for homes. So eventhough currency is at an all-time low cost for the banks, thanks to TPTB, lenders are not lowering rates nor are they all that motivated to make a mortgage loan.
Most lenders should actually be outta business right now if regulations were being enforced.
