- This topic has 29 replies, 10 voices, and was last updated 13 years, 2 months ago by svelte.
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July 24, 2010 at 11:21 AM #17747July 24, 2010 at 12:04 PM #582130jpinpbParticipant
It was interesting what they’re saying about Orange County. Makes you wonder about SD.
“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”
If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.
July 24, 2010 at 12:04 PM #582221jpinpbParticipantIt was interesting what they’re saying about Orange County. Makes you wonder about SD.
“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”
If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.
July 24, 2010 at 12:04 PM #582754jpinpbParticipantIt was interesting what they’re saying about Orange County. Makes you wonder about SD.
“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”
If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.
July 24, 2010 at 12:04 PM #582861jpinpbParticipantIt was interesting what they’re saying about Orange County. Makes you wonder about SD.
“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”
If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.
July 24, 2010 at 12:04 PM #583163jpinpbParticipantIt was interesting what they’re saying about Orange County. Makes you wonder about SD.
“Fannie Mae now requires an average down payment of 30% for securitized loans which it purchases or guarantees.”
If FHA were not in the picture, requiring 30% down would put a damper on things. But since we do have FHA for now, the market is holding on.
July 24, 2010 at 9:32 PM #582205MadeInTaiwanParticipantI think the banks will hold on much longer than most people expect.
I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.
Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.
Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.
July 24, 2010 at 9:32 PM #582296MadeInTaiwanParticipantI think the banks will hold on much longer than most people expect.
I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.
Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.
Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.
July 24, 2010 at 9:32 PM #582829MadeInTaiwanParticipantI think the banks will hold on much longer than most people expect.
I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.
Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.
Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.
July 24, 2010 at 9:32 PM #582936MadeInTaiwanParticipantI think the banks will hold on much longer than most people expect.
I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.
Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.
Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.
July 24, 2010 at 9:32 PM #583238MadeInTaiwanParticipantI think the banks will hold on much longer than most people expect.
I think it is the size of the defaults. If the losses are small, then the banks will be more willing to take a loss. However, the problem is so large that banks know selling will probably make them shut their doors. The choice is recognize the loss now and possibly shutter its doors, or take the drip drip drip of missed payments and hope/pray/wait for the market to rebound/stabilze enough.
Another possibility is that the banks are holding on to properties until they can build up enough reserves to be able to safely write off the losses.
Part of me wonders if this strategy will actually work. We end up a decade or more of low sales and high prices.
August 30, 2010 at 12:14 PM #598022AecetiaParticipantA bit off topic, but thought this was better than starting a new thread: bank officials under attack-
August 30, 2010 at 12:14 PM #598451AecetiaParticipantA bit off topic, but thought this was better than starting a new thread: bank officials under attack-
August 30, 2010 at 12:14 PM #598132AecetiaParticipantA bit off topic, but thought this was better than starting a new thread: bank officials under attack-
August 30, 2010 at 12:14 PM #597479AecetiaParticipantA bit off topic, but thought this was better than starting a new thread: bank officials under attack-
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