Cash for Condos Grows Scarcer; Equity Lines Vanish
Syndicated real estate columnist Kenneth Harney reports that would-be condo buyers across the country are about to find financing harder to come by. Fannie Mae and Freddie Mac have both recently issued guidelines that require loan officers to perform due-diligence research on characteristics like a condo’s legal documentation and the percentage of units owned by…
Syndicated real estate columnist Kenneth Harney reports that would-be condo buyers across the country are about to find financing harder to come by. Fannie Mae and Freddie Mac have both recently issued guidelines that require loan officers to perform due-diligence research on characteristics like a condo’s legal documentation and the percentage of units owned by investors, and for lenders to assume legal and financial responsibility for the accuracy of their assessments. “Even if you had an 800 FICO score and 50 percent equity,” says one mortgage broker, “you still might not be able to get a condo loan.” As Harney writes, “It depends on whether the underlying project can pass the underwriting tests, is in a declining market, and has a lender ‘concentration’ limit on it. Some lenders refuse to finance more than a set percentage of units in a single condo project to limit their risk.” At the same time, many home owners are starting to see big reductions, or freezes, on their home equity lines of credit. A poster on the Forum recently wrote the following: “Logged into my bank account today to find that my line of credit had been cut down by more than half. When I called the bank they told me it was due to a “reduction in property value”. I know things ain’t peachy, but I haven’t noticed prices going down that much! Has anyone else had experience with challenging this type of decision? I put 40% down on my home, fer chrissakes, got a great lease on my rental unit and my credit is well above 750. What gives?!” As the Times has reported, banks are freezing equity lines “even in areas where property prices are rising.” Ouch.
Condo-Loan Restrictions Tightening [Baltimore Sun]
Incredible Shrinking HELOC?? [Forum]
Photo by Evaonne Hendricks.
The What, another shout out to me. You’re so sweet, but please try not to spend all your waking hours thinking of me. I know you want to fuck me, as you said above – but you have real estate in Lodi to sell, dear. You will have time for “nay grease” later.
I know you’re a very bright boy and understand it’s all part of an economic cycle and we cannot experience stagnant prices and high home values at all times. I just know you understand because you’ve so helpfully reminded us about this over and over. But I’ve made it through downturns as have countless millions and I’m pretty confident I’ll make it through this one too.
Nobody’s mad at you because you see our demise coming around the corner. In fact, we all see the downturns to which you refer. But we also each know our own situations and know we will survive, so again, please don’t go crazy being so worried about us!
“Your landlord are ass-raping you!”
The What, I’m confused. I don’t have a landlord but I hope yours is treating you fairly as you’re clearly worried inflation will run your limited funds out very soon.
Oh by the way assfucks, You can get 2 bedrooms under 2000.00. Your landlord are ass-raping you!
Plus if someone is paying 2900 a month for a 1 Bedroom in Billyburg, GOD bless that landlord. I hope he/she don’t use nay grease on ya!
The What
Someday this war is gonna end…
“You two may be suffering from the changing economic times, but I have money in the bank and equity in the house. Too bad you two don’t.”
6:21 You are OK with rising inflation, I’m not!
“Hey tWhat, I own a car and can handle the increases in gas prices and can afford a new car if and when I need to get one. Not everyone in this city is suffering.”
Not my point fucktard!
“I do remember the 70’s, tWhat, and there is one big difference between then and now – I got an education that allows me to have a career, make a lot of money, own a home without over-stretching my credit, own a car, travel, save for retirement and weather this storm. For someone your age and “experience” with the city’s ups and downs, you really have a lose grip on how this all works in the long run. Too bad you never got much further than ps 58? If this city can recover from the 70’s, it can recover from this crisis.”
No you don’t! If you did you would be very upset at hugh inflation! I know you and others are mad at me. Why? because I see your demise coming around the corner. There are food shortage going on around the world and if someone is hungry enough the will fuck your bitch ass up for yours! I have money and I’m very upset that inflation is robbing me of my spending power! You fucking keyboard warriors jagoff all day in Brownstoner and to make matters worse, you can’t see the decline on this blog! No one gives a fuck about Real Estate no more , it’s about feeding our families!!!!! So fuck you and Biff.
Plus when the day the Stock Market Crashes, I will carpet bomb this mother fucking blog!
The What
Someday this war is gonna end….
12:57 and the tWhat, 12:49 here.
You two may be suffering from the changing economic times, but I have money in the bank and equity in the house. Too bad you two don’t.
Hey tWhat, I own a car and can handle the increases in gas prices and can afford a new car if and when I need to get one. Not everyone in this city is suffering.
12:57, the tWhat is mentally ill. Anyone who really thinks and wants the world to crash needs help and has no vested interst in seeing that things get better for themselves or anyone else. I am doing really well. If you can’t handle it, keep that to yourself. Your attempt to insult me looks a lot like envy.
I do remember the 70’s, tWhat, and there is one big difference between then and now – I got an education that allows me to have a career, make a lot of money, own a home without over-stretching my credit, own a car, travel, save for retirement and weather this storm. For someone your age and “experience” with the city’s ups and downs, you really have a lose grip on how this all works in the long run. Too bad you never got much further than ps 58? If this city can recover from the 70’s, it can recover from this crisis.
It is good to see you back tWhat. I had no one to insult these past few weeks.
“there are no 2000 2 bedrooms period. silly statement.”
4:33, that’s hardly the first silly statement from The What and I strongly suspect it won’t be the last. In fact, he’ll likely make a few more silly statements within the next hour or so…
there are no 2000 2 bedrooms period. silly statement.
friends are paying $2800 and $2900 for one bedrooms in williamsburg.
after taxes i’m paying $3500 with ccharges on a 2000 sq ft brand new condo from 2006 in a solid area. no way i can get a rental of the same quality for that. NO WAY.
Hey The What, old friend! That’s great news regarding the gas. Thanks for keeping me posted. These hourly updates from you regarding gas prices are very handy. I hope you have enough fuel to get back to Lodi from Brooklyn, chappie.
I think it’s wonderful you know so much about the posters here, but since we’re so close, you probably should know that I can afford to have a car and the gas that goes in it. And that will still be true if gas is $10 a gallon plus. And yes, please rest your worried little head. I’ll also be able to still afford to eat even with inflated food prices.
Oh, The What, you just can’t contain yourself from expressing your newfound fabulous gay side. I didn’t realize you’ve become fascinated with gerbils though. You’re getting a little kinky, even by your standards, big guy!!
Hey Biffie Boy! Guess what I just came from the gas station! Regular is at 3.65 a MOTHER F—– GALLON! Wrap your little mind around that! So I asked the attendant “How is business?” He said ” It’s real slow”. The station on Vanderbilt and Atlantic and it’s in Brooklyn!
I know the —-tards who post on this site don’t or can’t afford a car! Gas is Inflation and that is killing the economy. I will be glad when Wall Street crashes because that will be the event horizon of the depression.
The What
Someday this war is gonna end….
“Haha you wish. Actually I am selling my apt in Paris for 6x what I bought it for in 2002. With the current currency exchange for the euro I should be up over 10x my investment.”
I am looking forward to seeing you on a Carlton Sheets info-mercial!! Remember, please hold up the check for the camera, showing how much “profit” you made on the deal.
Benson