Mortgage Meltdown Concerns

by Guy
(California)



I am in the residential mortgage industry in the USA and it is collapsing. 2008 does not hold much promise of reversing this meltdown and indeed looks to spread to commercial and industrial mortgages and financing as well.


This is an international problem as well from Europe to Asia. How does one proceed becoming a developer in the face of trying to add product to a market saturated with foreclosed and defaulted properties?


Is it smart to expend effort and money at this time in an industry that is reversing from profitable to potentially bankrupting?


Answer The Fed is trying this new $20 Billion Tender system and its results are not determined. Clearly the US market is entering difficult times, but from an outsiders point of view the US economy is resilient and market responsive and has been the engine room of our westwern world economy for decades.


Sub-Prime mortgages are a relatively new and badly flawed product caused by to much money looking for a deal. So "greed" was the driver and a reduction of business security standards the cause.


However it is 'residential' specific ... keep that in mind.


The result of that is a credit crunch caused by so much money being lost by the major
banks. In passing, we all have to learn from these actions for our future. By that
I mean we should contrast how difficult it is for an individual to get a loan from a bank.


After all these guys are supposed to be prudent, conservative lenders ... so the individual
borrower gets the hard treatment ... and the 'crook deal' gets Billions thrown at them.


This supports my e-courses comments that lenders are no more than Supermarkets for money.


OK, lets get back to your question. So one market is "up the creek" - that does not
necessarily mean that the commercial office, retail, industrial markets are in the same place.


All that has happened is that the cost of money has gone up and that is the main transfer
from the sub-prime disaster to the other markets.


It aslo means that banks will look at individual development proposals with a harder eye
and in so doing may over-react by inmposing stiffer conditions and lower percentage lend.


But ask yourself this question. How long will a Supermarket survive with no grocery items
to sell? Answer - They Must Sell groceries - must - must - must.


Bank are supermarkets for one product - just one - not 150,000 products like Wal-Mark. So
if they don't lend, they go out of business.


So yes, things may be difficult, but that gives others great opportunities and if that included
the forclosure business then they have to be funded as well.


I'm giving you a link to a special page on my web site on which I have made a video that explains something that you should seriously consider.


I talk about a unique American and a "Truely Unique System" that he has created ... the like
of which will change the face of real estate - real estate investment and real estate development.


Can I humbly ask you to listen to it a few times and then grab the report.


As you know I have been in the business for over 30 years and "nothing" comes within a "bulls roar" of what Ken Wade has created. So CLICK HERE NOW:

www.realestatedevelopmentcoach.com/housingbubblesecrets.html

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