MidAmerica loan officer: Limit speculators to keep foreclosures down
Posted 3/30/2007 by thornton29As foreclosures begin to mount over the next year or so in the wake of the subprime debacle, Clint Conger, a loan officer at MidAmerica Bank, has a few ideas about how to prevent the situation from recurring.
"You can limit the number of investors that come into neighborhoods. You'd be surprised at how many of these foreclosures are investor-owned," he said. Too many lenders, he added, were using low rates to entice investors and others with good credit to assume more debt, then "subsidizing those low rates with the subprime stuff, and loans that shouldn't have been made."
It's more important than ever that buyers are not only smart about how much they can afford, says Conger, but about making sure they don't overpay for a property.
"I think a lot of sellers are obviously trying to get out of debt, and that's why they are selling. So I think new buyers need to be much more aggressive. Start putting in bids at 20-30%[below the asking price], and really look at whether they're getting a good value. Are they helping someone out by taking on their debt, or are they preparing for their future by getting in at the right price, getting themselves a comfortable payment, considering their income and the potential appreciation of that property?"
Comments
4/2/07
The Woodlawn Wonder said:
OHMIGOD!
Funny how great minds think alike. I was just getting ready to post about how foreclosures affect a neighborhood long after the banks have taken over. Catch the first post in this thread at http://ihatemydeveloper.blogspot.com/2007/04/appraisal.html
buynowornever said:
It's more important than ever that buyers are not only smart about how much they can afford, says Conger, but about making sure they don't overpay for a property.
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If people did that, then there would never had been a bubble in the first place!
buynowornever said:
So I think new buyers need to be much more aggressive. Start putting in bids at 20-30%[below the asking price], and really look at whether they're getting a good value.
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Who is this guy?? Some sort of communist?? That above quote borders on un-Americanism! This system is based on idoits buying grabage they don't need at the asking price they can't afford. What is worng with him?
Odujoko said:
Why pay full price when you can get a free car too! Oh wait…
4/3/07
woodlawn9erian said:
It’s a pity when the poor get a “chance� to buy a home with the help of a bank at a good rate and then find out later that they cannot afford it? I guess we can’t stop giving them loans; that’d just be irresponsible since banks are not in the business of making money?
woodlawn9gerian said:
Its a pity when the poor get a "chance" to buy a home with the help of a bank at a good rate and then find out later that they cannot afford it? It almost makes me think that banks are being irresponsible…They're acting like they are in the business of making money…Thats just wrong!