issed:issed:I called today to check status of one of my closings scheduled for this Friday. The status is-there will be no closing. The loan company went out of business. I have a preapproval letter dated August 8, the house was appraised about a week ago, the sellers payoff is ordered, we're ready to go. Boom! The loan company is gone. Things are changing fast in the RE finance world. This deal would have closed less than a month ago. The buyer is very marginal with little or no down, marginal credit, etc. You used to be able to get these buyers financed at a higher rate than normal, but not any more. This "subprime" mess is just getting started. I think its going to get real ugly. The record sales of the past couple years have been largely due to easy money (to easy!) A return to normal underwriting standards will probably disqualify as much as 25% of people who used to be buyers. Now they are renters. I think the next few years will be real good for landlords. I'm looking to buy foreclosures for single family rentals.
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