08-24-2007 06:34 AM
twnkltoz wrote:Many people defaulted on their mortgages because they couldn't afford them. Their lenders approved them for way more than they could afford, and they couldn't make the payments. That's why lenders are raising the minimum scores for 100% financing. Credit history is important.And that's another reason I'm buying a home abroad...in the coming months we're going to see a pendulum effect. The system will over-react (it always does) and we'll go from mortgages being handed out like candy on Halloween to practically NOBODY getting approved. Banks are going to shy away from high and even medium-risk loans...you'll have to have the credit rating of Satan Himself to qualify for a mortgage. And since for me that's, oh, about thirty years away, it ain't gonna happen.The one plus side to this for potential homebuyers is that by 2008 to 2009, with all that jive mortgage money pulled from the housing market, demand will slump and housing prices will plummet. So if you're more fortunate than I am and you have $30,000 or so of cash, or a nosebleed credit rating, you'll be able to get yourself a great deal on a home.
08-25-2007 06:59 PM