I don’t really believe it but it turns out that the fed announced that banks borrowed less from the fed’s reserve emergency lending program. This is heralded in banking circles as “strength” an a “healthy” sign. Ok…so I read about this and it dies not jive with my reality working hard at selling property.
What I see “in the street” from my personal-based experience showing my listings each week and talking to Realtors is that banks are not lending to meet the “logical” demand. The demand of really clean credit buyers. There is needless hesitation. There are buyers getting shunned. The demand is NOT being met (would some entity or credit unions rise to the occasion)?
Pssst: has anyone switched to local banks to switch the power? …… I hope so. Can move our money to shift this game!
The deals we have under contract ( about 15) seem to be backed off to an average closing ratio of 30 percent closing on time. That’s terrible.
The rest of my deals have all sorts of holdups. It’s a full time job for my deal manager (may Buddha help her) to help me push these along each day… Inch by inch to the less than inevitable closing.
There’s no timeline anymore.
Not many deals close on time.
This is a new reality for us.
The hard part is… Peoples lives depend on expectations–vision–moving vans, leases. Kids schools being chosen, vacations… Getting the picture. And we try to balance it all but wow… Can the lenders please get back on “American time!!?”
Or April, May and June:
The tax break deadline has consequences–And lender turnaround times are so bad deadline does not seem to be in their vocabulary.
What’s more upsetting lenders are asking for things unheard of before:
One example: I had a buyer asked for 2010 taxes that were not due until April on a deal that was scheduled to close in January! It was January 2010. Taxes dueapril 15,2010.
They had to preapare them quickly or just pay cash. Well they paid cash.
Why doesn’t Chase or B of A just say “not giving loans now” on the website? Why are they wasting everyone’s time? They have disrespected my clients with poor service (in my opinion) and silly requests.
Again… How could a bank give delay of four weeks to someone who can pay cash ?? ( this client in the above example decided to literally just pay cash for the deal instead of deal with the silliness if the banks gamemanship).
Will someone fill the gap in service and demand here!!!?
Where is “the market” that is supposed to supply a buyer a loan?
A buyer who can pay cash for a deal on a 200,000 house that was asked for stacks of paperwork of unprecedented levels?
Again; just say “not lending just want you to think we are but wanting to charge you fees” on your bank signs all over Chicago.
I have never seen appraisals challenged so much, requests for additional documentation or denials of credit worthy buyers by banks- especially the big ones.
This is why the prices are so low.
So how do we make sense of the. People who say “I hear the markets picking up.”
How do I read the “positive ” news that The Fed, in a report issued Thursday, said banks averaged just $7.66 billion in daily borrowing from the emergency reserve for the week that ended Wednesday. That was down from $10.75 billion in average borrowing for the previous week.
That this meant banks were back on their feet again?