The bank will own that one within 3 years. I'm surprised anyone would underwrite the loan. 21-year olds are SUPPOSED to make mistakes. Loaning them money for a house without collateral is going to make those mistakes costly for somone other than the kid.
M
continued boom in real estate...
Started by
greenie
, Jan 23 2007 10:22 PM
12 replies to this topic
#11
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Mark S. Young
Posted 24 January 2007 - 08:38 AM
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#12
qqqqtrdr
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Posted 24 January 2007 - 10:01 AM
The bank will own that one within 3 years. I'm surprised anyone would underwrite the loan. 21-year olds are SUPPOSED to make mistakes. Loaning them money for a house without collateral is going to make those mistakes costly for somone other than the kid.
M
Mark:
Most bank loans are sold in mass quantities from the bank almost immediately, so banks make the loan, but the risk is taken off their shoulders for now. With less loans being made the banks lower their standards to make their quota.
Barry
#13
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Posted 24 January 2007 - 10:34 AM
you're right. I should have said, "someone besides the kid" is going to own that property.
It is actually no mean feat to find a bank that holds it's own paper any more.
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