With all of the uncertainty in the financial sector, it seems like everyone is running scared. I have heard from multiple clients this week about this situation. It seems that many of these institutions are putting a freeze on some types of loans. This is in now way across the board at this point, but it is a cause for concern.
If you follow the real estate market at all, you know that there are tons of great deals flooding onto the market. That’s great, but if lending totally drys up we’re all in for a world of hurt. The positive side of this is that we still have FHA to fall back on for financing. Granted, the program is only available to owner occupants, but at least all these multi-families and rehab houses won’t just sit there. There is also the hope that things will start to loosen up quickly following the $700 billion influx in government money from the bailout. UNfortuneatly, nobody knows what the real affects of that money will be at this point.
With this in mind, the question I pose to any of you readers with financial connections is who is still lending? If you work at a bank or have a brother who works at a bank, or whatever; I would like to hear from the source. I generally don’t let people solicit in the comments section, but if you’d like to share some info (REALISTIC INFO!) I’m sure everyone would love to hear from you.