Do you have any antecdotal evidence of the credit crisis?

MC.no.spin · 09-26-08, 03:30 PM

Have you seen evidence of difficulty getting a mortgage or loan?

I've heard of a home buyer agreeing on a sale price with the seller of about $500,000, then the bank denying the loan because they valued the home at only $400,000, despite the fact the buyer and seller agreed on this price. This is apparently common now.

I've also heard about Caterpillar manufacturing having to get credit at 6.5 % instead of their usual 3.5 %. Or how McDonald's was denied credit for their coffee upgrade plan by B of A.

Do you have other stories? Do tell.

talloulou · 09-26-08, 03:32 PM

My husband is a software developer. Right now it's exceedingly hard to get new contracts because most big companies are holding off "investing" right now on new software. Some of them don't feel safe spending the big money on big projects right now and others can't get loans to invest in such a project at this time.

So yeah, it's trickling down.

DeeJayH · 09-26-08, 04:13 PM

I have had a couple of clients get mortgage approval for a 95% loan, only to have PMI change it to a higher down payment

Bill Heard Enterprises, one of the nations largest car dealer chains is going under because they can not get car buyers financed

bill heard - Google Search

Iriemon · 09-26-08, 04:14 PM

I was in court the other morning for a hearing and the motion calendar was filled with pages of mortgage default hearings, never saw anything like that many before.

DeeJayH · 09-26-08, 04:23 PM

Quote:

Originally Posted by Iriemon

I was in court the other morning for a hearing and the motion calendar was filled with pages of mortgage default hearings, never saw anything like that many before.

In Miami? Really? this far into it with all the condo's down there? geez
hope it is peaking rather than building
just read how, if memory serves 7 MSA's bounced last month in Florida

obvious Child · 09-26-08, 05:22 PM

I know of a married couple of college professors moving to another school with signed contracts in hand couldn't get a loan. That's at least $200,000 in income and still no loan.

Iriemon · 09-26-08, 05:59 PM

Quote:

Originally Posted by DeeJayH

In Miami? Really? this far into it with all the condo's down there? geez
hope it is peaking rather than building
just read how, if memory serves 7 MSA's bounced last month in Florida

I heard a report on the radio that home purchases were up 20% or so as bargain hunters start snapping up deals. Hopefully this is a sign of the beginning of the end.

MC.no.spin · 09-26-08, 10:41 PM

Quote:

Originally Posted by Iriemon

I heard a report on the radio that home purchases were up 20% or so as bargain hunters start snapping up deals. Hopefully this is a sign of the beginning of the end.

Lowering Florida property taxes would be a smart move.

DeeJayH · 09-26-08, 10:48 PM

Quote:

Originally Posted by MC.no.spin

Lowering Florida property taxes would be a smart move.

florida property taxes were already lowered last election with amendment one that made Save Our Homes discounts portable and a doubling of Homestead Exemptions (25k-50k)

however amendment 5 which would have lowered them even more so, was struck down in the courts before being put on this years ballot

sadly in Florida alot of items for government are up for a vote as an amendment to the Florida Constitution

DeeJayH · 09-26-08, 10:49 PM

Quote:

Originally Posted by MC.no.spin

Lowering Florida property taxes would be a smart move.

round here, where i live and work
property taxes are btwn 1.5-2.2% assessed value