Exit Strategy: What If There Is No Way Out? (for home buyers)
Reality Times, November 1st, 2005
One of the great wonders of modern life is the ability to borrow -- and borrow and borrow and, well, you get the idea.
I always tell folks there is no shortage of either lenders or
loans, the real question concerns borrower preferences. If a borrower
is sufficiently "motivated" then there are always loans to be had. Of
course, when there is sufficient motivation there are also borrowers to
be had, a thought which brings us to the subject of loan-to-value
ratios.
This may sound like a real snoozer, but LTV is a subject which
may soon haunt lots of people. Across the country there are now
incidental reports of falling home prices, especially in the upper
brackets. "Price changes" now seem to be more common in listing
notices, and by "price changes" no one means sellers are asking more.
Read more...