Who Will the Lenders Give Loans to?…. or Pretty Please Forgive Me…

In this mortgage meltdown mess, I often wonder how Lenders will survive in the next 5 years. In places like So Cal, Las Vegas and parts of Florida a huge percentage of people will have credit issues due to Short Sales, late payments or Foreclosures etc. Many of these folks have had otherwise excellent credit, and face years of not being able to get approved for a loan. However, many who are still solvent may want to soon buy again at better prices.

Creativity in packaging mortgage loans has led us into this mess along with greed and an unregulated industry….BUT…. do you think Lenders will soon create new loan packages to include this huge segment of borrowers?  Will they disregard a Short Sale or Foreclosure if someone has otherwise excellent credit maybe charging them a small percentage higher and perhaps insisting on impounds?

How do you think Lenders will deal with getting new business in the next 5 -10 years?

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