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dave_donhoff

Inman News; Imagine housing without a secondary market

dave_donhoff
15 years ago

Inman News; Imagine housing without a secondary market

http://www.inman.com/opinion/guest-perspective/2008/07/11/imagine-housing-without-a-secondary-market

Imagine housing without a secondary market

<_snip_>
So, imagine a return to a housing market without a robust and functional secondary housing market. In other words: a severe credit crunch.

Here are 10 things that I predict will flow from its collapse (many of which have already hit the beleaguered housing market):

1. The capital that exists from direct lenders such as community banks, savings institutions and large commercial banks will fall short of potential demand and focus on bread-and-butter loans, leaving most borrowers out in the cold.

2. Exotic loans of any kind will be completely out of favor, leaving many borrowers and many properties unfundable.

3. Home sellers will become active lenders, but only those who have equity. Seller financing will help some transactions.

Get more here;

http://www.inman.com/opinion/guest-perspective/2008/07/11/imagine-housing-without-a-secondary-market

Here is a link that might be useful: Inman News; Imagine housing without a secondary market

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