Impotence: a state of powerlessness, inaction, and ineffectiveness. Yes, that sums up much of our banking system in early 2010. Whether it’s fear of regulators and new regulation (see HVCC, or RESPA ‘10) or paralyzed fear of further losses, even the giant banker bonuses at the end of 2009 can’t shake the rust off the financial decision making machine.
Banks coffers are full of lend-able cash, banks are churning out profits again, but it is more profitable and safe to lend this money back to US Treasuries than to consumers and small businesses. The rules are perverted and are creating dis-incentives within our economy, creating some bad policy and decision making which will lead to more economic pain.
This is a must see video: CLICK HERE if you think I’m over-reaching in my condemnation of the 2009-2010 status quo.
The present path will end badly for our economy, citizens, and even the banking industry as the anger over such abuses is what topples societies - even great ones. We need to return to some commonsense and fair play in the lending industry.
Loan modifications that make sense for all parties must be pursued proactively. The present system being employed by banks like Bank of America and Chase are to avoid and delay customers until they can no longer be ignored. It is creating mortgage defaults where none previously existed and it is morally wrong, and creates borrowers who would rather screw the bank than work within their systems. End the delay and fixed in a lower rate and payment across the board, as hard as this may be, the alternatives are too dim.
For sellers of property, you cannot wait for the banks to fund your project. A new day for seller financing is dawning and being a bank is not such a bad business if it is done fairly for the buyer/borrower. For more info on seller financing contact us: info@vacation-finance.com
http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1327011
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