Published by John Hoff on 14 Jul 2008 at 01:00 am
A Glimmer Of Hope For Those With Bad Credit
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| Image by Douglas - westbound |
Today in America we have a problem.
Gas prices are out of control, inflation is killing middle-America, and our housing market has fallen drastically. As a result, many businesses and individuals are forced to file bankruptcy and allow their homes fall into foreclosure.
For those of you with tarnished credit reports because of today’s economy, I want to tell you there is hope in the near future.
You see, today banks are going through rough times themselves and in order to survive past the next couple of years they will have no choice but to work with a large number of businesses and individuals with poor credit reports.
What I believe we will see over the next 2 to 3 years are new loan options and programs available for those with bankruptcies and foreclosures on their credit because of what’s happening today.
Not that I promote bankruptcy or allowing your house to fall into foreclosure, but if there was ever a time to do it, now would be the time as lenders will have no choice but to work with a high number of businesses and individuals with low credit scores in the coming years.
These programs won’t be around forever, though. Just long enough to deal with the masses of people who have filed bankruptcy or have a foreclosure on their credit as a result of today’s economy.
Now one day I’ll see a report on the news telling us how new loan options are becoming available to accommodate for the large number of people and businesses with low credit scores and think to myself - I said it first on my blog. I knew it! But I didn’t have the audience NBC News has to be credited as the first to report on this.
I say this because a week after I wrote my article, Gas Prices and Product Costs vs. Service Costs, NBC Nightly News did a report which basically said exactly what I wrote in my post. Good thing I don’t blog for fame ;).
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Cath Lawson
on 14 Jul 2008 at 3:18 am #
Hi John - Good for you being ahead of the news. This does give hope to people who have suffered due to the recession. Many banks in the UK are also in trouble. One bank has already been bailed out by the taxpayers and others are borrowing from each other. It really is a sorry state of affairs. Given what is going on, I’m betting your prediction is pretty accurate.
Cath Lawson’s last blog post..Toxic Relationships - Does Blood Matter?
John Hoff
on 14 Jul 2008 at 9:27 am #
Hello Cath,
Same thing going on here in America. Just last night while I was watching the news they did a story on one of the biggest banks in America near bankruptcy and how the federal government stepped in to help.
You know I gotta say, many of these banks did it to themselves. A few years back a couple banks found ways to sell loans to people who couldn’t normally afford such a high mortgage (they were the 3 to 5 year option loans that ballooned in monthly payments after that).
They started selling a ton of loans which caused all the other banks to jump on the bandwagon. Problem is, couples earning $45k a year can’t really afford a $350k house and once those low entry APRs expired, people and banks found themselves in trouble.
By the way, I love your last post’s title. I gotta click that!
Barbara Swafford
on 14 Jul 2008 at 1:52 pm #
Hi John,
Maybe you’re in the wrong profession. Even consider being a newsman? You could see your name in lights… Yipee!!! Yipee!!!!
Did you hear the news where Fannie Mae and Freddie Mac are in trouble too. That’s certainly going to create even more havoc in the housing industry.
I do agree, some concessions will have to be made for poor credit scores. Otherwise, who would be able to buy a house? With the increasing inventory of vacant homes on the market, (many owned by banks), something will have to happen so individuals can regroup and purchase homes again.
In our area, we were in bad need of a correction (homes were SO overpriced). Now they are slowly dropping enough so the blue collar workers can realize the dream of home ownership. The only problem is, the banks tightened their lending requirements, and are not allowing for ANY glitches in credit ratings. Hopefully that changes soon.
Barbara Swafford’s last blog post..A Day In The Life Of A Blogger
John Hoff
on 14 Jul 2008 at 2:01 pm #
Hello Barbara.
I did hear about Fannie Mae and Freddie Mac. I’m sure the government will step in though and make sure they are taken care of. Those services are too important to our economy.
In addition to those new programs I mentioned I’m sure we’ll start seeing, we can also expect to see a lot of “For Rent” signs popping up. Investors will buy and rent to people with foreclosures on their credit.
Here in Vegas, we’ve been hit the hardest. A lot of people here are more than $100,000 upside down on their homes and that’s why we have the highest foreclosure rate in America.
Oh and me . . . a newsman, uh no way! I can’t stand to hear my own voice.