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Updated over 3 years ago,
Foreclosure wave coming? Lenders backing off on investment loans
They were a month ago, suddenly they are not. They told me that the secondary market they sell the loans to has stopped buying them. Switched to my other lender, heard the same thing, they are now capping how much investment loans they do. It seems to me they are limiting their exposure to a crash with the upcoming end to foreclosure moratoriums. Yet some data I've seen shows not that many households are actually delinquent, unlike 2008 where almost 30% of real estate transactions were short sales, REO's or foreclosure auctions.I'm about to buy 3-4 more houses, and this is a bit worrying. I will say I am glad I cash out refinanced a few last fall....Anyone have any data on sources for said data on what they expect to happen to the real estate market once the moratoriums end?