The industry is going through a slowdown because of the subprime mortgage crisis. It will hopefully come up once strict laws are enforcde and credit is denied to those who cannot really manage it. _________________ Procrastination is the enemy of your financial sucess
At present the U.S mortgage market is in a critical situation and as a result the people are facing great financial problems. This critical scenario is mainly because of the borrowers who gets easily qualified for sub prime loans, then defaults on the loan and ultimately are not able to pay them off to the lenders. As a result, the lenders are finding it difficult to pay back the fund for the loans to different banks from whom they have taken. Moreover, the investors have stopped to purchase bonds and stocks from banks. In this way, the entire market is suffering.
To come up with the credit crisis in the U.S. mortgage market, the Federal Reserve is coming up with different rules and regulations. These rules will help to prevent the predatory lending practices that are going on in the U.S. But mere forming the rules will not help until they are properly enforced in practical.
The lenders who are coming up with tight lending rules, must be alert while granting loans to risky borrowers.
I think the big problem is not enough jobs are available. Well where I live jobs are getting a little scarce. I mean who really wants to work somewhere just making minimum wage. I live in Norther Michigan. A few factories have closed down and there are alot of layoffs. I think the foreclosure rate is kinda high right now and these businesses such as Walmart or Kmart or Office Max don't want to pay their employees the income they deserve. Hence the reason why people are having so much trouble paying mortgages or other loans off. Working for small businesses has its advantage because, well, its small and you don't have 30 other people to deal with. But then of course alot small businesses don't have the extra $$$ to hire help. Which is why I went the way of being self employed myself and trying to run an online business on eBay and I did pretty good last year I think. Grossed $19k. This year however, totally different story.
Posted: Mon Aug 27, 2007 3:29 am Post subject: RE: why the industry crisis and who's responsible
Hi Wildstorm,
I agree with you. The big problem isn't that jobs are scare. The problem is people don't have the money that can help them pay off their mortgages. Yes indeed the foreclosure rate is high and right from the mortgage market to the stock market is being affected on account of it. So, yes, there are businesses that are not being able to pay their employees as they have shut down or filed for bankruptcy protection.
However, it is also true that people who've suffered with their mortgages are largely among those who shouldn't have been given the loan as they did not satisfy all the criteria. They are the ones who've happily applied for credit even after having low credit scores, low income and also higher debt to income ratio. So, to some extent, both the borrowers as well as the lending institutions, both are responsible.
Anyway, doing a small business is easy as far as paying your employees are concerned. You don't need too much to pay so even if there is a crisis, the business can get along with it.
Yeah I agree as well. My small business doesn't involve other employees. Its just a one man show looking to expand hopefully. The construction market sucks up here right now. A friend of mine has been layed off all summer from his construction job because of the way the market is now. Normally you get laid off for the winter but during the summer?? WOW! I also blame our current govenor Jennifer Granholm. She has stated that she wants to bring jobs to Michigan and you know what, she has..... for the people down south of us, Detroit, Lansing, Kalamazoo, Saginaw.
hi ventkartesh are you an indian if yes than good to see u i rarely find indians here nayways according to me it will rise in few years a lot .even i m waiting for that .
what do you think about your own question???????????????
Posted: Mon Mar 17, 2008 11:59 pm Post subject: RE:
Hi Simpilot,
Welcome to the forums.
As far as I know, the brokers and loan officers posting here are quite knowledgeable and have been helping the communtiy since quite some time. Just have a free consultation with them on what loan options are suitable for you and related issues. I'm sure they'll be able to suggest the right option.
venkatesh1011
