There are 19 lenders sitting on top of $325 billion dollars of Heloc’s that are ready to reset. When they do, lenders are somewhat fearful that it may result in new defaults.
Back in 2005 there were a lot of HELOC’s that were made. Well believe it or not, many of them are still alive and kicking and are close to resetting. When they reset, the we either come due as a balloon payment or they will become amortized. Either way this can be a problem for many homeowners. The question is, will people be able to deal with it, or will they throw in the towel and default.
Obviously the banks are hoping the people will be able to deal with it. We believe there’s probably a bunch of business to be had for the loan originators out there. Many homes have appreciated enough to do a refinance and pay these loans off, so it surely wouldn’t hurt to run a search on HELOC’s in your area, do a little market value research and make some calls. The issue is truly at hand, so something is definitely going to happen. If you’re wise you’ll get on the front of this potential little wave and ride it for a bit.
Look guys, the CFPB is literally a monster run a muck. We’ve got first hand information that will make you sick to your stomach. It appears to us that these guys are ruining smaller operations by forcing them to settle on issues that are simply ridiculous. To us they are acting like big government bullies and it’s just not fair the way they handle themselves and treat those whom they are auditing.
If you’re in the Phoenix AZ or Newport Beach CA area’s be sure to click on the banners on your right that pertain to those events. They’re going to be a lot of fun and very informative. We’d love to see you there!
Have a great day!
Frank and Brian