can't get a loan from banks

I just applied to get a line of credit from 2 banks.

I have a credit score of 690.
I have 0 debt
I have a house completely paid off in cash
I have tax returns for the last 3 years of 100k +

Chase & some other bank I've never heard of declined me WOW!

 

They know that your "house" collateral will be worth another 20-40% less by end of next year.

You could package yourself into a Credit Default Swap. Have someone else get the loan for you, you pay them a %, if you default, they get your house.

 

Looks like a hard stop on extending new credit lines... unless you're a friend of the bank or the Democratic party.

 

I have 780 credit score. no issues. just asked for a substantial AMEX CC limit increase.

If not late payments and no collections, 690 might mean you have a high debt / available credit ratio

 

only asking 25% of house value

 

When house prices revert and give back their 46% gains (and the banks know this and are factoring this in decision making) they will be left holding the bag. Look at it his way, at least America is on its way to a population that saves and has cash on hand. You think the banks want to hold collateral that may take 10+ years to get back to the boom year levels? Some folks live in pipe dreams and are still holding aol and csco.


LOL, if the banks are not stepping up and giving loans on "home" collateral, all these genius foreclosure buyers are going to have their asses handed to them.

 

See most won't touch the fire again after being burned. They can pump all the money they want, when the people say enough is enough, we learned our lessons then you have less consumption, less demand, less productivity and more time to pay attention to what's really important in life.

 

Try PNC or USBank for their home equity products. You should have better luck. Chase is ridiculous.

 

Now would you put 20% down on a home knowing that home has another 20-40% loss of value factored in based on current economic conditions? What if you rented and invested that 20% elsewhere? Return On Capital is what banks are worried about and so should any new home buyers, unless they are willing to sit it out for many years, but just ask those csco and aol, sun holders?

 

"Chase is ridiculous."

You wonder why they survived this mess. They hedged their bets just like wells fargo does. They control the risk.