Credit scores are sinking to new lows. Really new lows.
As is 25.5 percent, or nearly 43.4 million people, now have a credit score of 599 or below.
And at the same time, lenders are tightening their standards, so more and more people are now out of the loop and cannot get financing.
But it doesn?t help the banks either.
Mortgage brokers and lenders, along with Real Estate agents and Title Companies only get paid when a loan is actually made and closed. Well, in the case of the Real Estate Agents and Title Companies it is when a home is sold and closed?some people can pay cash but of course, the majority need to get a loan.
And if a loan can’t be made, nobody is getting paid.
(such a poet, don’t I know it!)
So what is going to happen to the housing market in the future? If fewer people can get financing and more homes are coming on the market due to foreclosures and more homes are staying on the market longer because of difficult market conditions for sellers, how do we get out of this mess?
The percentage of people with bad credit scores, below 599, has increased but the percentage of people with stellar credit scores, above 800, has also increased.
see More American’s Credit Scores Sinking To New Lows.