Secondary Market

Secondary Market.

For years all of us were led to believe, that the only way to get money was through the bank. And there WAS time, when that was the only choice. Then, around 1976, things got really bad for the banks: people defaulted on the loans and the bank was left with many non-performing loans, lines of credit, and so on. They got really stiff on their guidelines. If before 1976 banks were accepting 80-90% of applicants, now that number dropped to 10%. That left a whole lot of people with no way to fund their businesses, home purchases and so on. Thus...

... the secondary market was created, where instead of going to the bank, people went to mortgage companies and private investors to fill the need. And it really boomed, to be on concervative side. You end up paying slightly more for the service, but not enough to make it an issue.

This secondary market is a true gold mine! The shear availability is astounding! The guidelines are tempting! Dreams are happening!