I am receiving notices from major lenders that values are dropping and will continue to drop.Therefore, the lenders have begun to lower the loan to values allowed in certain areas. Banks will not be extending the maximum financing on properties located in a whole slew of counties nationwide. Florida, California and Virginia having the longest lists so far out of all the States.I imagine this list will grow longer as this year moves into next year.

     I can assume that they are receiving data from national appraisal and real estate organizations. The fact that they are lowering the maximums ahead of times means to me that the lenders will be expecting values to fall even more. I also agree that values have been inflated for far too long and we are set for a downturn.What we have seen is nothing yet.If the market does not turn around by Springtime, then we will lose all of 2008.

Sorry to sound so glum, but this is reality awaiting.
-Dale Siegel