The mortgage mess and the lack of common sense.

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We all know that in the past, buyers only had to make a phone call to get a mortgage. Those past years showed that almost anyone could get financing without any credit, or with zero down, or even with no job if a 10% or 15% down payement was on the closing table.

Today, it seems that it’s exactly the opposite.

I made a few stats about buyers and sellers so far and saw that 87% of my pre-approved buyers have been denied. That was huge enough for me to put my number on paper.

My last 3 buyers had a lot in common:

* They were all employed at their same position for more than 2 years.
* They all had their last 2 years of tax returns.
* Their FICO score were all in their low to mid 700.
* They were all tenants and had a down payment.
* They all made an offer on a property priced below $100K.

However, they have been denied by their respective lenders, all different, for different reasons.

What’s strange to see is that those buyers are paying their rent, month after month, religously, sometimes a higher amount than their mortage payment, but still are seen as a risk by those lenders.

The sub-prime put the mortgage field in a big mess that we know today. The lack of common sense may put it in an even worse situation…

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Comments (0) Jun 07 2010

Cape Coral Real Estate market is moving!

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Well, since 2 or 3 weeks now, I have seen an increase of leads, emails and phone calls from buyers. It seems that they really begin to see an increase of pricing and realize that it’s now or never!

There is no day that I don’t have a couple of showing, and I mean showing properties for 2 different persons in that day. Of course, the main market is the foreclosures and/or properties priced under $120,000. There is a huge demand at the moment. And there are lots of beautiful houses in that price range, sometimes with pool.

However, I experience more difficulties to find what I was finding in the past months. The inventory is shrinking for that $120,000 and less houses. Those buyers will definitely get a nice equity in their purchase soon. I’m guessing 2 – 3 years from now. And those who were waiting will regret what we experiencing now.

TV news also showed a decrease in the foreclosure filing in Lee County, from the 900+ down to 800+

Bottom line, not only there are much more buyers out there but the low priced properties are decreasing in number. That’s the rule of  this time…So hurry before it’s too late :-)

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Comments (0) Jun 04 2010

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