Striper Talk Striped Bass Fishing, Surfcasting, Boating - View Single Post - One in Four 2nd Quarter Home Purchases Was A Foreclosure

harritchate · 10-06-2010, 02:10 PM

As a mortgage loan officer that tries to focus on bank owned sales, this number doesn’t surprise me at all. I wonder what the statistic is for the rest of the home sales being short sales. It is unfortunate that the number of foreclosed homes is so significant but with the prices being reasonable first time buyers are able to get into homes that would have been insanely out of their reach just 4-5 years ago.

When a government backed FHA mortgage is requiring 3.5% down payment, and you can have a sellers concession towards closing costs of 3% of the sales price most buyers will only have to pay for their escrow accounts and down payment. A special program is available on Fannie Mae foreclosures, called the HomePath Program (Fannie Mae REO Homes For Sale - HomePath.com to search for them exclusively), that opts for 3% down payment on an owner occupied single family home and as low as 10% down for an investor on a single family. The government really wants these homes occupied.

For traditional conventional home loans, owner occupied, you can't purchase with less than 10% down and if your FICO (credit score) is less than 700 you would need to put 20% down. This is the same on second homes you need to put 20% down because the MI companies will not insure a second home. (20% down means no MI). If you are investing you are facing 25% down on each property.

Now there is a good rumor that another large wave of foreclosed properties will be released onto the market in the near future and this will hopefully attract more buyers. This is also unfortunately going to affect the current values of everyone’s existing home, however there will be stabilization once the foreclosures are occupied ( it is anyone’s guess as to when we will see a steady increase is real estate values). Many people want to search for foreclosed properties but the better search criteria will be based on sale price not type of sale. it is honestly easier to buy a regular retail sold home than a foreclosure because all parties are local, local sellers, buyers attorneys and agents. When a REO property is sold the agents are local and the asset managers in charge of selling the home as well as the sellers attorney are often states away and very, very difficult to deal with.

If anyone would like to talk personally about foreclosures send me a PM with your phone number and I will gladly reach out to you.

10-06-2010, 02:10 PM	#21
harritchate Registered User Join Date: Jun 2006 Location: Lakeville MA Posts: 57	As a mortgage loan officer that tries to focus on bank owned sales, this number doesn’t surprise me at all. I wonder what the statistic is for the rest of the home sales being short sales. It is unfortunate that the number of foreclosed homes is so significant but with the prices being reasonable first time buyers are able to get into homes that would have been insanely out of their reach just 4-5 years ago. When a government backed FHA mortgage is requiring 3.5% down payment, and you can have a sellers concession towards closing costs of 3% of the sales price most buyers will only have to pay for their escrow accounts and down payment. A special program is available on Fannie Mae foreclosures, called the HomePath Program (Fannie Mae REO Homes For Sale - HomePath.com to search for them exclusively), that opts for 3% down payment on an owner occupied single family home and as low as 10% down for an investor on a single family. The government really wants these homes occupied. For traditional conventional home loans, owner occupied, you can't purchase with less than 10% down and if your FICO (credit score) is less than 700 you would need to put 20% down. This is the same on second homes you need to put 20% down because the MI companies will not insure a second home. (20% down means no MI). If you are investing you are facing 25% down on each property. Now there is a good rumor that another large wave of foreclosed properties will be released onto the market in the near future and this will hopefully attract more buyers. This is also unfortunately going to affect the current values of everyone’s existing home, however there will be stabilization once the foreclosures are occupied ( it is anyone’s guess as to when we will see a steady increase is real estate values). Many people want to search for foreclosed properties but the better search criteria will be based on sale price not type of sale. it is honestly easier to buy a regular retail sold home than a foreclosure because all parties are local, local sellers, buyers attorneys and agents. When a REO property is sold the agents are local and the asset managers in charge of selling the home as well as the sellers attorney are often states away and very, very difficult to deal with. If anyone would like to talk personally about foreclosures send me a PM with your phone number and I will gladly reach out to you.