[quote=Arraya]Just about everything that we come across is a short sale or it’s bank owned, or the seller will only take cash.
http://market-ticker.denninger.net/archives/1539-Possible-Credit-Dislocation-Be-Warned.html
I am hearing repeated anecdotes from multiple areas that foreclosed property held by banks with multiple full-price offers that include a financing requirement are being sold instead to people with actual cash at radical reductions from that price. This implies that these financing contingencies are regarded as not only potentially no good but factually no good, as if the banks know for a fact that the credit pipeline will (not might), within weeks or months (in the time required to close), disappear. There is no other rational explanation for this behavior.[/quote]
I didn’t read your link so I don’t know if this is mentioned, but some listing agents have been concerned about taking offers,especially on potentially long lender approval or long escrow type deals, that are officially or unofficially contingent on the tax credit. These would obviously be some distressed properties.Dan, sdr and SDR could say more on the extent of this.
