Buy before you foreclose

[pedrocon]

It is not insane to have a non-recourse loan. Again. I repeat in general a collateral loan for a home is normally a very safe investment for the bank, since historically the price of real estate goes up ( tracking inflation ). It is totally reasonable for the home to be sufficient collateral for a home loan. If the current lenders aren’t happy with the arrangement they should get out of the business. Believe me the vacuum will be filled quickly by new lenders. The current condition of the market is atypical.

About the risk premium comment (ucodegen) if interest rates continue to climb then this will force the price of real estate to drop further. With tightening lending standards, high interest rates, and weak income growth comes lower affordability which in the end will cause prices to drop further. Again if we let the market regulate itself in the long run it will probably work better than the gov trying to patch up a sinking ship.

If your are foreclosed on and the lender doesn’t want your business then you rent. If you have strong income (100000+) and sound fundamentals (good down payment)other than your foreclosure and you want to buy a $300000 instead of the $700000 house that you bought in 2005 I have a feeling that there will be lenders out there who will be interested in your business. MONEY TALKS PEOPLE!

[JerseyGrl]

This from Jim’s Website:

The mortgage market is getting tighter.

First the DAPs bit the dust, and now the ‘Anti-Buy-and-Bail’ program is kicking in.

In order to get a Fannie/Freddie mortgage, homebuyers who already own a house have to have at least 30% equity in it to qualify. If not, full PITI payments on BOTH houses get held against you when qualifying, and you have to have in the bank at closing at least six-month’s worth of payments on BOTH houses. No credit for renting the previous house, even if you have a rental agreement, which was the usual solution previously.

Countrywide now includes FHA loans in the same category.

A mortgage banker, and FHA expert, told me yesterday that they think that once the new housing bill gets implemented in October that all lenders will eventually incorporate the ‘Anti-Buy-and-Bail’ guidelines into both Fannie/Freddie and FHA underwriting.

Mortgages are being eliminated for these buyers:

1. Those who can’t/won’t document their income.

2. Those who document their income, but have too many write-offs to qualify.

3. Those with little or no money down.

4. Those who own the house they live in, but have low equity and not enough money left over once they make their bigger down payment on the house they want to buy.

[JerseyGrl]

This from Jim’s Website:

The mortgage market is getting tighter.

First the DAPs bit the dust, and now the ‘Anti-Buy-and-Bail’ program is kicking in.

In order to get a Fannie/Freddie mortgage, homebuyers who already own a house have to have at least 30% equity in it to qualify. If not, full PITI payments on BOTH houses get held against you when qualifying, and you have to have in the bank at closing at least six-month’s worth of payments on BOTH houses. No credit for renting the previous house, even if you have a rental agreement, which was the usual solution previously.

Countrywide now includes FHA loans in the same category.

A mortgage banker, and FHA expert, told me yesterday that they think that once the new housing bill gets implemented in October that all lenders will eventually incorporate the ‘Anti-Buy-and-Bail’ guidelines into both Fannie/Freddie and FHA underwriting.

Mortgages are being eliminated for these buyers:

1. Those who can’t/won’t document their income.

2. Those who document their income, but have too many write-offs to qualify.

3. Those with little or no money down.

4. Those who own the house they live in, but have low equity and not enough money left over once they make their bigger down payment on the house they want to buy.

[JerseyGrl]

This from Jim’s Website:

The mortgage market is getting tighter.

First the DAPs bit the dust, and now the ‘Anti-Buy-and-Bail’ program is kicking in.

In order to get a Fannie/Freddie mortgage, homebuyers who already own a house have to have at least 30% equity in it to qualify. If not, full PITI payments on BOTH houses get held against you when qualifying, and you have to have in the bank at closing at least six-month’s worth of payments on BOTH houses. No credit for renting the previous house, even if you have a rental agreement, which was the usual solution previously.

Countrywide now includes FHA loans in the same category.

A mortgage banker, and FHA expert, told me yesterday that they think that once the new housing bill gets implemented in October that all lenders will eventually incorporate the ‘Anti-Buy-and-Bail’ guidelines into both Fannie/Freddie and FHA underwriting.

Mortgages are being eliminated for these buyers:

1. Those who can’t/won’t document their income.

2. Those who document their income, but have too many write-offs to qualify.

3. Those with little or no money down.

4. Those who own the house they live in, but have low equity and not enough money left over once they make their bigger down payment on the house they want to buy.

[JerseyGrl]

This from Jim’s Website:

The mortgage market is getting tighter.

First the DAPs bit the dust, and now the ‘Anti-Buy-and-Bail’ program is kicking in.

In order to get a Fannie/Freddie mortgage, homebuyers who already own a house have to have at least 30% equity in it to qualify. If not, full PITI payments on BOTH houses get held against you when qualifying, and you have to have in the bank at closing at least six-month’s worth of payments on BOTH houses. No credit for renting the previous house, even if you have a rental agreement, which was the usual solution previously.

Countrywide now includes FHA loans in the same category.

A mortgage banker, and FHA expert, told me yesterday that they think that once the new housing bill gets implemented in October that all lenders will eventually incorporate the ‘Anti-Buy-and-Bail’ guidelines into both Fannie/Freddie and FHA underwriting.

Mortgages are being eliminated for these buyers:

1. Those who can’t/won’t document their income.

2. Those who document their income, but have too many write-offs to qualify.

3. Those with little or no money down.

4. Those who own the house they live in, but have low equity and not enough money left over once they make their bigger down payment on the house they want to buy.

[JerseyGrl]

This from Jim’s Website:

The mortgage market is getting tighter.

First the DAPs bit the dust, and now the ‘Anti-Buy-and-Bail’ program is kicking in.

In order to get a Fannie/Freddie mortgage, homebuyers who already own a house have to have at least 30% equity in it to qualify. If not, full PITI payments on BOTH houses get held against you when qualifying, and you have to have in the bank at closing at least six-month’s worth of payments on BOTH houses. No credit for renting the previous house, even if you have a rental agreement, which was the usual solution previously.

Countrywide now includes FHA loans in the same category.

A mortgage banker, and FHA expert, told me yesterday that they think that once the new housing bill gets implemented in October that all lenders will eventually incorporate the ‘Anti-Buy-and-Bail’ guidelines into both Fannie/Freddie and FHA underwriting.

Mortgages are being eliminated for these buyers:

1. Those who can’t/won’t document their income.

2. Those who document their income, but have too many write-offs to qualify.

3. Those with little or no money down.

4. Those who own the house they live in, but have low equity and not enough money left over once they make their bigger down payment on the house they want to buy.

[pedrocon]

If you have a down payment that covers what the bank considers to be an acceptable amount of the value of the house in a down market and you have good income and ok credit then they’ll do business. Part of the power of the banks is they are willing to do anything to make a buck (ANYTHING), they will screw you, the government, they will screw anyone who is willing to be screwed. They count on the average person being somewhat moral and ethical which they are and this gives them an edge in business dealings. Treat the banks like they treat you, treat everyone else like you want to be treated.

[pedrocon]

If you have a down payment that covers what the bank considers to be an acceptable amount of the value of the house in a down market and you have good income and ok credit then they’ll do business. Part of the power of the banks is they are willing to do anything to make a buck (ANYTHING), they will screw you, the government, they will screw anyone who is willing to be screwed. They count on the average person being somewhat moral and ethical which they are and this gives them an edge in business dealings. Treat the banks like they treat you, treat everyone else like you want to be treated.

[pedrocon]

If you have a down payment that covers what the bank considers to be an acceptable amount of the value of the house in a down market and you have good income and ok credit then they’ll do business. Part of the power of the banks is they are willing to do anything to make a buck (ANYTHING), they will screw you, the government, they will screw anyone who is willing to be screwed. They count on the average person being somewhat moral and ethical which they are and this gives them an edge in business dealings. Treat the banks like they treat you, treat everyone else like you want to be treated.

[pedrocon]

If you have a down payment that covers what the bank considers to be an acceptable amount of the value of the house in a down market and you have good income and ok credit then they’ll do business. Part of the power of the banks is they are willing to do anything to make a buck (ANYTHING), they will screw you, the government, they will screw anyone who is willing to be screwed. They count on the average person being somewhat moral and ethical which they are and this gives them an edge in business dealings. Treat the banks like they treat you, treat everyone else like you want to be treated.

[pedrocon]

If you have a down payment that covers what the bank considers to be an acceptable amount of the value of the house in a down market and you have good income and ok credit then they’ll do business. Part of the power of the banks is they are willing to do anything to make a buck (ANYTHING), they will screw you, the government, they will screw anyone who is willing to be screwed. They count on the average person being somewhat moral and ethical which they are and this gives them an edge in business dealings. Treat the banks like they treat you, treat everyone else like you want to be treated.

[peterb]

Toots. Thanks for the insight!!
Looks like the RE market is going to get another nail in its coffin coming up pretty soon.

[peterb]

Toots. Thanks for the insight!!
Looks like the RE market is going to get another nail in its coffin coming up pretty soon.

[peterb]

Toots. Thanks for the insight!!
Looks like the RE market is going to get another nail in its coffin coming up pretty soon.

[peterb]

Toots. Thanks for the insight!!
Looks like the RE market is going to get another nail in its coffin coming up pretty soon.

[Author]

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