[gn]

When you said "sell out quick", I think you meant "Pardee has buyers lined up for all of the lots in the phase".

Whether these buyers will/can follow through when the homes are built is a different matter.

Now that most lenders are shying away from exotic mortgages & that jumbo loans are more difficult to qualify for, I would expect a good percentage of these buyers will not be able to close escrow 6 months from now.

By then, Pardee will have to find away to sell those houses & you'll have more negotiating power.

I am puzzled on how quickly they are selling in this down market

It's perception vs. reality.

Perception: housing look hot

Reality: many buyers will not get the loans they need. They just haven't realize it yet.

[gn]

When you said "sell out quick", I think you meant "Pardee has buyers lined up for all of the lots in the phase".

Whether these buyers will/can follow through when the homes are built is a different matter.

Now that most lenders are shying away from exotic mortgages & that jumbo loans are more difficult to qualify for, I would expect a good percentage of these buyers will not be able to close escrow 6 months from now.

By then, Pardee will have to find away to sell those houses & you'll have more negotiating power.

I am puzzled on how quickly they are selling in this down market

It's perception vs. reality.

Perception: housing look hot

Reality: many buyers will not get the loans they need. They just haven't realize it yet.

[gn]

P.S. bash if you must for throwing the offer at them in the first place

rube, if anything, we thank you for sharing. Congratulation on dodging that bullet.

If there's any bashing going on, it's directed toward people who pretend to understand real estate & financing when they don't know jack.

[gn]

P.S. bash if you must for throwing the offer at them in the first place

rube, if anything, we thank you for sharing. Congratulation on dodging that bullet.

If there's any bashing going on, it's directed toward people who pretend to understand real estate & financing when they don't know jack.

[gn]

P.S. bash if you must for throwing the offer at them in the first place

rube, if anything, we thank you for sharing. Congratulation on dodging that bullet.

If there's any bashing going on, it's directed toward people who pretend to understand real estate & financing when they don't know jack.

[gn]

Does the buyer have to pay the 5% or 10% on top of the $327k to the auction company ?

[gn]

Does the buyer have to pay the 5% or 10% on top of the $327k to the auction company ?

[gn]

Does the buyer have to pay the 5% or 10% on top of the $327k to the auction company ?

[gn]

There are a large number of empty houses, but, b/c they are REOs or their owners are trying to sell, they are not being rented out, creating an “artificial” shortage.

This means that, in the short term, rents can go up. But, I think, when things have “settled”, rent will go down, because, the bottom line is: the number of houses is higher than the number of households.

[gn]

There are a large number of empty houses, but, b/c they are REOs or their owners are trying to sell, they are not being rented out, creating an “artificial” shortage.

This means that, in the short term, rents can go up. But, I think, when things have “settled”, rent will go down, because, the bottom line is: the number of houses is higher than the number of households.

[gn]

There are a large number of empty houses, but, b/c they are REOs or their owners are trying to sell, they are not being rented out, creating an “artificial” shortage.

This means that, in the short term, rents can go up. But, I think, when things have “settled”, rent will go down, because, the bottom line is: the number of houses is higher than the number of households.

[gn]

Fico and Down payment are not the only two factors in the equation, just because he is a doctor doesn't mean he should get a loan if his house payment and debt service is 2/3 of his income.

Temeculaguy is right. In order to get a jumbo loan, you need all 3 factors:

1- Good credit score

2- At least 20% down payment

3- Housing expense to be "inline" with income

It's likely that the loan amount that the doctor was trying to get is "out of line" with his income.

[gn]

Fico and Down payment are not the only two factors in the equation, just because he is a doctor doesn't mean he should get a loan if his house payment and debt service is 2/3 of his income.

Temeculaguy is right. In order to get a jumbo loan, you need all 3 factors:

1- Good credit score

2- At least 20% down payment

3- Housing expense to be "inline" with income

It's likely that the loan amount that the doctor was trying to get is "out of line" with his income.

[gn]

Fico and Down payment are not the only two factors in the equation, just because he is a doctor doesn't mean he should get a loan if his house payment and debt service is 2/3 of his income.

Temeculaguy is right. In order to get a jumbo loan, you need all 3 factors:

1- Good credit score

2- At least 20% down payment

3- Housing expense to be "inline" with income

It's likely that the loan amount that the doctor was trying to get is "out of line" with his income.

[gn]

Here is my prediction:

As a consequence of Alex’s lack of real estate knowledge/understanding, he will become increasingly baffled by the housing market.

Alex will become increasingly confused and exhibit a split personality, bordering on schizophrenia.

Eventually, he will give up & pull the trigger (buy a house). He will end up being a “knife catcher” & got cut badly 🙂

[Author]

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