Mortgage Times

[mikejr]

So who or how will the hole in the market that the b/c market shakedown be filled? As you know, there is a huge pool of people needing loans that cannot get them now. What are your thoughts?

Personally, being that I specialize in selling REO properties for well over 30 different lenders/servicers/PMI companies, I kinda like the loose lending policies of the past. Means higher default rates which means more REO's for me to sell.

[Adam in CO]

Originally Posted by mikejr

So who or how will the hole in the market that the b/c market shakedown be filled? As you know, there is a huge pool of people needing loans that cannot get them now. What are your thoughts?

Personally, being that I specialize in selling REO properties for well over 30 different lenders/servicers/PMI companies, I kinda like the loose lending policies of the past. Means higher default rates which means more REO's for me to sell.

Thoughts? Good news for our clients that on investment properties. Metro area rents have jumped from 70-80c/sq ft in the last few months. The people who can't get loans, will rent.

[mikejr]

good point....the lack of purchase money mortgages will increase the number of tenants in the market.

We have a steady stream of people that want to buy REO homes, but need to finance them. Problem is, 95% of these homes need work and will fail a conventional loan appraisal due to condition or freeze damage etc. Many of the buyers can and will repair the properties after closing, but cannot buy them due to lack of financing options. Do you have any products that would fit the bill? Doesnt seem that any of our local lenders/brokers/bankers have such a product.

[Adam in CO]

Originally Posted by mikejr

good point....the lack of purchase money mortgages will increase the number of tenants in the market.

We have a steady stream of people that want to buy REO homes, but need to finance them. Problem is, 95% of these homes need work and will fail a conventional loan appraisal due to condition or freeze damage etc. Many of the buyers can and will repair the properties after closing, but cannot buy them due to lack of financing options. Do you have any products that would fit the bill? Doesnt seem that any of our local lenders/brokers/bankers have such a product.

I would look into OTC improvement deals from a bank like IndyMac (headache) or some of their competitors.

It defintely can't be done conventionally.

[mikejr]

ERA Mortgage (PHH) has come out with an REO purchase product in the past week or so. Havent tried it out yet. But they still want everything functional in the property before settlement.

There is a need for a good loan product to allow people to buy these REO's, but as evidenced by the lack of such a product, it is likely its not a viable risk for the lenders to take.

The hard money guys in town are an option but they are only short term high interest rate loans and do not want to hold for more than 6 to 12 months.