OfflineCheck out this link...i'd like some thoughts about how this could effect the RE Market
http://www.treas.gov/press/releases/hp1101.htm
Post your Thoughts
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Has Anyone Seen This? Treasury and other banks working to help
Posted on: Tue, 07/29/2008 - 16:54
I don't think the problem is a shortage of funds. The reason that buyers are not buying, is because of the difficulty in getting the funds. Lenders are not willing to lend to mid or high risk buyers. They are requiring higher down payments, so that the buyer has more invested in the purchase. Buyers today, are expecting to get 100% loans, and banks are not willing to give them. I don't think additional funds are going to change this. This will make investing in multiple properties more difficult, because of the amount of personal capitol necessary for each purchase. My lenders want 20% down for investment loans. I am not very educated in financing, but this is how I see it. I will be interested to see what some of you more knowledgeable readers have to say.
Al
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Foreclosure rescue by the FHA will be availble as of October 1, 2008. Lenders can write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrower would have to share 50% of all future appreciation with the FHA. The loan limit for this program is $550,440 nationwide.
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Being a very green REI, I watched with some interest this pm news, that even though there are programs in the start up to bail these arm's out, that the vast majority of the people will not qualify, nor will their lending institution go along with it. The program even stated if a consumer qualifies for the bail out there will be a certain amount of money that they might have to come up with to bridge the gap from their existing mortgage to the new re-fi. All and all, I still see a very positive side of this current mess. The fix is not going to happen any time soon. Foreclosures will still be on the rise, with the current economic problems (THANK YOU BIG OIL) THE MORTGAGE BAIL OUT IS JUST THE TIP. I am assuming the lay-offs are just around the corner. For a REI is the future still brigtht, yes very. Is this mess going to end soon, NOT....Jan