The sub-prime market - what a mess!

By
Real Estate Agent

Hello my fellow Active Rainers from one of the leading foreclosure states - Georgia.

It is my opinion that we could be (or already are) in for a bumpy ride for our low income and credit challenged Buyers.  Couple that with the fact that we are (and have been ) in a Buyer's market for a few years now and it's no wonder my hair gets grayer by the minute (but only my hair stylist knows for sure :>).

Here's today's scenario for me.  I have Buyers coming in from FL this weekend with some credit challenges.  They are paying out-of-pocket for their moving expenses and although they will be reimbursed, it cuts their savings down to nothing.

With sub-prime sources drying up all over the place, and regulations tightening, mortgage brokers are having one heck of a time getting ANYONE to approve these kinds of loans.  The mortgage banker I am working with for this couple sent credit info out to multiple sources and actually was able to get ONE approval - a first at 9.25% and a 2nd somewhere around 12-13%.  Anyone having flashbacks to the '80's?

 

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Rainmaker
217,265
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

I like your sense of humor heh,heh.  I can't believe that was the best they could find 9.25% and 12-13%, are your buyers still looking for a better rate or are they going to accept the rates they have been given??

March 13, 2007 11:51 PM #1
Rainer
11,435
Laurie Furem
Cumming, GA
Thanks for the compliment!  I am sure the Buyers would welcome the opportunity for a more competitive rate :>
March 14, 2007 06:28 AM #2
Rainmaker
220,048
Ava Anderson
Solid Source Realty Inc - Snellville, GA
REALTOR-Dedicated to Superior Service
Yes Laurie, it is truly a mess.  You'll have to let us know how this pans out for your buyer.
March 14, 2007 11:29 PM #3
Anonymous
Anonymous
Anonymous
Wow! That's really high.  Do they not qualify for any DPA programs?
March 27, 2007 11:55 PM #4
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Rainer
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Laurie Furem

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