Rainy Day Musings, from the third Floor of a Downtown Lynn Real estate broker, mom and landlord
Here in Massachusetts, you can take a weekend class, a test and be up and running to sell real estate in less than a week. Pretty scary huh?
Many people jumped on the real estate gravy train and rode the real estate carriage until it crashed.
It is still crashing.
There is another wave of foreclosures coming. The foreclosure spicket was shut off for a few months this winter. It has been turned back on.
The newest brunt of foreclosures are: adjustable mortgages. People will not be able to afford their new monthly payment.
You also have people who have simply lost their jobs in this down economy and simply cannot make their existing mortgage payments. Mortgage payments they easily made when employed.
But my agent told me the market is “hot, hot, hot”.
Interest rates are low so… this is an ideal time to get a great rate on a mortgage and a deal on a house.
There is even a first time home buyer credit up to the amount of 8K. (lots of guidelines apply to obtain it)
Rumor mills have circulated the 8k credit will be extended or even changed to 15K. Perhaps the credit will be extended at some point. The 15k credit…not gonna happen.
Well if you haven’t a job and all your credit cards are maxed out so you feed your family this is not really an option?
Sadly many people who deserve the credit cannot obtain it.
FHA financing has changed. You’re now required to have a down payment and a favorable credit score. They are not just going to give you a loan anymore.
Now if you have cash this is the time to get some good deals!
I suspect more deals will be coming on multi family homes and condos since a lot of these do not meet the requirements for conventional financing.
Investor financing is tough these days too.
The way real estate is being conducted is changing. The internet is to thank for that..
Sale prices are lower and agents are working twice as hard for less commission.
Your buyer may not be financed, the home they want may not be approved by a lender, it may fail inspection.
Banks involved in short sales and foreclosure are a whole other blog entry of problems for agents and sellers.
I myself have actually enjoyed the lessons I have learned in the downturn of the real estate market as a broker, business owner, and investor. I am making changes as everyone else.