Although the media, and all of the “armchair quarterbacks”, will tell you to wait a bit longer until we hit bottom – I am here to tell you that we’re there. The word on the street is that major banking institutions have decided that they are not going to release their foreclosed properties in bulk and that they have decided to sell ‘em off one at a time because they can reap 10% to 20% more profit by doing it this way. What this means to you is that there will be no sudden influx of homes on the market driving the “supply” up and thereby driving the “demand” down. The effect is the exact opposite in that because supply is slowly dwindling therefore demand is actually increasing which drives the competition for quality homes thru the roof. Now don’t get me wrong, there are plenty of run down, purposefully beat-up homes out there (http://www.nbcsandiego.com/news/local-beat/Cop-Trashes-His-Million-Dollar-Home-104353638.html) but FHA and VA are going to challenge the Seller on the condition of those home and require repairs to be made – which the Seller certainly does not want to pay for. In recent months we’ve actually seen FNMA and FHMLC get tighter and tighter regarding the condition of the home you want to purchase, often mimicking the requirements of FHA and VA loans.
What does all of this mean to you? If you are interested at all in purchasing a property within the next millennium you should contact Casa Financial Services, Inc. to get either approved for a loan or at least put a plan together. I mean really, how much longer are you going to pay for your landlords property providing him/her with the profit, tax write off, etc…?
Give us a call at 619-644-8344 and ask for Brett or Zindi.
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