The foreclosed home in my own complex that I wrote about in an earlier post is still on the market. The price was reduced by $10,000 on the 30th day of the listing. We're coming up on the second 30 day mark, and I wonder if the price will slide yet a second time. It's starting to look like the price point where the previous listing agent took the property when trying to sell it before the lender repossessed the house.
It's a huge bargain. Where are the buyers, I wonder? I strongly feel it is simply the national economy. People are very reluctant to take a chance on committing to a mortgage right now, fearful of job loss perhaps.
Or perhaps the buyers are assuming that mortgage money is impossible to get right now. Whoa!!! Let's put a stop to that misconception right here and now! The lenders whom I trust tell me that they certainly DO have mortgage money to lend, as long as the buyer(s) is/are qualified to take the loan. What is qualified? Decent FICO scores (vary according to the type of loan being considered) and decent debt ratios. Talk to a responsible mortgage lender for details.
And the rates today for conventional loans has dipped to 5.6%, and FHA loan rates are 5.8%. And FHA requires only 3% downpayment until January '09, and then it goes up to 3.5%.
This is still a fantastic time to purchase a home. No doubt about it. Wish I needed to buy something myself right now!
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