Time To Buy?
We've been saying for a while now that the available data doesn't seem to support the pervasive gloom presented by the media concerning the real estate market. And guess what? We're going to say it again. Data today puts unemployment at the lowest level in five years. http://http://www.businessweek.com/ap/financialnews/D8L5QQ480.htm Interest rates at Friday's close, for 30 year fixed, A credit, 80% LTV averaged 6.125 to 6.250, zero points. Gas prices are down. I have to buy premium fuel and my price yesterday was $2.48.9, over 90 cents less than just a few short weeks ago. Home prices are flat and those homes appropriately priced are selling in reasonable time periods. For October the greater Chico area recorded 69 closed transactions, (MLS) figures. For October 2005 there were 67 recorded same time period. Year to date we're a little over 80% of last year closes. Not all that bad really when you consider that now most of the speculative buying has been removed.
We have had calls from people threatened by loan difficulties and today we went to visit one couple. Bought their home in 2005. Zero down, seller concessions to pay the closing costs, huge payments. These youngsters have a new baby, two mortgage payments they can no longer afford and balances that exceed the value of the home by at least $25,000. This is their first home and the faith they placed in their real estate agent and loan broker was entirely misplaced. No consideration beyond the siren call of a commission entered their heads. No consideration whatever for naive clients who placed their trust in presumed professionals, licensed, (supposedly), to help them. I suppose we will have more of these meetings with other couples. Real estate agents who encourage these transactions deserve out utmost scorn and possibly some official censure. The loan broker involved in the above transaction should be jailed. We understand from the couple involved that he can't be located and has presumably left town.
We try very hard to make our operation as transparent as possible. We try very hard to keep our fees low and realistic. We try very hard to attract you to our store. But! Wherever you go for your real estate or mortgage guidance, check, verify, compare.
If you have suggestions for our web site that would make it more valuable to you, please let us know. Phone call is best, email if you prefer. Thanks for reading.
We have had calls from people threatened by loan difficulties and today we went to visit one couple. Bought their home in 2005. Zero down, seller concessions to pay the closing costs, huge payments. These youngsters have a new baby, two mortgage payments they can no longer afford and balances that exceed the value of the home by at least $25,000. This is their first home and the faith they placed in their real estate agent and loan broker was entirely misplaced. No consideration beyond the siren call of a commission entered their heads. No consideration whatever for naive clients who placed their trust in presumed professionals, licensed, (supposedly), to help them. I suppose we will have more of these meetings with other couples. Real estate agents who encourage these transactions deserve out utmost scorn and possibly some official censure. The loan broker involved in the above transaction should be jailed. We understand from the couple involved that he can't be located and has presumably left town.
We try very hard to make our operation as transparent as possible. We try very hard to keep our fees low and realistic. We try very hard to attract you to our store. But! Wherever you go for your real estate or mortgage guidance, check, verify, compare.
If you have suggestions for our web site that would make it more valuable to you, please let us know. Phone call is best, email if you prefer. Thanks for reading.
posted by Douglas Doss | 9:04 PM
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