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I don't think the banks care whether you're going to live in the home or rent it out, How would they even know?
I believe that is something that would be covered when taking out a mortgage - second home, rental home, etc vs. primary residence. Also, different rates on homeowner's insurance depending on whether or not it is a second home, rental property, etc.
At least, I know I have been asked all those things in the loan process.
Banks have different terms for rental property vs a primary residence.
Foreclosures are a matter between the bankers and the mortgage holders. What you are seeing on those real estate sites are properties that have been foreclosed on, the bank has taken possession and have decided to sell. There is no telling how many properties the banks have foreclosed on but are not putting on the market. There is evidence there are a significant amount of homes that fit this zombie home category. This is made easier because the Federal government continues to absorb their losses at taxpayer expense. The bankers, the federal government, the federal reserve, the congress and the treasury all want to put on the appearance that things are better than they are. This charade is going to make the pain worse later.
When a party tries to sell a home they still own but can't afford and which is worth less than the mortgage, it's called a short sell. Some banks will agree with this, others won't. In any case you then have a 3rd party in the negotiations. Might be best to leave this sort of problem property alone.
Seriously, though... Do you have any details on how the banks are handling the foreclosures with regard to people wanting to buy them (to live in) vs. investors looking to steal them for all cash and rent them out? The latter being really bad for the neighborhood.
Some banks have changed the rules a little to make things a little more fair for buyers who want to live in homes. The home I'm under contract for stated this:
"Fannie Mae considers only owner occupied offers for the first 15 days."
I believe that is something that would be covered when taking out a mortgage - second home, rental home, etc vs. primary residence. Also, different rates on homeowner's insurance depending on whether or not it is a second home, rental property, etc.
At least, I know I have been asked all those things in the loan process.
VERY true.
Second and or investment home financing is VERY difficult now.
Here is the portal - you have to sign off on the disclaimer - then go to the next page and choose criteria. I chose 10,11,12 of 2009 and Brandon Oaks. Or at least - that is what I meant to do.
I couldn't get that link to work. But when I when to:
1) Carolinahome | Sales Search page
2) Chose Union County
3) Chose 28079
4) Chose Brandon Oaks
5) Clicked 2009
I got 58 sales. Most sales appear to be under 250K also.
I couldn't get that link to work. But when I when to:
1) Carolinahome | Sales Search page
2) Chose Union County
3) Chose 28079
4) Chose Brandon Oaks
5) Clicked 2009
I got 58 sales. Most sales appear to be under 250K also.
Yeah, I think my criteria got messed up and instead of one subdivision, I believe the figure I got was for ALL homes in Union County during that period, b/n $250-350K. That sounds much more realistic for Brandon Oaks sales. Thanks for getting that straightened out. I am having problems with the link, too.
A few of them have initiated owner occupant buyer only periods for the first 2 weeks of the listing or by ____ date. Fannie and Freddie Mac are both offering heavy incentives to owner occupant purchasers right now.
Invester purchases require higher deposits (almost always has been this way) and they are also requesting copies of you articles of incorporation if LLC, or Corp.
Invester's that are obtaining financing need 25% down. They initiated "rate" hits for a ton of things over a year ago now. Basically, if it's an investment type loan that is needed they will "hit, penalize, or raise" the interest rate based on criteria that is not met. For example if it's a condo they will hit the rate. The banks don't like invester loans on condo's. As we all know they lost who knows how many billions on condo projects.
USDA 100% for certain "rural" areas seems pretty hot. No surprise the loans the banks have to actually carry (what little non-FHA there is) are onerous. 25% down?! I can't imagine they're seeing too much of those types of sales.
If you bought a property to rent it, but represented it as a primary residence in contract - I'm assuming there's some clause about living in it somewhere in the docs. Do the banks actually check on the properties post-close or does it become an exercise in "if the mortgage payment is on time... all is good".
"“When you take away all the support from the housing market, the underlying demand for housing is a lot weaker than we thought,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We clearly pushed some demand forward, and there wasn’t that much demand to pull forward anyway. The housing recovery is going to be very, very slow.”"
This topic is like a double negative. no jobs=no home.
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