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That's what we're putting down also (assuming we ever get the approval of the short sale we're buying). The 80/20 thing I was referring to was a combination 80% first mortgage piggybacked with a 20% equity loan that allowed buyers to put nothing down and not pay PMI.
Typical requirement for a conventional loan today is 20% down. In some areas, though, if you are refinancing, you may be capped at less than 80% loan-to-value (my mom is refinancing and needs to have 25% equity based on the refi appraisal; co-workers have heard things ranging from 50 - 65% LTV).
I can see situations in certain depressed markets where prices are continue to decline where a lender might want more than 20% down, to ensure that the loan won't get above 80% LTV if the market continues to decline.
"The valuation for the property at XXXX is complete and we can move the short sale forward. At this stage, we will be obtaining internal pieces of information so that we can analyze the deal and determine the net proceeds for the investors. You may receive questions or counter offers directly from your Short Sale Specialist. The next status notification will be sent to you once the file is submitted to the investors for decisioning."
Is this the same notice you got on the Aug 31? They also indicated we "should receive the Short Sale Counter Offer in 7 to 10 work days".
Quote:
Originally Posted by timothyaw
Our timeline was drawn out a lot longer than yours. Some dates are fuzzy as its been so long.
August 31st - Equator system said that evaluation had been completed.
Sept 14th - Counter offer accepted from negotiator.
This has been the worst process I've ever had to endure, just short of my last divorce
We're looking for our first house. So it's not an investment. We are surprised too when she told me that. Time to look for a new friend perhaps .
Actually, we have thought about that. It's just she had done a favor for us in the past. Getting a new agent will hurt our friendship and I don't want to do that to someone has helped me.
Did you ask why she suggested the 35% downpayment? I wouldn't be so quick to dump her without an explanation. She may very well be looking out for your best interests.
If I were trying to sell in my local market right now I'd take an offer with a solid financing package, including a nice high downpayment, over an offer with a low downpayment, even if it meant I had to accept a lower price.
As for this:
Quote:
Originally Posted by whatsnext11
I have never heard of putting 35% down and if your a first time homebuyer you shouldnt have to put anything down! When we bought our first home we didnt pay a dime the owner paid closing and since we were first time buyers we didnt need a down payment and we didnt have to pay PMI either!
I know I should ignore it, and I promise I won't unleash the long rant building inside, but I can't completely let it go.
Disclaimer: as always, what I post is my opinion only.
When everyone involved in taking, making, and investing in mortgage loans (the customer taking out the loan, the financial institution originating the loan, and the investor who ultimately owns the loan) has a financial interest in the outcome, it promotes accountability and is one of the best ways to prevent the inflation and subsequent implosion of another real estate bubble.
The truth is a 30-year, fixed-rate, conventionally amortizing loan, based on 80% of appraised value, that takes no more than 28% of a borrowers gross income, is a stable product with a proven history.
Financial innovation has the RE market in shambles. Granted low/no doc, interest-only, and Option ARM products are the main culprits, but high loan-to-value ratios also result in high default rates.
With the real prospect of continued housing price declines in many markets, or a prolonged period of flat prices in many others, a mortgage loan made with 0 down payment has a significant chance of incurring loss. That's not a good thing, no matter who ends up as the final bagholder... the buyer, the lender, or the government (e.g. all the rest of us).
I think home buyers should have some skin in the game, so this statement makes me a little crazy:
Quote:
Originally Posted by whatsnext11
if your a first time homebuyer you shouldnt have to put anything down!
Disclaimer: as always, what I post is my opinion only.
When everyone involved in taking, making, and investing in mortgage loans (the customer taking out the loan, the financial institution originating the loan, and the investor who ultimately owns the loan) has a financial interest in the outcome, it promotes accountability and is one of the best ways to prevent the inflation and subsequent implosion of another real estate bubble.
The truth is a 30-year, fixed-rate, conventionally amortizing loan, based on 80% of appraised value, that takes no more than 28% of a borrowers gross income, is a stable product with a proven history.
Financial innovation has the RE market in shambles. Granted low/no doc, interest-only, and Option ARM products are the main culprits, but high loan-to-value ratios also result in high default rates.
With the real prospect of continued housing price declines in many markets, or a prolonged period of flat prices in many others, a mortgage loan made with 0 down payment has a significant chance of incurring loss. That's not a good thing, no matter who ends up as the final bagholder... the buyer, the lender, or the government (e.g. all the rest of us).
I think home buyers should have some skin in the game, so this statement makes me a little crazy:
I would agree with you on several points that you make especially the one pointed at the ARM loans. I know there were alot of people out there that had the lack of knowledge and thought they could refinance after that period and lost. The only aspect that you failed to catch is that greed is what really got the housing market where it is. Banks mis-leading the gullible and influencing the appraisals thinking that if the person can't pay their loan, then they will take the house and make a profit. The bank is a business and does incur risks, but even with the low interest rates, they are still making alot of money off of that loan if paid in full or even better if it is refinanced. Nothing like taking mostly interest for 10 years and talking someone into a refinance and making even more on them. But it isn't just the banks greed that done it, it is the people who signed the note and made the promise to make the payments and decided to walk away from the loan instead when they couldn't get refinanced or whatever. I bought in 2006 with 0 down on the loan, and I put my money into the place updating and improving and that helped when I went to sell it, but I still sold it for a profit in 2010. The part that separates my case from many others, is that if I couldn't have sold the house for what was owed on it, then I wouldn't have sold it. People have got to take responsibility for their actions and that is the key factor in the outcome of the economy. Believe it or not, there are people that will do the right thing. But I do agree with you that the more money a person puts down for a down payment, the more likely they are not to default. I do appreciate your opinon, but don't be too quick to judge because even though it is becoming less common unfortunately, there are still responsible people out there who maybe had a rough patch in their life and didn't make enough money to save alot for a house but still made every house payment on time after they got it. Like I said, I do understand and appreciate your opinion, but I just wanted to add to it offering the other side of the coin.
We got the written approval today.. yay The inspection is set for friday..
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