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Old 02-24-2009, 12:03 AM
 
23 posts, read 90,748 times
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We may be relocating, 2 impending offers in 2 different states.

My Questions Are: If we move to Florida and wish to purchase a Forclosure;

1. Will banks give a loan in this FL market? (Excellent Credit and 20% down)
2. How difficult is obtaining a loan in an already flooded forclosure market?
3. Would there be an increased interest rate due to market?

If I were the lending institution; I would see this market as a time bomb and not transact business in the FL market. Unless, the bank who holds the foreclosed note desires to re-coop some of the loss and issue a lower risk, secured mortgage to a new buyer.

Any advise?? Thank you.
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Old 02-24-2009, 10:27 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,111,097 times
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There is a small price hit for declining markets with most lenders. It is a very minor hit and the rate you get, dependent on credit, property type, loan to value, etc. will still be very competitive. A bank will give a loan in FL, and given what you have said here it should not be too difficult at all, provided you do qualify based on some other guidelines.
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Old 02-25-2009, 09:52 AM
 
Location: Orlando FL
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You will not have a problem finding a mortgage loan here in FL. The only foreclosure properties you may have a problem with would be in condo complexes that used to be apartments, and are owned more than 50% by investors. The market is certainly not the time bomb as you described (at least not here in Orlando) and mortgage loans are still some of the most secure/safe loans a bank makes.

With 20% down, good credit, and a normal DTI ratio, your rates should be in the very low 5's.

Occasionally the foreclosing lender (should the home you find is a foreclosure) will offer special financing incentives, but usually nothing great, and you would still be better off finding your own mortgage with another lender.
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