Buyers market.... really? (Tempe: attorney, selling a home, closing)

[GilbertMom]

Originally Posted by 61scout80

I would love to see real statistics about this. Especially since I know a few people with sub 600 fico scores that just bough houses. I haven't heard of one case of people not buying a home because they couldn't get financed since this "tighter lending criteria" crap starting hitting the news.

I want to know how many people who are trying to buy houses they can afford are being turned down.

From what I have been reading about the new lending criteria, the borrowers ability to repay the loan will be paramount and supercede their credit score. So if you earn a lot of money and have been employed by the same company for a number of years, you will probably qualify even if you have missed some payments in the last 12 months.

I, for one, am very happy about this because I think that the credit scoring system is very unfair because it penalizes you for NOT using credit as well as for using it. That is not fair. Also, allowing one private company (Fair Isaacs) to control the credit scores of an entire nation without revealing how the scores are created (trade secret!) is not right. T

[azjack]

"My realtor keeps telling me that I made a mistake and it's only going to become more tough to get a loan"

It will become tougher to get a house loan, therefore house prices will decrease that much further.

In the declining Phoenix RE market, the so-called sidelines are an excellent place to be. You are avoiding "value" losses each and every day, and with severe economic conditions, that will likely be the case for at least a couple of more years.

[blueeyz911]

Originally Posted by azjack

It will become tougher to get a house loan, therefore house prices will decrease that much further.

In the declining Phoenix RE market, the so-called sidelines are an excellent place to be. You are avoiding "value" losses each and every day, and with severe economic conditions, that will likely be the case for at least a couple of more years.

In some areas, I do not think house prices can decrease much further. Unless 3 br 2 ba houses are going to sell for $60,000

[DebbieQ]

So...here's a problem in the making! Many Canadians want to take advantage of the fabulous housing market in Phoenix area. Particularly the snowbird population. We are a perfect example! We had trouble qualifying for a mortgage BECAUSE we are Canadians! We have 60% downpayment, no debts, far above average income, and far above average networth. We have a home to sell there which is free and clear.....and a home in Canada! Go figure!!!

[UKFSChick]

Originally Posted by azjack

It will become tougher to get a house loan, therefore house prices will decrease that much further.

In the declining Phoenix RE market, the so-called sidelines are an excellent place to be. You are avoiding "value" losses each and every day, and with severe economic conditions, that will likely be the case for at least a couple of more years.

Maybe, maybe not... New guidelines announced today, especially the $7500 tax credit for first-time buyers, and increase in loan limits, should actually make it easier for people to buy. From CNN today (my underlinings):

http://money.cnn.com/2008/07/30/news...Bush/index.htm

"Bush signs housing rescue law - President enacts controversial measure that aims to help borrowers, bolster the housing market and provide a fail-safe for Fannie and Freddie.

By Jeanne Sahadi, CNNMoney.com senior writerLast Updated: July 30, 2008: 11:12 AM EDT

NEW YORK (CNNMoney.com) -- President Bush on Wednesday signed into law a sweeping housing bill that aims to boost the struggling housing market and bolster mortgage finance giants Fannie Mae and Freddie Mac.

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[azjack]

"In some areas, I do not think house prices can decrease much further. Unless 3 br 2 ba houses are going to sell for $60,000"

House prices can decrease much further.

$60K for a modest 3/2? That is what my Aunt and Uncle paid for a new one in north Phoenix in the early 90s. We are already at 1999-2000 price levels in many areas. The idea that early to mid 90s pricing is impossible during this bust does not hold water. Fewer jobs, tighter lending, and about ten years of housing stock built in a few years all will contribute to further declines.

"Maybe, maybe not... New guidelines announced today, especially the $7500 tax credit for first-time buyers, and increase in loan limits, should actually make it easier for people to buy."

As for the housing act, raise your hand if you want to be in debt $7,500 to the IRS in order to buy a house. I'll pass. Yep, it is a tax credit that you must repay, also known as a loan.

[YAZ]

Oh yes, they CAN go low.

A condo in our area just got listed at 85k. Purchased in 1998 @ 88k. It's STILL for sale. I s'pose it'll go even lower if they want to sell.

We're all still a little better off than our parents ifya think about it.

Back in the late 70's - early 80's folks were financing homes at 18%.

[MotleyCrew]

In 1981 we closed on our first real home in CA. The interest rates when we started the process were around 12% and by the time we closed they jumped up to 17 3/4 %. We could barely eat and my husband lost his job 6 mos later. We managed to hang on to our house and did not even think of just walking away. Those were some tough times.

[YAZ]

Originally Posted by MotleyCrew

In 1981 we closed on our first real home in CA. The interest rates when we started the process were around 12% and by the time we closed they jumped up to 17 3/4 %. We could barely eat and my husband lost his job 6 mos later. We managed to hang on to our house and did not even think of just walking away. Those were some tough times.

My father earned a promotion and was transferred from northern Michigan to the Detroit area around that time. Dad was with the state police; Mom was a teacher. Talk about an adjustment!

Big 'ole house payment for what ya got.

We're still lucky....

[CheyDee]

Originally Posted by MotleyCrew

In 1981 we closed on our first real home in CA. The interest rates when we started the process were around 12% and by the time we closed they jumped up to 17 3/4 %. We could barely eat and my husband lost his job 6 mos later. We managed to hang on to our house and did not even think of just walking away. Those were some tough times.

We closed on our first home in 1988 and was happy to get a 2 year adjustable ARM starting at 12%, with a rate cap of 18%, after putting 20% down. That means we EXPECTED the ARM to go up 2% every two years and expected to pay the increased rate. Back then we prayed that fixed rates would drop down to 10% at some point, so we could refinance - hopefully before the ARM adjusted up to 18%. Had one of us lost our job, the other would have had to work two of them and the jobless one would have taken whatever they could get, even if it was sweeping at a fast food chain; it would have never occurred to us to just walk away either.