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This must be why HUD, FNMA and FHLMC give buyers who intend to occupy priority over investors.
The bank-owned properties being bought by Wall Street investors are generally not financeable due to their condition and/or occupancy by squatters ( sometimes former owners who refuse to move). Wall Street competes amongst themselves and with other independent investors who have cash to pay for these properties. Average Joe does not have the cash to pay for the property, let alone the time and money it's going to take to evict the squatters and bring the properties up to snuff.
Bank-owned properties that qualify for financing are generally offered on the open market to the highest bidder. Those owned by HUD, FNMA and FHLMC give buyers who intend to occupy the property higher priority than investors.
One must look into the guidelines for someone to be owner occupied. I just purchased a Fannie Mae house with cash. I have to live in it for 3 months before I can sell it. No biggie
Last edited by Loveshiscountry; 01-25-2014 at 12:22 PM..
This appears to be your comment, which you originally embedded in mine.
Quote:
Originally Posted by middle-aged mom
This must be why HUD, FNMA and FHLMC give buyers who intend to occupy priority over investors.
The bank-owned properties being bought by Wall Street investors are generally not financeable due to their condition and/or occupancy by squatters ( sometimes former owners who refuse to move). Wall Street competes amongst themselves and with other independent investors who have cash to pay for these properties. Average Joe does not have the cash to pay for the property, let alone the time and money it's going to take to evict the squatters and bring the properties up to snuff.
Bank-owned properties that qualify for financing are generally offered on the open market to the highest bidder. Those owned by HUD, FNMA and FHLMC give buyers who intend to occupy the property higher priority than investors.
Congress is behind the initiative to shake out Dodd-Frank and potentially limit or eliminate " skin in the game" rules for certain mortgage products, like the common 30 year fixed rate. Also being challenged are the down payment rules, a part of the consumer protection thing, within Dodd Frank.
There are good arguments on both sides of the table.
HUD has a window of 10 days. No big deal. Of that cash is king. After 10 days investors can bid. Owner occupied is no big hurdle. Some avg Joes have the cash, but clearly many don't.
However, the same people who essentially are in top position in the market get extra advantage when they implode it. This is just more of why the house never loses. This is far more about keeping asset and market prices up. We could have a lengthy discussion about Fannie/Freddie/HUD or market propping and liquidity for that matter, but not for this thread.
making the median price of a home UNAFFORDABLE to the workingclass
"Price" is the only way to legally discriminate against "riff raff" that wants to move into your neighborhood. You are not only paying for your house, you are paying for your neighbors.
Real estate is booming in my neighborhood. Within 1 square mile of my house two skyscrapers, a half dozen highrises, and dozens of new homes and businesses are under construction. These projects total, according to UCD - University City District organization - $3.5 Billion.
One must look into the guidelines for someone to be owner occupied. I just purchased a Fannie Mae house with cash. I have to live in it for 3 months before I can sell it. No biggie
You paid cash.
Most people need a mortgage which means they and the property must qualify for financing. Most lenders require buyers to qualify for Fnma/Fhlmc rates which are lower for owner- occupied financing the propery must also be suitable for the family,s size.
This appears to be your comment, which you originally embedded in mine.
HUD has a window of 10 days. No big deal. Of that cash is king. After 10 days investors can bid. Owner occupied is no big hurdle. Some avg Joes have the cash, but clearly many don't.
However, the same people who essentially are in top position in the market get extra advantage when they implode it. This is just more of why the house never loses. This is far more about keeping asset and market prices up. We could have a lengthy discussion about Fannie/Freddie/HUD or market propping and liquidity for that matter, but not for this thread.
Average Joe needs to finance, else he would not be average, now would he.
Average Joe also wants the lowest rate possible, which means he agrees to occupy the property as his primary residence.
Average Joe also wants to see the property, likely more than once and will impose the right to a property inspection once price and terms have been agreed upon.
The Wall Street investor are buying properties that do not qualify for financing because of condition and/ or occupancy by squatters. They cannot even get inside until the squatters have been evicted by the courts.
Damages may be superficial or so significant that the property cannot be salvaged.
Most people need a mortgage which means they and the property must qualify for financing. Most lenders require buyers to qualify for Fnma/Fhlmc rates which are lower for owner- occupied financing the propery must also be suitable for the family,s size.
The guidelines are different for people needing loans I'm guessing?
I believe the other stipulation was if I did sell it I'd have to do so at a price which was 20 percent higher than what I purchased it for.
I wish I was connected and a investor. In Akron, Ohio there are 4 properties in a row near the University. Akron U must be a good school because they are drawing people from all over the country. I amazed those properties have not been gobbled up, they would make great rentals. Make all of them energy efficient would be a big sale point since most rentals in that area are old homes and sky rocketing gas bills.
Average Joe needs to finance, else he would not be average, now would he.
Average Joe also wants the lowest rate possible, which means he agrees to occupy the property as his primary residence.
Average Joe also wants to see the property, likely more than once and will impose the right to a property inspection once price and terms have been agreed upon.
The Wall Street investor are buying properties that do not qualify for financing because of condition and/ or occupancy by squatters. They cannot even get inside until the squatters have been evicted by the courts.
Damages may be superficial or so significant that the property cannot be salvaged.
It's a risk- reward thing.
Well that is your particular definition of avg Joe. Avg Joe certainly can't buy in bulk. Seeing property for auction is no big deal. Just call the realtor and go look. Certainly not an inspection.
It would depend on the price. There are plenty of people that would not be considered wealthy that could pay cash for a deal. Depends on the pricing and the deal. When prices are higher this is more difficult.
Seems clear that it's a risk reward thing. Wall street has made it clear they are making money on it.
Not really sure of your point. Everything you are stating is self-evident.
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You are not only paying for your house, you are paying for your neighbors.