Blackballing Zip Codes

[Runum]

On the news they just said that mortgage insurers are blackballing 10,000 zip codes for mortgage loans due to high foreclosures in those areas. None in Texas yet. Anyone else heard that?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Shawn]

Seems to be true:

http://www.theledger.com/article/20080320/BREAKING/767935443

 

[Runum]

Thanks Shawn

http://www.battlecreekenquirer.com/apps/pbcs.dll/article?AID=/20080320/NEWS01/303200047

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=41905&t=01002130057764754273

http://www.azcentral.com/realestate/articles/0320biz-CreditCrunch-20.html

:coffee:

So now how do the banks liquidate the foreclosed houses?

 

[Russ H]

Why it's so hard to get a mortgage right now . . .

Great article.

http://news.yahoo.com/s/ap/20080321/ap_on_bi_ge/credit_crunch_lending_8

After getting over $2,000,000 in refis/HELOCs last year, we've been finding it a much tougher market this year.

And we have great credit (my FICO is 720, Sharon's is 743)

The article explains why.

(Answer= We live in California, and that's where our RE is).

-Russ H.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[jimculler]

Yet another blow to the industry. It is no surprise that PMI companies are hurting in certain areas where they insured consumers on subprime mortgages.

The answer in these areas is FHA, or lender paid MI programs.

 

[andviv]

I just merged these two threads, same topic. Very interesting.
Now, how can we profit from this?
How do we work around this obstacle?

 

[Runum]

Agreed Andres. That's exactly what I'm sitting here thinking. Hope you are getting over your cold.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[taichijedi]

Well it seems that its only the mortgage insurers who are balking. Deals can still get done if you put down 20% or more and remove the mortgage insurers from the equation. This would not be such a hurdle for established investors (provided all of their equity wasn't tied up in other projects), but new entries into the market will have a bit of a bugger with this.

Someone could also start a company catering to these areas specifically, and charge insane rates to lend in those areas with very strict considerations as to who is a qualified applicant.

 

[NoMoneyDown]

I just merged these two threads, same topic. Very interesting.
Now, how can we profit from this?
How do we work around this obstacle?

One obvious way would be to offer owner financing for those people who would otherwise not qualify for conventional loans. Have to be careful, though, in that the property will need to be "attractive" to the buyer. Being in a foreclosure-saturated market will be a little tougher - not impossible or even hard, but just a little tougher.

 

[imirza]

Seller carrybacks will be in.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.