The Economy and No Doc Loans

[BroadHopper]

Seems like the banks do not want to help those who are unfortunate because of the job situation. I tried to get the bank to refinance my home because I fit the criteria sort forth by the affordmyhome.gov website. It's been over seven months and the bank have not made a decision.

Now I am trying to buy another condo, which is not only cheaper, the condo fees are less than half what I pay now. Unfortunately, I can't find a bank to give me an interim loan to buy the other property while I am looking for a buyer. I need to sell this one first!

They want to fill their pockets and not want to help those with good credits and good intent.

[SIKSUKR]

Just refinanced for 4 5/8 15 year fixed. Apparently I didn't borrow enough money because the rate would have been 4 3/8 if I borrowed 70,000 more. Huh? I don't want to borrow more!

[secondcurve]

Originally Posted by SIKSUKR

Just refinanced for 4 5/8 15 year fixed. Apparently I didn't borrow enough money because the rate would have been 4 3/8 if I borrowed 70,000 more. Huh? I don't want to borrow more!

It's called a volume discount and happens in virtually all businesses!

[secondcurve]

Originally Posted by BroadHopper

Seems like the banks do not want to help those who are unfortunate because of the job situation. I tried to get the bank to refinance my home because I fit the criteria sort forth by the affordmyhome.gov website. It's been over seven months and the bank have not made a decision.

Now I am trying to buy another condo, which is not only cheaper, the condo fees are less than half what I pay now. Unfortunately, I can't find a bank to give me an interim loan to buy the other property while I am looking for a buyer. I need to sell this one first!

They want to fill their pockets and not want to help those with good credits and good intent.

Broadhopper:

I don't mean to preach to you but buying a second property before you sell your first property (which apparently you feel is too costly for you) wouldn't be the wisest move. Cut the price on your primary home and make it go away before you buy a second property. Fortunately, the banks are no longer making bridge loans like the one you seek.

[lawn psycho]

Originally Posted by secondcurve

Broadhopper:

I don't mean to preach to you but buying a second property before you sell your first property (which apparently you feel is too costly for you) wouldn't be the wisest move. Cut the price on your primary home and make it go away before you buy a second property. Fortunately, the banks are no longer making bridge loans like the one you seek.

I would give a big fat DITTO on that advice. In this market, you have no idea how long it will take to sell unless you do a major price drop to undercut everyone. Last thing you want is MORE debt when you are trying to cut expenses. (This advise does not apply to governments, however)

We were dropping our price in $25k increments and when we got close to the magic number, the buyers started coming. Felt like the worst 7 months of our lives and I could not image buying a new house and still have the stress of trying to unload the previous boat anchor.

[fatlazyless]

"Don't Miss the Bottom"....as advertised by Caldwell Banker-Moultonboro's outdoor sign board on Route 25. What do they know? Sounds like another line of real estate sales puffery!

[BroadHopper]

To Second Curve and Lawn Psycho:

You are both partly right. In reality, foreclosures, auctions, separations, and death place an important part of the market. All bring the prices of RE down even further. And that is a quote from an RE appraiser.

In my case the gentleman next door to me committed suicide. The house was sold at half of its market value, furnished! Something about liquidating the assets to settle estate liabilities. I didn't know about it as it was sold quickly to someone that knew beforehand. According to the appraiser, that alone will drive RE prices for the neighborhood down for at least 6 months.

If I was to sell my unit it will be a substantial loss. I was hoping to 'carry the same mortgage value' from the current home to the other. The only way I can get a loan from the bank as I am on pension.