With subprime defaults causing the product lines to vanish, where do i take those customers now???

Question

with subprime rapidly disappering from mortgage, where can I take my customers that didnt default on there mortgages but dont have the credit strength to go convintional, or the equity to cover F.H.A. Fees ???

with most lenders hiking the M.C.S needed to qualify as well as implementing more strengent review polocies in referance to payment histories and appraisals(value slashing)

what can we do to close those deals ??? who are you using to get those tuffies done ????

Answer 1

There are plenty of alternatives. Learn the ropes of Fannie's My Community and Expanded Approvals and Freddie's Home Possible. And be prepared for FHA to become a better solution soon also. Roll up the sleeves and get the credit repaired. The industry is changing - so you'll need to change with it or move on to something else.

Answer 2

I'm always looking for Mortgage Brokers and Realtors who are willing to work "outside the box". If your buyer can afford the payments and has 5% (refundable) to contribute, I'll put them in the house with FULL TAX BENEFITS for a 3 year Rent-to-Own term.

I'll pay .5 - 1% commission and you get first shot at writing the loan when they refi.

I'm associated with a nationwide network of investors who do this, btw.

HTH

Answer 3

There are still a few lenders out there doing subprime with really good programs. It's a matter of having resources in times like these, when you have an approval one day and the next day the lender GOES DOWN. But there's always another lender that's willing to take on those deals that otherwise would die. So I think the broker with the most resources will get it closed regardless.

Answer 4

People with poor credit and those wanting more house than they could afford, followed that creative financing carrot. With the the new standards, those folks are not going to be able to purchase a house.

Not everyone can afford to buy a house. People are simply going to have to exercise financial responsiblity and get their credit history in good order and only buy what they can afford.

Answer 5

BDancer and Bob both have it right.....

if people cannot afford it ---they need to have some restraint. this is a problem in the U.S.---we are people who want it and we want it now --at any price....

well the price is now being paid...and your customers will most probably have no where to go (especially if they cannot afford a traditional).

Did you listen to Bush today...they are going the people who put this crisis in motion..that is the real estate industry and the mortgage companies.....here in my city i have seen more than a dozen mortgage companies walk away, close their doors and are filing bankruptcy --mostly out of fear of the feds....but because of the failing foreclosure rates also.

good luck....Like i said at the top...the earlier answers have it correct.

:)

Answer 6

There are going to be a lot of dissapointed people out there, and you will probably suffer a loss of business too.
These problems came because credit was too easy.

Imagine letting people borrow 125% of the value of a house with nothing down and not having to prove income.???

Wow...It boggles the mind.