I have had the pleasure over the past year to work with a marvelous non-profit organization called Diamond in the Rough http://www.ditr.org/ . The group mentors girls ages 10-18 to help them be everything they are destined to be even though they have been side-tracked by bad decisions or life circumstances. In the world of Real Estate, now more than ever it is important for realtors to cultivate the "diamonds in the rough" in terms of buyers. Here are the scenarios that need a second look:
Buyers who can't/won't buy until their home sells - In this buyer's market sellers are getting fewer showings and consequently fewer offers. This otherwise ready-to-go buyer could be taking advantage of outstanding bargains that would save them 1000s and maybe 10s of thousand dollars on fantastic purchases. So, maybe they sell their home for a lower price than hoped for and simply recoup the dollars in their buying transaction. This deserves consideration.
Self-employed buyers who need to go SISA but can't - A stated income, stated assets loan usually requires about a 720 credit score. For those buyers who may be just 5 or 10 points below the 720 mark, take another look. Even with mortgage loans being strictly scrutinized lenders and buyers can legitimately look at accounts and make adjustments or corrections that will sometimes bring up the credit score. As well, sometimes rather than SISA the self employed can do minimum document loans using bank statements rather than the usual 2 years of tax returns.
The 1st-time buyer whose scores are too low and payments too high - Certainly it is a new day in the mortgage business and those with poor credit history are going to have to do the work to rebuild it. However, this buyer should be kept up with and helped through the 6 - 12 months of credit repair and preparation for buying. In this market it is completely feasible that the homes they are interested in will still be available while they work to get in a favorable purchase position. Of course, a lease-purchase could be executed if the buyer really needs a place to move into ( if they have the available cash needed upfront) but with lingering properties on the market a buyer seriously making the changes that will get them to the closing table in 6 months doesn't look so bad.
There are an incredible amount of properties that need to be sold out here. Let's dig out the great buyers that are hidden in problem circumstances. The extra effort will be rewarding for us all!
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