Let it snow, let it snow, let it snow here in Chicago - 7 inches of new snow predicted here overnight!

A rule restricting refinancing of properties recently listed for sale on the MLS is nothing new here in Chicago.  However, recent sluggishness in the residential sale market here, brought on by inventories 52% higher than this time last year, and fewer qualified buyers, have made many lenders enforce their restrictions on the ability to re-finance immediately after a listing period expires.

Lenders such as Wells Fargo Home Loans and others impose a 90-day wait period before a recently listed property can be the subject of a re-finance.  The waiting period imposed by National City Bank is 12 months.  Bank of America, and several other larger financial institutions, have no waiting period, but restrict cash-out refinancing within 90 days of the last listing period, or require owner-occupancy.

Conventional mortgage interest rates on fixed-rate loans are at some of the lowest levels seen around Chicago since 2004 - but some potential borrowers are not able to re-fi because of these rules.  Most banks see recent tries to sell as a sure bet the borrowers will try to sell once again very soon, and these new, "short-term" loans will not be profitable for the bank.

See further details via the Dean's Team Blog Center - BlogChicagoHomes.com, as well asMary Umberger's column in the Monday, January 28th edition of The Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

 

1 Comments on COULDN'T LIST & SELL YOUR PROPERTY IN 2007? Your Re-fi Today Might be Rejected!

JAN
31
2008
3 Featured Posts
Citi 30 days of MLS and US Bank 1 day.  Shhhhh don't tell the others.
4:37pm • #1

Login or register to leave a comment
 
Dean%20only,%20columbus%20oh%20mentor%20conference%20-%2001-2003 Rainmaker_large

Dean Moss - Dean's Team Chicago IL Real Estate Team

Chicago, IL

More about me…

Dean's Team - Keller Williams Realty Partners Chicago IL

Address: 6053 N. Mason Avenue, Chicago, IL, 60646

Office Phone: (888) 770-8326

Cell Phone: (773) 290-8393

Email Me

Here's the Buzz on Chicago IL Real Estate News, Neigborhood Events, Things to Do Around Chicago, and more!


Listings

Links

Archives

RSS 2.0 Feed for this blog

Find IL real estate agents and Chicago real estate on ActiveRain.