Too Many Real Estate Deals Falling Apart?

What an interesting post.  And, when I got here, I was getting voice-over for making a strawbery salad.  It sounded interesting, but I couldn't find the link. 

And, another question...how did you do that?  I didn't click on that post. But, I would have searched for it if I didn't have to bolt soon.

Jeanne, I have run across a lot of prospects lately who state that they want to buy, but it also seems as if they are scared to buy right now based on the fragile U.S. economy. The phrase, "it's a buyer's market and interest rates are at an all-time low" seem to fall on deaf ears. I just had a client place an extremely low-ball offer on a property today; we'll see how that goes. Thanks for an excellent posting!

I think everything in real estate is all about financing, definitely causing lots of problems for potential home buyers.

I have always been able to get past the repairs and inspection requirements but these appraisers today are putting me out of business! I think it is so interesting that MY customers are keeping the appraisers alive but then they (appraisers)don't want to hear anything when their ridiculous low ball appraisals come in and are totally unavailable.

Great Post Jeanne! It's interesting, but we are still pulling through about 92% of our loans. I hear these stories all the time, but overlays have not really affected me so much. I guess that's the benefit of being able to sell directly to FNMA as opposed to only relying on investors. I have one right now where the appraisal review came back way off from the actual value. As long as we get a good rebuttal, we will forgoe the review and investors overlay and simply put the loan in a pool to go directly to FNMA. As far as the other 8% or so, most seem to crash due to title issues on REO transaction. I have noticed more and more lately that title problems are popping up at the last minute. We even had a few as of late, where marketable title could not be obtained at all because of previous ROBO Signing issues. Seems the ROBO Signing files are starting to come back to haunt us. I think that will be an ongoing problem moving forward. What's intereting is that the REO Title company actually told me that the commitment they issue is meaningless and generic and that they only get the "Real" title information at the end when do their final searches and updates. Now that's a very scary prospect. I am recomending all our borrowers hire a local title company up front to perform the searches and background work in order to avoid last minute issues that will derail the closing. I think its well worth the $75.00 bucks to know upfront before investing in appraisals, inspections, and the emotional roller coaster and disaopointment of deal dying after we did all the work and cleared the file to close. I am going to reblog and suggest, I think this is a very relevant topic for today's real estate world.

Most of the canceled contracts I have seen in the last 90 days have been offers on short sales where the buyer has decided to walk away.  I agree, underwriting overlays can put good qualified buyers out of the market.

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