With RE market changing on a daily basis, I am always amazed how creative the REO sales and financing has morphed. For example a have a buyer who was interested in a Homepath home with financing. The concessions are very attractive to a buyer financing, no appraisal fee, two year home warranty, 3.5% of purchase price towards buyers closing costs, 3.5% down payment, fixed rate, no mortgage insurance. Wow got to have it, right?
The fine print? This home was priced $35,000 over comparable values in the same area, now on the market for over 60 days, one price reduction of $10,000. The 3.5% closing costs includes fees the seller usually pays for county tax transfer, city transfer, termite inspection and clearance, HOA transfer, title fees, nhd etc.
No appraisal fee translates to they can sell it at an over valued price? Really! Great Deal? My buyer didn't think so after further investigation. Would you? Who do they think they are fooling? This is what happens when the banks and the feds with high inventory hire attorneys to write up air tight contracts to take advantage of buyers. And then wonder why they have too much inventory to sell.
Let's face it the government can't balance the books, much less their latest endeavor into the real estate business. The latest I hear is they will go in to property management and rent the excess inventory. Can you imagine having to go through a government agency to rent a home? Pretty scary thought.
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