Keep an eye of those 100% financing deals you have in contract

By
Real Estate Agent with McMahon Phillips Real Estate 01394956

Whether your representing the sellers or buyers it's prudent at this point to check back in with all those clients you have in escrow who are using 100% financing. More importantly check in with their lenders. You may not like what you hear (or don't hear) It's not a bad idea either, to double check with the lenders of all those clients your driving around looking for homes. Make sure they still qualify as well. Here is why: The mortgage business is changing in a big way. Many sub-prime lenders are going out of business or changing there policies and conditions. This is happening at a furious pace. Word has it, up to 80% of the 100% financing products will not be available in the next 120 days. I'm not sure if this time-line is true but I am sure I'm calling every lender in my flow of deals with clients using 100% to make sure the phone still works.

 

Here's a link to an article discussing the impending doom of New Century Mortgage.

Comments (2)

Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I have been playing escrow 911 and trying to hold on dearly to the 100% - ers.  I tried to tell another agent who is the list agent to get a hold of the lender to make sure all is good.  He said he did.  Uh huh!

Some of our peers haven't a clue what is going on and some of those peers are LENDERS.

Mar 05, 2007 02:23 PM
Myles McMahon
McMahon Phillips Real Estate - Folsom, CA
Good for you Renee! With companies like New Century Mortgage facing probable bankruptcy, the Real Estate market will feel the repercussions.
Mar 12, 2007 10:37 AM