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.
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