With there being so many foreclosures and short sales coming into the market, wouldn't it be more financially sound to offer the current owners to refinance their homes at a more reasonable interest rate of around 8% then to lose the current owners and go through the cost of repo, selling and so forth? Yes, many notes have been resold and the current owner of the note invested x amount with the hope of making a profit at 12-14% interest, but in my limited mind I think that 8% of something is better than nothing at all, or selling it for less than the original sales price and getting only 6.25% interest on that if they get the loan again. Perhaps it is much more complicated than this.
Fortunately here in Texas there is less repos than in many other states. However there are a few. About 4 months ago I helped my buyers purchase a home that originally sold for $132,000 the previous year and paid only $107,000 and the appraisal came back in the $120,000 range.
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