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Wednesday, June 14, 2006

House 3: Back On The Market

My agent heard from the buyer's mortgage broker today. Apparently, the reason for the delay in the loan docs was the buyer had a late payment on his credit report. He said it was the bank's fault and initially, the bank agreed. However, after further investigation, the bank changed its mind and decided it was the buyer's fault after all. That dropped his credit score and he no longer qualified for the loan. The mortgage broker says they can get it cleared up in 15 to 30 days, but I'm not going to wait that long. The house went back on the market today. If the buyer gets his loan situation straightened out before it sells to someone else, he can buy it. Otherwise, it's first come, first served.

8 comments:

savvy saver said...

wow, pretty crazy if one late payment makes the guy ineligible for his mortgage. He must have been right on the edge.

Mitchell said...

Shaun, you're lucky that the place ins't here in California; prices are dropping like a rock here, with inventories going thru the roof! Everyone is selling, but no one is buying. So just remember, it could be worse. At least you're in AZ and there are buyers out there.

Patrick said...

That's just not true. Invetory in Arizona has gone up FOUR FOLD in the last year! (9,400 MLS listings in May '05, and 43,000 MLS listings in May '06).

Here's the link:

http://www.azstarnet.com/business/133299.php

Dunwoody said...

Why do you only point out the negative point in the article. Just because listings are up does not mean prices are falling.Did you also read in the same article that selling prices are up 20% year over year ending April? The average days on market are 110 in Atlanta. The average appreciation is 7.5%. Any investor knows you make your money when you buy NOT when you sell. If you buy the house right, set a realistic sales price, and have built in a reasonable number of days on the market you will not have a problem. Its called EQUITY and equity is your protection against a down market. Speculators who paid full price for these NEW homes and expect appriciation to bail them out will be the losers. As Warren Buffett said, "When the tide goes out we will see who is swimming naked."

patrick said...

Dunwoody,
Where did I say that prices were falling? Please take a moment to re-read my post. I DID say that listings have gone up, but I did not, in any way at all say that prices are falling.

I'm just saying that there are four times as many properties on the market in AZ as there were last year. That means that buyers have four times as many choices when they are looking to buy.

So it might be harder to find a buyer. That's all. Nothing about prices. That remains to be seen.

richard said...

Hey there. Don't have much to add about the situation but I just wanted to say that this blog is an awesome track keeper of real estate. I want to get into it soon, but am trying to raise capital. Keep up the good work, I'll be reading!!!

prlinbiz said...

Richard- we know a lot of people who have capital if you want to partner or borrow...don't let that stop you!

Shaun- you posted a HUD or VA loan trick or something on Rich Dad that you learned about? Can you write a little more about that here- wait maybe I should go back through and see if I can find it.. lol

Trisha#1 said...

Yikes. Sorry to hear about that, Shaun. Maybe you'll find a better deal!

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