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Baron Chestney's Blah Blah Blog

Discount Real Estate Brokers Serving the Entire San Francisco Bay Area

By Baron Chestney | Broker in San Francisco, CA
  • Baron & Chestney's Blah Blah Blog #1 - Begin at the Beginning...

    Posted Under: Market Conditions in Sausalito, Home Buying in Sausalito, Home Selling in Sausalito  |  May 28, 2011 8:42 AM  |  1,992 views  |  No comments

    2% cash rebates for home buyers and 2% commission discounts for home sellers with the Baron!

    Welcome to the "official" first edition of Baron & Chestney's Blah Blah Blog! The "unofficial" first edition somehow got deleted ... let's hope that doesn't happen again...

    So, here we are, almost 4 full years from the day the sh*t hit the fan in the mortgage industry -- essentially, July 31, 2007. During these past four years, some things have changed radically, and others have changed so much that they have almost gone full circle right back to where they started ... plus sa change, plus c'est la meme chose, in other words...

    In the first half of 2007, many banks were still making huge, sloppy loans to anyone with a pulse. No down payment, negative amortization, the 60 year mortgage, you name it -- every possible financial scam and then some was being aggressively pushed -- that is, until the secondary mortgage market dried up almost over night. Once that happened, banks changed their policies by 180 degrees, habitually turning away well qualified borrowers to whom they would have loaned on multiple properties just a few months prior.  All of a sudden, 20% down was mandatory, perfect credit was necessary, and a borrower had to fit the "cookie cutter" mold of a two-income, high salaried home buyer. Self employed people, retired people, and even high net worth people who could show plenty of assets (even cash on deposit in the prospective lending bank) but not a large steady stream of income were being routinely rejected for even the smallest of loans. Today, we are pleased to report that MOST banks have finally loosened up their lending policies a bit, after several years of ultra tight fistedness... You can now have good credit instead of needing perfect credit, you can now put lower amounts down, and you can now get a loan even if you do not fit the lender's "cookie cutter" mold of the "perfect borrower".  (One massive bank whose lending policies are still Draconian at best has been averaging 45 to 60 days to close escrow on "easy" transactions that should take no more than 30 days to close, they have been imposing all sorts of random conditions upon borrowers via bizarre "property inspections" that are conducted by their appraisers (?!), and they have even become unreasonable with the sales of their OWN bank-owned properties (?!), imposing additional conditions upon buyers who wish to purchase those.) Yes, believe it or not, lending has come full circle all over again, as adjustable rate mortgages are once again becoming popular. We haven't seen any negative amortization loans being offered lately, but we wouldn't be surprised if we did...once again, banks want to loan you money, after a 4 year hiatus...

    SO, what does this mean for potential home buyers? It's safe to poke your heads out again and take a look at what the market has to offer! Home sellers? The people who may want to buy your home can now get a loan! That's great news for everyone. The overall market remains a buyer's market, but, there are exceptions from county to county, and especially from city to city. In future editions of our Blah Blah Blog, we will delve into the specifics... Also, we will address perhaps the scariest nightmare to come out of this real estate and mortgage industry meltdown: the "sh*t sale".

    Tune in next time for more of our Blah Blah Blog!
 
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