What your lender was referring to is that in 2007 Fannie Mae, the entity that buys the loans from the originating lender declared Florida a "declining market", which means they anticipate that the appraised value in the future will be less than the appraised value at the time of purchase, making it a bad risk for them. There are still many lenders who will give you a loan, they were taking additional value away from the appraisal to minimize that risk. Fannie Mae has mandated that this practice stop as of this week. Sinkholes are an issue in both Pasco and Hernando Counties, but most lenders are national and do not even know what a sinkhole is. Hope this helps and there are a lot of great areas in Pasco. Land O Lakes is beautiful with many newer homes at affordable prices.
The housing market is bottoming out, prices may fall a little more, but they have just about stopped. The prices will then stagnate for awhile and then slowly start to appreciate again.
The problem was loans were super easy to get and that caused a lot of buyers to flood the market.
Prices starting jumping higher because demand was higher.
Prices/value were exaggerated and/or buyers income were over estimated and they were qualifying to purchase a higher priced home.
Then jobs were lost or people laid off or business moved. People couldn't find a job or pay for their homes.
Property started being foreclosed on left and right.
People got scared of buying a home because they might loose their job. So they stopped buying.
Gas and food prices jumped and people were having trouble meeting ends and they were afraid to buy and not be able to make payments.
Banks got stricter guidelines to help avoid foreclosures, so many couldn't qualify for a loan.
All of a sudden there were plenty of properties, but no one to buy them. Banks lowered prices so that they would sell.
When they sold at lower prices, the properties around them were worth less.
This happened again and again.
Places that were more desirable in the beginning were hit hardest because they were the same properties that were over-priced.
Jeanne was exactly right there are many lenders out there, check out a few.
Yes, the general housing market is in a "decline." Of course there are locations that defy the norm and are holding their own and in some cases showing some appreciation in value....but, Port Richey in not one of them.
Obviously your bank has been "stung" hard by losses (foreclosures) resulting from previous loose lending policies. Until recently many lending agencies were making money available to people that did not have the financial means to support the loans they had been granted. The results of which are massive foreclosures.....
Despite the declining market immage, this is an opportune time for buyers to make their move because prices have dropped, sellers are motivated, and cheap money is still available to individuals with good credit ratings.
Our advice is to not let the "declining market" or letter from your bank get in the way of your real estate goal because despite what you hear in the media.....this IS the best time to buy!!!
The "Eckler Team"
Century 21 Almar & Associates
Venice, Fl 34285