There is nothing like permanently scarred. What has happened will happen again and again.
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Posted 08 March 2018 - 08:13 AM
The flipping business is for real, but right now the foreclosure banks are capitalizing on the demand by keeping the offering prices high, at least 20% higher than last year by my estimate. I don't think that is sustainable though for much longer.
Posted 08 March 2018 - 09:15 AM
It's a business that a lot of folks think they're competent at. Many, of course, are not.
I will say that in my sleepy burg, real estate is HOT. My particular neighborhood, which has chronically been undervalued (for decades!) can't keep a house on the market more than a few days, if that. The place next to me had multiple offers the day it was listed, the winner bidding 20k above the ask. The place behind me (granted way under priced) had 15 bids the weekend it was listed.
I would say that this is a frothy bubble, but honestly, this is more a matter of how cheap we were around here rather than speculative excess. That said, if it keeps up, you're going to get every Tom, Dick, and Harry wanting to start flipping in our market.
Posted 08 March 2018 - 09:16 AM
Zero down has been back. FHA allowing seller to provide 2 of the 3 percent down for the FHA loan. The 2 percent gifting by the seller can also be done to pay down student debt to allow the borrower to qualify.