March 9, 2010 Newsletter
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The good news is that rates are holding under 5% for fixed thirty year conforming loans and there are 5/1 adjustable mortgages under 4 percent. There is no predicting how long these rates will last since some experts have predicted the Fed to be tightening rates this year once the economy is on track.
The other bit of good news is the restriction on reconveying a property prior to a ninety day “seasoning” has been lifted. The history of the restriction is that lenders, still smarting from the days of fraudulent flip transactions, required that any seller selling a property to their borrower, must own the property for a minimum of ninety days before thee transaction to their borrower could be consummated. In the past unscrupulous buyers would acquire properties well under market and then have fraudulent appraisals done, allowing them to resell the property quickly, sucking out the non existent equity and leaving the lender holding the bag. With the new requirements preventing the lenders from designating their appraisers, the reason for the restriction has dissipated. Dropping the ninety day "seasoning" takes us back to a normal marketplace. Now an investor who has bought a property at below market value, possibly at foreclosure, can turn around and re sell at market, earning a profit, without having to satisfy a “waiting period.” This benefits legitimate real estate investors who are able to find bargains and are able to turn a profit.
According to local media, the purchases within our immediate area are stabilizing.
We have completed our move to our new space in the Parkside Building. In the event you have tried to call the office and the connection was lost, the phone system has had some challenges, but we should have it all fixed shortly.
Thanks for your support. We value your business and your referrals. If you have any questions or need our law firm services, feel free to email me at tee.tillman@colonytitle.com or call at 410 884 1160.
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