Thread: Slower times coming again

This is the last week of what is known as DPA type loans.

These are the ones with the "down payment assistant" to the buyers to be able to buy a home.

We have all probably heard of the sellers offering to help pay for things such as closing costs, which in turn is all rolled into the sales price of the home.

Well not any longer. Those days are gone. NO money for a downpayment / NO loan.

I personally had 3 calls today for inspections but had to turn them down because they needed them all in the next day or so. All DPA type programs have to be turned in and closed by the end of this month.

This is going to slow down the buying market for sure.

Hang on, its going to be a rough 4th. quarter.

rick

Feds cut down-payment assistance programs (Page 1 of 2)

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Originally Posted by Rick Hurst

This is going to slow down the buying market for sure.

Hang on, its going to be a rough 4th. quarter.

rick

.
Thanks Rick,

Nothing like good News right at bed time.
.

Yeah, I know I know.

I picked up on this at a meeting tonight after having one of the best months ever. My August was greater than last year with almost twice the amount of income.

Must have been on vacation last year or something.

With the slow time ahead, I can count on the fish not to be biting anymore too. Happens every time it slows down.

Oh well, where's that honey-do list.

rick

Rick,

Although a portion of our sales are first time buyers they don't make up a majority of our business so I don't think it will have a significant impact. I had several agents who specialized in low end first time clients and I have tried to move away from those agents due to:

- they frequently re-scheduled or canceled due to financing issues
- most bought small fixer uppers that had a small fee buts lots of issues to document
- want to pay us at closing
-had a real misunderstanding of what we do as inspectors

In past years the week after Labor Day was so slow we would take vacation but this year we have a full schedule. An anomaly or trend? The rest of the month will determine that...

//Rick

Rick,

This isn't just going to affect first time homebuyers.

Anyone buying a home who does not have a significant downpayment is going to be in trouble.

No more is the seller going to be able to be paying or contributing to the closing costs for the buyers.

This not only happens with "first time" home buyers but everyone else in the market who has no money down and less than perfect credit.

Contributions as such on the sellers side is what has moved the market somewhat in the last year. Big and small homes alike.

rick h.

The lenders have been talking about this for some time. each time they say its time has come they extend it...

And if it is time the markets will find away to get people in homes.

I just did a refy on my home full docks. the works. but it was very smooth just the same.

Best

Ron

Originally Posted by Rick Hurst

Rick,

This isn't just going to affect first time homebuyers.

Anyone buying a home who does not have a significant downpayment is going to be in trouble.

No more is the seller going to be able to be paying or contributing to the closing costs for the buyers.

This not only happens with "first time" home buyers but everyone else in the market who has no money down and less than perfect credit.

Contributions as such on the sellers side is what has moved the market somewhat in the last year. Big and small homes alike.

rick h.

Rick

My honest opinion is that big government isn't going to allow things to go to such extremes. It might happen for a while but they will back off quickly. The days of a lot down to buy have been dead to long and this market nowadays is not going to be able to handle it. The backside will tighten up a bit and folks will have to prove more to the way of being able to afford the payment but this is an I want it and I want it now society and I just don't think it can go back to the old days of 10 and 20% down and grand paws left one to buy a home.

Hold on a little and we will see things slack off.

Hard to believe that at one time, most homebuyers saved and saved and saved for years to be able to buy a very very modest home. No 20% down, no home! Great philosophy!

The last 15-20 years has led to some mighty creative financing by brokers and lenders to allow people to get into a home they have no business living in. Not only that, but to buy a castle with little to no money down. Its no surprise the market crashed the way it did.

I bought my first home in 2003 during the boom years and I still remember my broker trying to get me into all these crazy loans like 80/20 loans, interest only loans, no money down loans, ARM's! I told her I just want a fixed 30 year loan, nothing more! My credit was great, I had been at my job for 5 years with very steady income. I still cant figure why she wanted me in these crazy loans considering I was nowhere near a subprime candidate. Maybe she got more money, who knows? That was back before I knew anything about mortgages too. Im glad I stuck to my guns though

Originally Posted by Brian Thomas

--My credit was great,

.
It is The What Kind of Payment presented to Sell You the Product Philosophy. It's Only xxx for the Rest of Your Natural Life.

Think buying a car " What kind of Payment a month do you need? "

" What's the Price of the vehicle? Don't worry about how much a month the payment is. Are you going to be making any of the monthly payments? "

The looks I have received from car salesmen over the years.

Bought my Home in 94 with a 15 year mortgage ( Paid it off a Couple of years ago. )

As long as I send The Ransom Note back to the taxing authorities ( or they will let me know who really owns it) she's mine.

Originally Posted by Billy Stephens

.
It is The What Kind of Payment presented to Sell You the Product Philosophy. It's Only xxx for the Rest of Your Natural Life.

Think buying a car " What kind of Payment a month do you need? "

" What's the Price of the vehicle? Don't worry about how much a month the payment is. Are you going to be making any of the monthly payments? "

The looks I have received from car salesmen over the years.

Bought my Home in 94 with a 15 year mortgage ( Paid it off a Couple of years ago. )

As long as I send The Ransom Note back to the taxing authorities ( or they will let me know who really owns it) she's mine.

But not everyone wants to buy the 10x10 shed behind moms house and live in it

Originally Posted by Billy Stephens

.
It is The What Kind of Payment presented to Sell You the Product Philosophy. It's Only xxx for the Rest of Your Natural Life.

Think buying a car " What kind of Payment a month do you need? "

" What's the Price of the vehicle? Don't worry about how much a month the payment is. Are you going to be making any of the monthly payments? "

The looks I have received from car salesmen over the years.

Bought my Home in 94 with a 15 year mortgage ( Paid it off a Couple of years ago. )

As long as I send The Ransom Note back to the taxing authorities ( or they will let me know who really owns it) she's mine.

Congrats on owning your home outright. That must be a great feeling.

I wasnt going for any crazy loan to get the lowest payment thing. I just wanted a normal fixed APR mortgage.

Originally Posted by Ted Menelly

But not everyone wants to buy the 10x10 shed behind moms house and live in it

.
Just Keep Sending in those Monthly ( they come off the back end if you try & double up) Escrow / Principle Payments.
.

Pulled into the driveway at 3:30 this afternoon after a long drive for the only inspection booked this week.

Cell phone rings, inspection "postponed".

Originally Posted by Michael Thomas

Pulled into the driveway at 3:30 this afternoon after a long drive for the only inspection booked this week.

Cell phone rings, inspection "postponed".

Michael Dude that sucks.

I hate that. It has happen to me a few time. But in times when i had alot of other things to do.

Best

Ron

I got a call and hour ago and 2 days ago for canceled inspections do to hubby getting laid off. The moms are still working but neither qualify for the homes by themselves.

Just keep smiling, just keep smiling and the hold world smiles with you

Bank loan officers are WEASELS.

They sit on the money and their jobs are secure.

They refuse to pay for PAST DUE UTILITIES & TAXES, so you can't fully inspect and the inspection is cancelled at the last moment.

Friday was a rough day for me. I watched three different women cry at different times during the day. The first lady cried when I told her the structural repairs for damage from Hurricane Ike were wrong and already showed signs of failure. It was an out of town, already gone contractor. The whole thing involved a sales contract where the buyer wanted the repairs inspected and my client, the seller, needs the sale to avoid foreclosure.

The second crying lady was a realtor, one of the good and honest hard working ones. She just had to lay off her assistant of 8 years because of the downturn. She was hurting badly.

The third crying client was phase inspection client. She learned while I was doing the final inspection that her final appraisal was much lower than the original appraisal. In other words the value of the home decreased during construction and she would have to come up with a bundle of money to close the mortgage. She didn't know if she could get the bundle and was crying.

The news tells me the Houston area markets are not yet hard hit. If Friday is going to be a typical day, I am going to put a supply of Kleenex in my inspection bag . . . and I will probably be using half of them.

I think if the government will stop "helping", American ingenuity will get us through this mess fairly quickly. With government "help", I am less confident.

Darrel Hood
DILIGENT PROPERTY SERVICES

Originally Posted by Ken Bates

Bank loan officers are WEASELS.

They sit on the money and their jobs are secure.

They refuse to pay for PAST DUE UTILITIES & TAXES, so you can't fully inspect and the inspection is cancelled at the last moment.

Same here on Friday. Scheduled the inspection on a foreclosure days in advance. Assured by the listing agent power is on. Show up, no power. Lost that time slot = lost income for me. Now I have to fill an available slot next week to redo this one (if they get the power on).

Bank won't pay to turn it on, buyer or listing agent must set up account to have power turned on for inspection. Ridiculous. We'll see how that plays out.

By the way, the city turned off the power because they new the house was vacant but the meter was showing use. Turns out the people who were foreclosed on were still sleeping there at night because they had no where to go when they lost the home. Instead of notifying the bank so that they could have the locks changed, they cut the power.

Eric

The lady that called me on Friday about her husband getting laid off was also crying. I tried to console her to no avail. It sucked. There is nothing like seeing someones dream vanish before their eyes.

Slower times right now I can appreciate. Life is good.

rick

Aww cute baby rick. Whats the baby's name?

I just had a baby 6 weeks ago. Great stuff. I love being a stay at home father!

Brian,

His name is Hudson Ryder Hurst. He's our first grandson.
We're expecting another grandson in Febuary.

Yep, we're going to be a bit busy around the Hurst house for sure.

Nothing wrong with being a stay at home dad, Brian. Enjoy it as long as your can. You and your son will both be rewarded for it.

rick

Thank GOD he does not look anything like you.

Just kidding. Great looking kid. Man, if you could really see the look on your face. That kid is going to be spoiled rotten

Originally Posted by Rick Hurst

Brian,

His name is Hudson Ryder Hurst. He's our first grandson.
We're expecting another grandson in Febuary.

Yep, we're going to be a bit busy around the Hurst house for sure.

Nothing wrong with being a stay at home dad, Brian. Enjoy it as long as your can. You and your son will both be rewarded for it.

rick

Rick,

Congrats on being a grandfather for the first time. From what I understand about grandparents, they get to spoil the kids rotten.

As a parent they always had to say NO, as a grandparent, they get to say yes!

Anyway, yeah I am stay at home dad and it allows me to be a home inspector on the side. I dont need to tell you that I have been much busier as a dad than a HI lately. Real estate markets slow down, kids never do!

Rick, you have changed, that pic doesn't look anything like your avitar. I too have a recent 1st grandson. My daughter, her husband and my new grandson are living with us for now and I love it.