“I’ve made seven offers on foreclosed homes and lost every one. I’m getting an FHA loan. Do you think that’s the problem?”
Answer:
Yes.
FHA loans are an issue for 2 reasons:
First, we’re seeing more and more FHA appraisers call for repairs to be done to make the loan. This causes either A) unplanned expenses and closing delays for the seller or B) the sale to cancel.
Banks selling their foreclosures loathe both possibilities.
Second, FHA has become the dumping ground of hard-to-finance buyers. Too many marginal mortgage brokers try to get FHA loans for marginally qualified borrowers. And many of these people are denied on day 44 of a 45-day escrow, canceling the sale.
Banks selling their foreclosures loath that too.
So after a bank has say, 1,000 sales of their foreclosed homes have delayed closings, unexpected expenses, or cancel with FHA buyers, they become a tad hesitant to sell with FHA financing.
Bottom line:
While none of my bank-clients flat out refuse to sell with FHA financing, it’s a big factor or tiebreaker when there are multiple offers. Usually the cash or 20% down conventional buyer gets the property if the prices are at all close.
So my solution is either come up with 20% or be persistent.
You WILL get a home if you keep trying.
Automatic Notification Of San Diego Real Estate Foreclosures
