I received an email from Arie Brown this evening from ProActive Lending Solutions.
As you know the real estate market and mortgage lending has experienced some major changes during 2007, and will continue to see changes in the future as well. I want to share some information with you that I feel is important and I think you will too.
Due to recent market condition changes, many homeowners attempting to sell their home have not been successful. Some homeowners then decided to refinance their current mortgage to avoid the increased payments from their Adjustable Rate Mortgage. Others decided to refinance and update their current home verses buying a different home elsewhere. WOW – They where in for a BIG surprise.
Homeowners who had their property on the market For Sale By Owner or listed on the MLS have found it was almost impossible to secure a refinance. The reason being is that virtually every major lending institution implemented guideline changes and would not refinance a borrower’s mortgage if that borrower’s property was currently for sale, or has been offered for sale within the last 6 months.
The good news is that one of the nation wide lenders has just announced that they will do a refinance for owners who have recently had their properties offered for sale (conditions and limitations due apply).
Hopefully, as the market turmoil settles, we should see more lending institutions ease their standards and start offering more of the common sense-liberal mortgage products again. It usually takes one to lead the pack, and the reset slowly follow.