Comments on: Are Sellers Avoiding Buyers Using FHA Loans?

By: FHA Foreclosure loans

FHA Foreclosure loans — Mon, 26 Dec 2011 19:55:32 +0000

Yes I have used it and thought the deal I got was brilliant.

By: secured loans

secured loans — Mon, 18 Apr 2011 11:51:56 +0000

A secured loan is a loan where you provide the lender with some security against the money they loan you. That security is usually your home. In the case of secured loans, the security will be the borrower's property whether it is mortgaged or owned fully.

By: Matt

Matt — Tue, 31 Aug 2010 07:37:49 +0000

We have been looking in the north San Diego region. We are approved for FHA and have been looking for 2 months for our 2nd home. We have put in over a dozen offers and nothing has come back or we have been over looked because of FHA. Regardless of REO, Flipped investors, and standard sellers, we have not been able to lock a property yet! We were told today that FHA is the black plague, and listing agents are pre-screening buyers for lending financials. In order to get the economy rolling again, I believe that “rules” need to be put back in place. Sellers are waiting for perfect offers and resting on the potential FHA buyers as “other offers'” to negotiate better pricing. I think we are going to leave this “new market” to the cash buyers and investors that got us in this property decline 8 years ago!

By: char broil parts

char broil parts — Thu, 12 Aug 2010 11:34:23 +0000

Using FHA loans are very safe to buy…But sellers avoiding buyers using it is atrocious

By: hadenoughalready

hadenoughalready — Mon, 02 Aug 2010 19:48:32 +0000

Another misconception that needs correction: the reason buyers choos FHA loans. It is not just because someone CAN'T afford 20% down. Think in terms of this falling market (yes it is still a falling market – don't believe the propaganda). In a falling market, why would anyone want to put more than 3% risk on investing when we know that the bottom has yet to come? For every thousand the market falls, that cash evaporates. However, if you only invest 3%, the loss is merely on paper unless you need to sell. I am buying for the long term. I am no “flipper” – I would rather keep 17% in my pocket, or at least liquid enough to use to improve the property or invest elsewhere, such as retirement. It also makes no sense that a Seller has anything to say about how a buyer does their buying. At the end of escrow the big check is cashed. The money is just as green. The excuses about appraisal are shallow. If something isn't worth what their asking – they shouldn't get it. Sort of the definition of why we bother to appraise property anyway. Why am I the only one who sees this? I'd like to see more people speaking up here instead of sitting vigil waiting for some Redfin guru to continue the selling process. Does anyone have an original idea about how to get around the BS? I'll keep reading. Thanks for hearing out my rants.

By: hadenoughalready

hadenoughalready — Mon, 02 Aug 2010 19:37:34 +0000

A whole lot of realty BS abounds in this blog. Is there such a thing as a working agent for the buyer? NO WAY. I am so sick of hearing about how my low-ball offers in a so-called buyers' market is insulting the sellers who got drunk on their equity lines and are now trying to become whole again by using my good name for the next 30 years. And now, these flaky sellers want to dictate who preapproves my loan when I'm already preapproved with another lender. It doesn't work that way – no property today should be going for more than asking price. No third-party bank needs to be involved in my lending choices. The bidding wars are created by agents who get a nifty pound of overvalued flesh. Agents work for themselves they are not gatekeepers to the deserving. They are not kind, nor do they give a darn about what happens to you once escrow closes – they are simply the newest whore in our so-called democracy that goes unregulated because those who are in charge are watching porn instead. And I agree with a few folks here who give credit to this dishonest industry as a whole for being the cause of the overvaluation – not merely the sub-prime industry. Buying a home is not a romantic notion – it is a necessary tool to keep from being overtaxed to our deathbeds. But, agents Listing and Selling agents prey on peoples insecurities and lack of understanding of contract laws. Realtors are a hurdle in the process rather than a service. I worked in the industry for many years, got fired when I spoke up about dishonesty. Botton line, I got out alive. BUYERS BEWARE!!!

By: Guest

Guest — Sun, 25 Jul 2010 02:44:44 +0000

We're selling a condo and we've learned the hard way after losing two deals and spending all that money on the lawyer to prepare for the sales that FHA won't approve a loan for our building (it has to do with % of units owned by one buyer). So if we knew a buyer was using FHA in advance, we'd never sign the deal. We know how it will turn out.

By: Connie

Connie — Thu, 22 Apr 2010 04:09:41 +0000

I have good credit and a good income. How ever I would like an FHA loan so that I can put 5% down. I have 10% but do not want to wipe out all my savings. Didn’t the tax payers and the government bail out the banks? Prices are so over priced in California. Incomes have not gone up. If these banks can except bail out money, yet over look buyers who want to have some money left after they buy a house to spend on the house thus stimulating the economy. The banks created this messed up economy. We bailed them out. Now they only want to sell their reo’s to cash investors. And not let the middle class a chance. The rich just keep getting richer. Our economy is only going to get worse if these banks don’t let the middle class catch up. Prices are going to keep dropping until the average price of a home is affordable to the middle class. Our economy sucks because so many people our “House Poor” and “Underwater”

By: Jay Sondhi

Jay Sondhi — Wed, 03 Feb 2010 02:51:10 +0000

@ John and all: You might want to switch lenders and/or agents if your offers are not being accepted due to your government financing. There IS some serious discrimination against FHA offers out there, but it takes a loan agent and real estate agent who work in tandem to sell your financing along with your offer when you are looking to buy with a government loan. I have some good referrals if you need. I haven’t closed a single purchase over the last year where I didn’t need to wrestle with a listing agent who did not want to accept our FHA offer. I have closed all those loans within 30 days too!

By: John

John — Mon, 21 Sep 2009 20:32:03 +0000

My wife and I were just turned down for a bank-owned REO home because we are using FHA financing. Our offer was $10,000 over the offer they accepted. The reason given was that we were not using a conventional loan. So far that is the 5th time this has happened! It’s extremely frustrating and we simply don’t know what to do to buy a house. This house and all of the ones that we are offering on are less than 8 years old and are all in great condition. So passing inspection isn’t the issue.