Wednesday, September 14, 2022 / by Dave Magua
As the market continues to shift and ambles closer to a buyer’s market, some buyers currently in contract are developing a severe case of buyer’s remorse. Doubtful of their purchase and questioning the timing, some are looking for any excuse possible to bail out of the contract.
Just a few short months ago, most offers we received had most if not all contingencies removed. Fast forward to today, and homes are now going into contract with all contingencies in play. This effectively means that if anything happens to the loan, the property appraises undervalue or something detrimental is discovered during the inspection period; then the buyer has a right to cancel and get their deposit returned (rules and procedures vary from state to state).
The recent uptick in canceled contracts reveals that buyers with tepid toes have begun actively looking for valid ways to terminate their purchase. Here is our list of top 15 potential deal-breakers:
1. Apprais ...
Tuesday, September 13, 2022 / by Dave Magua
As they pivot from refinancing existing homeowners to serving homebuyers, mortgage lenders face heightened risk from fraudulent schemes that pump up a homebuyer’s income and assets or misrepresent the value of the property being sold.
That’s according to the latest Mortgage Fraud Report released Monday by analytics firm CoreLogic, which found the risks of income fraud was up 27.3 percent during the second quarter when compared to a year ago.
Purchase loans are more susceptible to fraud and now account for more mortgage transactions than refinances, the report noted. When homeowners refinance, there’s no transfer of ownership, no sales commissions paid to real estate agents, and most of the proceeds go to a lender. In purchase transactions, borrowers may not have a strong financial history, and there are more parties involved — including real estate agents and a seller who’s receiving the loan proceeds.
“Most industry experts and risk ...
Monday, September 12, 2022 / by Dave Magua