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Multi Families Foreclosures Remain Unsold Despite Low Mortgage Rates

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By : John Cutts    99 or more times read
With mortgage rates at their lowest in 70 years, most people would assume that all kinds of foreclosed properties, including multi families foreclosures, will be quickly snatched from the market. However, most home buyers in Pennsylvania have stated that they were unable to secure mortgage loans due to stricter regulations.

Although rates are at 4.57%, home buyers involved in York foreclosure investing are finding it difficult to find financing for their planned purchases. According to most buyers, they are encouraged to buy but most are unable to get mortgages because of credit history problems and other restrictions imposed on mortgage borrowers.

Real estate agents who specialize in Pennsylvania foreclosed homes for sale have also revealed that appraisals are delaying deals because most appraisers use lower rates paid for foreclosures as comparables instead of the prevailing market price. Local agents have also claimed that a lot of home buyers who come to their offices are unable to obtain mortgages, with majority of agents not making it any easier for these home buyers by requiring them to be prequalified for a loan before assisting them in choosing a house.

Agents remember buyers of multi families foreclosures and other types of residential properties easily acquiring mortgages a few years ago, with some opting for subprime mortgages or 100% loans. However, those kinds of deals are not easily available anymore, agents have revealed.

Nowadays, lenders are scrutinizing borrowers' debt to income ratio, a parameter that often results in borrowers' loan applications being denied. Market observers have stated that people who wish to purchase real estate foreclosed homes would need to have a debt of less than 45% of their income to have any chance of getting accepted.

Real estate market observers have advised home buyers that getting rejected once does not mean that they will never get a chance to qualify. For potential buyers with low credit ratings, they have a chance to get a loan, but the rate will probably be higher or it could include points.

Despite stricter requirements for acquiring mortgages, real estate agents have stated that there is no better time to take advantage of single family and multi families foreclosures than now, while mortgage rates are at their lowest in decades.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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