38

You could ask, but you risk the seller deciding to just cancel and put the property back on the market once restrictions lift, shutting you out. Depending on the exact neighborhood and local market, there is no guarantee that a recession will even affect the chosen neighborhood. You described it as a very competitive, presumably it will still be a desirable ...


21

With the caveat that I'm assuming your verbal agreement isn't legally binding (AIG says it isn't), I would pull out of the deal completely if I were in your shoes. By negotiating, you're essentially trying to price an unprecedented global financial/economic meltdown. What is the right haircut to the existing price? 5%? 10%? 50%? Are you looking for a ...


19

If you've already signed a contract, it's too late. Well, barring legal shenanigans. If you haven't signed a contract, then sure, you can ask. That's how negotiations work. The buyer comes up with reasons why he should pay less, the seller gives reasons why he should pay more. I wouldn't expect asking for a lower price to derail the sale. The seller could ...


18

Short answer: It probably makes sense to avoid the PMI (Private Mortgage Insurance), but it ultimately depends on how probable it is that you are unable to pay the monthly installments with/without the extra savings. Long answer: While i am not an expert on the specifics of the US mortgage market (I presume the question pertains to US), it seems that a ...


11

My wife and I run a real estate brokerage in Florida. The transaction process is different here but principles are similar. I think there's a good chance the deal will fall apart if you try to renegotiate the price at this stage. Buyers and sellers in residential real estate transactions often make emotional decisions. Don't be surprised if the seller ...


7

First understand that when the stock market drops like this, it absolutely can impact you, even if you aren't "in the stock market", because when stock prices decrease that's an indication that the market believes those companies are going to be performing worse. ie:if Apple shares drop 10%, the market believes (to be simplistic) that the total foreseeable ...


7

Imagine if you had put your funds into a diversified equity mutual fund 2 weeks ago. You might have lost ~15-20% of the value of your downpayment savings. In a scenario where you need funds on the short term [and 3 years is short term for these purposes], you want to take on as little risk as possible. That means a savings account, or some form of a ...


6

Recession (and the related risks and uncertainties) goes both ways. If the real estate marked drops significantly and doesn't recover quickly, you will have overpaid if you buy at the agreed price. It would indeed be reasonable to ask for a price reduction and cancel the deal if you don't get one. If the government decides to counter the economic recession ...


5

If you can still walk away from the deal, particularly without having paid any deposit, your leverage is a willingness to cancel the deal. In the US you usually only risk deposit money until you have a deed and mortgage. Are you sincerely concerned enough about the housing market changing that you will cancel the deal? Supposing you are actually seriously ...


4

You are proposing to gazunder. I can't speak for what might be 'best' for you personally, but I don't know of anyone who thinks this is a noble practice. how would it be best to approach this Tell your conveyancer to tell the seller's conveyancer. Both these parties might try and talk you out of it.


3

I am an old person, and over the years I’ve had a number of rental properties as well as those that I’ve lived in. With that, came a number of refinances. When I was trying to buy rental properties and had trouble getting a mortgage from a local bank I went through a broker. Yes that came at a cost. for the home I am in now, nearly 25 years, I have ...


3

You could offer less. You must be prepared to walk away at that point though, as the seller is within their rights to completely withdraw the sale. When I bought my property, the conveyancer advised me not to proceed due to non standard construction. I wanted the house anyway as it was better than other properties i'd looked at. I called the Estate ...


3

per one of the title insurance company If you're considering refinancing your mortgage, you may be surprised to see that you are required to purchase a new lender's policy of title insurance. This is because a lender's policy only provides coverage for the life of a loan. When a home is refinanced, the life of one loan ends and another begins. ...


3

And to answer the question you asked: Because a residentual mortgage OUTSIDE of a securitized pool is neither standardized in any means (interest rate, duration, size). Noone wants to deal with a market for 10 million different mortgages, one each. All regular markets require some standardization or at least "buckets" that are large enough to handle the ...


2

When residential mortgages are securitized in Collateralized Debt Obligations or CDOs, the CDO is a member of the set of "commercial paper". So you're partially right: a derivative of residential mortgages can be in a money market fund. The "gotcha" in the question is that a whole base mortgage can not.


2

It seems unlikely that you paid additional points when the mortgage was sold, I've never heard of someone doing that, and I think you would know if you had. So either this duplicate reporting of points is a mistake, or the second 1098 includes all the amounts you paid, and essentially supersedes the first 1098. It's been a while since I had a mortgage that ...


2

If you know it is incorrect, then just report one. It sounds like an obvious mix up on their part. If you report two, and you get audited, it will cause you more headaches than it is worth. Being honest goes a long way with the IRS.


2

There is no different tax treatment for a paid for home versus a home with a mortgage. As a big advocate of not borrowing money for any reason, I can only think of one disadvantage of having a paid off home. Assume you currently own a home with a 100K mortgage, and enough cash to pay off the mortgage, in fact you have 500K in cash. But you want to ...


2

Without looking at your mortgage paperwork, it's hard to know. Were I to guess, though, there are often expenses that appear both as prepaids and as escrows paid at closing in your closing documents in addition to being part of the regular escrow account. In other words, you're making an initial payment prior to closing, then make a payment as part of the ...


2

Since you are buying a house, you will have been watching closely the housing market recently. Go back and look at some of the other properties you considered that are still unsold. Has their asking price gone up or down? The housing market is entirely capitalist so have no shame in following the fundamental capitalist ethos of supply and demand. If demand ...


1

It does not matter what lender you apply to, your credit report will show that you applied for forbearance. The lenders won't really take into account the forbearance. What they will take into account is your credit report. Don't use the forbearance period as a get rich scheme otherwise your credit report will be horrible. In conclusion, no forbearance ...


1

The National Association of Realtors has published guidance for its members at https://www.nar.realtor/coronavirus. That's probably the nearest you'll get to a set of national guidelines. The rules and regulation for real estate transactions vary from state to state


1

Yes, fixed rate mortgages should/will drop as the bank of England rate drops, it will likely be small though, as banks are already loaning on very thin margins (in some cases in UK housing market, close to if not below inflation). However, it is worth noting that locking in 'preferential' mortgage rates can be a huge trap: low interest rates generally ...


1

I'm going to answer based on my own personal perspective on financial decisions - ultimately, you need to determine your own criteria (risk tolerance, goals, etc) and decide the answers to your questions for yourself. Personally, I don't think it makes much sense to invest money when you have outstanding high interest debt, because from a pure numbers ...


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