Short Sale, Foreclosure and Strategic Default

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Friday, July 17, 2009

Upscale home sales lag

Upscale home sales lag as jumbo loans are hard to get - USATODAY.com
More than four months after the Obama administration launched its housing rescue plan, scores of lenders are focused on rewriting mortgage loans to make them more affordable.

But one demographic is being largely ignored: homeowners with higher-price loans.

They don't qualify for mortgage modifications under the Obama plan. They can't get today's low interest rates if they try to refinance. And with newly cautious lenders warier about who they lend to, just try to sell a home that costs $730,000 or more these days. In many cases, finding a buyer who can get financing takes far longer than for lower-price homes, because banks want as much as 30% down and six months of mortgage payments in reserve.

CHART: Troubled jumbo home loans in 370 metro areas


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