Investors When the loan money has slowed to nearly a trickle that leaves only cash buyers. The impression we get from the news is that investors are sweeping in and taking advantage of lower prices. What lower prices? In Long Beach specifically we’ve seen inventory nearly dry up and housing prices inch upward. That was all the news for months, and now that’s suddenly disappeared and investors are snatching up everything at bargain basement prices? Many investors here have moved on. They are going after highly depressed properties and those are in neighborhoods in need of all types of help. One Solution – Alternative Loan Sources People rarely think of them, probably due to the massive advertising done by the big banks flush with taxpayer money, but there are other ways to get home loans. For example, local community banks and credit unions are open for business and are doing so. In fact, due to the difficulties the big banks are causing, local lending is up and increasing. This is actually good for your community, as the money doesn’t go to Wall Street, but stays in your area, getting reinvested or lent out to your neighbors. It is true that their standards are generally stricter, but they abide by the rules and deadlines. And nowadays who is to say that it’s actually harder to get a loan through them when the big banks are making it seem impossible? This could truly turn out to be a ‘win-win’- you get a house and your money stays local. There is an organization designed to help people find local banks and credit unions called “Move Your Money.” This will help you identify a lending institution that you may be able to do business with a little more easily. Who knows? Perhaps if more qualified people are able to get mortgage loans, the percentage of investors will naturally drop. Here is the latest article on buyers’ reluctance and the “increase” in investors.
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