So what's this "Mortgage Mess" all about?

Simply put, the lax underwriting, increasing foreclosures, and fraudulent lending practices have made mortgage INVESTORS leary of buying blocks of mortgages. Without that influx of pure cash, the lenders cannot continue to lend - hence Countrywide's recent access of it's 11.5 BILLION line of credit.

Hard hit are "Jumbo" mortgage rates - any mortgage over $417,000, due to the uncertainty of investors with regard to the secondary market.

SELLERS TAKE NOTE: If you have the resources available and are in a good financial position, consider offering qualified buyers a PMM, or Purchase Money Mortgage. With rates from 6% - 9+%, offering a 1, 2, or 3 year balloon mortgage at 5.87% would be a dream for any buyer currently in the market and looking to pull the trigger on a higher dollar property.

Obviously, it's a little more complicated than that - a seller should only consider making the loan with a substantial down payment by the buyer - IMO, no less than 15%. Besides, the buyer's credit should be STELLAR with proof of employment and income verification.

What we have to do is take lemons and make lemonade - thinking outside the box is the American way!

Any questions, contact me...