From a reader to you. I anxiously await the story, along with a few other readers, I’m sure.
“There’s very, very little to select from in the foreclosure arena in San Francisco. However, I am currently in contract on a bank-owned property. It’s a single family home in a desirable neighborhood. We offered about 25% less than its selling price in 2005 and we got it. (Well, almost. We don’t close for another week…) I have been one of those “sideline guys” since I sold my house in 2006, and this was the opportunity that I’ve been waiting for. Financing is very tough right now, even with stellar credit. My rate is over 7%, despite having a very high income to debt ratio and 800+ FICO. That said, deals can be found now.
I suspect there will be more (better) opportunities in the future. I know a ton of friends and colleagues who are sitting on 5/1 interest-only ARMs right now who never conceived of 7-8% interest rates. Some of them are rolling over into new 5/1 (IO) ARMs; others are riding it out. I opted for a 30 year fixed so I can sleep at night.
Good luck to all.”-Dave