As promised today is about finances, banking, mortgages, and that kind of thing.
Completely expected, lenders will definitely be tightening their lending standards. They were loosened over a decade ago, tightened up tremendously, then had just started to loosen up again in the last couple of years. Not horribly, but loosened. Needless to say, there will likely be no more stated income loans, bank statement loans, and no bad credit loans. For now. Please be sure to keep in touch with your lender if you are working towards a home purchase this year.
In case you haven't caught it, CALL YOUR MORTGAGE company soon if you are a home owner with a loan. Many are offering deferred payments up to a year. Be prepared to be on the phone for a long time. AND, ask if there are any penalties for doing so....don't forget to ask that!
Zillow is stopping their iBuying process immediately. Really hurting some people in the middle of the process but they are a big business and this was their why statement:
"We are incredibly sorry for the inconvenience and disruption people may experience as a result of our decision to pause home buying through Zillow Offers,” Shelton said. “This is not a decision made lightly, and was solely driven by COVID-19 health concerns and resulting market uncertainty. In addition to providing added financial support to help each seller, we are also doing our best to support our buyers in contract who can no longer purchase their home from Zillow. These are unprecedented times and we are committed to re-engaging customers through Zillow Offers as soon as it is viable to do so.”
I have to presume they don't want to get stuck with inventory in case this goes on for a long time and the market values change dramatically OR that they don't want the liability of having inventory with homes that have COVID 19 some where in them like the Princess cruise ship where they found traces 17 days after it was empty.
And, on an unusually interesting to me note....I listened to a former colleague admit that he broke the Safer at Home orders to show a house. Disappointed again, but several Realtors are. In that same informational tidbit I heard an attorney talking about a hold harmless agreement, disclosures, etc. if Sellers/Buyers insisted on showing/viewing a home.....However, this attorney also stated: "It's kind of like a hockey game, by going to it you are assuming the risk of possibly getting a puck whacked into your head" Or something like that. And, I suppose there is some validity to that.
At any rate, keeping you updated on things related to Real Estate during the CoronaVirus pandemic. Be safe.
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