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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Karen Lawrence who wrote (476)	8/29/2001 7:50:31 AM
From: Timetobuy	Respond to of 306849

Maybe it's new to her in the last 6 years, but I've heard of that happening many times in previous economic downturns. It's a sign that prices are softening. The lender will only loan a percent of the appraisal, but the buyer can come in with the difference in price in cash if he still wants the house. If this never happened, the lender wouldn't insist on an appraisal. This very thing prevented many people from refinancing houses in previous downturns causing foreclosures when people couldn't make their current payments even when interest rates were declining.

To: Karen Lawrence who wrote (476)	8/29/2001 12:44:25 PM
From: Alan Smithee	Read Replies (4) \| Respond to of 306849

I just heard a story yesterday about a real estate transaction in the Seattle area. Seems a guy bought a house in a neighborhood near Lake Washington a while back for $900,000ish. About 8 months ago, he had an offer from someone for $1.5 mil. Things turned south as we all know. The buyer walked from the deal, willing to forfeit something like $100,000 rather than close on the house. Real estate market starting to soften I guess.