Comments on: Subprime mortgages in Charlottesville http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/ Tracking Charlottesville's Real Estate Market since 2005 Sun, 12 Feb 2012 23:56:00 +0000 hourly 1 http://wordpress.org/?v= By: Record foreclosures in the Charlottesville area? : Real Central VA http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-8175 Record foreclosures in the Charlottesville area? : Real Central VA Mon, 28 May 2007 01:28:43 +0000 http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-8175 [...] I wrote a story a couple of months ago looking at the impact the subprime market will have on the Ch..., as well as here. (even more on subprime) During the first three months of 2007, there were 128 notices of foreclosure filed with The Daily Progress, a 27 percent increase over the same period in 2006. [...] [...] I wrote a story a couple of months ago looking at the impact the subprime market will have on the Ch…, as well as here. (even more on subprime) During the first three months of 2007, there were 128 notices of foreclosure filed with The Daily Progress, a 27 percent increase over the same period in 2006. [...]

]]> By: Julie Emery http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3875 Julie Emery Fri, 09 Mar 2007 14:13:51 +0000 http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3875 Jim, Great post! Like you I've been wondering how to gauge the likely impact on our local market. I definitely saw a few deals last year where I didn't feel comfortable about the buyer's long term ability to pay the mortgage. But I've learned that trying to talk people out of doing what they want to do is mostly futile! The data provided here isn't quite as bad as I'd feared so I'm hopeful! Thanks! Julie Jim,

Great post! Like you I’ve been wondering how to gauge the likely impact on our local market. I definitely saw a few deals last year where I didn’t feel comfortable about the buyer’s long term ability to pay the mortgage. But I’ve learned that trying to talk people out of doing what they want to do is mostly futile!
The data provided here isn’t quite as bad as I’d feared so I’m hopeful!
Thanks! Julie

]]> By: Jim Duncan http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3749 Jim Duncan Wed, 07 Mar 2007 17:06:15 +0000 http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3749 Regarding tightening standards - I think that that is a "good thing." Many (most?)of these subprime loans were probably written to folks who simply had no business buying in the first place. Interesting that you mention the local condo market - I think that the traditional condos won't be so affected, but some of the condo conversions very well may be. Regarding tightening standards – I think that that is a “good thing.” Many (most?)of these subprime loans were probably written to folks who simply had no business buying in the first place.

Interesting that you mention the local condo market – I think that the traditional condos won’t be so affected, but some of the condo conversions very well may be.

]]> By: Jim Duncan http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3747 Jim Duncan Wed, 07 Mar 2007 17:03:43 +0000 http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3747 Is that so unique? Is that so unique?

]]> By: JR Jackson http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3746 JR Jackson Wed, 07 Mar 2007 16:58:44 +0000 http://www.realcentralva.com/2007/03/07/subprime-mortgages-in-charlottesville/#comment-3746 Well this is certainly a unique sentiment from a Realtor! "I find that by preparing oneself, mentally and financially, for a “worst-case-scenario” one is both happily surprised and able to cope when the outcome is not so bad." In any event, I don't think the impact is going to be devastating to the market in that many subprime loans are cash-out transactions and such. HOWEVER, what isn't being as widely reported are the growing limitations and stricter credit standards being applied to first-time homebuyers with respect to FICO, documentation, reserves, etc. (While they may not meet the typical subprime profile, many do have thin credit files, higher debt, lower incomes and less savings, resulting in 600-range FICOs.) That's where the impact could be felt, and locally you'd have to think the condo market would be where the worst of it hits. Well this is certainly a unique sentiment from a Realtor!
“I find that by preparing oneself, mentally and financially, for a “worst-case-scenario” one is both happily surprised and able to cope when the outcome is not so bad.”
In any event, I don’t think the impact is going to be devastating to the market in that many subprime loans are cash-out transactions and such. HOWEVER, what isn’t being as widely reported are the growing limitations and stricter credit standards being applied to first-time homebuyers with respect to FICO, documentation, reserves, etc. (While they may not meet the typical subprime profile, many do have thin credit files, higher debt, lower incomes and less savings, resulting in 600-range FICOs.) That’s where the impact could be felt, and locally you’d have to think the condo market would be where the worst of it hits.

]]>