There's Room to Negotiate Home Purchase, but Not on the Mortgage
Remember the days when the buyers outbid each other and forgo inspections to get the place of their dreams. Now, sellers are the ones making concessions.
The buyers are in the driver's seat, but not completely. The real estate boom was driven partly by lenders' willingness to give money to people with blemished credit or with no money for down payments.
Exotic and nontraditional loans, such as adjustable-rate mortgages with low introductory interest rates that increased dramatically after two or three years, became popular.
With foreclosures now at a record high, banks are returning to the days where once again getting a loan means having good credit.
Real estate agents and analysts say those buyers who do qualify for mortgages should be prepared to stay in their homes for a few years if they expect to make money from their investment.
