Saturday, September 6, 2008

Bye-Bye Jumbo Mortgages

From The Columbian:

Realtor Alex Fox is staging a one-man parade of homes that starts today at an upscale Woodland housing subdivision he’s been marketing for more than a year.Fox said he has spent more than $100,000 to decorate and furnish six of the homes for his event in the River’s Mist subdivision off Lewis River Road east of Woodland. He is calling the showcase “The Parade of Open Homes, presented by Foxx Enterprises Inc.,” a business Fox has set up to sell the custom-built houses. Battle Ground-based Seppalo Homes and Manor Homes are the subdivision’s builders.The show homes are priced from $300,000 to $1.05 million. Fox has personally supervised the homes’ interior

The homes featured in the event are among 13 houses that have been built in the 40-lot subdivision. River’s Mist is off Lewis River Road, about two miles east of Interstate 5 off Exit 21 in Woodland. The parade is an effort to overcome changes in the lending market earlier this year that put several of the homes back up for sale.“The market changed and lending programs crashed,” said Fox, also an agent with Re/Max Equity Group Inc. in Vancouver. The mortgage lending debacle did away with jumbo mortgage loans, a product Fox had counted on to finance prospective buyers of the nine high-end
homes his event will feature. Six months ago, he had buyers lined up and ready to go.“But the sales didn’t close,” Fox said.

I actually feel sorry for how much work Realtors put into failed transactions. All the work without a paycheck.