Are Las Vegas REO And Short Sale Listing Agents Discriminating Against FHA Borrowers?
With a drastic reduction in Las Vegas REO and Short Sale MLS inventory, some FHA First-Time Home Buyers are dealing with agent discrimination which is making things even more challenging on getting an offer accepted and closed in time to take advantage of the $8,000 Tax Credit . FHA and VA borrowers are often discriminated against due to the listing agents’ lack of education, experience or understanding about how these government insured mortgage programs work. What most real estate and mortgage professionals don’t realize is that the FHA has actually been updating its underwriting guidelines since 2005 for the purpose of becoming relevant again . However, as the Fed prepares us for another 10-12 million foreclosures over the next year or two, I believe that there has to be a radical shift in how buyers are treated by the almighty REO listing agent if we really want to figure out a solution to the housing mess. video credit: OC Real Estate from San Diego Home Blog ______________ Top 5 Las Vegas Mortgage Links / Articles / Questions Las Vegas First-Time Home Buyer Frequently Asked Questions Las Vegas Mortgage – How Much Can I Borrow? What Are The Current Mortgage Interest Rates? Applying For A Las Vegas Mortgage – What Documentation Do I Need? How Does The Mortgage Approval and Funding Process Work? ______________ Raintree Mortgage (Las Vegas) 9488 West Flamingo Rd. Suite 102 Las Vegas, NV 89147 | NV LIC 2511 702-432-5626 | Email ———————————————————————————– > > Fast Application —————- > > Rate Tracker ———————————————————————————– Copyright
Its interesting that you frame the reluctance of reo agents to pursue FHA offers as discrimination as if the agent is doing something wrong. Its not discrimination, its doing what is best for the client. Most reo homes are in poor condition which makes it hard to get an FHA loan. FHA escrows fall apart at a much higher rate than conventional loans and all cash offers. Thats the reality of the market right now.
On a personal note I don’t think that 3.5% is enough down for a loan anyway. Studies prove that the more a homebuyer puts down the less likely the loan will go into default. The feds are pushing easy credit once again when easy credit is what got us into this housing mess in the first place. Its like giving an alcoholic another bottle of booze to solve their problem. It doesn’t solve anything it only makes it worse.