Our Real Estate Blog

California Foreclosures Offered at 12% Discount

August 25th, 2008 9:06 AM by Lehel Szucs

GREAT NEWS FOR HOME BUYERS - ONCE WE SEE THIS HIT THE MARKET PLACE (unfortunately bad for home sellers that are and are not in trouble as these homes will drag down all the home prices around them)


Under a California initiative aimed to help prospective homeowners with modest means, lenders including Wells Fargo, HomeEq, CitiMortgage, and Fannie Mae will price their foreclosed properties at 12 percent below market value.

The California Housing Finance Agency will offer 30-year loans at a fixed interest rate of 5.5 percent to first-time home buyers who purchase the foreclosed properties through the Community Stabilization Home Loan Program.

"This is a starting point to try to get some of these foreclosures off the market in some of the hardest-hit communities in the state," says Ken Giebel, marketing director for the California Housing Finance Agency. He expects more lenders to join the program.

Source: San Francisco Chronicle, Carolyn Said (07/22/08)


Posted in:General
Posted by Lehel Szucs on August 25th, 2008 9:06 AM



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