What happens to all the foreclosures with the tighter lending guidelines?

Question

I guess what I'd like to know is now that they are not doing sub prime lending and no lending based on bank statements, what will happen to the abundance of homes on the market? I would like to purchase a home, my credit is fair and I have plenty of income, just not shown on my taxes.( self employed). If lending is only out there for he outstanding group of people looking for homes, there will be an abundance of homes in less desireable areas just sitting? This seems like it will only serve the purpose of bringing those areas further down. Does anyone know what will happen with these homes?

Answer 1

Investors will pick them up.

Being self employeed does not effect your taxes, your income shoudl be there and qualify you for a house.

Answer 2

Good Luck! I am a realtor in chi, just had a case similar to yours, Good credit, self-emp, no proof of earnings- no luck. You are going to need 20% to 30% down. But wait they have to do something I figure raise interest rates bring in the investors with money than make it easier for people to get a loan. As long as there is a potential to make money they will come. Look at offshore drilling for example.

"I understand that it does not. In that case the buyer couldnt prove the actual earnings. Its a more complicated matter."