There is some news that in Scottsboro, AL we will be getting a 10 movie screen theater, and the building will be 24,000 Square Feet located in the Village on Broad Street. Construction will begin in the next 45 days, and completion date is expected to be May 2008. This is exciting news for Scottsboro, AL. Right now we have a old theater with 2 screens.
Hello Everyone!
There’s no doubt that you have heard about the current “Crisis” in the mortgage market. So that you’ll be better informed, I’ve summarized some of the information passed to me from a class I attended.
The problem began when delinquencies for subprime mortgages began to increase over the last several months, and real estate values began to drop in some markets.
The majority of all mortgage loans are sold after they are originated and placed into mortgage backed securities. The securities are “stripped” and resold into CMO’s (collateralized mortgage obligations). This is good as it puts liquidity in the market which allows lenders all over to offer loans at low rates and good terms for the borrower that they would not otherwise be able to offer. The bad thing is that if there is ever a problem with the liquidity (the ability to sell) of those CMO’s, then the negative effect is immediate and global.
Currently, investors are not buying these CMO’s secured by ALT-A and subprime loans and lenders that do non-agency type securities do not have the cash to fund more. That is what all the bad news is about.
For the mortgage industry, we expect the liquidity problem to affect the ALT-A, interest only, low documentation, piggy back and other types of expanded criteria type loans. For those products, we expect that lenders will see underwriting tightened and rates increased in the coming weeks. (We have heard from reliable sources that at least one very large national lender has been accused of changing underwriting guidelines and denying loans that were previously approved in order to reduce their exposure to this problem.)
Hope this information will be helpful!
It has been really hot & dry in Alabama. Everything is dying, and everyone is having to conserve water. This year has really been bad. The past few days we have broke high record temperatures being at 104 degrees! Wow!
Real Estate can be exhausting sometimes. People are always wanting free information from you, especially friends and family. I got frustrated today when I found out that someone I know called me on Friday asking me all kinds of questions about Real Estate, and then find out today they listed with someone else. Go Figure! I get tired of being the local person who gives out free information, I am going to stop doing that. So that is what my exhausting and frustrating day was like for a Realtor. I really believe people think I do this for my health.
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