The Anna Maria Island Sun Newspaper

Vol. 14 No. 44 - August 27, 2014

REAL ESTATE

Making it easier to get loans

 

We’re back in the "be careful what you wish for realm" and it’s something that’s been coming along for a while now. If you’ve been turned down for credit cards, car loans or home financing because of the tight lending standards put in place after the financial crisis, a door to the credit kingdom may have opened a little.

For a while now lending of all types, including mortgages, has become a little easier, especially for individuals who may have had judgments against them or just delinquent accounts. Recently, Fair Isaac Corp., which provides credit scoring analysis for banks, credit card companies and all lenders, announced that it will stop including in its FICO credit score calculations any record of a consumer failing to pay a bill if that bill has been paid or settled with a collection agency. In addition, less weight will be calculated to unpaid medical bills that are with a collection agency.

The intention is to boost lending while still keeping lending risk low for individuals who may be back on track to improving their credit but still suffer from low credit scores. For example, frequently credit reports could reflect bad debts for as long as seven years, even if the balance was paid off and other debts are up to date. Also, unpaid medical bills could end up as a default during the time an individual is still negotiation with an insurance company and not even be aware of it.

Although the medical defaults will target a limited number of individuals, the length of time other debts remain on a credit report being reduced will be a considerable help to many more. FICO credit scores are used by 90 percent of consumer and mortgage lenders and a low score significantly impacts not only your ability to get credit but also your interest rate. Borrowers with credit scores between 760 and 850 get mortgage interest rates of approximately 3.82 percent on a fixed-rate, 30-year mortgage as opposed to borrowers with a 759 score, who will be offered approximately a 4.05 percent rate. This will result in thousands of dollars more in interest paid over the life of the mortgage.

So, that’s the upside of making credit easier for consumers, but there is also a downside. Downgrading standards could bring people into the credit market and home purchasing market who should not be there.

With fewer loans falling into foreclosure at the lowest rate in eight years according to the Mortgage Bankers Association, lenders are again enticing homeowners into home equity loans or lines of credit. Generally home equity loans are for improvements in existing homes, but buyers are also using this method to piggyback on to new home mortgage financing.

During the first quarter of the year, home equity lines of credit were up 9 percent from last year, and interest rates dropped from 5.16 percent on average to 5.01 percent on average. It’s nice that this is happening but are we headed down the bubble road again? You’re not always doing someone a favor stretching the limits of credit, especially to marginal burrowers.

The kingdom of lending is opening its arms again to those of us who were somewhat delinquent, but the power needs to be used with a sharp knife not a mighty sword. Please don’t make me resurrect that horrible term “easy credit” again.

Real Estate Transactions
Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

06/06/14 625,000 625,000 317 N. Bay Blvd. 1777 57x110 2 Br/2 Ba SFR
06/30/14 995,000 995,000 219 Willow Ave. 1575 3 Br/2 Ba SFR
06/16/14 899,000 868,000 700 Jacaranda Rd . 1900 50x150 4 Br/2.5 Ba SFR
06/23/14 745,000 730,000 225 Gladiolus St . 1893 71x102 3 Br/2 Ba SFR
06/27/14 699,000 675,000 746 Jacaranda Rd. 2151 50x100 2 Br/2 Ba SFR
06/02/14 759,000 680,000 305 Poinsettia Rd. 1296 52x112 3 Br/2 Ba SFR
06/30/14 995,000 925,000 526 Kumquat Dr. 2480 79x126 4 Br/2.5 Ba SFR
06/30/14 799,900 772,500 209 Chilson Ave. 1892 72x148 2 Br/2 Ba SFR
06/16/14 619,000 610,000 302 Spring Ave. 1484 52x73 3 Br/3 Ba SFR
06/19/14 477,777 420,000 711 N. Bay Blvd. A 1512 54x100 4 Br/2 Ba SFR
06/18/14 2,299,999 2,000,000 785 N. Shore Dr. 3478 4 Br/4 Ba SFR
06/06/14 499,000 400,000 415 Pine Ave. 3190 52x145 5 Br/4 Ba Dup
06/19/14 477,777 420,000 711 N. Bay Blvd. A 1512 54x100 4 Br/2 Ba Dup
06/06/14 279,000 272,000 522 Pine Ave. 4d 822 2 Br/1 Ba Condo
06/06/14 485,000 440,000 105 Beach Ave. 50x100 Vac.
06/20/14 599,000 550,000 106 Park Ave. 75x100 Vac.

Bradenton Beach

06/06/14 295,000 250,000 108 12th St. N. # A 1400 54x100 2 Br/3 Ba Dup
06/25/14 245,000 235,000 1801 Gulf Dr. N. 232 691 1Br/1 Ba Condo
06/20/14 129,000 129,100 2601 Gulf Dr. N. 614 692 2 Ba/1.5 Ba Mobile
06/18/14 124,900 122,500 2601 Gulf Dr. N. 210 494 2 Ba/1.5 Ba Mobile

Cortez

06/02/14 279,900 270,000 4204 126th St. W. 503 1244 2 Br/2 Ba Condo
06/30/14 689,000 656,000 4146 Marina Ct. 411 2604 3 Br/2 Ba Condo
06/13/14 189,900 185,000 9604 Cortez Rd . W. 326 1218 2 Br/2 Ba Condo

Holmes Beach

06/13/14 999,000 950,000 205 69th St. 2000 35x100 4 Br/4 Ba SFR
06/30/14 599,000 568,000 209 81st St. 1591 3 Br/2.5 Ba SFR
06/30/14 875,000 817,500 109 81st St. 1789 64x80 3 Br/2.5 Ba SFR
06/06/14 685,000 680,000 530 67th St . 1286 80x113 3 Br/2 Ba SFR
06/27/14 799,000 725,000 202 75th St. B 1967 4 Br/2.5 Ba SFR
06/27/14 995,000 806,400 529 72nd St. 2076 105x112 3 Br/2 Ba SFR
06/30/14 890,000 850,000 518 72nd St. 1941 95x117 3 Br/3 Ba SFR
06/16/14 679,000 679,000 207 73rd St. 1600 76x105 3 Br/2 Ba SFR
06/03/14 649,000 632,500 302 60th St. B 1200 3 Br/2 Ba SFR
06/03/14 698,000 632,500 302 60th St. A 1500 4 Br/3 Ba SFR
06/18/14 869,000 835,000 314 60th St. 2356 4 Br/3 Ba SFR
06/12/14 237,900 227,500 3607 E. Bay Dr. 207 980 2 Br/2 Ba Condo
06/13/14 429,900 425,000 6500 Flotilla Dr. 173 1622 3 Br/2 Ba Condo
06/16/14 312,000 297,500 3705 E. Bay Dr. 106 1121 2 Br/2 Ba Condo
06/24/14 259,900 245,000 4307 Gulf Dr. 108 1027 2 Br/2 Ba Condo
06/30/14 384,900 384,900 4101 Gulf Dr. 1 2613 50x100 Dup, REO
06/19/14 49,000 50,000 5337 Gulf Dr. 300 4886 82x118 Comm.

Source: Manatee County Property Appraiser’s Office


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