Mortgage Crisis 2.0 has begun
Over the weekend one of the agents who worked with us during the last mortgage crisis received this letter from his buyer’s lender….
Unfortunately, this Loan will not be able to fund as scheduled do (sic) to the Mortgage Industry’s NON QM market freezing and temporarily suspending all current Loan Approvals as of today (which this loan falls under ude to being a Non Warrantable property), As you are aware the world is in the middle of a global pandemic unlike anything anyone has ever seen. This is not only affecting the health of people world wide but also the global financial markets. The only option at this time is to extend the COE and hope that the Non QM market comes back quickly.
Please let us know how you would all like to move forward.”
Note from UpsideDownRealEstate.com
Non-QM or Non-Qualified Mortgage loans are for borrowers who don’t qualify with tax returns or pay stubs alone. I think of business owners with assets and income.