Private sales will become more difficult to finance.
• Email dated Dec 29, 2008 from nationwide lender: “Effective immediately, we will no longer be accepting Private Sale Agreements on ANY submissions…It is unfortunate that we need to make this decision, but the reality is that Private Sales are too often linked to property or LTV misrepresentation and we are seeing more of these now as the credit market tightens up…Our statistics gathered are now also showing a very high percentage of delinquency in deals that were funded with private sales.”
• This is in addition to other lenders that had previously limited certain products
(particularly BFS/stated income) to exclude private sales.
Article by T. Colgrave, Dominion Lending