Some buyers are borrowing money from relatives and taking loans out against their retirement.
In an extreme seller’s market in which homes are being bought and sold at a rapid pace and market data is being pulled ahead of time, historical data can struggle to catch up and create broad differentials between an agreed-upon price and the value, according to Mark Johnson, president of LRES Corporation.
When markets accelerate quickly, the credit risk gap widens between the agreed-upon purchase price and what the data reflects and advises loan production teams to explore avenues to understand this delta.
Full article at Housing Wire.
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