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rward

Please help - Morgage Loans 2011

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Please forgive me if this has been addressed recently.

 

I have done all my due dilligence in finding the right location to build, negotiating purchase of land to build. Now I realize what I should have done first. Namely finding a mortgage loan. I know the real estate market sucks in the old US of A. Nobody buying or selling, thanks to Obama IMO. I start checking on banks to make a mortgage loan. I thought that with CAFTA more banks would now be in CR.

 

My findings are that only 2-3 banks now do business in CR and worse yet NOONE IS MAKING MORTGAGE LOANS. Is this true? I have read that you now have to be a resident and even then your chances are slim and none, and if you succeed you pay outragous rates.

They have shut down loans to expats.

 

Am I missing something? Have I gone thru months of research, negotiating, etc. for nothing. If this is true it would have a tremendous effect on this website unless you have cash to pay for a home or get owner financing.

 

PLEASE I'm in shock !!! Any information is greatly appreciated.

Edited by rward

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We paid cash for our lot & the construction of our home. Our residency had not been approved at the time we decided to move ahead with the purchase & even back then (in early 2006) it was difficult to impossible to get financing. I know there are a few residents on this forum who have succeeded in getting a loan - I didn't bother once I saw the mountain of paperwork, high interest rates, & knowing a pretty sizeable (30%) down payment would be required anyways.

 

Good luck!

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I know that owning a home is part of the North American gene pool, but you might consider renting--you will be pleasantly surprised what is available, and that in general the prices are not out of sight. Owning seems to satisfy something deep in our North American souls, but renting can often be significantly better financially both short term and long term, but most of us from the North never take a serious look at how much better off we would be having all that extra cash to have fun rather than putting it into a house. Particularly if you are entering your seventh decade of life.

 

Whadya say ?? Think about it for at least five minutes ??

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Please forgive me if this has been addressed recently.

 

I have done all my due dilligence in finding the right location to build, negotiating purchase of land to build. Now I realize what I should have done first. Namely finding a mortgage loan. I know the real estate market sucks in the old US of A. Nobody buying or selling, thanks to Obama IMO. I start checking on banks to make a mortgage loan. I thought that with CAFTA more banks would now be in CR.

 

My findings are that only 2-3 banks now do business in CR and worse yet NOONE IS MAKING MORTGAGE LOANS. Is this true? I have read that you now have to be a resident and even then your chances are slim and none, and if you succeed you pay outragous rates.

They have shut down loans to expats.

 

Am I missing something? Have I gone thru months of research, negotiating, etc. for nothing. If this is true it would have a tremendous effect on this website unless you have cash to pay for a home or get owner financing.

 

PLEASE I'm in shock !!! Any information is greatly appreciated.

 

You are right, you should have done your due diligence on mortgages first, before all of the other things, because as you found out, this isn't the USA. Things are different here. Qualifications, down payments, interest rates, all are different than what you would expect to find in the US. But again, this isn't the US. And Obama has nothing to do with it, this all started under Bush's administration. But I do think that instead of fixing things, he perhaps made it worse.

 

So, now what, you find yourself back at square one? Well, you will just have to start over.

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Let's try some facts and then the opinion can fly:

 

1) Housing measured by prices peaked in the first quarter of 2006--did Bush make it peak--you chose.

 

2) Housing bottomed temporarily in the first quarter of 2009--did Obama make it bottom being in office for just a couple of months?? Chose again

 

3) Housing actually picked up modestly until the second quarter of 2010 until the various housing stimulus programs started to run out--couldn't be Bush that made it pick up a little--maybe Obama ??

 

4) Housing slid again until it made a lower bottom in the first quarter of 2011--must be Obama.

 

5) And it is grudgingly trying to claw its way up again, but it is still well below the temporary peak set by the stimulus programs.

 

6) And the biggest drop by all measures was from the first quarter of 2006 until the first quarter of 2009.

 

Do you really think that either president "caused" any of this other than the weak stimulus plan backed by Obama and watered down by the Senate so that the impact was fleeting.

 

Alright...enough facts...I'll leave all the opinions up to you.

 

 

But let's get back to CR...all that we should really learn from this situation once again is that the financial rules are different and trying to tackle everything by yourself can be very difficult, and sometimes impossible.

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I'm not sure what you mean by the comment ...."if this is true it will have an affect on this website....."

I think the help you re looking for is simple and has been brought up already, you need an equity line, a first, cash or something tied to a US (or Canadian, etc.) equity. This is not new and it is not due to any President. Sorry you did not look into how you were going to purchase your dream before you went through serious research. Hope you have another option because getting a loan in-country may take you a really long time.....if ever!

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Please forgive me if this has been addressed recently.

 

I have done all my due dilligence in finding the right location to build, negotiating purchase of land to build. Now I realize what I should have done first. Namely finding a mortgage loan. I know the real estate market sucks in the old US of A. Nobody buying or selling, thanks to Obama IMO. I start checking on banks to make a mortgage loan. I thought that with CAFTA more banks would now be in CR.

 

My findings are that only 2-3 banks now do business in CR and worse yet NOONE IS MAKING MORTGAGE LOANS. Is this true? I have read that you now have to be a resident and even then your chances are slim and none, and if you succeed you pay outragous rates.

They have shut down loans to expats.

 

Am I missing something? Have I gone thru months of research, negotiating, etc. for nothing. If this is true it would have a tremendous effect on this website unless you have cash to pay for a home or get owner financing.

 

PLEASE I'm in shock !!! Any information is greatly appreciated.

 

Please forgive my bluntness.

 

For the large majority of people relocating to CR, The starting funds and on-going income(not loans) needs to support your existence. It is not wise to borrow your way to CR.

 

Rents are cheap.

 

Jim

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You might try Banco General. We had a mortgage through a bank that was acquired by Citibank CR. Citibank CR did not want to be in the mortgage business, so the sold all their dollar mortgages to Banco General (a Panamanian bank) who wants to get into CR. They seem to have a mortgage department.

 

FYI, in 2007 I used

Ross SvebackLifeStyle Mortgages'for the way you want to live'phn - 651.426.1310fax - 651.340.7773www.LifeStyleMtgs.comLifeStyleMortgages@comcast.net

to get the mortgage at a CR bank. I have no idea if he is still in business.

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Let's try some facts and then the opinion can fly:

 

1) Housing measured by prices peaked in the first quarter of 2006--did Bush make it peak--you chose...

 

Wow! I've bought and sold 5 houses/properties in the USA and CR since 2004, and I was in the mtg business for 8 years before that. I have to say that your opinions and "facts" are not based in reality of how the mortgage supply works, and have little to do with the real causes and effects of various factors upon the real estate market.

 

One fundamental flaw in your "analysis/opinion" is that you apparently ignore the fact that lending practices became extremely lenient-dangerously so, going towards 2006. Knowing what I know, the lending underwriting guidelines and lender AND borrower fraud activities got much worse during the Bush years, and THAT was a significant cause of what happened to home prices after 2006. I guess that is Bush's fault?

 

Lending practices after 2006'ish became much more strict (back to where they were before 2003 or so), and lender and borrower fraud was substantially reduced. Was that a bad thing? I don't think so, and since you care, that happened during Obama.

 

Aside from all that, home prices go up and down, as do bond prices and consequently, so do mortgage rates and mortgage supply, and when they each approach some fairly distinct ceilings (upper levels), or floors (lower levels) there is increasing pressure for prices to go in the other direction.

 

IMO, this is a good time to buy and/or build (I am) in some areas of the US, but I'm not sure that prices in CR are quite at their floor yet-there are still too many unreasonable sellers in the marketplace.

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Every region is different of course, but all I did is look at the Case Schiller data which is the only national data on home prices in major metropolitan areas, and is the generally accepted metric on Wall Street where I work. Take it or leave it--it is still the base metric used by investors.

 

Everything you say about mortgages is correct of course, and some areas are rebounding and others are still falling.

 

And I don't care even a little bit whether it was Bush or Obama in office--neither of their administration policies had much to do with home prices except maybe at the margin during the attempted stimulus.

 

And I have no doubt there is still downward pressure on prices in CR, but just like in the US, some areas are better than others.

 

 

 

And the most important comment I think is this whole thread is from Jim--NO ONE should consider borrowing their way into CR.

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WOW......I'm not surprised that someone pointed out I should have discovered this first..I agree 100%....What I am surprised at is the number of posts that want to take this thread into a debate on US politics....While I could argue and point out things that you may or may not know that suppport my opinion I'm not going there.....My thread is NOT about US politics...Why do think I came to this forum? I'm fed up with things here and the constant potlitcal battles being fought and my desire for pura vida.

 

Up to this point I had found this site to be an informative and very friendly place. For those of you who actually helped I thank you. For those of you who want to argue politics I would just say have a nice day. I was going to join ARCR but now I'm not sure. I don't intend to post again.

Edited by rward

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rward - you are the one who brought politics into the whole thing in the first place. I really can't see what your beef is with this forum. You asked a question and quickly got a TON of information! Perhaps it wasn't what you wanted to hear - but did you expect to ask a question and only get the answers you wanted? A forum is an open discussion group and each participant has their own opinion, experience, background, and way of expressing themselves. The variety of experience and opinion is really what makes this forum so valuable.

 

And... these people are willing to spend time and energy and brain cells...... helping YOU.

 

If you can't see this, perhaps this forum is not right for you after all. I am sure that some of your feelings now are anger at the situation because it is different from how you perceived it. But please don't lash out at the very people who have helped you.

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eleanorcr - very well spoken and bang on!

and if someone doesn't appreciate what this forum is about or how it has helped countless people........ i guess they won't be much of an asset to ARCA or to this little community.

rward - take your cranky pants off and focus on some positives

 

peacecool.gif

skip

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rward, you said it yourself "Now I realize what I should have done first. Namely finding a mortgage loan".

Forum posters, who presently reside here, usually tell everyone 'live here for an extended time before buying any property' to familiarize yourself with what is ...and isn't...available here. Easily found Mortgage loans is not one of them.

If you need to borrow funds to build, please reconsider and rent.

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