Reply #15: Not a progressive thought.... [View All]

[earthlover]

Seller carrybacks are extremely rare. The market for years has been a sellers market. Even now, few sellers are willing to carry back a second mortgage for a buyer. A second mortgage is more risky, and is only paid during a foreclosure AFTER the first mortgage is satisfied (that is why it is called a SECOND mortgage!). Anyhow, trust me, it doesn't happen very often. Sellers are more likely to carry back a FIRST mortgage and bypass the bank. They at least have more control in this scenario.

As to seller concessions...they only "inflate" sale prices when you have a sellers market. If it is a buyers market, they are pretty much assumed! Right now, most of your first time home buyers are short of cash. They want as little down payment as possible, and a good percentage want their closing costs absorbed as part of the deal. If you take a hard line and say no to that, you basically eliminate most of your buyers in the price ranges dominated by first time home buyers.

So as much as you may want to huff and puff about buyers getting into houses with little down....fact of the matter is, if you eliminate this you would provoke a housing depression!!!! And the buyers you would hurt the MOST would be those with the least money. Not exactly a progressive thought....