Sarasota Luxury Homes Are A Bargain for Those with Cash
Posted April 27, 2011
 The sub-prime mortgage crisis that has impacted the Florida housing market has had an effect on an unexpected sector of the real estate market - Sarasota luxury homes and condominiums.
In the past, banks and mortgage companies packaged up mortgages they had closed and sold them off as investment portfolios, but there are currently few investors willing to buy such packaged mortgage portfolios.
Thus, mortgage providers that normally write "jumbo" loans (mortgages above the limits set by Fannie Mae, Freddie Mac and Ginnie Mae) are now having to keep those
loans on their own books but they are reluctant to add to their current in-house mortgage portfolios.
To compensate themselves for accepting this extra risk, banks are now charging higher interest rates on the types of "jumbo" loans normally written for luxury home and condominium sales. This reluctance is having a depressing effect on the
sale of luxury homes and condos throughout the United States.
According to Rich Stover, a Sarasota luxury homes specialist, the problem is particularly troublesome in Sarasota because there is a large inventory of Sarasota luxury waterfront and golf course homes and condos in the $1 million and up price range for sale.
After having held out out hoping for a quicker recovery, Sarasota luxury home and condominium owners who need or want to sell their elegant homes and condos have finally begun to
understand their situation, and, they have reduced prices to more realistic levels.
As a result, Sarasota luxury home buyers with cash on hand
are in the enviable position of being able right now to purchase a Sarasota area luxury home or condominium at really attractive prices.
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